Exam_2.Economics_102_Rawlins

Exam_2.Economics_102_Rawlins - EconS 102, Spring 2008...

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EconS 102, Spring 2008 Rawlins 1. Payments to households not in exchange for goods and services currently produced are: a. transfer payments. b. government purchases. c. consumption expenditures. d. investment expenditures. 2. Gross domestic product (GDP) includes: a. intermediate as well as final goods. b. foreign goods as well as domestically produced goods. c. used goods sold in the current time period. d. only final goods and services. 3. Gross private domestic investment: a. excludes all investment in the United States by foreign firms. b. includes all capital in the United States. c. includes net additions to the capital stock plus all new corporate stocks and bonds. d. includes business expenditures on new factories, tools, and machinery. 4. GDP includes: a. the negative attributes from erosion and deforested landscape. b. all quality improvements resulting from higher quality goods replacing inferior goods. c. the cleaning-up expenses associated with pollution. d. the value of leisure time. e. the illegal activities related to the underground economy. 5. Depreciation or consumption of fixed capital depreciation measures: a. net investment less gross investment. b. the loss of productive ability due to capital intensive production. c. capital that is wasted in the production process. d. the value of existing capital stock used up in the production process. e. the decline in the value of inventories caused by inflation. 6. The largest component of GDP is: a. personal consumption expenditures. b. government spending. c. durable goods. d. net exports. e. gross private domestic investment. 7. The lower portion of the circular flow model contains factor markets in which households provide: a. labor, money, and machines. b. savings, spending, and investment. c. natural resources, labor, and capital. d. output of all final goods and services produced. 2 nd Mid-Term Exam, Version 1 Page | 1
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EconS 102, Spring 2008 Rawlins 8. Based on the circular flow model, goods and services flow from: a. households to businesses in product markets. b. businesses to households in product markets. c. households to businesses in factor markets. d. businesses to households in factor markets. 9. Economic values that are measured in units per period of time are referred to as: a. stocks. b. flows. c. unit values. d. dollars. 10. All final goods and services that make up GDP can be expressed in the form: a. GDP = C + I – G + (X + M). b. GDP = C + I + G + (X + M). c. GDP = C + I + G + (X – M). d. GDP = C + I + (X – M). e. GDP = C + I + G. 11. According to the expenditure approach, the largest component of GDP is: a. government spending. b. proprietor’s income. c. net interest. d.
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Exam_2.Economics_102_Rawlins - EconS 102, Spring 2008...

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