Chap 23

If your grandparents buy a new retirement home, this transaction would affect a. consumption b. investment c. gov. purchases d. net exports e. none of the above

B.

GDP would include which of the following? a. illegal drug sales b. housework c. the value of taking a day off from work d. consulting services e. intermediate sales

D.

Gross domestic product can be measured as the sum of a. net national product, gross national product, and disposable personal income. b. investment, wages, profits, and intermediate production. c. consumption, transfer payments, wages, and profits d. consumption, investment, government purchases, and net exports. e. final goods and services, intermediate goods, transfer payments, and rent

D.

How is your purchase of a $40,000 BMW automobile that was produced entirely in Germany recorded in the U.S. GDP accounts? a. Consumption increases by $40,000 and net exports decrease by $40,000. b. Investment increases by $40,000 and net exports increase by $40,000. c. Net exports decrease by $40,000 d. Net exports increase by $40,000. e. There is no impact because this transaction does not involve domestic production

A.

If U.S. GDP exceeds U.S. GNP, then a. foreigners are producing more in the United States than Americans are producing in foreign countries. b. Americans are producing more in foreign countries than foreigners are producing in the United States. c. real GDP exceeds nominal GDP. d. intermediate production exceeds final production. e. real GNP exceeds nominal GNP.

A.

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 a. $500 b. $650 c. $600 d. $100 e. $50

A.

Same as #11 & #12 & #13 & #14 What is the percentage increase in prices from 2018 to 2019? a. 22% b. 38% c. 0% d. 16% e. 13%

A.

Same as 11-15 What is the percentage increase in real GDP from 2018 to 2019? a. 0% b. 22% c. 32% d. 27% e. 7%

A.

The value of plant and equipment worn out in the process of manufacturing goods and services is measured by a. Depreciation b. investment c. consumption d. net national product e. intermediate production

A.

Same as #11 What is the value of real GDP for 2018? a. $800 b. $1060 c. $1200 d. $1460 e. none of the above

B.

U.S. gross domestic product (in contrast to gross national product) measures the production and income of a. Americans and their factories no matter where they are located b. people and factories located within the border of the US c. domestic service sector only d. the domestic manufacturing sector only e. None of the above

B.

An example of a transfer payment is a. Gov purchases b. Profit c. Unemployment Benefits d. wages e. Rent

C.

If nominal GDP in 2019 exceeds nominal GDP in 2018, then the production of output must have a. fallen b. stayed the same c. risen or fallen because there is not enough info to determine what happened to real output d. risen

C.

Real GDP is measured in ______ prices while nominal GDP is measured in ______ prices. a. current year; base year b. intermediate; final c. base year; current year d. domestic; foreign e. foreign; domestic

C.

Same as #11 & #12 What is the value of the GDP deflator in 2018? a. 116 b. 100 c. 113 d. 138 e. 119

C.

The following table contains information about an economy that produces only pens and books. The base year is 2017. Use this information to answer question TABLE IN CENGAGE What is the value of nominal GDP for 2018? a. $800 b. $1060 c. $1200 d. $1460 e. none of the above

C.

U.S. GDP would exclude which of the following? a. the purchase of anew Mazda produced in Illinois b. a new bridge purchased by the state of Texas c. cotton purchased by Lee Jeans d. Lawyer services purchase by a home buyer e. lawn care services purchased by a homeowner

C.

Same as #11 & #12 & #13 What is the percentage increase in prices from 2017 to 2018? a. 0% b. 16% c. 38% d. 13% e. 22%

D.

Which of the following would be excluded from 2019 GDP? The sale of a. a 2019 honda made in Tennessee b. a haircut c. a realtor's services d. a home built in 2018 and first sold in 2019 e. All of the above should be counted in 2019 GDP

D.

Gross domestic product is the sum of the market value of the a. inferior goods and services b. intermediate goods c. manufactured goods d. normal goods and services e. final goods and services

E.