Section1 - Econ 100B Section 101 102 Summer 2009 UC Berkeley Phakawa On Jeasakul Practice Problems 1 What should be counted in the GDP a James

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Econ 100B Section 101 & 102 Summer 2009 – UC Berkeley Phakawa On Jeasakul June 24, 2009 Practice Problems 1. What should be counted in the GDP? a. James Smith invests 15,000 USD in US government bond. b. JamesSmith.com issues 10 million new shares, and uses the proceeds to acquire JohnDoe.com. c. John Doe invests 100,000 USD by purchasing shares in jamessmith.com. d. JamesSmith.com invests 1 million USD in a new computer system. 2. What should not be included in the California GDP? a. Alan purchases a new house in San Jose. b. Bob buys a house built in 1960 in Berkeley. c. Carmen rents an apartment in San Francisco. d. Dean lives in his house in Santa Clara. 3. Because government services are not sold in markets: a. They are excluded from measurement of GDP. b. The government tries to estimate their market value and uses this to measure the government’s contribution to GDP. c. They are valued at their cost of production. d. Taxes are used to value their contribution. 4.
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This note was uploaded on 09/08/2009 for the course ECON 100B taught by Professor Wood during the Summer '08 term at University of California, Berkeley.

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Section1 - Econ 100B Section 101 102 Summer 2009 UC Berkeley Phakawa On Jeasakul Practice Problems 1 What should be counted in the GDP a James

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