Mac06L1

  • 1

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    An example of a stock is _______ and an example of a flow is _______.

    capital; investment
    investment; depreciation
    depreciation; capital
    investment; capital

  • 2

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    Depreciation equals __________________________.

    gross investment minus net investment
    capital minus gross investment
    capital minus net investment
    net investment minus gross investment

  • 3

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    Government purchases include ______________________.

    roads, bridges, and education
    net exports
    consumption expenditure
    social security and education

  • 4

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    A country's investment can only be financed by _____________________________.

    national saving and borrowing from the rest of the world
    making exports exceed imports
    a government budget surplus
    saving by households and firms

  • 5

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    Gross Domestic Product is equal to the sum of consumption expenditure, investment, government purchases and ___________________.

    net exports
    saving
    net taxes
    profits

  • 6

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    Intermediate goods and services ____________________________.

    are used to produce final goods and services
    are double counted in GDP
    include used goods
    are included in GDP

  • 7

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    The income approach measures GDP by adding together components such as compensation of employees, proprietors' income, ____________________________.

    net interest, rental income, and corporate profits
    net investment, saving, and farmers' income
    net saving, investment income, and profits
    net investment, rental income, and corporate profits

  • 8

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    The value of a firm's production minus the value of the intermediate goods that the firm used in the process is _________________.

    value added
    potential GDP
    nominal GDP
    real GDP

  • 9

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    The measure of the average level of prices of the goods and services that a typical urban family consumes is called the _________________.

    Consumer Price Index
    inflation rate
    Urban Consumer Price Index
    GDP deflator

  • 10

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    The Consumer Price Index and the GDP deflator are _____________________________.

    two measures of the price level
    a constant proportion of GDP
    measures that reflect the prices of all goods in GDP
    equal in value

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