Question :
21) Which of the following a final good or service?
A) : 1228233
21) Which of the following is a final good or service?
A) tires purchased by Ford for use on one of their SUVs
B) the new economics textbook you are using
C) the hair gels used by a hair stylist at the local hair salon
D) the butter used by a chef to make butter cream frosting
E) the taco shells purchased by Taco Bell for use in their tacos
22) A restaurant buys fish to offer as a daily menu special. The purchase of the fish by the restaurant is
A) a consumption expenditure.
B) an investment.
C) an intermediate good.
D) an example of government expenditures on goods and services.
E) part of net exports if the fish was caught beyond the U.S. border.
23) Which of the following is classified as an intermediate good?
i)the purchase of a Big Mac by a college student
ii)McDonald’s purchase of pickles
iii)a McDonald’s restaurant owner’s interest payment for the loan on her building
A) ii only
B) ii and iii
C) i only
D) i and iii
E) i, ii and iii
24) Which of the following would NOT be directly included in the U.S. GDP in 2010?
A) the market value of restaurant meals sold in 2010
B) the market value of the jet fuel bought by Delta to use for its flights in 2010
C) the value of the automobiles produced in 2010 at the Toyota plant located in Georgetown, KY
D) legal services provided to first time home buyers during 2010
E) the purchase of a new home in Atlanta, Georgia in 2010
25) Consumption expenditure includes spending
A) on intermediate goods and services by firms.
B) on office supplies by firms.
C) by households.
D) by households and spending on office supplies by firms.
E) by governments when they are buying goods and services that consumers also buy.
26) Consumption goods and services include
A) washing machines and tickets to football games.
B) new homes and existing homes (as long as improvements have been made to the existing home).
C) tickets to concerts and medical care provided to veterans by the government.
D) new and used textbooks as long as they are sold via stores or online.
E) vacation time accumulated by workers.
27) Expenditures on U.S. produced steaks, shoes, and doctor visits are most likely classified as
A) consumption expenditure.
B) investment.
C) government expenditure on goods and services.
D) net exports of goods and services.
E) net imports of goods and services.
28) Investment is the expenditure done by
A) savers.
B) firms.
C) governments.
D) the rest of the world.
E) Both answers A and B are correct.
29) Investment is defined as the purchase of
A) any financial asset only.
B) additions to inventories only.
C) financial assets and inventories only.
D) the purchase of new capital goods and additions to inventories.
E) the purchase of new capital goods but not additions to inventories.
30) Which of the following is included as investment in GDP?
i.cars produced during the year but unsold at the end of the year
ii.new capital equipment produced and purchased during the year
iii.purchases of a company’s stocks and bonds
A) i only
B) ii only
C) iii only
D) i and ii
E) i, ii, and iii
