Measuring Output and Income

The dollar value of all the final goods and services that are produced during a fixed period of time is:

net gross delivered product.
nominal net domestic product.
net general domestic product.
nominal gross domestic product.
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Terms in this set (53)
The dollar value of all the final goods and services that are produced during a fixed period of time is:

net gross delivered product.
nominal net domestic product.
net general domestic product.
nominal gross domestic product.
all the final goods and services that are produced during a fixed period of time.
Only ______ goods and services are included in the estimation of the dollar value of output produced in an economy or nominal GDP.
final
_______ goods are not part of GDP because they are used up in production.
intermediate
Secondhand sales represent the:
reallocation of past production that was already counted as part of GDP in another year
Informal-market transactions are especially problematic for:

developed countries in which a large fraction of total production is exchanged in informal markets.
developed countries in which a small fraction of total production is exchanged in informal markets.
developing countries in which a large fraction of total production is exchanged in informal markets.
developing countries in which a small fraction of total production is exchanged in informal markets.
developing countries in which a large fraction of total production is exchanged in informal markets.
The dollar value of all the final goods and services that are produced during a fixed period of time is:

nominal gross domestic product.
net general domestic product.
net gross delivered product.
nominal net domestic product.
nominal gross domestic product.
A(n) _____ good or service is one sold to the end-user and is not used to produce another product for subsequent sale. (Use one word for the blank.)
final
Gross domestic product equals the total sum of four categories:

consumption net investment government purchases and net exports.
consumption gross investment government purchases and net exports.
consumption retail sales government purchases and net exports.
consumption gross investment government sales and net exports.
consumption gross investment government purchases and net exports.
Sales of ___________ do not represent new production, just the reallocation of past production that was already counted as part of GDP in another year.

secondhand goods
final goods
new services
net exports
secondhand goods
Consumption and government purchases are:

the largest components of GDP.
not included in GDP.
only measure intermediate goods.
the smallest components of GDP.
the largest components of GDP.
Transactions that happen either as a result of barter or illegally are not included in the calculation of GDP because: they are counted by law enforcement. an even exchange does not affect GDP. they cannot be seen. they are included in services.they cannot be seen.Consumption includes purchases made by _______ .households, consumers, household, consumer, or buyersGross domestic product is equal to the total sum of: consumption net investment government purchases and net exports. consumption retail sales government purchases and net exports. consumption gross investment government purchases and net exports. consumption gross investment government sales and net exports.consumption gross investment government purchases and net exports._______ include haircuts, medical and legal services, education, and entertainment, such as a live music concert.Services or Service________ refers to spending by firms on capital goods designed to improve the future productivity of the firm.investment_____ is the largest component of GDP in the United States. (Use one word for the blank.)Consumption or Consumer spendingPurchases made by households are called: consumption. depreciation. investment.consumption_____ goods include such goods as appliances, cars, and furniture._____ goods include such goods as appliances, cars, and furniture.DurableOnly _______ goods and services are included in GDP so that expenditures are not counted twice. (Enter one word for the blank.)finalThe type of spending called ______ represents the accumulation of new capitalinvestment or investing_______ refers to spending by firms on capital goods designed to improve the future productivity of the firm.Investment or InvestmentsA new house falls under: business consumption because a contractor has to buy many products to build a house. business investment because a well-constructed home is usually built by a contractor. residential investment because a well-constructed home can last many decades and is more like an investment good than a consumption good. residential consumption because a well-constructed home can last many decades and provides many consumption purchases.residential investment because a well-constructed home can last many decades and is more like an investment good than a consumption good.The more productive the nation is,: the higher the population growth rate is. the lower the inflation rate is. the lower the population growth rate is. the higher its wages and standards of living are.the higher its wages and standards of living are._____ includes all expenditures made by households on goods and services such as clothing, food, electronics, and recreation. (Use one word for the blank.)Consumption or Consumer spending_____ goods include such goods as food and clothing. (Enter one word in the blank.)nondurable______ are money in the bank or a stock or bond; ______ occurs when you buy a house or expand a factory.savings, investmentPurchases by firms of new capital goods such as offices, factories, tools, and machinery are called: residential investment. capital improvements. producer goods. business fixed investment.business fixed investment.The more capital that is available to its workers, the _____ productive a nation will be.morethe speed at which a piece of capital _____ depends on what kind of capital it is.depreciatesConsider a piece of machinery that is still in use and highly productive. According to a(n) ,_____ that machine could be fully depreciated.accountantGoods that have an average useful life of three years or more are known as ______ goods.durableThe level of gross ______ does not tell how fast the stock of capital in the economy is increasing.investment______ occurs when a firm purchases new capital equipment that it will use to increase its productive capabilities.InvestmentThe expenditures or the dollar value of all the final goods and services that are produced during a fixed period of time is: nominal gross domestic product. net gross delivered product. nominal net domestic product. net general domestic product.nominal gross domestic product.Depreciation is the amount of _____ that wears out or is used up during a year.capitaln accounting as opposed to economics, depreciation refers to: Multiple choice question. a process that spreads the cost of an asset over a number of years. capital that is sold. capital that is worn out or obsolete. the legal allowance for the value of an asset according to the business strategic plan.a process that spreads the cost of an asset over a number of years.Suppose that at the beginning of the year, there are ten cranes in the economy. During the course of the year, four cranes wear out. At the same time, we invest in capital and purchase six new cranes. Gross investment is equal to cranes and depreciation is equal to cranes, so net investment is equal to cranes. (Use one word for each blank.)Which of the following statements is true? Multiple choice question. NX = X - M. NX = C + I. NX = M - X. NX = X + M.NX = X - M.In accounting as opposed to economics, depreciation refers to: the legal allowance for the value of an asset according to the business strategic plan. capital that is worn out or obsolete. capital that is sold. a process that spreads the cost of an asset over a number of years.a process that spreads the cost of an asset over a number of years.consumptionspending by households on goods and services, with the exception of purchases of new housing (clothing, food, electronics).consumer durablesgoods that have an average useful life of 3 years or moreconsumer nondurablesgoods that have an average useful life of less than 3 yearsServicesoutputs often intangible (un able to be touched) of the direct activities of another person.in economics, depreciation refers to: a process that spreads the cost of an asset over a number of years. capital that is worn out or obsolete. capital that is sold. the legal allowance for the value of an asset according to the tax code.capital that is worn out or obsolete.Suppose that last year a total of $15 billion in goods and services was exported to other countries while $6 billion was imported. Net exports equals $ ____ billion.9Suppose at the beginning of the year, there are ten cranes in the economy. During the course of the year, two cranes wear out and are replaced. At the same time, net investment is equal to two cranes. Calculate gross investment from the given information. Gross investment is equal to ten cranes. Gross investment is equal to four cranes. Gross investment is equal to two cranes. Gross investment is equal to eight cranes.Gross investment is equal to four cranesIt does not matter which year you use as the base year as long as you are consistent. (True or False)true____ goods include such goods as food and clothing. (Enter one word in the blank.)Nondurable____ occurs when households or firms take some of their income or profit and put it in a savings account in the stock market or in some other asset, hoping to make a return on their money and spend it in the future.savings, savingGoods services or resources produced domestically and sold abroad are called ____ .Net exportsIn calculating real GDP, we use:current-year quantities and base-year prices.In accounting as opposed to economics, depreciation refers to: capital that is sold. capital that is worn out or obsolete. a process that spreads the cost of an asset over a number of years. the legal allowance for the value of an asset according to the business strategic plan.