Question : 41) Which of the following would be included in Germany’s : 1228210

41) Which of the following would be included in Germany’s GNP?

A) the production of BMWs (made by a German-based company) in South Carolina

B) the production of Michelin tires made in Germany by a French company and then sold directly to French consumers

C) the production of BMWs in Germany

D) the production of Michelin tires made in France by a French company and then sold to BMW in Germany for use in BMW cars

E) Answers A and C are correct.

42) Real GDP measures the value of goods and services produced in a given year valued using

A) base year prices.

B) prices that prevail the same year.

C) no prices.

D) future prices.

E) real rather than nominal prices.

43) Real GDP is the value of final goods and services produced in a year

A) expressed in the prices of that same year.

B) during a recession.

C) minus depreciation.

D) expressed in the prices of a base year.

E) minus the value of all the intermediate goods produced.

44) Real GDP can increase if the

i.quantities of goods and services produced decrease and prices fall by a smaller percentage.

ii.quantities of goods and services produced decrease and prices fall by a larger percentage.

iii.quantities of goods and services produced decrease and prices do not change.

iv.quantities of goods and services produced increase.

A) i only

B) iii only

C) iv only

D) i and iii

E) i, ii, and iii

45) ________ is most likely to contribute to an improvement in our living standard.

A) An increase in real GDP

B) An increase in the price level

C) A decrease in nominal GDP

D) An increase in depreciation

E) An increase in the GDP deflator combined with a decrease in nominal GDP

46) Nominal GDP measures the value of goods and services produced in a given year valued using

A) constant prices.

B) prices of the same year.

C) no prices.

D) future prices.

E) base year prices.

47) Nominal GDP is GDP

A) using current market values.

B) during a recession.

C) minus depreciation.

D) after adjusting for any price changes.

E) that ignores depreciation.

48) An increase in nominal GDP could result from an increase in

i.production.

ii.prices.

iii.subsidies.

A) i only

B) ii only

C) i and ii

D) i and iii

E) i, ii, and iii

49) Nominal GDP increases

A) only if total production increases.

B) only if prices increase.

C) if either prices and/or total production increase.

D) only if the productivity of resources increase.

E) only if depreciation decreases.

50) When the value of nominal GDP increases from one year to the next, we know that one or two things must have happened during that time:

A) The nation produced fewer goods and services and/or prices fell for goods and services.

B) Consumption expenditure increased and/or corporate profits increased.

C) Investment increased and/or payments to employees increased.

D) The nation produced more goods and services and/or prices rose for goods and services.

E) the value of real GDP must have increased and/or the price level must have decreased.