Gross national product in terms of the income method is equal to national income plus indirect business taxes minus the capital consumption allowance.
a. True
b. False
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Question 2Personal income and property taxes paid by individuals are not included in the income approach of gross domestic product calculation.
a. True
b. False
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Question 3Depreciation must be subtracted from the calculation of gross domestic product.
a. True
b. False
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Question 4Wheat produced in the U.S. but sold in Japan would not be included while calculating the U.S. GDP.
a. True
b. False
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Question 5Other things remaining unchanged, a decline in imports is associated with an increase in gross domestic product.
a. True
b. False
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Question 6According to the expenditures approach, gross domestic product represents the sum of consumption spending, government spending, net exports, and net investment.
a. True
b. False
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Question 7The value added approach involves adding up the value of the final product and the value of intermediate goods used in the production process.
a. True
b. False
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Question 8The sale of live cattle to a slaughterhouse constitutes a final transaction that is counted as part of the gross domestic product.
a. True
b. False
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Question 9The services of a husband or wife as a homemaker and cash gains from a lottery are included in the calculation of gross domestic product.
a. True
b. False
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Question 10In-kind wages are not included in GDP.
a. True
b. False
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Question 11GDP is based on the market value of goods and services produced in an economy and not on the value of only final goods and services.
a. True
b. False
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Question 12The circular flow diagram shows the flow of money and goods and services between households, firms, government, and foreign countries.
a. True
b. False
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