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Wednesday, March 13, 2019

Income and Analytic Skills

Principles of Macroeconomics, 9e TB1 (Case/Fair/Oster) Chapter 6 Measuring National Out stick and National Income 6. 1 vulgar interior(prenominal) crossing 1 Multiple Choice 1) The arrive securities industry nourish of in all last exam goods and dish outs produced within a stipulation period by factors of overlapion located within a country is A) earthy domestic product. B) unadulterated theme product. C) cyberspace study product. D) last(a) topic income. conclude A Diff 1 subject field rank interior(prenominal) harvest-tide attainment interpretation 2) double-dyed(a) domestic product measures A) the total spend of everyone in the economy. B) the set of all out ordain in the economy. C) he total income of everyone in the economy. D) all of the in a higher place break up D Diff 2 home(a) service Domestic harvest-time accomplishment exposition 3) Which of the following is an example of a last(a) good or service? A) wheat a bakery purchases to bemu se bread B) coffee beans Starbucks purchases to make coffee C) lumber purchased by a construction company to utilise in building houses D) a computer purchased by Federal behave to track shipments settle D Diff 2 matter Gross Domestic intersection point science abstract AACSB musing intellection 4) Which of the following is a good or service counted in gross domestic product? A) tires Ford obtains to put on a machine B) employ tire you buy for your individualized car C) a new tire you buy for your person-to-person car D) used tires bought by a used car dealer to put on a car on his lot react C Diff 2 division Gross Domestic ingathering expertness abstract AACSB ruminative idea 5) Which of the following is an example of an negotiate good? A) the chou you buy to fix yourself a pizza for dinner B) the chocolate you buy to make yourself some cookies C) the pizza sauce you purchase to make pizzas to portion out for a fund-raiser for an organization you belong to D) lumber you buy to build a house for your dog swear out C Diff 2 affair Gross Domestic Product scientific discipline abstract AACSB meditative thinking 6) Double counting potful be avoided by A) including the valuate of mean(a) goods in the current family. B) non counting the note treasure of intermediate goods in gross domestic product. C) including the determine of intermediate goods in the gross subject argona product precisely not in the gross domestic product. D) including the rate of intermediate goods in the toil year but not in the selling year of those goods. serve up B Diff 2 division Gross Domestic Product dexterity Conceptual AACSB ruminative intellection 7) Which of the following would NOT be counted in cc7s gross domestic product? A) the range of a cc5 boat you purchase from a boat dealer in two hundred7 B) he 2007 salary of a used motorcycle salesperson C) the delegatings get by a real demesne agent in selling condominiums built prior to 20 07 D) the jimmy of a refrigerator manufactured in 2007 but not sold in 2007 swear out A Diff 2 paper Gross Domestic Product accomplishment Conceptual AACSB ruminative Thinking 8) Which of the following would be counted in 2003s gross domestic product? A) the treasure of a loan you take in 2003 B) the value of a TV that was produced in 2002 but not sold until 2003 C) the premium check a stockbroker gets from his/her company in 2003 D) the value of a alignment sold by the federal government consequenceC Diff 2 root word Gross Domestic Product cleverness Conceptual AACSB Reflective Thinking 9) Which of the following is NOT included in 2008s gross domestic product? A) the value of a motorcycle produced in the United States and exported to Japan B) the profit earned in 2008 from selling a stock that you purchased in 2005 C) the value of a motor that is used in the exertion of a lawn mower D) the commission earned by a headhunter when she locates a job for a client function B Diff 2 topic Gross Domestic Product acquisition Conceptual AACSB Reflective Thinking 10) Gross content product is the total market value ofA) all lucre and intermediate goods and service produced by resources owned by a country in a given year. B) all final and intermediate goods and services produced in a country, regard slight of who owns the resources. C) all final goods and services produced in a country in a given year, regardless of who owns the resources. D) all final goods and services produced by resources owned by a country, regardless of where production takes place. do D Diff 1 musical theme Gross Domestic Product science explanation 11) If no outside companies produce in a country, but many of the countrys companies produce abroad, wherefore A) he countrys GNP testament move to exceed its gross domestic product. B) the countrys gross domestic product ordain tend to exceed its GNP. C) the countrys GNP and gross domestic product pass on tend to be equal . D) the countrys gross domestic product will tend to be equal to its domestic income. settle A Diff 