TEST BANK TCQT Final

For most macroeconomists

• national income accounts and national output accounts are equal to each other.

• national income accounts exceed national output accounts.

• national output accounts exceed national income accounts.

• it is impossible to tell whether national income accounts are equal to national output accounts.

• None of the above.

For most macroeconomists,

• gross national income and gross national product are the same.

• gross national income exceeds gross national product.

• gross national product exceeds gross national product.

• it is hard to tell whether gross national income equals gross national product.

• None of the above.

The highest component of GNP is

• the current account.

• investment.

• government purchases

• consumption.

• None of the above.

The sale of

• a used textbook does enter GNP.

• a used textbook does not enter GNP, but the sale of a used house does.

• both a used textbook and a used house do not enter GNP.

• a used house does not enter GNP, but the sale of a used book does.

• None of the above.

Which one of the following statements is the most accurate?

• The sale of a used textbook does generate income for factors of production.

• The sale of a used textbook does not generate income for any factor of production.

• The sale of a used textbook sometimes does and sometimes does not generate income for factors of production.

• It is hard to tell whether a sale of a used textbook does or does not generate income for factors of production.

• None of the above.

Which one of the following statements is the most accurate?

• GNP plus depreciation is called net national product (NNP).

• GNP less depreciation is called net national product (NNP).

• GNP less depreciation is called net factor product (NFP).

• Answers A and C are both correct.

• None of the above.

National income equals GNP

• less depreciation, less net unilateral transfers, less indirect business taxes.

• less depreciation, plus net unilateral transfers, plus indirect business taxes.

• less depreciation, less net unilateral transfers, plus indirect business taxes.

• plus depreciation, plus net unilateral transfers, less indirect business taxes.

• less depreciation, plus net unilateral transfers, less indirect business taxes.

GDP is supposed to measure

• the volume of production within a country’s borders.

• the volume of services generated within a country’s borders.

• the volume of production of a country’s output.

• GNP plus depreciation.

• None of the above.

GNP equals GDP

• minus net receipts of factor income from the rest of the world.

• plus receipts of factor income from the rest of the world.

• minus receipts of factor income from the rest of the world.

• plus net receipts of factor income from the rest of the world.

• None of the above.

Movements in GDP

• and GNP usually do not differ greatly.

• and GNP usually do not differ greatly, as a practical matter.

• and GNP usually do differ greatly.

• are usually smaller than those of GNP movements, in practice.

• None of the above.