Exam 10: Measuring a Nations Income: The Components of GDP

In the economy of Talikastan in 2015,consumption was $800,GDP was $2000,government purchases were $400,and investment was $600.What were Talikastan's net exports in 2015?

Consumption consists of spending by households on goods and services,with the exception of

A U.S.firm produces sweatshirts in the first quarter of 2010 and adds them to its inventory.In the second quarter of 2010 the firm sells the sweatshirts to consumers.In which quarter(s)does(do)these transactions raise consumption?

Net exports equal

In the economy of Talikastan in 2015,consumption was $5000,exports were $400,government purchases were $1000,imports were $600,and investment was $1200.What was Talikastan's GDP in 2015?

A U.S.citizen buys a tea kettle manufactured in China by a company that is owned and operated by U.S citizens.In which of the following components of U.S.GDP is this transaction accounted for?

Household spending on education is included in

A U.S.firm produces nail guns in the first quarter of 2010 and adds them to its inventory.In the second quarter of 2010 the firm sells the nail guns to a U.S.construction company.In which quarter(s)is (are)GDP higher?

Which of the following is included in the consumption component of GDP?

When economists refer to intangible items,they are referring to such things as

In the economy of Talikastan in 2015,consumption was $700,exports were $200,government purchases were $300,imports were $150,and investment was $400.What was Talikastan's GDP in 2015?

A form of government spending that is not made in exchange for a currently produced good or service is called

Which of the following is not included in the investment component of GDP?

Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?

Consider the following three items of spending by the government: (i)the federal government pays a $500 unemployment benefit to an unemployed person; (ii)the federal government makes a $2,000 salary payment to a Navy lieutenant; (iii)the city of Bozeman,Montana makes a $10,000 payment to ABC Lighting Company for street lights in Bozeman.Which of these payments contributes directly to government purchases in the national income accounts?

A manufacturer produces 1 million televisions in the first quarter of the year.It sells 900,000 of them before the end of the first quarter,and holds the others in its warehouse.How will the 100,000 unsold televisions be treated in the GDP statistics?

After the terrorist attacks on September 11,2001,governments within the United States raised expenditures to increase security at airports.These purchases of goods and services are

In the economy of Talikastan in 2015,consumption was $3000,exports were $1200,GDP was $6300,government purchases were $1300,and investment was $1500.What were Talikastan's imports in 2015?

An American soldier stationed in North Carolina receives a paycheck from the federal government for $300,which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market.As a result,U.S.GDP increases by

Micah buys a used car for $10,000 and spends $200 on a new radio that is made in the U.S.The end result of these two transactions is