1. In what ways are national income statistics useful? [Lo7.1] 2. Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production? What problem is posed by any comparison over time of the market values of various total outputs? How is this problem resolved? [Lo7.1] 3. Which of the following goods are usually intermediate goods and which are usually final goods: running shoes, cotton fibres, watches, textbooks, coal, sunscreen lotion, lumber? [LO7.1] 4. Why do economists include only final goods when measuring GDP for a particular year? Why don't they include the value of the stocks and bonds bought and sold? Why don't they include the value of the used furniture bought and sold? [LO7.1] 5. Explain why an economy's output, in essence, is also its income. [Lo7.1] 6. Provide three examples of each: consumer durable goods, consumer nondurable goods, and services. [Lo7.2] 7. Why are changes in inventories included as part of investment spending? Suppose inventories declined by $1 billion during 2022. How would this affect the size of gross investment and gross domestic product in 2022? Explain. [LO7.2] 8. What is the difference between gross investment and net investment? [Lo7.2] 9. Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and one that has a falling stock of capital. Explain: "Though net investment can be positive, negative, or zero, it is impossible for gross investment to be less than zero." [Lo7.2] 10. Define net exports. How are net exports determined? Explain how net exports might be a negative amount. [Lo7.2]