Question : 11) The table gives data for a nation. What the : 1238421

11) The table gives data for a nation. What is the amount of the country’s GDP?

A) $6,000 billion

B) $6,200 billion

C) $6,600 billion

D) $6,900 billion

E) $5,800 billion

12) The table gives data for a nation. The value of the country’s net exports of goods and services shows that the country’s

A) value of its exports exceeded the value of its imports.

B) value of its imports are negative.

C) net exports of goods and services are decreasing.

D) value of its imports exceeded the value of its exports.

E) value of its imports must equal zero.

13) The value of used goods ________ counted as part of GDP ________.

A) are; as long as they are classified as consumption goods

B) are; as long as they are classified as investment goods

C) are not; because they were counted during the period when they were counted as new goods

D) are not; because most fall in value and would cause a decrease in the value of GDP

E) may be; as long as their value has risen

14) If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach, then

A) we also will have to account for spending on financial assets.

B) it will be very difficult to assign a fair market value to a used good.

C) we will be counting the value of the used goods both at the time of their production and at the time of their re-sale.

D) we will have to account for the natural depreciation that a used good experiences.

E) consumption spending would need to be adjusted for depreciation.

15) When calculating GDP, purchases of used goods are

A) included at the original price.

B) included by taking the original price and subtracting the (current) used price.

C) included at the (current) used price.

D) not included.

E) included at the original price minus any depreciation.

16) If you buy a five-year-old TV from a friend, the amount you paid for the TV is

A) always added to consumption expenditures but not investment.

B) always added to investment but not consumption.

C) not included in this year’s GDP.

D) added to investment if the TV is expected to last more than 5 additional years and added to consumption if the TV is expected to last less than 5 additional years.

E) included in this year’s GDP only if the TV set was manufactured in the United States.

17) When Jamie purchases a classic 1968 Plymouth Cuda convertible from Shane, GDP

A) does not change, because the car was not produced this year.

B) increases, because the car is a durable good and increases consumption.

C) increases, because the car is a durable good and increases investment.

D) does not change, because Jamie did not buy the car from a dealership.

E) increases, because this expenditure decreases saving.

18) Spending on financial assets ________ counted as part of GDP ________.

A) are; because the cash exchanged represents an expenditure

B) are not; because their purchase is not spending on goods or services

C) are; as long as their purchase produces income

D) are not; because interest must be paid on them

E) may be; as long as their value increases

19) The purchase of 500 shares of Honda stock by the California State Employees’ Pension fund

A) is counted as consumption expenditure.

B) is not counted as part of GDP.

C) is counted as investment in the GDP accounts.

D) is counted as part of export expenditure in the GDP accounts because Honda is a foreign firm.

E) is counted as part of import expenditure in the GDP accounts because Honda is a foreign firm.

20) Recently, the government made adjustments to how GDP is calculated that included placing software purchases into the category of

A) intermediate goods because software is not a final good.

B) inventory and now software purchases are not directly counted as part of GDP.

C) investment and now directly counts software purchases as part of GDP.

D) net exports of goods and services because most software is written abroad.

E) net operating surplus.

Continue to order Get a quote

July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.