Question 1

Which of the following is an example of an intermediate good?

Accepted Answer

A)   the dough 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 sell for a fund-raiser for an organization you belong to
D)   lumber you buy to build a house for your dogE) A) and B)
F) A) and C)

Question 2

Refer to the information provided in Table 6.4 below to answer the questions that follow.
Table 6.4 
-Refer to Table 6.4. The value for disposable personal income in billions of dollars is

Accepted Answer

A)   750.
B)   770.
C)   820.
D)   990.E) A) and B)
F) A) and D)

Question 3

Refer to the information provided in Table 6.6 below to answer the questions that follow.
Table 6.6 
-Refer to Table 6.6. The value for gross private domestic investment in billions of dollars is

Accepted Answer

A)   800.
B)   900.
C)   1,000.
D)   1,100.E) C) and D)
F) A) and B)

Question 4

Which of the following is not a component of gross domestic product?

Accepted Answer

A)   net exports
B)   government purchases
C)   purchases by consumers of used goods
D)   purchases by consumers of finished goodsE) None of the above
F) C) and D)

Question 5

Which of the following is an example of a final good or service?

Accepted Answer

A)   wheat a bakery purchases to make bread
B)   coffee beans Starbucks purchases to make coffee
C)   lumber purchased by a construction company to used in building houses
D)   a computer purchased by Federal Express to track shipmentsE) A) and B)
F) A) and C)

Question 6

Real GDP is gross domestic product measured

Accepted Answer

A)   at a constant output level but at current prices.
B)   in current dollars.
C)   in the prices of a base year.
D)   as the difference between the current year's GDP and last year's GDP.E) A) and C)
F) None of the above

Question 7

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1 
-Refer to Table 6.1. Personal consumption expenditures in billions of dollars are

Accepted Answer

A)   1,000.
B)   1,300.
C)   1,500.
D)   2,000.E) A) and D)
F) None of the above

Question 8

Gross investment minus net investment is

Accepted Answer

A)   the change in inventories.
B)   total investment.
C)   depreciation.
D)   zero.E) A) and B)
F) B) and C)

Question 9

If net investment in 2016 is $350 billion and gross investment in 2016 is $500 billion, depreciation in 2016 is

Accepted Answer

A)   $0.7 billion.
B)   $150 billion.
C)   $175 billion.
D)   $250 billion.E) C) and D)
F) A) and B)

Question 10

National income minus the amount of national income not going to households is

Accepted Answer

A)   proprietor's income.
B)   interest income.
C)   personal income.
D)   disposable income.E) A) and C)
F) None of the above

Question 11

Refer to the information provided in Table 6.7 below to answer the questions that follow.
Table 6.7 
-Refer to Table 6.7. The value of disposable income in billions of dollars

Accepted Answer

A)   is 625.
B)   is 710.
C)   is 800.
D)   cannot be calculated given the information in Table 6.3.E) None of the above
F) A) and C)

Question 12

If nominal GDP rises, then so must real GDP.

Accepted Answer

A) True 
 B)False

Question 13

If nominal GDP is $8 trillion and real GDP is $6 trillion, the GDP deflator is

Accepted Answer

A)   48.
B)   75.
C)   133.33.
D)   480.E) C) and D)
F) A) and D)

Question 14

The GDP deflator in year 2 is 95 using year 1 as a base year. This means that, on average, the price of goods and services is

Accepted Answer

A)   105% higher in year 2 than in year 1.
B)   5% higher in year 2 than in year 1.
C)   5% higher in year 1 than in year 2.
D)   105% higher in year 1 than in year 2.E) A) and B)
F) A) and C)

Question 15

Consumers can spend their entire personal income.

Accepted Answer

A) True 
 B)False

Question 16

Refer to the information provided in Table 6.4 below to answer the questions that follow.
Table 6.4 
-Refer to Table 6.4. The value for NNP in billions of dollars is

Accepted Answer

A)   890.
B)   910.
C)   940.
D)   970.E) A) and B)
F) All of the above

Question 17

If the value of net exports is negative, then

Accepted Answer

A)   exports exceed imports.
B)   imports exceed exports.
C)   exports equal imports.
D)   imports are zero.E) A) and B)
F) A) and D)

Question 18

Refer to the information provided in Table 6.5 below to answer the questions that follow.
Table 6.5 
-Refer to Table 6.5. The value for gross private domestic investment in billions of dollars is

Accepted Answer

A)   360.
B)   400.
C)   440.
D)   510.E) B) and C)
F) B) and D)

Question 19

Interest paid by businesses is

Accepted Answer

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. businesses.
D)   included in both GDP and national income.E) C) and D)
F) B) and D)

Question 20

If personal income is $700 billion and personal income taxes are $140 billion, the value of disposable personal income is

Accepted Answer

A)   $560 billion.
B)   $630 billion.
C)   $640 billion.
D)   $840 billion.E) B) and C)
F) A) and C)

Exam 6: Measuring National Output and National Income

Which of the following is an example of a final good or service?

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Interest paid by businesses is

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If net investment in 2016 is $350 billion and gross investment in 2016 is $500 billion, depreciation in 2016 is

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Refer to the information provided in Table 6.4 below to answer the questions that follow. Table 6.4 -Refer to Table 6.4. The value for disposable personal income in billions of dollars is

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Refer to the information provided in Table 6.5 below to answer the questions that follow. Table 6.5 -Refer to Table 6.5. The value for gross private domestic investment in billions of dollars is

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Refer to the information provided in Table 6.4 below to answer the questions that follow. Table 6.4 -Refer to Table 6.4. The value for NNP in billions of dollars is

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Refer to the information provided in Table 6.6 below to answer the questions that follow. Table 6.6 -Refer to Table 6.6. The value for gross private domestic investment in billions of dollars is

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The GDP deflator in year 2 is 95 using year 1 as a base year. This means that, on average, the price of goods and services is

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Which of the following is an example of an intermediate good?

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If nominal GDP rises, then so must real GDP.

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If nominal GDP is $8 trillion and real GDP is $6 trillion, the GDP deflator is

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National income minus the amount of national income not going to households is

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Gross investment minus net investment is

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Refer to the information provided in Table 6.1 below to answer the questions that follow. Table 6.1 -Refer to Table 6.1. Personal consumption expenditures in billions of dollars are

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Consumers can spend their entire personal income.

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Refer to the information provided in Table 6.7 below to answer the questions that follow. Table 6.7 -Refer to Table 6.7. The value of disposable income in billions of dollars

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If the value of net exports is negative, then

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Which of the following is not a component of gross domestic product?

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If personal income is $700 billion and personal income taxes are $140 billion, the value of disposable personal income is

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Real GDP is gross domestic product measured

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