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What is the primary measure of economic performance and output?

CPI (Consumer Price Index)

NNP (Net National Product)

GNP (Gross National Product)

GDP (Gross Domestic Product) (correct)

Which of the following is included in the calculation of GDP?

Raw materials

Final goods (correct)

Services from non-producers

Intermediate goods

What does 'value added' refer to in GDP measurement?

Total inputs purchased by a firm

Sales revenue of a firm

Firm output minus purchased input from outside the firm (correct)

Final goods prices inflated by demand

What types of transactions are excluded from GDP?

Nonproduction transactions Signup and view all the answers

Which of the following describes intermediate goods?

Goods that are used to produce final goods Signup and view all the answers

When an economy has gross investment equal to depreciation, what is it said to have?

Stationary production capacity Signup and view all the answers

Which concept helps to avoid multiple measures in GDP calculation?

Focusing on the value added at each transaction Signup and view all the answers

What does net export (Xn) represent in the GDP formula?

Exports minus imports Signup and view all the answers

What type of investment is included in GDP calculations?

Gross private domestic investment Signup and view all the answers

What must GDP calculation ignore to avoid double counting?

Intermediate goods Signup and view all the answers

In the GDP formula represented as C + Ig + G + Xn, what does 'C' stand for?

Consumption spending Signup and view all the answers

Final goods are defined as goods that are:

Purchased by final users Signup and view all the answers

What does the concept of net domestic investment refer to?

Gross domestic investment minus investment goods used up Signup and view all the answers

What are government purchases (G) primarily made up of?

Spending on consumption goods and services Signup and view all the answers

Which of the following components is NOT part of the GDP formula?

Savings (S) Signup and view all the answers

What is the relationship between gross domestic investment and net exports in GDP components?

Gross domestic investment is independent of net exports Signup and view all the answers

What are net exports calculated as?

Exports less imports Signup and view all the answers

Which of the following is considered an economic investment?

Constructing a factory Signup and view all the answers

What is not counted as economic investment?

Accumulating personal savings Signup and view all the answers

Which of the following would national income accountants classify as investment?

Buying a new house Signup and view all the answers

If GDP was $200 billion in year 1 and business inventories increased by $10 billion in year 2, what is GDP in year 2?

$210 billion Signup and view all the answers

How are governmental transfer payments treated in GDP calculations?

They are not included in GDP Signup and view all the answers

Which of the following increases net exports?

An increase in exports Signup and view all the answers

What happens when a country's imports exceed its exports?

Net exports become negative Signup and view all the answers

What is the national income?

$265 Signup and view all the answers

What is the value of personal income?

$221 Signup and view all the answers

How does national income differ from personal income?

National income represents before-tax income, while personal income measures how much is available for spending after all taxes have been subtracted. Signup and view all the answers

What is the measure of Gross Domestic Product (GDP) from the data?

$380 Signup and view all the answers

What is the national income according to the provided data figures?

$380 Signup and view all the answers

What is the difference between gross domestic product and net domestic product?

Net domestic product includes consumption of fixed capital, while gross domestic product does not. Signup and view all the answers

What do rents contribute to in the given data?

National income calculation Signup and view all the answers

What is the total amount for proprietors' income listed in the data?

$20 billion Signup and view all the answers

What is nominal GDP in year 3?

$450 Signup and view all the answers

What is real GDP in year 3?

$225 Signup and view all the answers

What is the price index for year 1 when year 3 is the base year?

60 Signup and view all the answers

If nominal GDP rises, what can be concluded about real GDP?

Real GDP may either rise or fall. Signup and view all the answers

What does a price index of 120 in 1990 indicate?

Prices have increased by 20% since the base year. Signup and view all the answers

Between 1990 and 2000, what was the change in real GDP?

Increased by $100 billion Signup and view all the answers

What can be inferred about a country producing a single product with changing unit prices over multiple years?

Changes in prices can indicate inflation or deflation trends. Signup and view all the answers

For year 2, what is the cost of the market basket if year 1 is the base year?

$12 Signup and view all the answers

Untitled Quiz

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Questions and Answers

What is the primary measure of economic performance and output?

Which of the following is included in the calculation of GDP?

What does 'value added' refer to in GDP measurement?

What types of transactions are excluded from GDP?

Which of the following describes intermediate goods?

When an economy has gross investment equal to depreciation, what is it said to have?

Which concept helps to avoid multiple measures in GDP calculation?

What does net export (Xn) represent in the GDP formula?

What type of investment is included in GDP calculations?

What must GDP calculation ignore to avoid double counting?

In the GDP formula represented as C + Ig + G + Xn, what does 'C' stand for?

Final goods are defined as goods that are:

What does the concept of net domestic investment refer to?

What are government purchases (G) primarily made up of?

Which of the following components is NOT part of the GDP formula?

What is the relationship between gross domestic investment and net exports in GDP components?

What are net exports calculated as?

Which of the following is considered an economic investment?

What is not counted as economic investment?

Which of the following would national income accountants classify as investment?

If GDP was $200 billion in year 1 and business inventories increased by $10 billion in year 2, what is GDP in year 2?

How are governmental transfer payments treated in GDP calculations?

Which of the following increases net exports?

What happens when a country's imports exceed its exports?

What is the national income?

What is the value of personal income?

How does national income differ from personal income?

What is the measure of Gross Domestic Product (GDP) from the data?

What is the national income according to the provided data figures?

What is the difference between gross domestic product and net domestic product?

What do rents contribute to in the given data?

What is the total amount for proprietors' income listed in the data?

What is nominal GDP in year 3?

What is real GDP in year 3?

What is the price index for year 1 when year 3 is the base year?

If nominal GDP rises, what can be concluded about real GDP?

What does a price index of 120 in 1990 indicate?

Between 1990 and 2000, what was the change in real GDP?

What can be inferred about a country producing a single product with changing unit prices over multiple years?

For year 2, what is the cost of the market basket if year 1 is the base year?

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