macro hw 4

An example of business capital investment spending is: a. a purchase of a home by a household. b. a purchase of a computer by an accounting firm. c. a purchase of a bond by General Electric Corporation. d. $200 million of unsold cars at a car dealership

B

An American buys a pair of shoes made in Italy. How do the U.S. Bureau of Economic Analysis (BEA).treats the transaction? a. Net exports and GDP both rise. b. Net exports and GDP both fall. c. Net exports fall, while GDP is unchanged. d. Net exports are unchanged, while GDP rises.

C

In 2018, General Motors automobile dealership, spent $20,000 on a new car lift for its repair shop,$2,000 on a new copy machine for its sales division. Unsold cars and trucks were valued at $400,000 on January 1,2020 and unsold cars and trucks were valued at $900,000 on December 31, 2020. How much did General Motorsdealership spent on investment in 2020? a. $22,000 b. $322,000 c. $522,000 d. $722,000

C

Nominal GDP is GDP in a given year: a. adjusted for inflation. b. adjusted for anticipated inflation. c. valued in the prices of that year. d. valued in the prices of the base year.

C

Which of the following is NOT a durable good? a. furniture. b. automobile. c. clothing. d. refrigerator

C

A final good is one that a. is used in the production of another good. b. is a natural resource used to produce a good. c. is purchased as an input in the production process. d. is purchased by its final user.

D

If real GDP per person measured in 2012 dollars was $4,000 in 1939 and $56,000 in 2020, we would say that in 2020, the average American could buy ________ times as many goods and services as the average American in 1939 a. 1/12 b. 4 c. 8 d. 1

D

In calculating gross domestic product, the Bureau of Economic Analysis (BEA). uses the sum of the market value of final goods and services produced. This means that the BEA: a. simply counts the total number of goods produced in the market place and then adds them up. b. values tangible goods at their market prices, multiplies them by the quantity produced, and then adds them up. c. simply counts the total number of goods and services produced in the marketplace and then adds them up. d. values both goods and services at their market prices, multiplies them by the quantity produced, and then addsthem up.

D

Real GDP is GDP in a given year a. adjusted only for anticipated inflation. b. adjusted only for unanticipated inflation. c. valued in the prices of that year. d. valued in the prices of the base year

D

Suppose in 2022, you purchase a house built in 2013 for $400,000. Which of the following would beincluded in the gross domestic product for 2022? a. the value of the house in 2022. b. the value of the house in 2013. c. the value of the house in 2022 minus depreciation. d. the value of the services of the real estate agent used to sell the house in 2022.

D

The purchase by a household in China of a CD produced in the United States is included in U.S. a. consumption expenditures. b. investment expenditures. c. government purchases. d. net exports. e. doesn't affect GDP

D

Which of the following does NOT add to U.S. GDP? a. Air France buys a plane from Boeing, the U.S. air-craft manufacturer. b. General Motors builds a new auto factory in North Carolina. c. The city of New York pays a salary to a policeman. d. The federal government sends a Social Security check to your grandmother

D

Which of the following transactions would be included in the official calculation of GDP? a. A student buys a used textbook at the bookstore. b. Firestone sells $2 million worth of tires to General Motors. c. You wash and wax your father's car as a favor to him. d. You buy a new iPod. e. You illegally download music off the Internet to put on your new iPod

D

Suppose that nominal GDP in 2016 was less than real GDP in 2016. Given this information, we know for certain that a. the price level in 2016 was greater than the price level in the base year. b. the price level in 2016 was less than the price level in the base year. c. real GDP in 2016 was less than real GDP in the base year. d. real GDP in 2016 was greater than real GDP in the base year

B

The purchase of a new house is included in: a. consumption expenditures. b. investment expenditures. c. government purchases. d. net exports.

B

Which of the following is not an example of a transfer payment? a. unemployment insurance payments b. health insurance payments to an army private c. social security payments to retirees d. social security payments to disabled persons

B

A good measure of the standard of living is: a. real GDP per person. b. nominal GDP per person. c. total real GDP. d. total nominal GDP.

A

How are intermediate goods treated in the calculation of GDP? a. Their value is not counted separately, but included as part of the value of the final good for which they are aninput. b. Their value is counted separately, and their value is also included as part of the value of the final good for whichthey are an input. c. Their value is counted separately, but is not included as part of the value of the final good for which they are aninput. d. They are included only if they are imported

A

Which of the following goods is directly counted in GDP? a. the lettuce that Subway purchases for its sandwiches. b. the bread that Subway purchases for its sandwiches. c. a 12-inch Subway sandwich purchased by a student. d. the plastic bags that Subway purchases to wrap its sandwiches

A