Macro Test 2

decrease in the value of capital resulting from its use and obsolescence

Depreciation is: -fall in the value of an exchange rate -decrease in the value of capital resulting from its use and obsolescence -the decrease in purchasing power of a dollar bc of inflation -part of consumption expenditure

230,000 dollars

During last year, a country produced 20,000 pizzas and 10,000 hamburgers and nothin else. The pizzas sold for 10 dollars each and the hamburgers for 3 dollars each. Nominal Gdp was: *Do math!

produced within a country

GDP is equal to the market value of all the final goods and services _____ in a given period of time. -produced within a country -consumed within a country -consumed by the citizens of a country -produced by the citizens of a country -produced and consumed in a country

7,733 billion

In 2009, net domestic product at factor cost was 11,091 billion. Rent was 2,000 billion, profits were 1,000 billion, and interest was 358 billion. Hence wages were: -7,733 billion -9,091 billion -10,091 billion -8,091 billion -12,091 billion *Do math!

No

Are used goods included when calculating Gdp?

investment

Bobs funky shirts began the year with 1000 in inventory, produced 10,000 shirts during the year and ended the year with 1,100 shirts in inventory. The 100 shirts added to his inventory are classified as: -consumption expenditures -investment -net exports of g/s -exports of g/s -nondurable consumption goods

because firms pay out everything they receive as income to the factors of production

Total expenditure equals total income: -because firms pay out everything they receive as income to the factors of production -if firms earn 0 profit -only if firms sell all the goods they produce in a given time -only if net taxes equals govt. expenditures on g/s

intermediate good

a resturant buys fish to offer as a daily menu special. the purchase of the fish by the resturant is : -a consumption expenditure -an investment -an intermediate good -an ex. of govt. expenditures on g/s -part of net exports if the fish was caught beyond us border

exports minus value of imports

Net exports of g/s is equal to the value of: -exports plus value of imports -imports minus value of exports -domestic consumption minus value of imports -exports minus value of imports -domestic consumption minus value of exports

us vietnamese

Production by Honda, a Japanese firm, in the US is included in ______ GDP and production by Nike Corp., a US firm, in Vietnam is included in _____ GDP. -Japanese, US -US, Vietnamese -US,US -Japanese, Vietnamese

firms

investment is the expenditure done by: -savers -firms -govts -the rest of the word -both savers and firms

g/s at market prices g/s at factor prices

the expenditure approach values_____ and the income approach values __________. -g/s at market prices, services at factor prices -g/s at market prices, g/s at factor prices -only goods at market prices, only services at factor prices

500 dollars

bananaland produces only bananas and sunscreen and the quantities and prices for 2010 and 2011 are given in the table above. the base year is 2010. nominal gdp in 2010 is equal to: -800 -640 -625 -500 -200

by households

consumption expenditure includes spending: -on intermediate goods and services by firms -on office supplies by firms -by households -by households and spending on office supplies by firms -by governments when they are buying g/s that consumers also buy

-1 billion

suppose gdp is 10 billion, consumption expenditure is 7 billion, investment is 2 billion, and govt exp. is 2 billion. net exports of g/s must be:

945,000 dollars

the base year is 2008. a country only produces mp3 players. the price of an mp3 player in 2008 was $100. the price of a player was $90 in 2009. the quantity of mp3 players produced in 2008 was 10,000 units and in 2009 was 10,500 units. Nominal gdp in 2009 equals:

1,000,000 dollars

the base year is 2008. a country only produces mp3 players. the price of an mp3 player in 2008 was $100. the price of a player was $90 in 2009. the quantity of mp3 players produced in 2008 was 10,000 units and in 2009 was 10,500 units. Real gdp in 2008 equals:

600,000 dollars

the base year is 2010. a country only produces mp3 players. the price of an mp3 player in 2008 was $50. the price of a player was $30 in 2010. the quantity of mp3 players produced in 2008 was 10,000 units and in 2010 was 20,000 units. Nominal gdp in 2010 equals:

