Ch 2 Measurement

Question 1

he principal printed source for reporting the U.S. National Income and Product Accounts is called the

Answer 1

B)

Survey of Current Business

Question 2

The three approaches to measuring GDP are called the

Answer 2

C)

product approach, the income approach, and the expenditure approach.

Question 3

Approaches to measuring GDP include all of the following except the
A)

cost approach.
B)

product approach.
C)

income approach.
D)

expenditure approach.

Answer 3

A)

cost approach.

Question 4

Jim’s Nursery produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim’s contribution to GDP is

Answer 4

1100

Question 5

Jim’s Nursery produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim’s profit is

Answer 5

100

Question 6

The income components of GDP include all of the following except

Answer 6

foreign income

Question 7

The income-expenditure identity is best paraphrased as

Answer 7

all spending generates income.