Question

QUESTION 8 The largest component of GDP is: A. consumption expenditure. B. gross private domestic investment C. government spending. D. net exports. QUESTIONS The sum of all income, including wages, salaries and benefits, profits, rental income, and interest, is called: A. labor income B. gross domestic income. C. national income. D. pretax income. QUESTION 10 A business cycle is: A. the periodic fluctuation of economic activity. B. the engine of economic growth. C. a period lasting about 50 years. D. identical to the consumption life cycle. QUESTION 11 GNP includes outputs produced_ _but it does not include outputs produced A. outside the United States by U.S. citizens; inside the United States by foreign citizens. B. outside the United States by U.S. citizens; inside the United States by U.S. citizens. C. inside the United States by foreign citizens; outside the United States by U.S. citizens. D. The GNP only includes output (goods and services) produced by U.S. citizens within the United States. QUESTION 12 GDP includes outputs produced_ _but it does not include outputs produced_ A. outside the United States by U.S. citizens; inside the United States by foreign citizens. B. outside the United States by U.S. citizens; inside the United States by U.S. citizens. C. inside the United States by foreign citizens; outside the United States by U.S. citizens. D. The GDP includes only goods and services produced by U.S. citizens within the United States.

Answer 1

Q8. Option A. Consumption is the largest component of GDP which forms roughly 60 to 65 percent

Q9. Option C. National income represents the total amount of money earned within a country

Q10. Option A. It is period of peak and decline of growth represented as an oscillation

Q11. Option B. GNP = GDP + net income from abroad

Q12. Option D. GDP= Value of final goods and services produced in a nation