Table 51
National Income Accounts (Dollar Figures Are in Billions) on

question 128

Multiple Choice

$\begin{array}{|l|r|}\hline \text { Expenditures for consumer goods and services } & \$ 4,565 \\\hline \text { Exports } & \$ 740 \\\hline \text { Government purchases of goods and services } & \$ 1,465 \\\hline \text { Social Security taxes } & \$ 510 \\\hline \text { Net investment } & \$ 225 \\\hline \text { Indirect business taxes } & \$ 520 \\\hline \text { Imports } & \$ 825 \\\hline \text { Gross investment } & \$ 865 \\\hline \text { Corporate income taxes } & \$ 185 \\\hline \text { Personal income taxes } & \$ 750 \\\hline \text { Corporate retained earnings } & \$ 45 \\\hline \text { Net foreign factor income } & \$ 20 \\\hline \text { Government transfer payments to households } & \$ 690 \\\hline \text { Net interest payments to households } & \$ 0 \\\hline\end{array}$

Table 5.1
National Income Accounts (dollar figures are in billions) On the basis of Table 5.1,net domestic product is

• A)$6,340 billion.
• B)$6,170 billion.
• C)$6,995 billion.
• D)$7,080 billion.

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Definitions:

First-In, First-Out Method

An inventory valuation method where the first items produced or acquired are the first ones sold or used, affecting cost of goods sold and inventory valuation.

Material Costs

The total cost of materials used in the production of goods, including both direct raw materials and indirect materials.

Equivalent Units

A concept used in cost accounting to denote the amount of finished goods units that could have been produced given the total amount of direct materials, direct labor, and manufacturing overhead costs incurred.

Weighted-Average Method

An inventory costing method where costs of goods are calculated based on the weighted average of the costs of similar items.