CHAPTER 7 - CHAPTER 7 1. A nation's gross domestic product...

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CHAPTER 7 1. A nation's gross domestic product (GDP): A) is the dollar value of the total output produced within the borders of the nation. B) is the dollar value of the total output produced by its citizens, regardless of where they are living. C) can be found by summing C + In + S + Xn. D) is always some amount less than its C + Ig + G + Xn. Ans: A 2. Which of the following is a final good or service? A) diesel fuel bought for a delivery truck B) fertilizer purchased by a farm supplier C) a haircut D) Chevrolet windows purchased by a General Motors assembly plant Ans: C 3. Net exports are: A) that portion of consumption and investment goods sent to other countries. B) exports plus imports. C) exports less imports. D) imports less exports. Ans: C 4. Economists define investment to include: A) any increase in business inventories. B) the addition of cash to a savings account. C) the purchase of common or preferred stock. D) the purchase of any durable good, for example, an automobile or a refrigerator.
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CHAPTER 7 - CHAPTER 7 1. A nation's gross domestic product...

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