The National Income and Product Accounts (NIPA) help economists and policymakers to: |
follow the long-run course of the economy to determine whether it has grown or stagnated. |
The agency responsible for compiling the National Income Product Accounts for the U.S. economy is the: |
Bureau of Economic Analysis. |
The system that measures the economy’s overall performance is formally known as: |
national income accounting. |
A nation’s gross domestic product (GDP): |
is the dollar value of all final output produced within the borders of the nation during a specific period of time. |
A nation’s gross domestic product (GDP): |
A. can be found by summing C + Ig + G + Xn. |
GDP is the: |
monetary value of all final goods and services produced within the borders of a nation in a particular year. |
Suppose Smith pays $100 to Jones. |
We need more information to determine whether GDP has changed. |
Suppose the total monetary value of all final goods and services produced in a particular country in 2010 is $500 billion and the total monetary value of final goods and services sold is $450 billion. We can conclude that: |
GDP in 2010 is $450 billion. |
National income accountants can avoid multiple counting by: |
only counting final goods. |
Gross domestic product (GDP) measures and reports output: |
in dollar amounts and percentage growth. |
By summing the dollar value of all market transactions in the economy, we would: |
obtain a sum substantially larger than the GDP. |
Final goods and services refer to: |
goods and services purchased by ultimate users, rather than for resale or further processing. |
If intermediate goods and services were included in GDP: |
the GDP would be overstated. |
Which of the following is a final good or service? |
A haircut purchased by a father for his 12 year-old son. |
Which of the following is an intermediate good? |
The purchase of baseball uniforms by a professional baseball team. |
Tom Atoe grows fruits and vegetables for home consumption. This activity is: |
productive but is excluded from GDP because no market transaction occurs. |
The value added of a firm is the market value of: |
a firm’s output less the value of the inputs bought from others. |
Which of the following transactions would be included in GDP? |
Peter buys a newly constructed house. |
Value added refers to: |
the difference between the value of a firm’s output and the value of the inputs it has purchased from others. |
Value added can be determined by: |
subtracting the purchase of intermediate products from the value of the sales of final products. |
If depreciation exceeds gross investment: |
the economy’s stock of capital is shrinking. |
The concept of net domestic investment refers to: |
total investment less the amount of investment goods used up in producing the year’s output. |
GDP can be calculated by summing: |
consumption, investment, government purchases, and net exports. |
Chapter 25 Q-A
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