Question : 31) Once the categories of income totaled, the sum called : 1240842

31) Once the categories of income are totaled, the sum is called

A) “GDP measured by the income approach.”

B) “net domestic product at factor cost” and is not equal to GDP.

C) “net domestic product at factor cost” and is equal to GDP.

D) “total income earned” and is equal to GDP.

E) GNP and is not equal to GDP.

32) One reason the total sum of the income categories does not equal GDP is that

A) GDP values goods and services at market prices and the income approach values them at factor cost.

B) GDP values goods and services at retail prices and the income approach values them at wholesale cost.

C) taxes are generally larger than subsidies and the depreciation of capital is negligible.

D) GDP does not include depreciation, which is part of the income categories.

E) people do not spend all their income, so the value of consumption expenditure is less than the value of wages.

33) After calculating net domestic product at factor cost, to calculate GDP using the income approach, in part we must add

A) wages.

B) net operating surplus.

C) indirect taxes and depreciation.

D) interest, rent, and profit.

E) subsidies.

34) To measure GDP by using the income approach, we must add all incomes and then ________ depreciation and ________ net taxes less subsidies.

A) neither add nor subtract; add

B) add; neither add nor subtract

C) add; add

D) add; subtract

E) subtract; add

35) If the statistical discrepancy is zero, in order to calculate GDP from the value of net domestic product at factor cost, we must add

A) the value of intermediate goods and subtract the value of imports.

B) direct taxes, subtract corporate profit, and add investment.

C) indirect taxes, subtract subsidies, and add depreciation.

D) subsidies, subtract indirect taxes and depreciation.

E) indirect taxes, subsidies, and depreciation.

36) To calculate GDP using the income approach, one of the adjustments made to net domestic product at factor cost is to

A) add depreciation.

B) add investment.

C) subtract investment.

D) add consumption expenditure.

E) subtract indirect taxes less subsidies.

37) Which adjustment(s) must be made to convert net domestic product to GDP?

i.add indirect taxes

ii.subtract subsidies

iii.add depreciation

A) i and iii only

B) i, ii and iii

C) ii only

D) iii only

E) i and ii

38) Last year in a nation to the south, net domestic product at factor cost equaled $3,300 billion. Indirect taxes minus subsidies equaled $200 billion, depreciation equaled $800 billion, the statistical discrepancy equaled zero, and net operating surplus equaled $150 billion. The country’s GDP was

A) $2,300 billion.

B) $3,500 billion.

C) $4,300 billion.

D) $4,450 billion.

E) $4,150 billion.

39) The table above has information about an economy. Using this information, GDP equals

A) $6,500 billion.

B) $7,800 billion.

C) $7,000 billion.

D) $8,500 billion.

E) some amount that cannot be calculated without information on the amount of government expenditures.

40) Using the information in the table above, what does GDP equal?

A) $365 billion

B) $350 billion

C) $650 billion

D) $380 billion

E) GDP cannot be calculated without information on the amount of investment.