Question : 64) If national income $400 billion, personal income $350 billion, : 1381375

 

64) If national income is $400 billion, personal income is $350 billion, personal taxes are $100 billion, then disposable income equals

A) $450 billion.

B) $300 billion.

C) $250 billion.

D) -$50 billion.

 

65) Which of the following is added to personal income to get national income?

A) retained earnings

B) personal interest income

C) depreciation

D) personal taxes

 

66) National income

A) is always less than personal income.

B) is always greater than personal income.

C) may be greater than or less than personal income.

D) will always equal personal income.

67) If personal income is $700 billion and personal income taxes are $140 billion, the value of disposable personal income is

A) $560 billion.

B) $630 billion.

C) $640 billion.

D) $840 billion.

 

68) If personal saving is -$40 billion and disposable personal income is $430 billion, then personal consumption spending is

A) $40 billion.

B) $390 billion.

C) $410 billion.

D) $470 billion.

 

69) The percentage of disposable personal income that is saved is the

A) MPS.

B) personal investment rate.

C) MPC.

D) personal saving rate.

 

70) If disposable personal income is $500 billion and personal saving is $15 billion, the personal saving rate is

A) 1.5%.

B) 3%.

C) 7.5%.

D) 15%.

71) If the personal saving rate is 20% and personal saving is $20 billion, the value of personal disposable income is

A) $4 billion.

B) $20 billion.

C) $100 billion.

D) $400 billion.

 

72) Saving rates tend to rise during ________ and fall during ________.

A) boom times; expansions

B) recessions; expansions

C) boom times; recessions

D) recessions; contractions

 

73) Related to the Economics in Practice on p. 427: The value of the fees charged by eBay to sellers who use eBay is

A) counted in U.S. GDP.

B) only counted in U.S. GDP if the seller is in the U.S.

C) only counted in U.S. GDP if the product being sold is new.

D) never counted in U.S. GDP

 

74) Related to the Economics in Practice on p. 427: If a Harley Davidson dealer in Chicago sells a newly manufactured Harley motorcycle on eBay to a customer in Tokyo, Japan, the value of the motorcycle is

A) counted in U.S. GDP.

B) counted in Japanese GDP.

C) counted in U.S. GDP and Japanese GNP.

D) not counted in U.S. GDP because it was sold to a foreign customer.

75) Related to the Economics in Practice on p. 431: The National Income and Product Accounts (NIPAs) were originally developed for the Commerce Department

A) during the Reconstruction era following the Civil War.

B) during the era of the Great Depression in the 1930s.

C) at the onset of the Cold War in the 1950s.

D) during the 1970s following the public distrust of the government from the Watergate scandal.

 

76) Related to the Economics in Practice on p. 431: The economist most closely associated with the development of the National Income and Product Accounts (NIPAs) is

A) John Maynard Keynes.

B) David Ricardo.

C) Simon Kuznets.

D) Alan Greenspan.