Which of the following is true of real GDP?

Which of the following is true of real GDP?
 a. It measures a nation's output in terms of current year prices.
  b. It measures a nation's output in constant prices.
  c. It measures the degree of change in the general price level in an economy.
  d. It measures the change in the value of an economy's output.
  e. It measures the value of both intermediate and final goods and services produced in an economy.

Question 2

Which of the following is true of nominal GDP?
 a. It acts as an indicator of the general price level in the economy.
  b. It measures the real level of output in the economy.
  c. It measures national output based on the current year's prices.
  d. It tends to rise by a smaller amount than real GDP when the general price level increases.
  e. It measures changes in the output of intermediate goods and services.

Question 3

Which of the following represents the amount of income that is actually available to people for consumption and saving?
 a. Net national product
  b. National income
  c. Disposable personal income
  d. Gross national product
  e. Personal income

Question 4

Personal income is equal to:
 a. national income plus business profits.
  b. disposable personal income minus personal taxes.
  c. national income minus transfer payments.
  d. national income plus welfare benefits minus corporate retained earnings.
  e. disposable personal income plus transfer payments.

Question 5

Which of the following would not be included as part of personal income?
 a. Welfare benefits
  b. Food stamps distributed by the government
  c. Social security benefits
  d. Indirect business taxes
  e. Corporate dividend payments to stockholders

Question 6

Personal income is equal to:
 a. NI minus personal income tax.
  b. NI minus net factor income from abroad.
  c. NI plus income currently earned but not received - income currently received but not earned.
  d. NI minus indirect business taxes.
  e. NI plus income currently received but not earned - income currently earned but not received.

Question 7

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. The national income of this nation will be:
 a. 236 billion.
  b. 249 billion.
  c. 251 billion.
  d. 279 billion.
  e. 290 billion.

Question 8

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. What will be the value of net national product in this country?
 a. 209 billion
  b. 219 billion
  c. 283 billion
  d. 291 billion
  e. 323 billion

Question 9

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. Gross national product of this nation will be:
 a. 177 billion.
  b. 259 billion.
  c. 291 billion.
  d. 343 billion.
  e. 323 billion.

Question 10

Which of the following is not included in national income?
 a. Corporate profits
  b. Interest earnings
  c. Capital consumption allowance
  d. Rental income
  e. Stockbroker commissions

Question 11

National income is the sum of:
 a. personal income and personal tax payments.
  b. proprietors' income, rental income, compensation of employees, corporate profits, and interest receipts, net of indirect business taxes and the capital consumption allowance.
  c. wages, transfer payments, interest paid to businesses, and tax revenue.
  d. NNP and the capital consumption allowance.
  e. consumption, investment, government spending, and net exports.

Question 12

If net investment spending in a nation is zero, we can conclude that:
 a. gross investment exceeds the capital consumption allowance.
  b. the capital consumption allowance exceeds gross investment.
  c. imports equal exports.
  d. gross investment equals the capital consumption allowance.
  e. no investment goods were produced in the economy.

Question 13

The difference between GNP and NNP is equal to:
 a. the statistical discrepancy in calculation.
  b. the capital consumption allowance.
  c. the transfer payments.
  d. the value of net exports.
  e. the change in inventory.