Question : 21) Which of the following true regarding the measurement of : 1238422

21) Which of the following is true regarding the measurement of GDP?

A) Wages and profit income are used in the income approach to GDP.

B) Wages and consumption are used in the expenditure approach to GDP.

C) Consumption and investment are used in the income approach to GDP.

D) Government expenditure is only counted in the income approach to GDP.

E) Investment and wages are expenditures, and are therefore are used in the expenditure approach to GDP.

22) The income approach measures GDP by summing

A) C + I + G + NX.

B) the total production of all final goods and services produced in a year within a country’s borders.

C) the wealth of households, business and government.

D) the incomes paid households for the resources they own.

E) Both answers A and D are correct.

23) The income approach to measuring GDP is based on summing

A) the production of each industry.

B) wages, interest, rent, and profits.

C) the values of final goods, intermediate goods and services, used goods, and financial assets.

D) consumption expenditure, investment, government expenditures on goods and services, and net exports of goods and services.

E) consumption expenditure and wages.

24) According to the income approach to measuring GDP, the largest income category is

A) wages.

B) interest.

C) rent.

D) profits.

E) consumption expenditure.

25) In 2009 in the United States, net domestic product at factor cost was $11,091 billion. Additionally, rent was $2,000 billion, profits were $1,000 billion, and interest was $358 billion. Hence wages were

A) $7,733 billion.

B) $9,091 billion.

C) $10,091 billion.

D) $8,091 billion.

E) $12,091 billion.

26) When measuring GDP by the income approach, wage income includes

i.health-care insurance paid for by the firm for its employees.

ii.Social Security contributions made by the firm.

iii.wages paid during a worker’s vacation time.

A) i, ii and iii

B) i and ii only

C) i only

D) ii only

E) ii and iii only

27) Which of the following are included in interest income?

i.payments made for the use of land

ii.income paid to households for loans they make

iii.payments made by households for their borrowing

A) i, ii and iii

B) ii and iii only

C) i and ii only

D) ii only

E) iii only

28) The category of “rent” in the income approach to GDP

A) includes the money paid to rent apartments only.

B) includes the money paid to rent machinery only.

C) includes the money paid to use land and other rented inputs.

D) does not have any connection to owner-occupied housing.

E) includes only the imputed rent for owner-occupied housing.

29) Adding wages, interest, rent, and profits yields

A) gross domestic product.

B) gross domestic product at factor cost.

C) net domestic product at factor cost.

D) GNP.

E) total expenditure.

30) The sum of all the income categories listed in the National Income and Product Accounts adds up to

A) gross domestic product.

B) net national product.

C) disposable income after taxes.

D) net domestic product at factor cost.

E) gross national product.