How do you measure national income? and why do countries need to measure it?

Multiple Choice Economics Question... 10pts TODAY for answers!?

• Economics multiple choice! 10pts TODAY!? Question 1 The expenditure approach to tabulating GDP: Question options: A. adds consumption expenditures, investment expenditures, government expenditures, interest payment and wages. B. adds up the total amount spent on newly produced domestic goods and services during the year. C. adds up the total value of all income earnings during the year. D. excludes investment expenditures because they yield consumption in the future. Question 2 0 / 1 point Total income equals the dollar value of total output because: Question options: A. foreign trade is allowed. B. people spend all of their income in every period, so it must go somewhere. C. of the definition of GDP D. spending by one group represents income to the other group. Question 3 0 / 1 point Total income RECEIVED by all factors of production is called: Question options: A. national income. B. personal income. C. disposable personal income. D. gross domestic income. Question 4 0 / 1 point What is the difference between nominal GDP and real GDP? Question options: A. Nominal GDP represents purchasing power while real GDP is measured in terms of current dollars. B. Nominal GDP is measured in current market prices while real GDP corrects for changes in the overall level of prices from year to year. C. Nominal GDP is computed by using the expenditure approach while real GDP is computed by using the income approach. D. Nominal GDP is the total value of output produced while real GDP is the amount per individual. Question 5 0 / 1 point Which of the following statements is NOT TRUE about the use of GDP as a measure of national welfare? Question options: A. GDP is a useful measure of national welfare since it excludes non market transactions. B. GDP is limited as a measure of national welfare since it does not consider the amount of leisure time available to the nation's residents. C. GDP is limited as a measure of national welfare since it does not consider environmental quality. D. GDP is limited as a measure of national welfare since it does not account for labor market discrimination. Question 6 0 / 1 point According to the circular flow of income and output, which of the following is NOT TRUE? Question options: A. Total income and total output must be equal. B. Goods and services flow in one direction and money payments flow in the other direction. C. In every economic transaction, the seller receives exactly the same amount that the buyer spends. D. Goods, services and money all flow in one direction since money pays for the goods and services. Question 7 0 / 1 point When comparing per capita GDP across countries, GDP should be adjusted for: Question options: A. foreign exchange rates. B. purchasing power parity. C. the unemployment rate. D. population. Question 8 0 / 1 point If real GDP increases in any year, we know that: Question options: A. nominal GDP must have risen. B. both inflation and output have increased. C. the output of goods and services produced this year has increased. D. inflation has raised the value of output. Question 9 0 / 1 point An increase in corporate income taxes would reduce: Question options: A. personal income. B. national income. C. net domestic product. D. gross domestic product. Question 10 0 / 1 point An increase in social security benefits will make: Question options: A. national income larger. B. national income smaller. C. personal income larger. D. net domestic product smaller. Question 11 0 / 1 point Gross Domestic Product: Question options: A. only includes "final" goods and services to avoid double counting. B. does not include transfer payments or financial transactions. C. does not include the transfer of second-hand goods. D. all of the above. Question 12 0 / 1 point The problem with using foreign exchange rates to convert one country's GDP into dollars is that: Question options: A. not all goods and services are sold on world markets. B. exchange rates do not reflect differences in inflation rates. C. the dollar has been losing value over the last twenty years. D. the values of currencies are not comparable. Question 13 0 / 1 point In the factor market, households________ Question options: A. sell resources. B. buy resources. C. are neither buyers nor sellers of resources. D. are both buyers and sellers of resources. Thanks! i really didn’t understand this chapter and have to have this done today :/

• Answer:

  1.A 2.D 3.B 4.B 5.A 6.B (Most probably) 7.B 8.C 9.B 10.C (Most probably) 11.D 12.A 13.A