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Chapter 24 - Quiz “3128/10 12:03 PM M>W>W>M...

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Unformatted text preview: Quiz “3128/10 12:03 PM M>W>W>M Social Studies Home Product Info Site Map Contact Us _ sanncnr' [par-q“ Center STLIDENT CENTEFI Textbook Resources I Web Chapters and Supplements - Updates and Errata Chapter Activities Grabber 24 Origin of the flea hieractlye Graphs Worked Problerre See the Math Pow eerini Presentations Key Questions Quiz thwarted Sides Faul Soln'en Videos lde Content Web-based Questions Economics (McConnell). 18th Edition Chapter 24: Measuring Domestic Output and National Income Quiz Results Reporter Out of 10 questions. you answered 4 oorrecilywili'l afinal grade claim 4correcii40%) _ 6 inmrreciismi-l — 0 unanswered (0%) Your Results: The oonect enswerioreach question is indicated bye J. 1 GDP excludes expenditures for: INCORRECT A) additions to inventories Bl new housing C) governmentpurohaees ofmilitaryequipment V' Di corporate stock Feedback: Corporate clock is a certificate of ownership of a firm and does not represent production of final goods and services. 2 CORRECT The ”G" term in c + Ig + G +x1includea all utthe following emept: A) state government purchases ofnew computers V Bl Social Security checks received by retirees cl salaries received by members oflhe military 0] local gaternmeni expenditures for building new roads Feedback: Social Security checks are transfer payments transfers of income from taxpayers to recipients that does not represent a contribution to current production. 3 CORRECT The income approach to GDP sums the mtal inmme earned byresource suppliers and adds: :1) netuansierpayments and personal BIBS Bl net investment and depreciation C) htlplfhigheredmcgraw-hill.wm/§ite§f00256942 l2/StudenLview0/dlaple rltl/ouizhtml Page i. of 3 Quiz Vr Cl depreciation, taxes on production and imports, and subtracts nettoreign factor income ”I nettransterpayments, depreciation, and netforeign factor income Feedback: The expenditure approach sums the value of all expenditures on domestically produced output. To match this. the income approach begins with national income income earned byU.5.-supplied resources. However, it must also include depreciation. taxes on production and imports. and subtract net foreign factor income. 4 CORRECT Refer to the following data: Units ofOu -ut Prioe e-runit This economyproduces onlyone product: price and output data are shown for a five-year period, Year 3 is the base year, The price indexfor year4 is: At so V’ Bl 120 ct 20% D] 12 Feedback: The price index is the ratio of the value oi output in year 4 to the value of that same output in year 3, multiplied by 100. In this example, the price index is [(9 x 55) {(9 x 55)] x 100. or 120. 5 The change in real GDP is not an accurate measure ofthe change in economic welfare because. for INCORRECT example: A) improvements in product qualityare overstated Bl expenditures forpersonal services are excluded C] the price level changes wartime V Di some production creates pollution Feedback: To the extent that increased production degrades the environment, measured changes in output will fail to account for changes in economic well-being. 6 “The market value at alltinal goods and services produced within a nation in a given year." This best INCORRECT describes: A) Netdomesticproducl Vr Bl Grossdomesticproduct Cl Nationalincome 0] Personal income Feedback: This is the definition of GDP. Net domestic product subtracts depreciation. while national income and personal income require lurther adiustments. 7 CORRECT In calculating GDP: :1) both exports and imports are added Bl neither smarts norimports are added V G] exports are added and imports are subtracted D] imports are added and exports are subtracted Feedback: GDP measures the market value at all goods and services produced within the country in a year. Etported goods certainly meet this criteria and must be included. Consumption and other expenditures may include the value of goods produced elsewhere; imports must be subtracted to obtain only that portion that reflects domestic production. 3 Suppose t'latlastyeardomestic firms spent $30 billion on final purchases of plant and equipment. of INCORRECT which 515 billion replaced equipmentttlat had worn out during the year, In addition, firms collectwa added $10 billion to inventories and new construction totaled $35 billion, In calculating GDP, natonal income accountants would add gross investmentof: At $95 billion Bl $100oillion cl $110bi|lion V Di $125 billion Feedback: G'oss investment includes both inventory changes and depreciation as well as new construction. Nat investment would not include the $15 billion for worn equipment. 9 Suppose nominal GDP in the baseyearwas $330 billion, Five years later, nominal GDP was $480 and INCORRECT the GDP price indexwas 120. Over those five years. real GDP: V A) increased by$20 billion Bl increased by$96 billion 0] increased by$80 billion D] did notchange Feedback: lnthe base year, real GDP and nominal GDP are equal. To calculate real GDP five years out. divide nominal GDP in that year bythe price deflator and multiplythe result by100 to obtain real GJP = $400. a $20 billion increase from the base year. 10 Disposable income consists of: INCORRECT N personal income plus personal taxes hitpflhigtieredmcgraw-hilltmmlsitesjflflls5942lZ/sbudenLviewOfchapterZA/quiz htrnl [0128/10 12:05 PM Page 2 of 3 Quiz [0128/10 12:03 PM 3] netdomeeticproducl minus personal lanes (3) GDP corrected for inflation V D] consumption plus saving Feedback: Disposable income is personal income less personaliaxes. As such, households are free either tospend H or save it. E-mail Your Results Date: Thu Oct28 20101011735 GMT+0200 (Jerusalem Standard Time) Myname: E—rnail those results In: E-mail address: Funnel: Me: HTML MyTeachen HTML Otllen HTML E-rnail The Results Gm The MCGI’UW Hf” Compunras Please read ourm and Emma beiore you eaplore ourWeb sire To report a lechniaal problem with misWeb she. please canted Ihe W. htlp{fhighatedmcgraw-hlll.wm,lsitesjl30256942lZ/smdermviswflld-aplsrld/qulz himl Page 3 of 3 ...
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Chapter 24 - Quiz “3128/10 12:03 PM M>W>W>M...

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