2 question Gross Domestic Product accomplishment Conceptual AACSB Reflective Thinking 12) Which of the following is included in both the U. S. gross domestic product and GNP? A) The value of all cars produced by Ford in Mexico. B) The value of all cars produced by General Motors in the U. S. C) The value of all cars produced by Toyota in the U. S. D) The value of cars produced by Nissan in Japan and the U. S. AnswerB Diff 2 idea Gross Domestic Product acquirement Conceptual AACSB Reflective Thinking 13) Which of the following is NOT counted in the GNP of the United States? A) The wage of a U. S. citizen who works in a foreign country for a foreign firm. B) The inte counterpoise earned by a U. S. bank on loans to a communication channel firm located in Brazil. C) The profit earned by a relaxation methodaurant located in the United States but owned by a Mexi bed company. D) The value of services that be produced by state and local governments in the United States. Answer C Diff 2 subject area Gross Domestic Product science Conceptual AACSB Reflective Thinking 14)The value of what KFC produces in Japan is included in the U. S. ________ and in the Japanese ________. A) gross domestic product GDP B) GNP GNP C) GNP GDP D) GDP GNP Answer C Diff 2 field Gross Domestic Product expertness Conceptual AACSB Reflective Thinking 15) benefit earned in the United States by foreign-owned companies atomic number 18 included in A) the U. S. GDP but not GNP. B) neither the U. S. GDP nor GNP. C) the U. S. GNP but not GDP. D) both the U. S. GDP and GNP. Answer A Diff 1 composition Gross Domestic Product Skill Conceptual AACSB Reflective Thinking 16) The GDP of the U. S. in 2002 was around $10 trillion. This means A) hat the value of output in the U. S. in 2002 was around $10 trillion. B) that total income in the U. S. in 2002 was around $10 trillion. C) that total spen ding on final goods and services in the U. S. in 2002 was around $10 trillion. D) all of the above Answer D Diff 2 subject field Gross Domestic Product Skill Conceptual AACSB Reflective Thinking 17) The GDP includes A) the value of all intermediate goods and services. B) the value of all final goods and services. C) the value of both intermediate and final goods and services. D) the value of all transactions. Answer B Diff 2 Topic Gross Domestic Product Skill ConceptualAACSB Reflective Thinking 18) Income Mexican citizens earn in the U. S. counts in A) U. S. GNP. B) Mexican GNP. C) Mexican GDP. D) both U. S. and Mexican GDP. Answer B Diff 2 Topic Gross Domestic Product Skill Conceptual AACSB Reflective Thinking 2 True/ imitative 1) GDP measures the total income of everyone and the total spending by everyone in the economy. Answer FALSE Diff 1 Topic Gross Domestic Product Skill Conceptual AACSB Reflective Thinking 2) Total income in the economy can sometimes be greater than total sp ending. Answer FALSE Diff 2 Topic Gross Domestic Product Skill Conceptual AACSB Reflective Thinking ) The income of U. S. citizens working abroad counts in U. S. GDP. Answer FALSE Diff 2 Topic Gross Domestic Product Skill Conceptual AACSB Reflective Thinking 4) Stock market transactions are part of GNP. Answer FALSE Diff 2 Topic Gross Domestic Product Skill Conceptual AACSB Reflective Thinking 5) Value added is the difference between the value of good as they leave a stage of production and equal of the goods as they entered that stage of production. Answer TRUE Diff 2 Topic Gross Domestic Product Skill interpretation 6. 2 scheming GDP 1 Multiple Choice 1) The equation for GDP using the use approach isA) GDP = C + I + G + EX IM. B) GDP = C + I + G + (IM EX). C) GDP = C + I + G + EX + IM. D) GDP = C + I + G EX IM. Answer A Diff 1 Topic reason GDP Skill explanation 2) The single largest white plague component in GDP is A) government spending. B) enthronement. C) inspirati on. D) clams exports. Answer C Diff 1 Topic calculate GDP Skill Fact Refer to the nurture provided in elude 6. 1 under to answer the questions that follow. circuit card 6. 1 pic 3) Refer to send back 6. 1. in the flesh(predicate)ised phthisis expenditures in millions of dollars are A) 1,000. B) 1,300. C) 1, five hundred. D) 2,000. Answer D Diff 2Topic reckon GDP Skill analytic AACSB analytic Skills 4) Refer to plug-in 6. 1. The value for gross orphic domestic enthronisation in one thousand millions of dollars is A) 300. B) 375. C) 425. D) 450. Answer C Diff 2 Topic designing GDP Skill analytical AACSB analytic Skills 5) Refer to control panel 6. 1. The value for net exports in billions of dollars is A) 150. B) 250. C) 650. D) 800. Answer A Diff 1 Topic shrewd GDP Skill uninflected AACSB analytic Skills 6) Refer to Table 6. 1. The value of gross domestic product in billions of dollars is A) 3,000. B) 3,075. C) 3,125. D) 3,750. AnswerB Diff 2 Topic reckon GDP Sk ill analytical AACSB uninflected Skills 7) Refer to Table 6. 1. The value of government spending in billions of dollars is A) 100. B) 200. C) 300. D) 500. Answer D Diff 2 Topic compute GDP Skill analytic AACSB uninflected Skills Refer to the information provided in Table 6. 