Final Exam Answers
Updated: Aug 17, 2022
Test Bank: I Topic: The Expenditures Approach
In the treatment of U.S. exports and imports, national income accountants
subtract exports, but add imports, in calculating GDP.
subtract both exports and imports in calculating GDP.
add both exports and imports in calculating GDP.
D. add exports, but subtract imports, in calculating GDP.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP.
Test Bank: I Topic: The Expenditures Approach
In calculating the GDP, national income accountants
treat inventory changes as an adjustment to personal consumption expenditures.
ignore inventories because they do not represent final goods.
subtract increases in inventories or add decreases in inventories.
D. add increases in inventories or subtract decreases in inventories.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP.
Test Bank: I Topic: The Expenditures Approach
The ZZZ Corporation issued $25 million in new common stock in 2016. It used $18 million of the proceeds to replace obsolete equipment in its factory and $7 million to repay bank loans. As a result, investment
of $7 million occurred.
of $25 million occurred.
C. of $18 million occurred.
D. has not occurred.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP.
Test Bank: I Topic: The Expenditures Approach
In 2012, Trailblazer Bicycle Company produced a mountain bike that was delivered to a retail outlet in November 2012. The bicycle was sold to E.Z. Ryder in March 2013. This bicycle is counted as
consumption in 2012 and as negative investment in 2013.
negative investment in 2012 and as consumption in 2013.
negative investment in 2012 and as investment in 2013.
D. investment in 2012 and as negative investment in 2013.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP.
Test Bank: I Topic: The Expenditures Approach
58.
Refer to the accompanying data (all figures in billions of dollars). GDP is
A. $116. B. $121. C. $125. D. $150.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP.
Test Bank: I Topic: The Expenditures Approach
Type: Table
59.
Refer to the accompanying data (all figures in billions of dollars). NDP (net domestic product) is
A. $116. B. $121. C. $125. D. $150.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
60.
Refer to the accompanying data (all figures in billions of dollars). GDP is
A. $390. B. $417. C. $422. D. $492.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP.
Test Bank: I Topic: The Expenditures Approach
Type: Table
61.
Refer to the accompanying data (all figures in billions of dollars). NDP is
A. $370. B. $402. C. $392. D. $467.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
62.
Refer to the accompanying data (all figures in billions of dollars). NI is
A. $362. B. $382. C. $447. D. $402.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
63.
Refer to the accompanying data (all figures in billions of dollars). PI is
A. $314. B. $346. C. $408. D. $437.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
64.
Refer to the accompanying data (all figures in billions of dollars). DI is
A. $284. B. $329. C. $274. D. $402.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
65.
Refer to the accompanying data (all figures in billions of dollars). The gross domestic product for this economy is
A. $100. B. $95. C. $110. D. $107.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP.
Test Bank: I Topic: The Expenditures Approach
Type: Table
66.
Refer to the accompanying data (all figures in billions of dollars). Consumption of fixed capital is
A. $5.
B. $10.
C. $20.
D. $30.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP.
Test Bank: I Topic: The Expenditures Approach
Type: Table
67.
Refer to the accompanying data (all figures in billions of dollars). Disposable income is
A. $83.
B. $73.
C. $75.
D. $77.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
68.
Refer to the accompanying data (all figures in billions of dollars). From this information we can conclude that the net foreign factor income is
A. negative $5 billion.
zero.
positive $5 billion.
positive $15 billion.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP.
Test Bank: I Topic: The Expenditures Approach
Type: Table
69.
Refer to the accompanying national income data for the economy. All figures are in billions of dollars. The gross domestic product for this economy is
A. $584. B. $592. C. $609. D. $623.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP. Learning Objective: 07-03 Explain how GDP can be determined by summing up all of the incomes that were derived from producing the economys output of goods and services.
Test Bank: I Topic: The Expenditures Approach Topic: The Income Approach
Type: Table
70.
Refer to the accompanying national income data for the economy. All figures are in billions of dollars. Net domestic product is
A. $520. B. $580. C. $623. D. $573.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
71.
