Question :
41) U.S. net exports include
A) sales of Hollywood movies to : 1228235
41) U.S. net exports include
A) sales of Hollywood movies to the rest of the world.
B) the production of Ford Mustangs in China that are sold in China.
C) Honda automobiles produced and sold in Japan.
D) the sale of shares of Nike stock on the New York Stock Exchange.
E) the sale of U.S. government securities to U.S. citizens.
42) In calculating GDP, we must
A) add the market value of imports and subtract the market value of exports.
B) add the market value of exports and subtract the market value of imports.
C) exclude net exports of goods and services (NX).
D) add the value of the goods produced outside of the United States by American firms.
E) subtract the market value of imports, because these goods are produced in a country other than the United States, and subtract the market value of exports, because these goods are consumed in a country other than the United States.
43) Which of the following expenditure components of GDP can be negative or positive?
A) Consumption expenditure
B) Investment
C) Government expenditure on goods and services
D) Net exports of goods and services
E) None of the above because expenditure can never be negative.
44) Last year U.S. net exports of goods and services was negative. This fact means that last year
A) there was an error made when calculating net exports of goods and services for the United States.
B) the value of U.S. exports was greater than the value of U.S. imports.
C) the value of U.S. exports was less than the value of U.S. imports.
D) U.S. consumption expenditure plus investment was less than the value of exports plus the value of imports.
E) U.S. consumption expenditure plus investment plus government expenditures on goods and services was less than the value of exports plus the value of imports.
45) The purchase of a new Boeing fighter jet by Israel is classified in the U.S. GDP accounts as
A) export expenditure.
B) consumption expenditure.
C) investment expenditure.
D) government expenditure.
E) import expenditure.
46) Gross Domestic Product equals
A) Y = C + I – G + NX.
B) Y = C – I + G + NX.
C) Y = C + I + G + NX.
D) Y = C – I – G – NX.
E) Y = C + I + G – NX.
47) Last year in Candamica, consumption expenditure was $20 billion, interest, rent, and profit were $2.5 billion, government expenditure on goods and services was $7 billion, net exports of goods and services was $5 billion, and investment was $2 billion. Hence total expenditure was
A) $24.5 billion.
B) $34.5 billion.
C) $36.5 billion.
D) $34 billion.
E) undetermined without information about imports.
48) Everything else the same, if government expenditure increases by $400 billion and imports increase by $400 billion, then GDP
A) increases by $400 billion.
B) increases by $200 billion.
C) decreases by $400 billion.
D) does not change.
E) decreases by $200 billion.
49) Undistributed profits ________ counted as part of GDP because ________.
A) are not; households are not paid by the firms.
B) are; they can be used to buy other goods.
C) are ; they are considered income paid to households and loaned back to firms.
D) are not; they are considered an intermediate good.
E) are; firms are required to pay corporate income taxes on them.
50) Total expenditure equals total income
A) because firms pay out everything they receive as income to the factors of production.
B) if firms earn zero profit.
C) if firms do not save for future investment.
D) only if firms sell all the goods they produce in a given time period.
E) only if net taxes equals government expenditures on goods and services.
