ECON 1002 MICROECONOMICS EXAM 2
COMPREHENSIVE TEST 2026 STUDY GUIDE
SOLVED QUESTIONS
◉ The annual amount allocated to the wear and tear on private
investment is called or termed ______. Answer: depreciation
◉ Under the income approach to GDP, the wages, salaries, and
benefits paid by businesses and government fall under the category
of compensation of ____ Answer: employees
◉ For the purposes of GDP accounting, what do government
purchases include? Answer: Spending on highway construction
The purchase of new military equipment
(not social security or unemployment insurance payments bc these
are transfer payments)
◉ Which of the following are components of the expenditure
approach to measuring GDP? Answer: Personal consumption
expenditures
Government purchases
Gross private domestic investment
, ◉ What is gross rental income minus depreciation of the rental
property? Answer: Net rent.
◉ GDP is equal to C + Ig + ____ + Xn Answer: G (or Government
Purchases)
◉ GDP can be measured using the ______ approach, which adds up all
of the items that make up national earnings. Answer: income
◉ The money paid by private business to the suppliers of loans used
to purchase capital or money that households receive on savings
accounts is called ______. Answer: interest
◉ Which of the following are included in compensation of
employees? Answer: Payments by employers into private pension
plans for employees
Payments by employers into social insurance for employees
Wages and salaries
◉ What is the net income of sole proprietorships, partnerships and
other unincorporated businesses? Answer: Proprietor's income.
COMPREHENSIVE TEST 2026 STUDY GUIDE
SOLVED QUESTIONS
◉ The annual amount allocated to the wear and tear on private
investment is called or termed ______. Answer: depreciation
◉ Under the income approach to GDP, the wages, salaries, and
benefits paid by businesses and government fall under the category
of compensation of ____ Answer: employees
◉ For the purposes of GDP accounting, what do government
purchases include? Answer: Spending on highway construction
The purchase of new military equipment
(not social security or unemployment insurance payments bc these
are transfer payments)
◉ Which of the following are components of the expenditure
approach to measuring GDP? Answer: Personal consumption
expenditures
Government purchases
Gross private domestic investment
, ◉ What is gross rental income minus depreciation of the rental
property? Answer: Net rent.
◉ GDP is equal to C + Ig + ____ + Xn Answer: G (or Government
Purchases)
◉ GDP can be measured using the ______ approach, which adds up all
of the items that make up national earnings. Answer: income
◉ The money paid by private business to the suppliers of loans used
to purchase capital or money that households receive on savings
accounts is called ______. Answer: interest
◉ Which of the following are included in compensation of
employees? Answer: Payments by employers into private pension
plans for employees
Payments by employers into social insurance for employees
Wages and salaries
◉ What is the net income of sole proprietorships, partnerships and
other unincorporated businesses? Answer: Proprietor's income.
