27–41
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written consent of McGraw-Hill Education.
Topic:
The Income Approach
Type: Table
80.
Proprietors’ Income
$20
Compensation of Employees
300
Consumption of Fixed Capital
15
Gross Investment
80
Rents
10
Interest
20
Exports
30
Imports
50
Corporate Profits
25
Taxes on Production and Imports
5
Net Foreign Factor Income
0
Statistical Discrepancy
0
Refer to the accompanying data. All figures are in billions of dollars. Net domestic product
is
81. Corporate profits are found by
27–42
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written consent of McGraw-Hill Education.
profits.
C. subtracting corporate income taxes from the sum of dividends and undistributed
corporate profits.
D. summing dividends, undistributed corporate profits, and proprietors’ income.
82.
Personal Taxes
$23
Net Private Domestic Investment
33
Net Exports
6
National Income
278
U.S. Exports
20
Gross Private Domestic Investment
56
Disposable Income
220
Taxes on Production and Imports
32
Undistributed Corporate Profits
15
Proprietors’ Income
45
Net Foreign Factor Income
0
Statistical Discrepancy
0
Refer to the accompanying national income data. All figures are in billions of dollars.
Consumption of fixed capital (private sector) is
27–43
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
incomes that were derived from producing the economys output of goods and services.
Test Bank: I
Topic:
The Income Approach
Type: Table
83.
Personal Taxes
$23
Net Private Domestic Investment
33
Net Exports
6
National Income
278
U.S. Exports
20
Gross Private Domestic Investment
56
Disposable Income
220
Taxes on Production and Imports
32
Undistributed Corporate Profits
15
Proprietors’ Income
45
Net Foreign Factor Income
0
Statistical Discrepancy
0
Refer to the accompanying national income data. All figures are in billions of dollars. U.S.
imports are
84.
27–44
Personal Taxes
$23
Net Private Domestic Investment
33
Net Exports
6
National Income
278
U.S. Exports
20
Gross Private Domestic Investment
56
Disposable Income
220
Taxes on Production and Imports
32
Undistributed Corporate Profits
15
Proprietors’ Income
45
Net Foreign Factor Income
0
Statistical Discrepancy
0
Refer to the accompanying national income data. All figures are in billions of dollars.
Personal consumption expenditures
85.
Personal Taxes
$23
Net Private Domestic Investment
33
Net Exports
6
National Income
278
U.S. Exports
20
Gross Private Domestic Investment
56
Disposable Income
220
Taxes on Production and Imports
32
27–45
Undistributed Corporate Profits
15
Proprietors’ Income
45
Net Foreign Factor Income
0
Statistical Discrepancy
0
Refer to the accompanying national income data. All figures are in billions of dollars. The
gross domestic product is
86.
Personal Taxes
$23
Net Private Domestic Investment
33
Net Exports
6
National Income
278
U.S. Exports
20
Gross Private Domestic Investment
56
Disposable Income
220
Taxes on Production and Imports
32
Undistributed Corporate Profits
15
Proprietors’ Income
45
Net Foreign Factor Income
0
Statistical Discrepancy
0
Refer to the accompanying national income data. All figures are in billions of dollars.
Personal income is
87. Consumption of fixed capital (depreciation) can be determined by
88. If net foreign factor income is zero and there are no statistical discrepancies, the sum of
national income and the consumption of fixed capital equals
27–47
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Understand
Diff icu lty:
02 Medium
Learning Objective: 27-04 Describe the relationships among GDP, net domestic product,
national income, personal income, and disposable income.
Test Bank: I
Topic:
Other National Accounts
89. If there are no statistical discrepancies, NDP (net domestic product) is
90. Which of the following best defines national income?
91. The total amount of income earned by U.S. resource suppliers in a year, plus taxes on
production and imports, is measured by
27–48
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written consent of McGraw-Hill Education.
C. personal income.
D. disposable income.
92. The largest component of national income is
93. National income measures
94. If personal income exceeds national income in a particular year, we can conclude that
95. Which of the following best defines disposable income?
96. Which of the following is the smallest dollar amount in the United States?
27–50
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
AACSB: Knowledge Application
A c c e s s i b i l i t y :
Keyboard Navigation
Blooms: Understand
Dif fic ul ty:
02 Medium
Learning Objective: 27-04 Describe the relationships among GDP, net domestic product,
national income, personal income, and disposable income.
