Exam 6: National Income Accounting

The table given below reports the sales value at each stage ofproduction of the soft drink Pepsi. Table 5.3 Refer to Table 5.3.Compute GDP according to the income approach if Pepsi is assumed to be the only good produced in the economy.

Personal income is equal to:

The circular flow diagram shows the flow of money and goods and services between households, firms, government, and foreign countries.

The stock of unused goods held by a firm is called:

The national income accounting system provides a measure of:

Consider GDP calculated according to the expenditures approach.Which of the following components of GDP would need to decrease for GDP to increase?

In-kind wages are not included in GDP.

Which of the following must be included in the calculation of GDP?

Which of the following is subtracted from GNP when calculating net national product?

To avoid double counting in calculating GDP,

The consumer price index [CPI] is considered the best measure of the cost of living of individuals in a country.

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

Which of the following industrial countries experienced a relatively slower growth of real GDP in the latter half of the 1990s?

The table given below reports the price of soda over four consecutive years. Table 5.7 Refer to Table 5.7.Compute the price index for the base year.

Which of the following is true of indirect business taxes?

According to the expenditures approach, gross domestic product represents the sum of consumption spending, government spending, net exports, and net investment.

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

If the price level in any country increases by 15 percent during a year, then the price index for that year will be 85 as compared to the base year.

In terms of price indexes, what is a COLA?

If the value of intermediate goods and services are included in GDP, then: