Economy

Correct answer: C

Net measures deduct depreciation.

Correct answer: A

I is correct: Transfer payment → Payment without a current good or service in return. It is not government purchase of current production. II is correct: Saving → Income not consumed. Saving is a flow measured over a period.

Correct answer: C

I is incorrect: Capital stock → Assets existing at a point in time. A stock differs from investment measured during a period. II is correct: Disposable personal income → Income available after relevant personal taxes and transfers. It can be consumed or saved.

Correct answer: D

It supplies the benchmark for measuring change.

Correct answer: C

I is correct: Purchasing power parity → Currency comparison based on purchasing a common basket. It adjusts for differences in price levels. II is correct: GDP deflator → Index comparing nominal GDP with real GDP. It reflects prices of domestically produced final output.

Correct answer: D

It is an average and does not describe distribution by itself.

Correct answer: A

I is correct: Net domestic product → GDP minus consumption of fixed capital. Net measures deduct depreciation. II is correct: Intermediate good → Used up or transformed in producing another good. Its value is embodied in the final product.

Correct answer: D

Summing value added avoids double counting.

Correct answer: C

I is correct: Saving → Income not consumed. Saving is a flow measured over a period. II is correct: GDP calculated by the expenditure method → Consumption plus investment plus government purchases plus net exports. Imports are subtracted to avoid counting foreign production.

Correct answer: A

It is not government purchase of current production.

Correct answer: C

I is incorrect: Gross national income → GDP plus net primary income from abroad. Residence, rather than production location alone, determines this adjustment. II is correct: Disposable personal income → Income available after relevant personal taxes and transfers. It can be consumed or saved.

Correct answer: D

Its value is embodied in the final product.

Correct answer: A

I is incorrect: GDP deflator → Index comparing nominal GDP with real GDP. It reflects prices of domestically produced final output. II is correct: Per capita income → Income aggregate divided by population. It is an average and does not describe distribution by itself.

Correct answer: D

I is correct: Final good → Purchased for final use rather than further processing. Classification depends on use, not merely physical form. II is correct: Net domestic product → GDP minus consumption of fixed capital. Net measures deduct depreciation.

Correct answer: B

Saving is a flow measured over a period.

Correct answer: C

I is incorrect: Purchasing power parity → Currency comparison based on purchasing a common basket. It adjusts for differences in price levels. II is correct: Gross national income → GDP plus net primary income from abroad. Residence, rather than production location alone, determines this adjustment.

Correct answer: B

Classification depends on use, not merely physical form.

Correct answer: C

I is correct: GDP deflator → Index comparing nominal GDP with real GDP. It reflects prices of domestically produced final output. II is correct: Value added → Output value minus intermediate input value. Summing value added avoids double counting.

Correct answer: B

It can be consumed or saved.

Correct answer: D

I is incorrect: Per capita income → Income aggregate divided by population. It is an average and does not describe distribution by itself. II is correct: GDP calculated by the expenditure method → Consumption plus investment plus government purchases plus net exports. Imports are subtracted to avoid counting foreign production.

Correct answer: C

A stock differs from investment measured during a period.

Correct answer: B

I is correct: Final good → Purchased for final use rather than further processing. Classification depends on use, not merely physical form. II is correct: Value added → Output value minus intermediate input value. Summing value added avoids double counting.

Correct answer: A

I is incorrect: GDP deflator → Index comparing nominal GDP with real GDP. It reflects prices of domestically produced final output. II is correct: Gross national income → GDP plus net primary income from abroad. Residence, rather than production location alone, determines this adjustment.

Correct answer: B

It reflects prices of domestically produced final output.

Correct answer: C

I is incorrect: Final good → Purchased for final use rather than further processing. Classification depends on use, not merely physical form. II is correct: Saving → Income not consumed. Saving is a flow measured over a period.