Answer the following statements true (T) or false (F)
1. When U.S. households buy new imported European and Japanese cars, the total value of the
cars is counted as part of C in the GDP accounts.
2. Net exports are positive when exports are greater than imports.
3. In the expenditures approach, transfer payments such as unemployment compensation are
included in the G component of GDP.
4. National income (NI) is estimated as the sum of four categories of income (wages, rent,
interest, profits) plus taxes on production and imports.
5.Personal income (PI) is the income that households are free to spend or save as they please.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
You might also like to view...
Which of the following defines marginal utility?
A. the total satisfaction or happiness received from the consumption of a good, service, or combination of goods and services B. the additional satisfaction or happiness received from the consumption of an additional unit of a good or service C. the maximum amount of satisfaction or happiness derived from consuming a product D. the change in total utility divided by the price of a product
A devastating earthquake destroys ten percent of the population in California. As a result: a. California's production possibility curve shifts outward
b. California moves up and to the left along its production possibilities curve. c. California moves down and to the right along its production possibilities curve. d. California's production possibility curve shifts inward.
Which of the following tools is used to test multiple linear restrictions?
A. t test B. z test C. F test D. Unit root test
Answer the next question based on information in the following table.ProductPercentage Change in IncomePercentage Change in Quantity DemandedW?1?1X+6+10Y?1+1Z+4+8Which product has the largest income elasticity of demand?
A. product W B. product X C. product Y D. product Z