Question : 13.1   The National Income Accounts 1) A country’s gross national product : 1303560

 

13.1   The National Income Accounts

 

1) A country’s gross national product (GNP) is

A) the value of all final goods and services produced by its factors of production and sold on the market in a given time period.

B) the value of all intermediate goods and services produced by its factors of production and sold on the market in a given time period.

C) the value of all final goods produced by its factors of production and sold on the market in a given time period.

D) the value of all final goods and services produced by its factors of production and sold on the market.

E) the value of all final goods and services produced by its factors of production, excluding land, and sold on the market in a given time period.

 

 

2) For most macroeconomists

A) national income accounts and national output accounts are equal to each other.

B) national income accounts exceed national output accounts.

C) national output accounts exceed national income accounts.

D) it is impossible to tell whether national income accounts equal to national output accounts.

E) national income accounts is much more important than national output accounts.

 

 

3) For most macroeconomists

A) gross national income and gross national product are the same.

B) gross national income exceeds gross national product.

C) gross national product exceeds gross national product.

D) it is hard to tell whether gross national income equal gross national product.

E) gross national product is much more important than gross national income.

 

 

4) The highest component of GNP is

A) the current account.

B) investment.

C) government purchases.

D) consumption.

E) trade.

 

5) An example of how GNP accounts for services provided by foreign-owned capital (and GDP does not) is

A) earnings of a Spanish factory with British owners counts only in Spain’s GDP.

B) earnings of a Spanish factory with British owners counts only in Britain’s GNP.

C) earnings of a Spanish factory counts in Spain’s GNP but are part of Britain’s GDP.

D) earnings of a Spanish factory counts in Spain’s GDP but are part of Britain’s GNP.

E) earnings of a Spanish factory counts in Spain’s GNP but not in Britain’s GDP or GNP.

 

 

6) The sale of

A) a used textbook does enter GNP.

B) a used textbook does not enter GNP, but the sale of a used house does.

C) both a used textbook and a used house do not enter GNP.

D) a used house does not enter GNP, but the sale of a used book does.

E) the GNP does not include sale of used items priced below $1000.

 

 

7) Which one of the following statements is the MOST accurate?

A) The sale of a used textbook does generate income for factors of production.

B) The sale of a used textbook does not generate income for any factor of production.

C) The sale of a used textbook sometimes does and sometimes does not generate income for factors of production.

D) It is hard to tell whether a sale of a used textbook does or does not generate income for factors of production.

E) The sale of a used textbook is a part of the GNP.

 

 

8) Which one of the following statements is the MOST accurate?

A) GNP plus depreciation is called net national product (NNP).

B) GNP less depreciation is called net national product (NNP).

C) GNP less depreciation is called net factor product (NFP).

D) GDP plus depreciation is called net national product (NNP).

E) GDP less depreciation is called net national product (NNP).

 

 

9) National income equals GNP

A) less depreciation, less net unilateral transfers, less indirect business taxes.

B) less depreciation, plus net unilateral transfers, plus indirect business taxes.

C) less depreciation, less net unilateral transfers, plus indirect business taxes.

D) plus depreciation, plus net unilateral transfers, less indirect business taxes.

E) less depreciation, plus net unilateral transfers, less indirect business taxes.

 

10) The United States began to report its gross domestic product (GDP) only since

A) 1900.

B) 1921.

C) 1931.

D) 1941.

E) 1991.