macroeconomics pop quiz 3

If a cobbler buys leather for $100 and thread for $50 and uses them to produce and sell $500 worth of shoes to consumers, the contribution to GDP is

$500.

U.S. GDP would exclude which of the following?

.cotton purchased by Lee Jeans

GDP would include which of the following?

b.consulting services

Real GDP is measured in ________ prices while nominal GDP is measured in ________ prices.

d.base year; current year

The value of plant and equipment worn out in the process of manufacturing goods and services is measured by

depreciation.

If U.S. GDP exceeds U.S. GNP, then

foreigners are producing more in the United States than Americans are producing in foreign countries.

Which of the following would be excluded from 1999 GDP? The sale of

home built in 1998 and first sold in 1999.

If your grandparents buy a new retirement home, this transaction would affect

investment

U.S. gross domestic product (in contrast to gross national product) measures the production and income of

people and factories located within the borders of the United States

An example of a transfer payment is

unemployment benefits