Measuring a Nation's Income

Front

In the expenditure approach, the GDP equation can be written as

Back

GDP = C+I+G+(X-M)

Front

The measure of the economic activity of all the people and businesses within a country is the

Back

gross domestic product

Front

A Gross National Product is the

Back

the total market value of all final goods and services produced within a given period by factors of production owned by a country’s citizens, regardless of where output is produced

Front

GDP can be calculated by summing consumption, investment, government purchases, and net exports.

Back

consumption, investment, government purchases and net exports

Front

In a National Income Account, investment refers to

Back

expenditure on capital goods

Front

Which of the following possible measures of national income are not typically calculated in an economy?
the income method,
value added/output method,
the cost-benefit method,
the expenditure method

Back

the cost-benefit method

Front

GDP is not a perfect measure of well-being; for example,

Back

GDP fails to account for the quality of the environment.

Front

If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.

Back

True

Front

For an economy as a whole, income equals expenditure because the income of the seller must be equal to the expenditure of the buyer.

Back

True

Front

New home construction is included in the consumption component of GDP.

Back

False