ch 6 multiple choice

ch 6 multiple choice - Question 1 Which is a primary use...

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Question 1 1 out of 1 points Which is a primary use for national income accounting? Selected Answer: It provides a basis for assessing the performance of the economy. Correct Answer: It provides a basis for assessing the performance of the economy. Feedback: Correct! See "Assessing the Economy's Performan ce" on p. 106. Question 2 1 out of 1 points Gross domestic product (GDP) is defined as
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Selected Answer: the market value of final goods and services produced within a country in 1 year Correct Answer: the market value of final goods and services produced within a country in 1 year
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Feedback: Correct! See the definition on p. 106. Personal consumpti on expenditur es and GPDI are part of GDP, but not all of it. The same goes for the sum of wages, profits, and interest, which used to calculate national income (though the list excluded rent). National income, however, is not the same as GDP as other adjustment s need to be made. Finally, intermedia te goods are excluded from the calculation of GDP. Question 3 1 out of 1 points GDP provides an indication of society's valuation of the relative worth of goods and services because it
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Selected Answer: is a monetary measure Correct Answer: is a monetary measure Feedback: Correct. See "A Monetary Measure" on p. 106. Neither security transaction s nor secondhan d sales are included in GDP. Question 4 1 out of 1 points To include the value of the parts used in producing the automobiles turned out during a year in gross domestic product for that year would be an example of Selected Answer: multiple counting Correct Answer: multiple counting
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Feedback: Correct. Economist s use a technique called "value added" which allows us to calculate the value of final goods by including only the value added by intermedia te stages of production . See p. 106-107. Question 5 1 out of 1 points Which of the following is a public transfer payment? Selected Answer: the Social Security benefits sent to a retired worker Correct Answer: the Social Security benefits sent to a retired worker
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Feedback: Correct. See "Financial Transactio ns" on p. 107. Transfer payments move income earned by one person to another, so sales of stock or used goods do not represent this. The birthday gift is a private, not a public, transfer payment. Question 6 1 out of 1 points The sale in year 2 of an automobile produced in year 1 would not be included in the gross domestic product for year 2; doing so would involve Selected Answer: including a nonproduction transaction Correct Answer: including a nonproduction transaction
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Feedback: Correct. Goods are included in GDP when they are produced, not when they are sold. See the discussion on gross private domestic investment and changes in inventories on p. 109. See also
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This note was uploaded on 09/10/2009 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.

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ch 6 multiple choice - Question 1 Which is a primary use...

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