Chapter 07 – Measuring Domestic Output and National Income
55. Refer to the above data. United States exports are:
57. Refer to the above data. The amount of private capital used up, or depreciation, is:
Chapter 07 – Measuring Domestic Output and National Income
58. National income is the sum of employee compensation, profits, and the following items,
except:
59. “Corporate profits” in the national income accounts comprises the following, except:
60. “Net foreign factor income” in the national income accounts refers to the difference
between:
Chapter 07 – Measuring Domestic Output and National Income
61. Depreciation is all of the following, except:
(The following national income data are in billions of dollars.)
62. Refer to the above data. Gross domestic product is:
Chapter 07 – Measuring Domestic Output and National Income
63. Refer to the above data. Net domestic product is:
64. Refer to the above data. National income is:
65. Refer to the above data. Personal income is:
Chapter 07 – Measuring Domestic Output and National Income
66. Refer to the above data. Disposable income is:
67. The following are incomes earned but not received by the nation’s households, except:
Chapter 07 – Measuring Domestic Output and National Income
(The following national income statistics are in billions of dollars.)
Chapter 07 – Measuring Domestic Output and National Income
69. Refer to the above data. Net domestic product is:
70. Refer to the above data. National income is:
71. Refer to the above data. Personal income is:
Chapter 07 – Measuring Domestic Output and National Income
72. Refer to the above data. Disposable income is:
(The following national income data for an economy are in billions of dollars.)
73. Refer to the above data. The expenditures approach to GDP calculation can be shown by
adding:
Chapter 07 – Measuring Domestic Output and National Income
74. Refer to the above data. The income or allocation approach to national income calculation
can be shown by adding items:
75. Refer to the above data. Net exports are equal to:
Chapter 07 – Measuring Domestic Output and National Income
76. Refer to the above data. Gross private domestic investment is equal to what percentage of
GDP?
77. Refer to the above data. Corporate profits are equal to:
Chapter 07 – Measuring Domestic Output and National Income
80. Refer to the above data. Personal income is equal to:
81. Which of the following represents an income flow in the circular flow of domestic output
and national income?
Chapter 07 – Measuring Domestic Output and National Income
82. That portion of corporate profits which is included in personal income is:
83. Personal income (PI) refers to all income:
84. Personal income will equal disposable income when:
Chapter 07 – Measuring Domestic Output and National Income
85. The total income earned through the use of resources, plus taxes on production and on
imports, equals:
86. The amount of new output produced per year for both consumption and additions to
capital stock is measured by:
87. If the price index is 130, this means that:
Chapter 07 – Measuring Domestic Output and National Income
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88. The GDP deflator or price index equals:
89. “GDP price index” measures changes in the:
Chapter 07 – Measuring Domestic Output and National Income
90. Refer to the above table. The base year of the price index given in the table is:
91. Refer to the above table. Nominal GDP rises faster than real GDP between years:
92. Refer to the above table. If output increases by 8% from Year 5 to Year 6, then in that
period:
Chapter 07 – Measuring Domestic Output and National Income
93. The base year is 2005, and the GDP price index in 2004 is 92.0. This implies that the:
94. If the price index is rising over a period of time, then the real GDP in years:
95. If prices increased, we need to adjust nominal GDP values to give us a measure of GDP
for various years in constant-dollar terms. We refer to that adjustment as:
Chapter 07 – Measuring Domestic Output and National Income
96. Consumers in an economy buy only three general types of products, A, B, and C. Changes
in the prices of these items over a period are shown below:
Using year 1 as the base year, the country’s price index in year 2 is:
97. In an economy, the total expenditures for a market basket of goods in year 1 (the base
year) was $5,000 billion. In year 2, the total expenditure for the same market basket of goods
was $5,500 billion. What was the GDP price index for the economy in year 2?
Chapter 07 – Measuring Domestic Output and National Income
(GDP figures are in billions of dollars.)
98. Refer to the above table. What is the GDP price index in Year 1?
99. Refer to the above table. What was real GDP in Year 2?
Chapter 07 – Measuring Domestic Output and National Income
100. A nation buys three products, A, B, and C. Over two years, the prices of these products
change as follows:
Over the period referred to, the nation’s nominal income increased by 2 percent. The nation’s
real income changed by approximately:
101. GDP measured using current prices is called:
Chapter 07 – Measuring Domestic Output and National Income
Price and Output data over a five-year period for an economy that produces only one good.
Assume that year 2 is the base year.
102. Refer to the above data. If year 2 is the base year, the price index for year 3 is: