marco 1 - 1 As depicted in the circular flow diagram firms...

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1. As depicted in the circular flow diagram, firms: A) demand the resources that households supply in product markets. B) demand the goods and services that households supply in product markets. C) supply the resources that households demand in factor markets. D) supply the goods and services that households demand in product markets. 2. The value of all final goods and services produced during a given time period measures a nation's: A) consumer price index. B) gross domestic product. C) net national product. D) net exports. 3. If an economy produced twenty pizzas at $10 each and fifteen liters of cola at $5 each, the total value of these goods and services would be: A) $275. B) $2,750. C) $200. D) $75. 4. Gross domestic product calculations count only final goods and services because: A) counting all goods and services would lead to double-counting of many activities. B) it is difficult to measure the prices of intermediate goods produced. C) these are the only goods and services that are purchased in an economy. D) one cannot calculate the quantities of intermediate goods produced. 5. A rancher raises sheep. Once a year he shears them and sells the raw wool to a processor who cleans it and spins it into yarn. The yarn is then sold to a knitting mill, which produces and sells sweaters. In calculating GDP we would count:
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This note was uploaded on 10/16/2010 for the course MACRO 111 taught by Professor Gilbert during the Spring '10 term at Arkansas.

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marco 1 - 1 As depicted in the circular flow diagram firms...

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