Refer to the accompanying national income data for the economy. All figures are in billions of dollars. The national income is
A. $561. B. $573. C. $580. D. $530.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
72.
Refer to the accompanying national income data for the economy. All figures are in billions of dollars. Disposable income
A. cannot be determined from the data given. B. is $484.
C. is $416. D. is $502.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
73.
Refer to the accompanying data. All figures are in billions of dollars. The gross domestic product is
A. $326. B. $282. C. $307. D. $300.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP.
Test Bank: I Topic: The Expenditures Approach
Type: Table
74.
Refer to the accompanying data. All figures are in billions of dollars. The net domestic product is
A. $233. B. $255. C. $230. D. $348.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
75.
Refer to the accompanying data. All figures are in billions of dollars. The national income is
A. $265. B. $223. C. $208. D. $346.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
76.
Refer to the accompanying data. All figures are in billions of dollars. Personal income is
A. $184. B. $221. C. $149. D. $228.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
77.
Refer to the accompanying data. All figures are in billions of dollars. The economy characterized by the data is
A. experiencing inflation because disposable income exceeds personal income.
B. experiencing declining production capacity because net investment is negative.
in a depression because personal income exceeds disposable income.
experiencing expanding production capacity because net private domestic investment is positive.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-02 Describe how expenditures on goods and services can be summed to determine GDP.
Test Bank: I Topic: The Expenditures Approach
Type: Table
78.
Refer to the accompanying data. All figures are in billions of dollars. National income is
A. $395. B. $380. C. $375. D. $360.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-03 Explain how GDP can be determined by summing up all of the incomes that were derived from producing the economys output of goods and services.
Test Bank: I Topic: The Income Approach
Type: Table
79.
Refer to the accompanying data. All figures are in billions of dollars. Gross domestic product is
A. $395. B. $380. C. $375. D. $360.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-03 Explain how GDP can be determined by summing up all of the incomes that were derived from producing the economys output of goods and services.
Test Bank: I Topic: The Income Approach
Type: Table
80.
Refer to the accompanying data. All figures are in billions of dollars. Net domestic product is
A. $395. B. $380. C. $375. D. $360.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-04 Describe the relationships among GDP, net domestic product, national income, personal income, and disposable income.
Test Bank: I Topic: Other National Accounts
Type: Table
Corporate profits are found by
summing corporate income taxes, dividends, and undistributed corporate profits.
adding corporate income taxes and dividends and subtracting undistributed corporate profits.
subtracting corporate income taxes from the sum of dividends and undistributed corporate profits.
summing dividends, undistributed corporate profits, and proprietors' income.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-03 Explain how GDP can be determined by summing up all of the incomes that were derived from producing the economys output of goods and services.
Test Bank: I Topic: The Income Approach
82.
Refer to the accompanying national income data. All figures are in billions of dollars. Consumption of fixed capital (private sector) is
A. $23.
B. $14.
C. $32.
D. $26.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-03 Explain how GDP can be determined by summing up all of the incomes that were derived from producing the economys output of goods and services.
Test Bank: I Topic: The Income Approach
Type: Table
83.
Refer to the accompanying national income data. All figures are in billions of dollars. U.S. imports are
A. $26.
B. $16.
C. $24.
D. $14.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-03 Explain how GDP can be determined by summing up all of the incomes that were derived from producing the economys output of goods and services.
Test Bank: I Topic: The Income Approach
Type: Table
84.
Refer to the accompanying national income data. All figures are in billions of dollars. Personal consumption expenditures
A. cannot be calculated.
are $231.
are $225.
are $205.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-03 Explain how GDP can be determined by summing up all of the incomes that were derived from producing the economys output of goods and services.
Test Bank: I Topic: The Income Approach
Type: Table
85.
Refer to the accompanying national income data. All figures are in billions of dollars. The gross domestic product is
A. $328. B. $301. C. $382. D. $333.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 07-03 Explain how GDP can be determined by summing up all of the incomes that were derived from producing the economys output of goods and services.
Test Bank: I Topic: The Income Approach
Type: Table
86.
Refer to the accompanying national income data. All figures are in billions of dollars. Personal income is