Question Details

GDP can be computed as the sum of



1) Two methods of measuring GDP are
A) the income approach and the expenditure approach.
B) the income approach and the receipts approach.
C) the goods approach and the services approach.
D) the saving approach and the investment approach.
2) GDP can be computed as the sum of
A) all sales that have taken place in an economy over a period of time.
B) the total expenditures of consumers and business over a period of time.
C) the total expenditures of consumption, investment, and government expenditure on goods
and services over a period of time.
D) the total expenditures of consumption, investment, government expenditure on goods and
services, and net exports over a period of time.
3) GDP using the expenditure approach equals the sum of personal consumption expenditures
plus
A) gross private investment.
B) gross private investment plus government expenditure on goods and services.
C) gross private investment plus government expenditure on goods and services minus
imports of goods and services.
D) gross private investment plus government expenditure on goods and services plus net
exports of goods and services.
4) The expenditure approach measures GDP by adding
A) compensation of employees, rental income, corporate profits, net interest, and proprietorsʹ
income.
B) compensation of employees, rental income, corporate profits, net interest, proprietorsʹ
income, subsidies paid by the government, indirect taxes paid, and depreciation.
C) compensation of employees, rental income, corporate profits, net interest, proprietorsʹ
income, indirect taxes paid, and depreciation and subtracting subsidies paid by the
government.
D) consumption expenditure, gross private domestic investment, net exports of goods and
services, and government expenditure on goods and services.

5) The four categories of expenditure used by the expenditure approach method to calculate GDP
are
A) consumption expenditure, taxes, saving and investment.
B) consumption expenditure, investment, net imports and saving.
C) saving, taxes, government expenditure and investment.
D) consumption expenditure, investment, government expenditure and net exports.



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