Exam 8: Measuring the Economys Performance

The simple circular flow of income shows that the total income in an economy equals

How much of each dollar spent by a consumer ultimately becomes income to someone else?

The two main approaches to measuring GDP are the

The total value added

Intermediate goods are

If, in an economy, households receive $200 in interest payments and make interest payments of $210, wages equal $500, rental receipts are $200, royalties are $100, profits are $200, depreciation is $50, and indirect business taxes are $50, then gross domestic income is

National income is equal to

The largest component of gross domestic income is

Which of the following will have the smallest dollar value?

Measuring total aggregate production in constant dollars uses which of the following measures?

Which of the following transactions would NOT contribute to the GDP?

The components of the expenditure approach to measuring Gross Domestic Product (GDP) include all of the following EXCEPT

Intermediate goods are goods that are used up entirely in the production of final goods. As such, intermediate goods

The observation that goods and services flow in one direction and money payments flow in another direction is the principle behind

-Refer to the above figure. The top two arrows of the figure refer to the product markets. The bottom arrows refer to the factor markets. Which arrow represents total income?

Which of the following is a significant weakness of GDP as a measure of the nation's economic performance?

Per capita real Gross Domestic Product (GDP) is

-Refer to the above figure. The top two arrows of the figure refer to the product markets. The bottom arrows refer to the factor markets. Which arrow represents factor services?

The income that individuals have after personal income taxes have been paid is called

-Refer to the above table. Real GDP in 2015 is