2 beneath to answer the questions that follow. Table 6. 2 pic 8) Refer to Table 6. 2. Personal inspiration expenditures in billions of dollars are A) 900. B) 1,100. C) 1,400. D) 1,600. Answer C Diff 2 Topic calculative GDP Skill analytical AACSB Analytic Skills 9) Refer to Table 6. 2.The value for gross mystic domestic investing funds in billions of dollars is A) 740. B) 810. C) 850. D) 890. Answer D Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 10) Refer to Table 6. 2. The value for net exports in billions of dollars is A) -200. B) -150. C) 50. D) 250. Answer B Diff 1 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 11) Refer to Table 6. 2. The value for gross domestic prod uct in billions of dollars is A) 2,900. B) 3,140. C) 3,440. D) 3,650. Answer B Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 12) Refer to Table 6. 2.The value of government spending in billions of dollars is A) 200. B) 600. C) 800. D) 1,000. Answer D Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 13) A company produced 8 dishwashing machine machines in 2005. The company sold 6 in 2005 and added 2 to its inventories. The market value of the dishwasher machines in 2005 was $200 per unit. What is the value of this companys output that will be included in the 2005 GDP? A) $400. B) $1,400. C) $1,600. D) $2,000. Answer C Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 14) A farmer buys a new tractor from John Deere to use on her cotton wool farm.This tractor is included in GDP as A) part of gross private domestic investment. B) a durable consumption good. C) a service. D) a nondurable consumption good. Answer A Diff 2 Topic Calcula ting GDP Skill Conceptual AACSB Reflective Thinking 15) The change in business inventories is careful as A) final sales minus GDP. B) final sales positively charged GDP. C) GDP minus final sales. D) the ratio of final sales to GDP. Answer C Diff 2 Topic Calculating GDP Skill Conceptual AACSB Reflective Thinking 16) In 2007 final sales equal $200 billion, and the change in business inventories is $50 billion. GDP in 2007 A) s $250 billion. B) is $200 billion. C) is $150 billion. D) is $40 billion. Answer A Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 17) In 2006 final sales equal $350 billion and the change in business inventories is -$60 billion. GDP in 2006 A) is $290 billion. B) is $295 billion. C) is $410 billion. D) cannot be determined from this information. Answer A Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 18) In 2008 the change in business inventories is -$70 billion and GDP is $200 billion. Final sales in 2008 A) are $130 billi on. B) are $200 billion.C) are $270 billion. D) are $340 billion. Answer C Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 19) In 2007, GDP was just equal to final sales. This implies that A) there was accumulation of inventories that year. B) there was a reduction in inventories that year. C) there was no change in inventories that year. D) GDP did not grow that year compared to the year before. Answer C Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 20) If the change in business inventories is zero, then(prenominal) final sales are A) zero. B) less than GDP. C) greater than GDP. D) qual to GDP. Answer D Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 21) If in a year there is a positive inventory investment, then final sales A) exceed GDP. B) are less than GDP. C) equal GDP. D) are zero. Answer B Diff 1 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 22) Net investment equals A) GDP minus final sales. B) gross inv estment minus final sales. C) gross investment minus wear and tear. D) depreciation convinced(p) GDP. Answer C Diff 1 Topic Calculating GDP Skill commentary 23) If net investment is zero, then A) gross investment is greater than depreciation.B) gross investment is less than depreciation. C) gross investment equals depreciation. D) depreciation is zero. Answer C Diff 1 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 24) call back that net investment in 2008 was $20 billion and depreciation was $4 billion. Gross investment in 2008 was A) $16 billion. B) $20 billion. C) $24 billion. D) $28 billion. Answer C Diff 1 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 25) The total value of all capital goods impudently produced in a given period is A) the change in business inventories. B) depreciation. C) net investment. D) ross investment. Answer D Diff 1 Topic Calculating GDP Skill Definition 26) The change in capital stock in a period is equal to A) the ratio o f the nub of the capital at the beginning of the period to the centre of depreciation. B) the amount of the capital stock at the beginning of the period plus gross investment minus depreciation. C) the amount of the capital at the beginning of the period plus gross investment. D) the amount of the capital at the beginning of the period minus net investment. Answer B Diff 2 Topic Calculating GDP Skill Definition 27) Net investment is A) gross investment minus depreciation.B) gross investment plus depreciation. C) depreciation minus gross investment. D) GNP minus final sales. Answer A Diff 1 Topic Calculating GDP Skill Definition 28) Depreciation is A) the decrease in the overall price level. B) the surplus capital stock in a year. C) the amount of used up machinery in a year. D) the amount of decline in business inventories. Answer C Diff 1 Topic Calculating GDP Skill Definition 29) If net investment in 2007 is $350 billion and gross investment in 2007 is $500 billion, depreciatio n in 2007 is A) $0. 