Principles of Macroeconomics- Chapter 2
A. summing the profits of all enterprises in the economy. B) subtracting the purchase of intermediate products from the value of the sales of final products. C) calculating the year-to-year changes in real GDP. D) deflating nominal GDP. Answer: B 31. NDP is: A. NI plus net foreign factor income earned in the U.S. plus indirect business taxes. B) NI plus corporate income taxes. C) GDP deflated for increases in the price level. D) GDP minus indirect business taxes. Answer: A 32. Which of the following best defines national income? A. income received by households less personal taxes B) the before-tax income received by households C) all incomes earned by U.S. resource suppliers for their current contributions to production D) the market value of the annual output net of consumption of fixed capital Answer: C 33. The largest component of national income is: A. compensation of employees. B) rents. C) interest. D) corporate profits. Answer: A 34. The total income earned in any year by national resource suppliers is measured by: A. DI. Answer: B
B. NI.
C. PI.
D. GDP.
Answer:C
Principles of Macroeconomics- Chapter 2
A. summing the profits of all enterprises in the economy. B) subtracting the purchase of intermediate products from the value of the sales of final products. C) calculating the year-to-year changes in real GDP. D) deflating nominal GDP. Answer: B 31. NDP is: A. NI plus net foreign factor income earned in the U.S. plus indirect business taxes. B) NI plus corporate income taxes. C) GDP deflated for increases in the price level. D) GDP minus indirect business taxes. Answer: A 32. Which of the following best defines national income? A. income received by households less personal taxes B) the before-tax income received by households C) all incomes earned by U.S. resource suppliers for their current contributions to production D) the market value of the annual output net of consumption of fixed capital Answer: C 33. The largest component of national income is: A. compensation of employees. B) rents. C) interest. D) corporate profits. Answer: A 34. The total income earned in any year by national resource suppliers is measured by: A. DI. Answer: B B. NI. C. PI. D. GDP.