Chapter 6 Q&A - intermediate goods. D) non-residential...

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36)  1
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A rancher  raises  alpaca.  Once a year, he shears them and sells the raw wool to a processor who spins it into yarn.  The  yarn is then sold to a mill which produces and sells alpaca sweaters. In calculating GDP we would count:  A)  2
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the raw wool,  the yarn and the sweaters.  B) 
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only the yarn  and the sweaters.  C) 
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only the  sweaters.  D) 
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only the raw  wool and the yarn.  Answer:  
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C 37) 
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The value  of what Burger King produces in France is included in the U.S. ________ and in the French ________.  A) 
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GDP; GDP  B) 
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GNP; GNP  C) 
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GNP; GDP  D) 
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GDP; GNP  Answer:  
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38) 
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Which of  the following is NOT a component of gross domestic product?  A) 
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net exports  B) 
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government  purchases  C) 
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purchases by  consumers of used goods  D) 
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purchases by  consumers of finished goods  Answer:  
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39) 
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GDP  minus final sales gives a measure of the:  A) 
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GNP.  B) 
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change in  business inventories.  C) 
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value of 
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Unformatted text preview: intermediate goods. D) non-residential investment. Answer: B 40) In 2006 final sales equal $500 billion and the change in business inventories is -$40 billion. GDP in 2006: A) is $-40 billion. B) is $460 billion. C) is $500 billion. D) is $540 billion. Answer: B 41) If the economy grows at 10 percent from year 1 to year 2 and real GDP is 300 in year 1, what will real GDP be in year 2? A) 300 B) 315 C) 330 D) 10 Answer: C Refer to the information provided in Table 6.8 below to answer the question that follows. Table 6.8 42) Refer to Table 6.8. Assume that this economy produces only two goods Good X and Good Y . If year 1 is the base year, the value for this economy's real GDP in year 2 is: A) $90. B) $105. C) $115. D) $130. Answer: B...
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This test prep was uploaded on 04/01/2008 for the course ECO 2301 taught by Professor Lubaketsler during the Spring '08 term at University of Texas at Dallas, Richardson.

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Chapter 6 Q&A - intermediate goods. D) non-residential...

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