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51) The largest category of gross domestic income is

A) interest.

B) rent.

C) wages.

D) profits.

52) If households pay $1,000 in interest payments and receive $1,200 in interest, wages equal $8,000, rental receipts on land are $200, total business profits before taxes are $2,200, depreciation is $1,750, and indirect business taxes are $1,000, then gross domestic income is

A) $15,350.

B) $13,350.

C) $13,150.

D) $11,400.

53) The two main methods of measuring GDP are

A) the income approach and the expenditure approach.

B) the income approach and the receipts approach.

C) the goods approach and the services approach.

D) the saving approach and the investment approach.

54) The expenditure approach to measuring GDP

A) adds the dollar value of final goods and services.

B) adds the income received by all factors of production.

C) excludes durable consumer goods since they last more than a year.

D) excludes profits since profits are a cost of production.

55) The computation of GDP by adding up the dollar value at current market prices of all final goods and services is

A) the expenditure approach.

B) the income approach.

C) transfer payments.

D) the value of all securities.

56) The components of the expenditure approach to measuring GDP include all of the following EXCEPT

A) net exports.

B) government purchases of goods and services.

C) expenditures for business investments.

D) the implicit payments for unpaid household work.

57) In calculating GDP, your tuition expenditures at college are classified as

A) consumer expenditures on services.

B) consumer expenditures on goods.

C) consumer expenditures on durable goods.

D) investment spending.

58) A consumer good that has a life span of more than three years is a(n)

A) durable consumer good.

B) nondurable consumer good.

C) service.

D) investment.

59) A consumer good that is used up within three years is a(n)

A) durable consumer good.

B) nondurable consumer good.

C) service.

D) investment.

60) Mental or physical labor or help purchased by consumers is a(n)

A) durable consumer good.

B) nondurable consumer good.

C) service.

D) investment.

 

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