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To Avoid Multiple Counting In National Income Accounts, To Avoid Multiple Counting In National Income

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September 21, 2021
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GDP is the market value of: all final goods and services produced in an economy in a given year. all expenditures on consumption, investment, and net exports in an economy in a given year. all expenditures on natural resources, labor, and capital goods in an economy in a given year. all intermediate goods and services produced in an economy in a given year.

You are watching: To avoid multiple counting in national income accounts

To avoid multiple counting in national income accounts, only: final goods and services should be counted. primary, intermediate, and final goods and services should be counted. both final and intermediate goods and services should be counted. intermediate goods and services should be counted.
An example of a final good in national income accounts would be a new: microcomputer purchased by an executive for business use. microcomputer purchased by an executive for personal use. automobile purchased by a travel agency. tractor purchased by a construction company.
Money spent on the purchase of a new house is included in the GDP as a part of: personal saving. investment. the consumption of private fixed capital. personal consumption expenditures.
In year 1, inventories rose by $25 billion. In year 2, inventories fell by $20 billion. In calculating total investment, national income accounts would have: decreased it by $25 billion in year 1 and increased it by $5 billion in year 2. increased it by $25 billion in year 1 and decreased it by $20 billion in year 2. decreased in by $25 billion in year 1 and increased it by $20 billion in year 2. increased it by $25 billion in year 1 and decreased it by $5 billion in year 2.

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A distinguishing characteristic of public transfer payments is that: there is a tax on the amount of the subsidy above a certain income level. the recipients make no contribution to current production in return for them. they are used to subsidize the major transportation carriers to reduce transportation costs. they are counted as part of government purchases in the calculation of the gross domestic product.
Net exports is a positive number when: a nation”s import of goods and services exceed its exports. a nation”s exports of goods and services exceed its import. depreciation is greater than gross private domestic investment. gross private domestic investment is greater than depreciation.
The value of U.S. import is: added to exports when calculating GDP because imports reflect spending by Americans. subtracted from exports when calculating GDP because imports do not constitute production in the United States. added when calculating GDP because imports do not constitute production in the United States. subtracted from exports when calculating GDP because imports do not constitute spending by Americans.

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GDP in an economy is $4600 billion. Consumer expenditures are $3500 billion, government purchases are $900 billion, and gross private domestic investment is $400 billion. Net exports are: +$400 billion. -$400 billion. +$200 billion. -$200 billion.
If the price index is 130, this means that: prices are 30 percent higher than in the base year. prices are 130 percent higher than in the base year. prices are 0.13 times higher than in the base year. nominal GDP must be inflated to determine the real GDP

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