Measuring Domestic Output and National Income

Which of the following best defines Gross Domestic Product (GDP)?

Why are intermediate goods excluded from the calculation of GDP?

Which of the following is a nonproduction transaction that is excluded from GDP?

What is the primary difference between the expenditures approach and the income approach to calculating GDP?

What is the correct formula for calculating GDP using the expenditures approach?

If gross private domestic investment exceeds depreciation in a given year, what is the effect on the nation's stock of capital?

Which of the following is considered a component of gross private domestic investment (Ig) in national income accounting?

In national income accounting, what is Net Domestic Product (NDP)?

What adjustment is made to National Income (NI) to arrive at Personal Income (PI)?

How is Disposable Income (DI) calculated?

If nominal GDP in a given year is $10 trillion and the GDP price index for that year is 125, what is the real GDP?

According to the text, which of the following is considered a shortcoming of GDP as a measure of total output and well-being?

Given the following data for an economy (in billions): Personal consumption expenditures = $245, Gross private domestic investment = $33, Government purchases = $72, Net exports = $11. What is the GDP?

What is the primary reason that a nation's Net Domestic Product (NDP) is always smaller than its Gross Domestic Product (GDP)?

Using the income approach, which of the following is the largest share of national income in the United States?

The term 'consumption of fixed capital' is synonymous with which of the following?

If a pizza was priced at $10 in the base year and its price rises to $25 in a later year, what is the price index for the later year, assuming the base year index is 100?

In the national income accounts, government purchases (G) include which of the following?

Why does GDP sometimes understate the value of a nation's total output?

What does the term 'value added' refer to in the context of national income accounting?

If an economy's real GDP in year 1 is $50 billion and in year 2 it is $70 billion, while the price index remains at 100 for both years, what can be concluded?

The income that households have left over after paying their personal taxes is known as what?

In 2007, Americans spent $708 billion more on imports than foreigners spent on U.S. exports. How is this figure represented in the GDP calculation?

What is the largest component of GDP according to the expenditures approach, based on the 2007 data provided in Table 24.3?

Which of the following would NOT be included when using the income approach to calculate GDP?

If an economy's nominal GDP is $13,841 billion and its real GDP is $11,566.8 billion, what is the GDP price index for that year?

The 'underground economy' refers to productive activities that are concealed from the government. Why does this phenomenon lead to an understatement of GDP?

Based on the data provided for a hypothetical economy (in billions): Compensation of employees = $223, Rents = $14, Interest = $13, Proprietors' income = $33, Corporate income taxes = $19, Dividends = $16, Undistributed corporate profits = $21, Taxes on production and imports = $18. What is the National Income (NI)?

If net private domestic investment is $33 billion and consumption of fixed capital is $27 billion, what is the value of gross private domestic investment?

Which of the following best describes the relationship between the stock of capital and net investment?

To move from National Income (NI) to GDP, which two items must be added (after accounting for a third item)?

If a country's exports are $50 billion and its imports are $70 billion, what is the value of its net exports?

Why does the failure of GDP to capture improvements in product quality suggest that GDP may understate well-being?

If Net Domestic Product (NDP) is $12,154 billion, the statistical discrepancy is -$29 billion, and net foreign factor income is $96 billion, what is the National Income (NI)?

Which of the following items is subtracted from Personal Income (PI) to arrive at Disposable Income (DI)?

The increase in leisure time in the United States since the early 1900s represents a positive effect on well-being. How does this affect the GDP measurement?

If a country's nominal GDP was $2789.5 billion in 1980 and its real GDP was $5161.7 billion (in year 2000 dollars), what can be concluded about the price level in 1980 compared to 2000?

What is the value-added of a firm that buys $120 worth of wool, processes it, and sells the processed wool for $180?

If nominal GDP rises from $500 billion to $600 billion in a year, while the GDP price index rises from 100 to 120, what is the change in real GDP?

Which of these represents a 'public transfer payment' excluded from GDP?

Corporate profits are subdivided into three categories in the national income accounts. Which of the following is NOT one of those categories?

What is the primary purpose of national income accounting?

If a country's stock of capital is smaller at the end of the year than at the beginning, which of the following must be true?

A statistical discrepancy is added to national income when calculating GDP via the income approach. What is the purpose of this adjustment?

When an economy is experiencing deflation, what is the relationship between nominal GDP and real GDP?

Which of the following would be an example of a 'final good' for the purposes of GDP calculation?

Based on the provided data (in billions): National Income = $12,221, Taxes on production and imports = $1009, Social Security contributions = $979, Corporate income taxes = $467, Undistributed corporate profits = $344, Transfer payments = $2237. What is the Personal Income (PI)?

If GDP does not account for the social costs of negative environmental by-products, what is the implication for its use as a measure of well-being?

If Personal Income is $11,659 billion and Personal Taxes are $1482 billion, what is the Disposable Income?

The term 'net foreign factor income' represents which of the following?