Multiple choice

1. Net domestic product is equal to:

A. gross national product. 

B. the inflation rate. 

C. national income (NI) plus corporate profits taxes. 

D. NI plus indirect business taxes. 

2. We do NOT count __________ as part of GOP

A. price increases 

B. transfer payments 

C. final goods 

D. depreciation 

3. About seven out of ten dollars of our GDP is spent on:

A. government purchases. 

B. net exports. 

C. investment spending. 

D. consumer goods. 

4. The value actually earned by members of households who supply the inputs necessary to produce GDP is called:

A. net investment. 

B. national income 

C. personal income. 

D. disposable income.