The largest component of GDP is
A. net exports.
B. consumption.
C. government purchases.
D. investment.
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Which two of the following are considered measures of income for an economy?
A. gross national product and net national product
B. net national profits and personal income
C. gross national product and net national investment
D. disposable personal income and personal profits
Transfer payments are
A. paychecks which are automatically deposited in bank accounts.
B. on-line bill payment services offered by many large banks.
C. moving expenses when a worker is transferred by an employer to a new location.
D. government spending that does not reflect payment for currently produced goods or services.
The CPI is a measure of the overall cost of
A. producer inputs.
B. personal imports.
C. goods and services bought by a typical consumer.
D. goods and services produced in the economy.
For any given year, the CPI is the price of the basket of goods and services in the
A. given year divided by the price of the basket in the base year, then multiplied by 100.
B. base year divided by the price of the basket in the base year, then divided by 100.
C. base year divided by the price of the basket in the given year, then divided by 100.
D. base year divided by the price of the basket in the given year, then multiplied by 100.
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