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.
