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19 Cards in this Set
- Front
- Back
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What is a primary use for national income accounting? |
Provides a basis for assessing the performance of the economy |
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The market value of final goods and services produced in 1 year is the definition of... |
Gross domestic product (GDP) |
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GDP provides an indication of society's valuation of the relative worth of goods and services because it... |
....is a monetary measure |
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To include the value of the parts used in producing cars turned out during a year in GDP for that year would be an example of... |
Multiple counting |
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What is an example of a public transfer payment? |
The social security benefits sent to a retired worker |
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The sale in year 2 of a car produced in year 1 would not be included in the GDP for year 2; doing so would involve... |
...including a non-production transaction |
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The service a babysitter performs when she stays at home with her baby brother while her parents are out and for which she receives no payment is not included in the GDP because... |
...this is a nonmarket transaction |
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According to national income accounting, money income derived from the production of this years output is equal to... |
...the amount spent to purchase this years total output |
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What would be considered an investment according to economists? |
The construction of a new computer chip factory by Intel |
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A refrigerator was produced by its manufacture in year 1, sold to retailer in year 1, and sold by the retailer to a final consumer in year 2. The refrigerator was... |
...counted as an investment in year 1 |
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The annual charge that estimates the amount of private capital equipment used up in each years production is called what? |
Depreciation |
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If gross private domestic investment is greater than depreciation, the economy will most likely be... |
Expanding |
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GDP in an economy is $3452 billion. Consumers expenditures are $2343 billion, govt. purchases are $865 billion and gross investment is $379 billion. The net exports are... |
...-$135 billion |
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What can happen to the allocation of corporate profits? |
It is paid to stockholders as dividends |
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The allowance for the private and publicly owned capital that has been used up or consumed in producing the years GDP is... |
...consumption of fixed capital |
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If both nominal gross domestic product and the level of prices are rising. It is evident that... |
No conclusion can be made |
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Suppose nominal GDP rose from $500 billion to $600 billion while the GDP price index increased from 125 to 150. Real GDP... |
...was constant |
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Expenditures for equipment to reduce the pollution of the environment is included in.. |
...GDP accounting |
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What is a major reason why GDP is "not" an accurate index of society's economic well-being? |
It excludes many improvements in product quality |
