Question : 11) Suppose that in 2013, the national income in the : 1388309

 

 

11) Suppose that in 2013, the national income in the United States was $200 billion, depreciation was $15 billion, personal taxes were $20 billion, and transfer payments were $10 billion.  Gross domestic product in 2013 is

A) $185 billion.

B) $215 billion.

C) $220 billion.

D) $245 billion.

 

 

12) The best measure of the income households actually have available to spend is

A) personal income.

B) disposable personal income.

C) national income.

D) net national income.

 

 

13) Disposable personal income equals personal income

A) minus personal tax payments.

B) plus government transfer payments.

C) minus personal tax payments plus government transfer payments.

D) minus government transfer payments plus personal tax payments.

 

Table 8-27

 

National income

               $1,000

Retained earnings not paid as dividends

                      50

Transfer payments

                      40

Interest on government bonds

                      20

Personal taxes

                      30

 

The components of national income for an economy are represented in Table 8-27 above. All values are in billions of dollars.

 

14) Refer to Table 8-27.  What is the level of personal income for this economy?

A) $1,140 billion

B) $1,010 billion

C) $990 billion

D) $860 billion

 

 

15) Refer to Table 8-27.  What is the level of disposable personal income for this economy?

A) $1,080 billion

B) $1,010 billion

C) $980 billion

D) $860 billion

 

 

16) National income is equal to

A) personal income minus personal taxes.

B) GDP minus depreciation.

C) disposable personal income plus depreciation plus personal taxes.

D) GNP plus depreciation.

 

17) Gross national product is defined as

A) the value of final goods and services produced within the United States.

B) the value of final goods and services produced outside of the United States.

C) the value of final goods and services produced by residents of the United States even if the production takes place outside of the United States.

D) the value of final goods and services produced within the United States, by United States residents.

 

 

18) If a U.S. firm produces cars in Mexico, that production should count towards

A) U.S. GNP.

B) Mexico’s GNP.

C) U.S. GDP.

D) It will not affect either U.S. GNP or U.S. GDP.

 

 

19) If a German firm produces cars in the United States, that production should count towards

A) U.S. GNP.

B) German GDP.

C) U.S. GDP.

D) both U.S. GNP and German GDP.

 

 

20) Which of the following would increase GNP in the United States?

A) an increase in the production of U.S.-owned General Motors cars made in Mexico

B) an increase in the production of Japanese-owned Toyota cars in Mexico

C) an increase in the production of Japanese-owned Toyota cars in the U.S.

D) an increase in the production of Mexican-owned Grupo Minsa corn in the U.S.