Chapter 25 (Test 2)

  1. Image Upload 1
    Gross private domestic investment is equal to...
    $39 million
  2. Image Upload 2
    Net exports are equal to...
    -$2 billion
  3. Image Upload 3
    The gross domestic product is equal to...
    $305 billion
  4. Image Upload 4
    The net domestic product is equal to...
    $298 billion
  5. Image Upload 5
    National income is equal to...
    $298 billion
  6. Image Upload 6
    Personal income is equal to...
    $284 billion
  7. Image Upload 7
    Disposable income is equal to...
    $245 billion
  8. A price index one year was 145, and the next year it was 167. What is the approximate percentage change in the price level from one year to the next as measured by that index?
  9. Which is a major reason why GDP is not an accurate index of society's economic well-being?
    It excludes many improvements in product quality.
  10. Which is a primary use for national income accounting?
    It provides a basis for assessing the performance of the economy
  11. Gross domestic product (GDP) is defined as...
    the market value of final goods and services produced within a country in 1 year
  12. GDP provides an indication of society's valuation of the relative worth of goods and services because it...
    is a monetary measure
  13. To include the value of the parts used in producing the automobiles turned out during a year in gross domestic product for that year would be an example of...
    multiple counting
  14. Which of the following is a public transfer payment?

    D) The Social Security benefits sent to a retired worker
  15. The sale in year 2 of an automobile produced in year 1 would not be included in the gross domestic product for year 2; doing so would involve...
    including a non production transaction
  16. The service a babysitter performs when she stays at home with her baby brother while her parents are out and for which she receives no payment is not included in the gross domestic product because...
    this is a non market transaction
  17. According to national income accounting, money income derived from the production of this year's output is equal to...
    the amount spent to purchase this year's total output
  18. Which would be considered an investment according to economists?
    the construction of a new computer chip factory by Intel
  19. A refrigerator was produced by its manufacturer year 1, sold to a retailer in year 1, and sold by the retailer to a final consumer in year 2. The refrigerator was...
    counted as investment in year 1
  20. The annual charge that estimates the amount of private capital equipment used up in each year's production is called...
  21. In gross private domestic investment is greater than depreciation, the economy will most likely be...
  22. What can happen to the allocation of corporate profits?
    It is paid to stockholders as dividends
Card Set
Chapter 25 (Test 2)
Chapter 25 (Test 2)