Question : 71) In a small economy, gross investment in 2013 $1,500, : 1244708

 

 

71) In a small economy, gross investment in 2013 is $1,500, consumption spending is $6,000, net investment is $200, government spending is $1,500, exports are $2,000 and imports are $1,000. What is GDP for this economy in 2013?

A) $10,700

B) $10,300

C) $10,200

D) $10,000

 

72) In a small economy, consumption spending in 2013 is $6,000, government spending is $1,200, gross investment is $1,500, exports are $2,000, and imports are $1,000. What is gross domestic product in 2013?

A) $9,700

B) $9,800

C) $10,800

D) $11,700

 

73) Consumption spending is $4.5 billion, gross private domestic investment is $3 billion, and government expenditures are $2 billion. If GDP is $14 billion, which of the following could be true regarding exports and imports in the economy?

A) Exports are $4.5 billion, and imports are $2 billion.

B) Exports are $6 billion, and imports are $8.5 billion.

C) Exports are $9 billion, and imports are $6 billion.

D) Exports are $15 billion, and imports are $10.5 billion.

 

Table 12-6

Product

Quantity

Price per Unit

Coke

       10,000

            $2

iPhones

         2,000

          150

Backpacks

         4,000

            25

Hershey bars

         8,000

              1

 

74) Refer to Table 12-6. Consider the table of production and price statistics for a small economy in 2013. If the economy only produces the four goods listed below, what is GDP for 2013?

A) $428,000

B) $267,000

C) $24,000

D) $1,424

 

75) Which of the following would increase gross private domestic investment in an economy?

A) an increase in the shares of Apple stock households own

B) an increase in the number of workers Apple hires

C) an increase in the level of Apple’s inventory

D) an increase in the number of highway construction projects the government is funding

 

76) Which of the following equations correctly measures GDP in an economy?

A) GDP = C + I + G + X

B) GDP = C + net I + G + NX

C) GDP = C + I + G + NX

D) GDP = C + G + I – taxes

 

77) Between 2013 and 2014, if an economy’s exports rise by $8 billion and its imports fall by $8 billion, by how much will GDP change between the two years, all else equal?

A) Net exports will increase GDP by $8 billion.

B) The increase in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.

C) Net exports will increase GDP by $16 billion.

D) Net exports will decrease GDP by $8 billion.

 

78) Which of the following would result in GDP for an economy equal to $10 trillion?

A) C = $6 trillion

I = $2 trillion

G = $1.5 trillion

NX = -$2 trillion

B) C = $7 trillion

I = $2 trillion

G = $4 trillion

NX = $3 trillion

C) C = $5 trillion

I = $5 trillion

G = $2 trillion

NX = -$2 trillion

D) C = $4 trillion

I = $3 trillion

G = $2 trillion

NX = -$1 trillion

 

79) Which component of consumption spending is the greatest in a typical economy?

A) services

B) durable goods

C) nondurable goods

D) new housing

 

80) Total income in an economy is equal to

A) GDP minus net exports.

B) income minus taxes.

C) the sum of wages, interest, rent, and profit.

D) firm revenues.