3 only

which of the following is added to germany's GDP? 1.BMWs produced in a german owned factory in south carolina 2. the value of the stocks sold on the german stock exchange 3. china produced by the english owned Wedgewood Co. at a factory in Berlin, Germany

3 only

which of the following is classified as a final good or service? 1. tires bought by gm to put on new tahoes 2. mustard bought by subway to put on sandwiches 3. your purchase of online access to the wall street journal

1 and 3

which of the following is included in US GDP? 1. rental value of homes owned by us citizens 2. production of suburban suv's by GM in its plant in mexico 3. tickets sold by u2 for concerts held in the US

the market value of jet fuel bought by delta to use for its flights in 2010

which of the following would NOT be directly included in the US GDP in 2010? -the market value of resturant meals in 2010 -the market value of jet fuel bought by delta to use for its flights in 2010 -the value of cars produced in 2010 at toyota plant in KY -legal services provided to first time home buyers during 2010 -purchase of a new home in GA in 2010

only the market value of ingredients that you purchased this year is added to GDP

If you make dinner yourself: -the market value of your dinner is added to GDP -your service in preparing the meal is valued at a cooks wage and added to GDP -none of what you bought to prepare dinner is included in the GDP -only the market value of ingredients that you purchased this year is added to GDP -the difference between the cost of the ingredients that you purchased this year and the market value of the dinner is added to GDP

GDP increases by 9 million and inventory investment increases by 1 million

In one year, a firm increases its production by 9 million and increases sales by 8 million. All other things in the economy remaining the same, which of the following is true? -GDP increases by 8 million and inventory investment decreases by 1 million -GDP increases by 9 million and inventory investment increases by 1 million -inventory investment decreases by 1 million -GDP increases by 8 million and investment increases by 1 mil -GDP increases by 17 mil

34 billion

Last year in Candamica, consumption expenditure was 20 billion, interest, rent, and profit were 2.5 billion, government expenditure on g/s was 7 billion, net exports of g/s was 5 billion, and investment was 2 billion. Total expenditure was: -24.5 billion -34.5 billion -36.5 billion -34 billion -undetermined w/o info about imports *Do the math!!

500 dollars

Look at table: bananaland produces only bananas and sunscreen and the quantities and prices for 2010 and 2011 are given in the table above. the base year is 2010. nominal gdp in 2010 is equal to: -500 -625 -640 -800 -100

wages rent interest profits indirect business taxes depreciation statistical discrepancy

What are the 7 components of the Income Approach?

800 dollars

bananaland produces only bananas and sunscreen and the quantities and prices for 2010 and 2011 are given in the table above. the base year is 2010. nominal gdp in 2011 is equal to: -500 -800 -640 -625 -200

26 billion

in 2007, in Candamica, consumption expenditure was 13 billion, interest, rent, and profit were 1.5 billion, govt expenditures were 3 billion, net exports were 2 billion, and investment was 8 billion. total expenditure was: MATH!

includes the money paid to use land and other rented inputs

the category of "rent" in the income approach to GDP: -includes the money paid to rent apartments only -includes the money paid to rent machinery only -includes the money paid to use land and other rented inputs -does not have any connection to owner-occupied housing includes only the inputed rent for owner-occupied housing

export expenditure

the purchase of a new fighter jet by Israel is classified in the US GDP accounts as: -export expenditure -consumption expenditure -investment expenditure -govt expenditure -import expenditure

use the market price to place a dollar value on each good produced

to calculate GDP it is necessary to: -add the total amounts of all the goods produced -use the market price to place a dollar value on each good produced -use production cost to place a dollar value on all goods produced -use the average market price over the last five years to place a dollar value on all goods produced

consumption expenditure investment expenditure government expenditure net exports

what are the 4 components of the Expenditure or Output Approach?

value of final goods and services

what does GDP measure? -value of final goods and services -value of all consumer purchases -value of all sales -value of all goods and services produced -value of consumer wealth