Net domestic product is composed of the total market value of all?
Answer(s): C
Net domestic product is the market value of all final goods and services produced within the boundaries of a country within 1 year minus the capital consumption allowance.
The gross domestic product GDP) does not measure:
GDP is the total market value of all final goods and services produced within the boundaries of the U.S. in one year, without regard to ownership of the means of production. It is a monetary measure of quantitative data, not qualitative characteristics. Thus, improvements in product quality are not measured by GDP.
The gross domestic product GDP) will fall following an increase in:
Answer(s): B
By definition, GDP determined using the expenditures approach equals the sum of consumption, investment, government purchases of goods and services, and net exports - imports). Thus, a rise in imports will cause a fall in net exports and GDP.
Under the "output" approach, gross domestic product GDP) is measured as:
Answer(s): D
GDP is the total value of all goods and services produced in the U.S., regardless of the ownership of the means of production. GDP can be measured using an income or output expenditures) approach. The output approach measures the amount spent to purchase the year's total output. Using this approach, GDP is calculated by adding consumption expenditures by households, investment expenditures by businesses, government purchases of goods and services, and expenditures by foreigners.
In the output or "expenditures" approach to measuring a country's gross domestic product, which of the following calculations is used?
Answer(s): A
GDP can be calculated using an income approach or an expenditures approach because what is spent on a product or service is income to those who contributed resources to its production and marketing. Thus, the amount spent to purchase the GDP is identical with the income derived from its production and sale. Under the output or expenditures approach, GDP equals the sum of consumption expenditures by households, investment by business, government purchases of goods and services, and expenditures by foreigners net exports).
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