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Which of the following is an example of the gross private domestic investment component o

Which of the following is an example of the gross private domestic investment component o

 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?

A) furniture

B) gasoline

C) food

D) office supplies that will be used up this year

 

Table 5-1

 

Consumption expenditures on goods and services$1,500

Total government spending on goods and services590

Gross private domestic investment355

Imports50

Exports70

Depreciation (Capital consumption allowance)200

Indirect business taxes75

 

34) According to Table 5-1, gross domestic product is

A) $2,190.

B) $2,840.

C) $2,465.

D) $2,750.

35) According to Table 5-1, net domestic product is

A) $1,995.

B) $2,265.

C) $2,550.

D) $2,850.

 

36) According to Table 5-1, national income is

A) $2,190.

B) $2,550.

C) $2,465.

D) $2,750.

 

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.

Table 5-2

 

Transfer payments$246

Exports233

Dividends11

Consumption expenditures1,463

Fixed investments350

Indirect business taxes149

Undistributed corporate profits148

Personal income taxes386

Imports220

Federal government expenditures120

Changes in business inventories6

Corporate taxes43

Depreciation206

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.

Abhinav 07-Dec-2019

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