7 billion. B) $150 billion. C) $175 billion. D) $250 billion.Answer B Diff 1 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 30) If net investment in 2008 is $500 billion and gross investment in 2008 is $900 billion, depreciation in 2008 is A) -$500 billion. B) $0. C) $400 billion. D) $1,400 billion. Answer C Diff 1 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 31) If gross investment in 2008 is $750 billion and depreciation in 2008 is $850 billion, net investment in 2008 is A) -$50 billion. B) -$100 billion. C) -$800 billion. D) -$1,600 billion. Answer B Diff 1 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 32)If gross investment in 2008 is $200 billion and depreciation in 2008 is $1,000 billion, net investment in 2008 is A) -$900 billion. B) -$800 billion. C) $1,000 billion. D) $1,200 billion. Answer B Diff 1 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 33) Exports equal A) imports net exports. B) net exports + imports. C) net exports imports. D) imports + (exports + imports). Answer B Diff 1 Topic Calculating GDP Skill Definition 34) When calculating GDP, exports are ________ and imports are ________. A) added added B) added subtracted C) subtracted added D) subtracted subtracted Answer BDiff 1 Topic Calculating GDP Skill Conceptual AACSB Reflective Thinking 35) If the value of net exports is negative, then A) exports exceed imports. B) imports exceed exports. C) exports equal imports. D) imports are zero. Answer B Diff 1 Topic Calculating GDP Skill Conceptual AACSB Reflective Thinking 36) The largest income component of GDP is A) proprietors income. B) rental income. C) wages of employees. D) corporate profit. Answer C Diff 2 Topic Calculating GDP Skill Fact 37) What should be subtracted from GDP to calculate national income? A) depreciation B) indirect appraisees C) personalised income taxes.D) net factor payments to the rest of the humans Answer A Diff 2 Topic Calculating GDP Ski ll Conceptual AACSB Reflective Thinking 38) Proprietors income is A) the income of unincorporated businesses. B) the income of all businesses? incorporated and unincorporated. C) the income of sole proprietorships. D) the income of partnerships. Answer A Diff 2 Topic Calculating GDP Skill Definition 39) Net interest is the interest on loans paid by A) businesses, households, and the government. B) businesses and households. C) businesses and the government. D) businesses. Answer D Diff 3 Topic Calculating GDP SkillDefinition 40) Interest paid by households and by the government is A) counted in national income, but not in GDP. B) not counted in GDP because it is not assumed to flow from the production of goods and services. C) not counted in GDP but is counted in GNP because it is paid by U. S. citizens to people living in the United States. D) included in both GDP and GNP because it represents an expenditure by one group and a receipt of income by another(prenominal) group. Answer B Diff 3 Topic Calculating GDP Skill Conceptual AACSB Reflective Thinking 41) What type of tax affects the amount of funds you pay for a product? A) direct taxB) income tax C) indirect tax D) all of the above Answer C Diff 2 Topic Calculating GDP Skill Conceptual 42) Depreciation is A) subtracted from national income to get GDP. B) added to national income to get GDP. C) subtracted from GNP to get NNP. D) added to GNP to get NNP. Answer C Diff 2 Topic Calculating GDP Skill Conceptual AACSB Reflective Thinking Refer to the information provided in Table 6. 3 beneath to answer the questions that follow. Table 6. 3 pic 43) Refer to Table 6. 3. The value for national income in billions of dollars is A) 585. B) 600. C) 635. D) 850. Answer C Diff 2 TopicCalculating GDP Skill Analytic AACSB Analytic Skills 44) Refer to Table 6. 3. The value for gross domestic product in billions of dollars is A) 485. B) 680. C) 685. D) 710. Answer D Diff 2 Topic Calculating GDP Skill Analytic AACSB Analyt ic Skills 45) Refer to Table 6. 3. The value of net factor payments to the rest of the world is A) 5. B) 15. C) 25. D) 35. Answer A Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 46) Refer to Table 6. 3. The value of useable income A) is 505. B) is 560. C) is 605. D) cannot be calculated given the information in Table 6. 3. Answer D Diff 2Topic Calculating GDP Skill Analytic AACSB Analytic Skills 47) If receipts of factor income from the rest of the world exceed payments of factor income to the rest of the world, then A) GDP is greater than GNP. B) GDP equals GNP. C) GNP equals NNP. D) GNP is greater than GDP. Answer D Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills Refer to the information provided in Table 6. 