Exam 8: Measuring the Economys Performance

-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 the final consumer goods and services?

If you take national income and add transfer payments, then subtract income earned but not received, the result will be

Gross Domestic Product is best defined as

Personal income is equal to

Calculating Gross Domestic Product (GDP) by the expenditure approach requires summing the value of

Which of the following statements is FALSE?

The expenditure approach to measuring GDP

Suppose gross domestic product (GDP) is $5 billion, government transfer payments are $1.5 billion, indirect business taxes and transfers are $0.25 billion, and depreciation is $0.5 billion. Then national income equals

If households pay $1,000 in interest payments and receive $1,200 in interest, wages equal $9,000, rental receipts on land are $200, total business profits before taxes are $2,200, depreciation is $1,750, and indirect business taxes are $1,000, then gross domestic income is

Economists consider profit to be

-According to the above table, Gross Domestic Product is

Indirect business taxes include

Profits represent

What is the difference between personal income and disposable personal income?

Constant dollars are

Services include all of the following EXCEPT

If a nation's nominal GDP is $3,257 million and its price level is 110, then its real GDP is

The value of total output and total income in the simple circular flow model

An increase in fixed investment spending that increases GDP occurs when

Is looking at changes in gross domestic product over time a good way to determine whether the people in a country are experiencing an increase in their standards of living? Why or why not?