Test Bank: I
Topic:
Other National Accounts
97. Transfer payments are included in
98. The amount of after-tax income received by households is measured by
99. In a typical year, which of the following measures of aggregate output and income is
likely to be the smallest?
27–51
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
A. gross domestic product
B. national income
C.
disposable income
D. personal income
100. What is the difference between national income and personal income?
101. Nominal GDP is
27–52
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Dif fic ul ty:
02 Medium
Learning Objective: 27-05 Discuss the nature and function of a GDP price index and
describe the difference between nominal GDP and real GDP.
Test Bank: I
Topic:
Nominal GDP versus Real GDP
102. Real GDP refers to
103. Real GDP measures
104. Nominal GDP is adjusted for price changes through the use of
27–53
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written consent of McGraw-Hill Education.
D. exchange rates.
105. In the second quarter (three-month period) of 2001, U.S. nominal GDP increased but
U.S. real GDP declined. We can conclude that
106. A price index is
107. If real GDP falls from one period to another, we can conclude that
108.
Year
Units of Output
Price of Bagel Per Unit
Price Index (Year 1 = 100)
1
10
$10
100
2
12
20
200
3
15
30
300
4
20
40
400
The table contains data for a hypothetical single-product economy. Nominal GDP in year 3
is
27–55
109.
Year
Units of Output
Price of Bagel Per Unit
Price Index (Year 1 = 100)
1
10
$10
100
2
12
20
200
3
15
30
300
4
20
40
400
The table contains data for a hypothetical single-product economy. Real GDP in year 3 is
110.
Year
Units of Output
Price of Bagel Per Unit
Price Index (Year 1 = 100)
1
10
$10
100
2
12
20
200
3
15
30
300
4
20
40
400
The table contains data for a hypothetical single-product economy. Nominal GDP in year 4
is
27–56
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written consent of McGraw-Hill Education.
A. $320.
B. $450.
C. $225.
D.
$800.
111.
Year
Units of Output
Price of Bagel Per Unit
Price Index (Year 1 = 100)
1
10
$10
100
2
12
20
200
3
15
30
300
4
20
40
400
The table contains data for a hypothetical single-product economy. Real GDP in year 4 is
112. If real GDP in a particular year is $80 billion and nominal GDP is $240 billion, the
GDP price index for that year is
113. Suppose a nation‘s 2010 nominal GDP was $972 billion and the general price index
was 90. To make the 2010 GDP comparable with the base year GDP, the 2010 GDP must
be
114. Suppose nominal GDP in 2009 was $100 billion and in 2010 it was $260 billion. The
general price index in 2009 was 100 and in 2010 it was 180. Between 2009 and 2010, the
real GDP rose by approximately
27–58
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Understand
Dif fic ul ty:
02 Medium
Learning Objective: 27-05 Discuss the nature and function of a GDP price index and
describe the difference between nominal GDP and real GDP.
Test Bank: I
Topic:
Nominal GDP versus Real GDP
115. Historically, real GDP has increased less rapidly than nominal GDP because
116. Suppose nominal GDP was $360 billion in 1990 and $450 billion in 2000. The
appropriate price index (1985 = 100) was 120 in 1990 and 125 in 2000. Between 1990 and
2000, real GDP
117.
Year
Units of Output
Price Per Unit
1
3
$3
2
4
4
3
6
5
4
7
7
5
8
8
Assume an economy that makes only one product and that year 3 is the base year. Output
and price data for a five-year period are shown in the table. The price index for year 1 is
118.
Year
Units of Output
Price Per Unit
1
3
$3
2
4
4
3
6
5
4
7
7
5
8
8
Assume an economy that makes only one product and that year 3 is the base year. Output
and price data for a five-year period are shown in the table. The nominal GDP for year 4 is
27–60
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written consent of McGraw-Hill Education.
C. $40.
D. $35.
119.
Year
Units of Output
Price Per Unit
1
3
$3
2
4
4
3
6
5
4
7
7
5
8
8
Assume an economy that makes only one product and that year 3 is the base year. Output
and price data for a five-year period are shown in the table. Real GDP for year 5 is
120.