Question : 31) Expenditures U.S. produced steaks, shoes, and doctor visits most : 1240871

31) Expenditures on U.S. produced steaks, shoes, and doctor visits are most likely classified as

A) consumption expenditure.

B) investment.

C) government expenditure on goods and services.

D) net exports of goods and services.

E) net imports of goods and services.

32) Investment is the expenditure done by

A) savers.

B) firms.

C) governments.

D) the rest of the world.

E) Both answers A and B are correct.

33) Investment is defined as the purchase of

A) any financial asset only.

B) additions to inventories only.

C) financial assets and inventories only.

D) new capital goods and additions to inventories.

E) new capital goods but not additions to inventories.

34) Which of the following is included as investment in GDP?

i.cars produced during the year but unsold at the end of the year

ii.new capital equipment produced and purchased during the year

iii.purchases of a company’s stocks and bonds

A) i only

B) ii only

C) iii only

D) i and ii

E) i, ii, and iii

35) Economists define investment to include purchases of

A) capital goods and inventories.

B) capital goods, household durable goods, and inventories.

C) capital goods, such as tools, instruments, and buildings.

D) capital goods, equity stocks, and bonds.

E) capital goods, equity stocks, and inventories.

36) Investment includes

A) GM’s purchase of robotic machinery.

B) student purchases of laptops.

C) Wal-Mart’s purchase of health insurance for its workers.

D) the New York City Library’s purchase of new books.

E) wages paid to military personnel.

37) In measuring GDP, which of the following is included?

A) the value of preparing meals at home

B) the value of stocks and bonds bought and sold

C) the value of used goods when they are sold

D) the value of increases in business inventories

E) the value of durable consumption goods but not the value of nondurable consumption goods.

38) If a firm does not sell all of the goods that it produces in a given time period, then the goods

A) do not count in GDP ever.

B) do not count in GDP for that time period but always count next period.

C) count positively in GDP as inventory investment.

D) count negatively in GDP as inventory investment.

E) count in GDP the period they are sold to the final user.

39) This year a firm produces $100 million worth of cars this year and sells $102 million worth of cars. Which of the following is true?

A) GDP for this year will increase by $100 million.

B) GDP for this year will increase by $102 million.

C) Inventory investment will increase by $2 million.

D) GDP for this year will increase by $202 million.

E) The premise of the question is wrong because it is impossible for a firm to sell more than it produces in a given time period.

40) Bob’s Funky T-shirts began the year with 1,000 shirts 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 will be classified as

A) consumption expenditure.

B) investment.

C) net exports of goods and services.

D) exports of goods and services.

E) nondurable consumption goods.