Question :
41) The expenditure approach values ________ and the income approach : 1240843
41) The expenditure approach values ________ and the income approach values ________.
A) goods and services at market prices; services at factor prices
B) goods and services at market prices; goods and services at factor prices
C) only goods at market prices; only services at factor prices
D) services only at factor prices; goods only at market prices
E) goods and services at factor prices; goods and services at market prices
42) Which of the following would be included in Germany’s GNP?
A) the production of BMWs (made by a German-based company) in South Carolina
B) the production of Michelin tires made in Germany by a French company and then sold directly to French consumers
C) the production of BMWs in Germany
D) the production of Michelin tires made in France by a French company and then sold to BMW in Germany for use in BMW cars
E) Answers A and C are correct.
43) Real GDP measures the value of goods and services produced in a given year valued using
A) base year prices.
B) prices that prevail the same year.
C) no prices.
D) future prices.
E) real rather than nominal prices.
44) Real GDP is the value of final goods and services produced in a year
A) expressed in the prices of that same year.
B) during a recession.
C) minus depreciation.
D) expressed in the prices of a base year.
E) minus the value of all the intermediate goods produced.
45) Real GDP can increase if the
i.quantities of goods and services produced decrease and prices fall by a smaller percentage.
ii.quantities of goods and services produced decrease and prices fall by a larger percentage.
iii.quantities of goods and services produced decrease and prices do not change.
iv.quantities of goods and services produced increase.
A) i only
B) iii only
C) iv only
D) i and iii
E) i, ii, and iii
46) ________ is most likely to contribute to an improvement in our living standard.
A) An increase in real GDP
B) An increase in the price level
C) A decrease in nominal GDP
D) An increase in depreciation
E) An increase in the GDP deflator combined with a decrease in nominal GDP
47) Nominal GDP measures the value of goods and services produced in a given year valued using
A) constant prices.
B) prices of the same year.
C) no prices.
D) future prices.
E) base year prices.
48) Nominal GDP is GDP
A) using current market values.
B) during a recession.
C) minus depreciation.
D) after adjusting for any price changes.
E) that ignores depreciation.
49) An increase in nominal GDP could result from an increase in
i.production.
ii.prices.
iii.subsidies.
A) i only
B) ii only
C) i and ii
D) i and iii
E) i, ii, and iii
50) Nominal GDP increases
A) only if total production increases.
B) only if prices increase.
C) if either prices and/or total production increase.
D) only if the productivity of resources increase.
E) only if depreciation decreases.
