Exam 27: Measuring Domestic Output and National Income

When gross private domestic investment exceeds depreciation, it can be concluded that

All activities included in GDP serve to enrich society.

A product that was produced in 2016 and not sold until 2017 is counted as part of GDP in 2016.

Business inventories increase when firms produce

The National Income and Product Accounts (NIPA) for the U.S.are compiled by the

A distinguishing characteristic of public transfer payments is that

National income (NI) is estimated as the sum of four categories of income (wages, rent, interest, profits) plus taxes on production and imports.

In calculating the GDP, national income accountants

Government purchases in national income accounts would include payments for

In comparing GDP data over a period of years, a difference between nominal and real GDP may arise because

In November 2016, Econland Motors produced an automobile that was delivered to a local dealership in December 2016.The auto was then sold to Sharon Smith for personal use in February 2017.Following national income accounting practices, this auto would be counted as part of

In an economy, the value of inventories was $75 billion in 2016 and $63 billion in 2017.In calculating total investment for 2017, national income accountants would

In national income accounting, the consumption category of expenditures includes purchases of

Historically, real GDP has increased less rapidly than nominal GDP because

Which of the following activities is excluded from GDP, causing GDP to understate a nation's well-being?

Nominal GDP differs from real GDP because

Do-it-yourself activities of people are a big part of the "underground economy."

Net exports are

"Corporate profits" in the national income accounts consists of the following, except

If real GDP in a year was $3,668 billion and the price index was 112, then nominal GDP in that year was approximately