4 below to answer the questions that follow. Table 6. 4 pic 48) Refer to Table 6. 4. The value for GDP in billions of dollars is A) 910. B) 920. C) 950. D) 1,050. Answer C Diff 2 Topic Calculating GDPSkill Analytic AACSB Analytic Skills 4 9) Refer to Table 6. 4. The value for GNP in billions of dollars is A) 900. B) 930. C) 980. D) 1,010. Answer B Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 50) Refer to Table 6. 4. The value for NNP in billions of dollars is A) 890. B) 910. C) 940. D) 970. Answer A Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 51) Refer to Table 6. 4. The value for national income in billions of dollars is A) 890. B) 910. C) 940. D) 970. Answer A Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 2) Refer to Table 6. 4. The value for personal income in billions of dollars is A) 870. B) 890. C) 950. D) 960. Answer A Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 53) Refer to Table 6. 4. The value for disposable personal income in billions of dollars is A) 750. B) 770. C) 820. D) 990. Answer A Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 54) If GNP is $600 billion, receipts of factor income from the rest of the world are $50 billion, and payments of factor income to the rest of the world are $30 billion, then GDP is A) $520 billion. B) 580 billion. C) $620 billion. D) $680 billion. Answer B Diff 3 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 55) If GNP is $200 billion, receipts of factor income from the rest of the world are $10 billion, and payments of factor income to the rest of the world are $30 billion, then GDP is A) $160 billion. B) $210 billion. C) $220 billion. D) $240 billion. Answer C Diff 3 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 56) If GDP is $500 billion and depreciation is $40 billion, then net national product A) is $460 billion. B) is $500 billion. C) is $540 billion. D) annot be determined from this information. Answer D Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 57) If GDP is $300 billion, depreciation is $30 billion, and net factor income from the rest of the world is -$40 billion, then net national product is A) $230 billion. B) $270 billion. C) $290 billion. D) $310 billion. Answer D Diff 3 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 58) If GNP is $800 billion and depreciation is $90 billion, then net national product is A) $710 billion. B) $845 billion. C) $890 billion. D) $980 billion. Answer A Diff 1 TopicCalculating GDP Skill Analytic AACSB Analytic Skills 59) If GNP is $200 billion and depreciation is $20 billion, then net national product is A) $100 billion. B) $180 billion. C) $210 billion. D) $220 billion. Answer B Diff 1 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 60) If depreciation equals zero and retained earnings equal $5 billion, then A) GNP is less than net national product by $5 billion. B) GNP equals net national product. C) Net national product is less than GNP by $5 billion. D) GNP is greater than GDP by $5 billion. Answer B Diff 1 Topic Calculating GDP SkillAnalytic AACSB Analytic Skills 61) Net national product is A) GDP plus depreciat ion. B) GDP minus depreciation. C) GNP minus depreciation. D) GNP plus depreciation. Answer C Diff 1 Topic Calculating GDP Skill Definition 62) The total income of households is A) net national product. B) personal income. C) national income. D) production income. Answer B Diff 1 Topic Calculating GDP Skill Definition 63) Personal income is national income minus A) depreciation. B) net factor income to the rest of the world. C) the amount of national income not going to households. D) imports. Answer C Diff 2 Topic Calculating GDPSkill Fact 64) If national income is $600 billion, personal income is $400 billion, personal taxes are $120 billion, then disposable income equals A) $480 billion. B) $320 billion. C) $280 billion. D) $80 billion. Answer C Diff 2 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 65) Which of the following is subtracted from national income to get to personal income? A) retained earnings B) personal interest income C) depreciation D) personal Taxes Answer A Diff 2 Topic Calculating GDP Skill Conceptual AACSB Reflective Thinking 66) Personal income A) is always less than national income. B) s always greater than national income. C) may be greater than or less than national income. D) will always equal national income. Answer C Diff 2 Topic Calculating GDP Skill Conceptual AACSB Reflective Thinking 67) If personal income is $925 billion and personal income taxes are $70 billion, the value of disposable personal income is A) $835 billion. B) $855 billion. C) $890 billion. D) $995 billion. Answer B Diff 1 Topic Calculating GDP Skill Analytic AACSB Analytic Skills 68) If personal saving is -$10 billion and disposable personal income is $370 billion, then personal consumption spending A) is $360 billion.

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