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A health insurance company considers the risk to a Sherpa who has a current wealth of 20 000 renminbi (RMB), working in the Himalayas, incurring an injury in the performance of their duties which that will cost 10 000 RMB in medical care is 50 per cent. a. Calculate the cost of actuarially fair insurance […]

GDP is a less-than-perfect measure of the nation’s economic pulse because it a. excludes nonmarket transactions.b. does not measure the quality of goods and services.c. does not report illegal transactions.d. All of the answers above are correct.

Personal income equals disposable income plus a. personal savings.b. transfer payments.c. dividend payments.d. personal taxes.

Adding all incomes earned by households from the sale of resources yields a. intermediate goods.b. indirect business taxes.c. national income.d. personal income.

Subtracting an allowance for depreciation of fixed capital from gross domestic product yields a. real GDP.b. nominal GDP.c. personal income.d. national income.

The GDP chain price index is a. widely reported in the news.b. broadly based.c. adjusted for government spending.d. a measure of changes in consumer prices.

Gross domestic product data that reflect actual prices as they exist in a given year are expressed in terms of a. fixed dollars.b. current dollars.c. constant dollars.d. real dollars.

Disposal personal income a. is the income people spend for personal items such as homes and cars.b. includes transfer payments.c. excludes transfer payments.d. includes personal taxes.

Which of the following is a shortcoming of GDP? a. GDP measures nonmarket transactions.b. GDP includes an estimate of illegal transactions.c. GDP includes an estimate of the value of household services.d. None of the answers above are correct.

Which of the following statements is true? a. The inclusion of intermediate goods and services in GDP calculations would underestimate our nation’s production level.b. The expenditures approach sums the compensation of employees, rents, profits, net interest, and non-income expenses for depreciation and indirect business taxes.c. Real GDP has been adjusted for change in the general