Which of the following is an example of the gross private domestic investment component of GDP?
A) You buy a share of GM stock.
B) GM buys a new drill press.
C) You put money into your savings account.
D) You put money into your checking account.
32) Which of the following is part of gross private domestic investment?
A) purchases of stocks and bonds
B) a decline in consumer debt
C) purchases of hamburgers for a family dinner
D) a positive change in business inventories
33) Which one of the following is a durable consumer good?
D) office supplies that will be used up this year
Consumption expenditures on goods and services$1,500
Total government spending on goods and services590
Gross private domestic investment355
Depreciation (Capital consumption allowance)200
Indirect business taxes75
34) According to Table 5-1, gross domestic product is
35) According to Table 5-1, net domestic product is
36) According to Table 5-1, national income is
37) One method of calculating GDP is to add together
A) investment, consumption, gross profits, and net exports.
B) consumption, investment, government spending, and net exports.
C) wages, gross profits, net investment, and net exports.
D) consumption, wages, interest, rental income, and exports.
Indirect business taxes149
Undistributed corporate profits148
Personal income taxes386
Federal government expenditures120
Changes in business inventories6
State and local government expenditures258
Social Security govt. contributions100
38) According to Table 5-2, gross domestic product as calculated by the expenditure approach is
A) $2,210 billion.
B) $1,894 billion.
C) $3,409 billion.
D) $1,989 billion.
39) According to Table 5-2, net domestic product is
A) $2,843 billion.
B) $1,783 billion.
C) $2,004 billion.
D) $1,688 billion.
40) According to Table 5-2, national income is
A) $2,694 billion.
B) $1,855 billion.
C) $1,634 billion.
D) $1,539 billion.
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