Exam 6: National Income Accounting

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.The national income of this nation will be:

The table given below lists the price per unit and output of computers and calculators (the only two goods produced by a nation)for the years 1995 and 2003. Table 5.6 Refer to Table 5.6.What is the constant-dollar real GDP growth from 1995 to 2003 using 2003 as the base year?

Which of the following can be a valid reason for Canada's GDP exceeding its GNP in 2001?

The table given below reports the price of soda over four consecutive years. Table 5.7 Refer to Table 5.7.By what percentage did the price of soda increase from the third to the fourth year?

To arrive at a more accurate measure of real output changes in an economy, nominal GDP figures should be adjusted for inflation.

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, personal income is:

The producer price index was earlier known as _____.

Personal income is equal to:

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

If net investment spending in a nation is zero, we can conclude that:

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.

The output produced by domestically owned firms in foreign countries is included in the U.S.GDP but not in the U.S.GNP.

A soft-drink bottling company supplies six-packs of orange flavored soda to retailers for a price of $2 each.If the components in each six-pack costs the bottling company $1.50, the value added to each six-pack by the bottling company is:

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

National income is the sum of:

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.Gross national product of this nation will be:

The value added approach involves adding up the value of the final product and the value of intermediate goods used in the production process.

If 'C' denotes consumption expenditure, 'I' denotes investment expenditure, 'G' denotes government expenditure and 'X' denotes net exports, then C + I + G + X equals:

Depreciation must be subtracted from the calculation of gross domestic product.

The table given below reports the value of sales at each stage of production of an economics book. Table 5.1 Refer to Table 5.1.What is the value-added by processing timber into paper?