UPGRADED ECONOMIC 1002 EXAM QUESTIONS AND ANSWERS

UPGRADED ECONOMIC 1002 EXAM QUESTIONS AND ANSWERS Which of the following measures the economy's overall performance? - CORRECT ANSWER -National income accounting. Aggregate output is the primary measure of the economy's ______. - CORRECT ANSWER -total output of goods and services. In national income accounts, what does value added refer to? - CORRECT ANSWER -The difference in the market value and cost of inputs purchased from other firms. Including the value of _____ (one word) goods along with the value of final goods in the calculation of GDP would amount to multiple counting of goods and distort GDP. - CORRECT ANSWER -intermediate Government transfer payments include all of the following except: - CORRECT ANSWER -wage payments to police officers National _______ accounting measures the overall performance of the economy. - CORRECT ANSWER income The view of GDP as the sum of money spent on purchases is called the ______ approach. - CORRECT ANSWER -expenditures The primary measure of the economy's performance is its annual total output of goods and services, which is called its ______. - CORRECT ANSWER -aggregate output In order to determine GDP using the expenditures approach, all spending on ______ goods and services, not intermediate goods, is added up. - CORRECT ANSWER -final The market value of a firm's output minus the value of the inputs the firm has bought from others is called ______. - CORRECT ANSWER -value added Gross domestic product calculations count only final goods and services because ______. - CORRECT ANSWER -counting all intermediate goods and services would lead to double-counting of many activities Which of the following is not an example of a personal consumption expenditure? - CORRECT ANSWER A fighter jet. Social Security payments, welfare payments, and veterans' payments that the government makes directly to households are called government public _____ payments. - CORRECT ANSWER -transfer The view of GDP as the sum of money spent on buying it is called the aggregate ______ approach. (Enter one word for the blank.) - CORRECT ANSWER -expenditure Depreciation of capital is _____. - CORRECT ANSWER -the annual amount allocated to wear and tear on private investment Which of these are components of government purchases in GDP? - CORRECT ANSWER -Expenditures for goods and services that the government consumes in providing public services Expenditures for publicly owned capital