Question : Table 8-3 Consumption expenditures $800 Investment expenditures : 1388279

 

Table 8-3

 

Consumption expenditures

$800

Investment expenditures

  200

Government purchases

  300

Exports

  100

Imports

  200

Wages

  800

 

39) Refer to Table 8-3. Consider the data above (in billions of dollars) for an economy:  Gross domestic product (in billions of dollars) for this economy equals

A) $2,200.

B) $1,600.

C) $1,400.

D) $1,200.

 

 

Table 8-4

 

Consumption expenditures

$800

Investment expenditures

  300

Government purchases

  300

Government transfer payments

  400

Exports

  300

Imports

  100

 

40) Refer to Table 8-4.  Consider the data above (in billions of dollars) for an economy:  Gross domestic product (in billions of dollars) for this economy equals

A) $2,200.

B) $2,100.

C) $1,600.

D) $1,400.

 

41) Which of the following is not true about the composition of GDP in 2012?

A) The majority of consumer spending is on durable goods.

B) Purchases made by state and local governments are greater than purchases made by the federal government.

C) Imports are greater than exports.

D) Business fixed investment is the largest component of investment.

 

 

42) The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product.

A) equals

B) is greater than

C) is less than

D) is sometimes greater than and other times less than

 

 

Table 8-5

 

Stage of Production

Seller

Buyer

Price

1

Steel mill

Auto manufacturer

$10,000

2

Auto manufacturer

Auto dealer

  18,000

3

Auto dealer

Consumer

  25,000

 

Consider the table above showing three stages of production of an automobile.

 

43) Refer to Table 8-5. The value added by the automobile dealer equals

A) $7,000.

B) $15,000.

C) $18,000.

D) $25,000.

 

44) Refer to Table 8-5.  The value of each automobile in gross domestic product equals

A) $7,000.

B) $15,000.

C) $18,000.

D) $25,000.

 

 

Scenario 8-1

 

CANOES-R-US makes canoes. It buys the shell of the canoe from another firm for $300 and uses its labor and intermediate goods to make the canoe. It sells the finished canoe to a retail canoe store for $800. The retail canoe store then sells the canoe to a consumer for $1,200.

 

45) Refer to Scenario 8-1. The value added of CANOES-R-US for each canoe equals

A) $1,200.

B) $800.

C) $500.

D) $400.

 

 

46) Refer to Scenario 8-1.  The value of each canoe in gross domestic product equals

A) $1,200.

B) $800.

C) $500.

D) $400.

 

 

47) Gross domestic product in the economy is measured by the

A) total number of goods and services produced in the economy.

B) dollar value of all final goods and services produced in the economy.

C) total number of goods produced in the economy.

D) total number of services produced in the economy.

 

48) In comparing China to Canada, China’s relatively ________ growth rate in GDP would make you more likely to take a job in China, and China’s relatively ________ level of GDP would make you less likely to take a job in China.

A) high; low

B) high; high

C) low; low

D) low; high