Exam 5: National Income Accounting

Consider a small country producing only two commodities (coffee beans and corn). Following are the price and output of these two commodities in the year 2008: Assuming that the output of these two commodities remains constant, while the price of each rises by 10 percent in 2009, compute the value of real GDP in 2009. Price Quantity $12 500 lbs. of coffee beans $6 600 bushels of corn

The table given below reports the value of the different economic variables of a nation during a year.? -Refer to Table 5.5. For the economy described in the table above, personal income is:

Which of the following would not be included in the calculation of GDP?

The difference between gross and net investment is referred to as:

Scenario 5.1?Suppose that personal income is $250 billion. Furthermore, assume that retained corporate earnings are $2 billion, social security taxes are $15 billion, social security benefit checks equal $16 billion, the capital consumption allowance is $32 billion, and corporate taxes amount to $40 billion. -Refer to Scenario 5.1. What will be the value of net national product in this country?

Which of the following is included in GDP computation according to the income method?

The producer price index was earlier known as _____.

The table given below reports the sales value at each stage of production of the soft drink, Pepsi.? -Refer to Table 5.3. If Pepsi was the only good produced in the economy, then what would be the value of GDP, according to the expenditures approach?

Other things remaining unchanged, a decline in imports is associated with an increase in gross domestic product.

Which of the following is true of indirect business taxes?

Consider a hypothetical economy, whose GDP was $10,000, consumption equaled $9,800, investment equaled $125, goods exported equaled $255, and goods imported equaled $500, in 2010. Calculate the government spending in this economy during the year.

Which of the following represents the amount of income that is actually available to people for consumption and saving?

Identify the impact of an increase in the inventory stock during a year.

When indirect business taxes are subtracted from GDP we get net national product of a nation.

Which of the following will be categorized as an intermediate good in national income accounting?

The table given below reports the value of different economic variables of a country during a year.? -Refer to Table 5.4. Calculate the NNP for this country.

FICA taxes and corporate retained earnings are subtracted from national income when personal income is computed.

Identify the correct statement.

The table given below reports the sales value at each stage of production of the soft drink, Pepsi.? -Refer to Table 5.3. The value added by the wholesaler is equal to:

In terms of price indexes, what is a COLA?