Question

GNP measures: Select one: a. production by U.S. citizens wherever they work in the world. b. the production of both intermediate and final goods and services. c. the same things as GDP, but also includes financial assets. d. goods and services produced by foreign businesses inside U.S. borders. Which option best defines Gross Domestic Product (GDP)? Select one: a. The market value of all the final goods and services produced within a country b. The total amount of sales from U.S. own companies c. The value of all the private spending on products made by corporations d. The total amount of profits earned by U.S. firms from production over the year. determinant demand TF 3: An increase in demand will cause the demand curve for an inferior good to increase (shift right). Select one: True False Which statement is true. In the aggregate sense: Select one: a. Total spending will be larger than total income b. Total income will be larger than total spending c. Total spending + total income will equal the value of the output d. Total spending will equal total income

Answer 1

Question 1

Gross national product is a measure of national income. It includes not only the market value of final goods and services produced within the United States but also net factor income earned by residents of United States from abroad.

So, in other words, it measures production by US citizens wherever they work in the world.

Hence, the correct answer is the option (a).

Question 2

Gross domestic product is a measure of national income. It includes the market value of all the final goods and services produced with in a country during a year's time.

Hence, the correct answer is the option (a).

Question 3

When demand for a good increases then demand curve for that good shifts to the right.

So, an increase in demand for an inferior good will shift the demand curve of inferior good to the right.

The given statement is True.

Question 4

In aggregate terms, total income generated in a country in a year's time is always equal to the total spending undertaken in a country in a year's time.

Hence, the correct answer is the option (d).