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5. Suppose that California imposes a sales tax of 10 percent on all goods and services. A Californian named Ralph then goes i
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Answer #1

Answer 5 b. 200 because sales tax is a transfer payment and hence it is not included in national income.

Answer 6: d none of the above

It is 15 trillion

16-1 = 15 trillion

Answer 7 : c. 12 -1.5 = 10.5 (Personal income - personal taxes = Personal disposable income)

Answer 8: a. Higher than 100 because real GDP is less than nominal GDP

In fact, it can be estimated as well.

Price index = Nominal GDP/Real GDP*100

16/15*100

106.66%

Answer 9: a. Not included illegal activities

b. Included a part of Government expenditure

c. Included Economic activity

d. Not included non monetary aspect

e. Included Economic activity

f. Not included non monetary exchanges

Answer 10: a. 4.5 trillion

b. 0,5 trillion

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