Question : 31) The purchase by a foreign government of an airplane : 1244704

 

 

31) The purchase by a foreign government of an airplane produced in the United States is included in U.S.

A) consumption expenditures.

B) investment expenditures.

C) government purchases.

D) net exports.

 

32) In 2013, Kendall Ford, an automobile dealership, spent $20,000 on a new car lift for its repair shop, $2,000 on a new copy machine for its sales division, and $600,000 on Ford Motor company stock. Unsold cars and trucks were valued at $400,000 on January 1, 2013 and unsold cars and trucks were valued at $900,000 on December 31, 2013. What is Kendall Ford’s total investment spending in 2013?

A) $22,000

B) $322,000

C) $522,000

D) $1,022,000

 

33) In 2012, which component of GDP had a negative value?

A) consumption

B) investment

C) government spending

D) net exports

 

34) What is the largest component of spending in the United States?

A) consumption spending

B) investment spending

C) government spending

D) net investment spending

 

35) In the United States in 2013, the Bureau of Economic Analysis began counting spending on research and development as ________, which counts as a part of GDP.

A) investment

B) consumption

C) depreciation

D) intermediate goods

 

36) In the United States in 2013, the Bureau of Economic Analysis began counting spending by firms and individuals on developing entertainment products as investment. This change will

A) take away from GDP.

B) add to GDP.

C) not change GDP.

D) only change GDP if the development occurs within the borders of the United States.

37) In the first half of 2011, automobile sales in the United States were lower than they were in the first half of 2010. The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses.

A) nondurable goods; durable goods

B) consumption; investment

C) investment; consumption

D) durable goods; nondurable goods

 

38) When consumers are less confident about their jobs or incomes, they are more likely to

A) reduce purchases of durable goods than nondurable goods.

B) reduce purchases of nondurable goods and increase purchases of durable goods.

C) increase investment spending and decrease consumption spending.

D) increase consumption spending and decrease investment spending.

 

Table 12-3

Consumption expenditures

$800

Investment expenditures

  200

Government purchases

  300

Exports

  100

Imports

  200

Wages

  800

 

39) Refer to Table 12-3. 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 12-4

Consumption expenditures

$800

Investment expenditures

  300

Government purchases

  300

Government transfer payments

  400

Exports

  300

Imports

  100

 

40) Refer to Table 12-4. 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.