12.1 The National Income AccountsA1) A countrys gross national product (GNP) is A) the value of all final goods and services produced by its factors of production and sold on the market in a given time period. B) the value of all intermediate goods and services produced by its factors of production and sold on the market in a given time period. C) the value of all final goods produced by its factors of production and sold on the market in a given time period. D) the value of all final goods and services produced by its factors of production and sold on the market. E) the value of all final goods and services produced by its factors of production, excluding land, and sold on the market in a given time period. A2) For most macroeconomists, A) national income accounts and national output accounts are equal to each other. B) national income accounts exceed national output accounts. C) national output accounts exceed national income accounts. D) it is impossible to tell whether national income accounts equal to national output accounts. E) None of the above. A3) For most macroeconomists, A) gross national income and gross national product are the same. B) gross national income exceeds gross national product. C) gross national product exceeds gross national product. D) it is hard to tell whether gross national income equal gross national product. E) None of the above. D4) The highest component of GNP is, A) the current account. B) investment. C) government purchases. D) consumption. E) None of the above. D5) An example of how GNP accounts for services provided by foreign-owned capital (and GDP does not) is A) earnings of Spanish factory with British owners counts only in Spains GDP. B) earnings of Spanish factory with British owners counts only in Britains GNP. C) earnings of Spanish factory counts in Spains GNP but are part of Britains GDP. D) earnings of Spanish factory counts in Spains GDP but are part of Britains GNP. E) None of the above. C6) The sale of A) a used textbook does enter GNP. B) a used textbook does not enter GNP, but the sale of a used house does. C) both a used textbook and a used house do not enter GNP. D) a used house does not enter GNP, but the sale of a used book does. E) None of the above. B7) Which one of the following statements is the most accurate? A) The sale of a used textbook does generate income for factors of production. B) The sale of a used textbook does not generate income for any factor of production. C) The sale of a used textbook sometimes does and sometimes does not generate income for factors of production. D) It is hard to tell whether a sale of a used textbook does or does not generate income for factors of production. E) None of the above. B8) Which one of the following statements is the most accurate? A) GNP plus depreciation is called net national product (NNP). B) GNP less depreciation is called net national product (NNP). C) GNP less depreciation is called net factor product (NFP). D) Answers A and C are both correct. E) None of the above. E9) National income equals GNP A) less depreciation, less net unilateral transfers, less indirect business taxes. B) less depreciation, plus net unilateral transfers, plus indirect business taxes. C) less depreciation, less net unilateral transfers, plus indirect business taxes. D) plus depreciation, plus net unilateral transfers, less indirect business taxes. E) less depreciation, plus net unilateral transfers, less indirect business taxes. E10) The United States began to report its gross domestic product (GDP) only since A) 1900. B) 1921. C) 1931. D) 1941. E) 1991. A11)GDP is supposed to measure A) the volume of production within a countrys borders. B) the volume of services generated within a countrys borders. C) the volume of production of a countrys output. D) GNP plus depreciation. E) None of the above. D12) GNP equals GDP A) minus net receipts of factor income from the rest of the world. B) plus receipts of factor income from the rest of the world. C) minus receipts of factor income from the rest of the world. D) plus net receipts of factor income from the rest of the world. E) None of the above. B13) Movements in GDP A) and GNP usually do not differ greatly. B) and GNP usually do not differ greatly, as a practical matter. C) and GNP usually do differ greatly. D) are usually smaller than those of GNP movements, in practice. E) None of the above. C14) In 2006, the United States had A) a surplus in the current account. B) a balanc