111) Given the following data, calculate the GDP.
wages = $500government spending= $2,500private investment = $2,100
rent= $100consumer spending= $7,800net exports = $-400
A) GDP = $11,400
B) GDP = $12,000
C) GDP = $12,400
D) GDP = $13,000
112) The appropriate formula for computing Gross Domestic Product using the income approach (excluding depreciation and indirect income taxes) is
A) consumption + investment + government spending + net exports
B) wages + rent + interest + profits
C) wages + rent + interest + profits + indirect business taxes
D) wages + rent + interest + profits + indirect business taxes + depreciation
113) To calculate GDP once national income has been computed, we must
A) add indirect business taxes and transfers and subtract profits.
B) add depreciation and subtract indirect business taxes.
C) add depreciation and indirect business taxes and transfer payments and subtract other business income adjustments and net U.S. income earned abroad.
D) add indirect business taxes and transfers and subtract depreciation, other business income adjustments, and net U.S. income earned abroad.
114) The difference between Gross Domestic Income (GDI) and Gross Domestic Product (GDP) is that
A) GDI is GDP less indirect business taxes and depreciation.
B) GDP is GDI less indirect business taxes and depreciation.
C) GDI is equal to GDP.
D) GDP is always smaller than GDI.
115) Which sector of our economy accounts for the largest percentage to total spending?
116) In calculating GDP using the expenditure approach, the largest component is
A) consumption spending.
B) government spending.
C) investment spending.
D) spending on durable goods.