Question :
41) Which of the following not true about the composition : 1244705
41) Which of the following is not true about the composition of GDP in 2012?
A) The majority of consumer spending is on durable goods.
B) Purchases made by state and local governments are greater than purchases made by the federal government.
C) Imports are greater than exports.
D) Business fixed investment is the largest component of investment.
42) The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product.
A) equals
B) is greater than
C) is less than
D) is sometimes greater than and other times less than
Table 12-5
Stage of Production
Seller
Buyer
Price
1
Steel mill
Auto manufacturer
$10,000
2
Auto manufacturer
Auto dealer
18,000
3
Auto dealer
Consumer
25,000
Consider the table above showing three stages of production of an automobile.
43) Refer to Table 12-5. The value added by the automobile dealer equals
A) $7,000.
B) $15,000.
C) $18,000.
D) $25,000.
44) Refer to Table 12-5. The value of each automobile in gross domestic product equals
A) $7,000.
B) $15,000.
C) $18,000.
D) $25,000.
Scenario 12-1
CANOES-R-US makes canoes. It buys the shell of the canoe from another firm for $300 and uses its labor and intermediate goods to make the canoe. It sells the finished canoe to a retail canoe store for $800. The retail canoe store then sells the canoe to a consumer for $1,200.
45) Refer to Scenario 12-1. The value added of CANOES-R-US for each canoe equals
A) $1,200.
B) $800.
C) $500.
D) $400.
46) Refer to Scenario 12-1. The value of each canoe in gross domestic product equals
A) $1,200.
B) $800.
C) $500.
D) $400.
47) Gross domestic product in the economy is measured by the
A) total number of goods and services produced in the economy.
B) dollar value of all final goods and services produced in the economy.
C) total number of goods produced in the economy.
D) total number of services produced in the economy.
48) In comparing China to Canada, China’s relatively ________ growth rate in GDP would make you more likely to take a job in China, and China’s relatively ________ level of GDP would make you less likely to take a job in China.
A) high; low
B) high; high
C) low; low
D) low; high
49) A final good is one that
A) is used in the production of another good.
B) is a natural resource used to produce a good.
C) is purchased as an input in the production process.
D) is purchased by its final user.
50) How are intermediate goods treated in the calculation of GDP?
A) Their value is not counted separately, but included as part of the value of the final good for which they are an input.
B) Their value is counted separately, and their value is also included as part of the value of the final good for which they are an input.
C) Their value is counted separately, but is not included as part of the value of the final good for which they are an input.
D) They are included only if they are imported.
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