Economics 12E - Arnold - TB_121

Economics 12E - Arnold - TB_121 - DIFFICULTY Easy NATIONAL...

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DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: Measuring the Economy KEYWORDS: Bloom's: Application OTHER: Economics 24/7 123. Sales tax is an example of an indirect business tax. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: Measuring the Economy KEYWORDS: Bloom's: Application NOTES: New 124. Compensation of employees is the largest component of GDP when using the expenditure approach to calculate GDP. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: Measuring the Economy KEYWORDS: Bloom's: Knowledge NOTES: New 125. If the GDP in one year is greater than it was in the previous year, then economic growth must have occurred. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: Measuring the Economy
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KEYWORDS: Bloom's: Comprehension NOTES: New 126. If a business firm in Country A produces a good but does not sell it in that same year, that good will not be counted in Country A‟s GDP. POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: Measuring the Economy KEYWORDS: Bloom's: Comprehension NOTES: New 127. List and explain the two different approaches used to measure GDP. ANSWER: The two different approaches are: the expenditure approach and the income approach. When using the expenditure approach the amount of money spent by buyers on final goods and services is summed. The spending by the four sectors of the economy (households, businesses, government and foreign sector) is combined to yield the GDP. The income approach is computed by summing the income earned by the different resources that were used to produce a country's goods and services (national income) and then making some adjustments to arrive at GDP.
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  • Spring '11
  • Lee
  • Economics, gross domestic product, Measures of national income and output

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