Question :
71.Jake, Sr. sells the family business, a factory that produces : 1379056
71.Jake, Sr. sells the family business, a factory that produces snake oil, to Jake, Jr., for $100, even though the factory has been assessed at $400,000. How will this transaction affect GDP?
A. Investment will increase by $100.
B. Investment will increase by $400,000.
C. Consumption will increase by $400,000.
D. GDP will not be affected by the transaction.
72.Mikey likes bagels, so he buys an old pizza shop for $150,000 and spends $10,000 installing new equipment which will allow him to make bagels instead of pizza. How will Mikey’s recent purchases affect GDP?
A. Investment will increase $160,000.
B. Investment will increase $150,000, and consumption will increase $10,000.
C. Consumption will increase $150,000, and investment will increase $10,000.
D. Investment will increase $10,000.
73.Inventory is:
A. the stock of goods that a company produces now, but keeps to sell at a future time.
B. the stock of goods that a company produced last year, but had to sell for below cost.
C. the total amount of goods that a company produces now, regardless of whether they’ve sold it or not.
D. the stock of goods that a company produces and sells in a given time period.
74.At the end of the year, Ford realizes it has overproduced Fiestas, because 2,500 of them are left unsold. How is this accounted for in that year’s GDP?
A. The cars are considered inventory and their value will increase investment.
B. The cars are considered durable goods, and their value will increase consumption.
C. The cars are not counted until they are sold in next year’s GDP.
D. None of these statements is true.
75.Apple has been producing the new iPhone throughout 2013, but doesn’t plan to sell it until March 2014. How are these iPhones, which are sitting in a warehouse somewhere in the U.S., affecting GDP?
A. They are inventory and will increase investment in 2013.
B. They will increase GDP only in the year they are produced, 2013.
C. They are considered inventory until they sell, so investment will fall each time one is sold in 2014.
D. All of these statements are true.
76.Government purchases, as a component of GDP:
A. represent goods and services bought by all levels of government.
B. include both consumption- and investment-type goods bought by the government.
C. include services the government pays for.
D. All of these statements are true.
77.An example of a government purchase that would be included in GDP would be:
A. pencils for the employees of the FBI to use.
B. the salaries of those in the military.
C. replacement calculators for the Congressional Budget Office.
D. All of these are considered part of government purchases in GDP.
78.Which of the following does not appear in GDP as a part of government spending?
A. Clipboards at the Department of Motor Vehicles
B. Maintenance of government buildings
C. Social Security payments
D. City fireworks displays on the Fourth of July
79.Transfer payments are:
A. spending that transfers resources from the government to individuals.
B. payments that individuals make to the government.
C. when individual stockholders transfer stock ownership in lieu of payment with cash or other liquid asset.
D. None of these is correct.
80.An example of a transfer payment is:
A. a federal income tax refund.
B. a social Security payment.
C. the $3 donation to the Wildlife Fund you make on your tax return.
D. All of these are examples of transfer payments.
