Chapter 7 Multiple Choice Questions - KEY

Chapter 7 Multiple Choice Questions - KEY - Chapter 7...

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Unformatted text preview: Chapter 7 Material 1 Which is the primary use for national income accounting A. It provides a basis for assessing performance of the economy B. It measures economic efficiency in specific industries C. It estimates expenditures on nonproduction transactions D. It analyzes the cost of pollution Chapter 7 Material 2 Gross Domestic Product (GDP) is defined as… A. Personal consumption expenditures and gross private domestic investment B. The sum of wage and salary compensation of employees, corporate profits, and interest income C. The market value of final goods and services produced within a country in 1 year D. The market value of all final and intermediate goods and services produced by the economy in 1 year Chapter 7 Material 3 GDP provides an indication of society’s evaluation of relative worth of goods and services because it… A. Provides an estimate of the value of secondhand sales B. Gives increased weight to security transactions C. Is an estimate of income received D. Is a monetary measure Chapter 7 Material 4 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… A. Including a nonmarket transaction B. Including a nonproduction transaction C. Including a noninvestment transaction D. Multiple counting Chapter 7 Material 5 Which of the following is a security transaction? A. The sale of a used (secondhand) ironing board at a garage sale B. The sale of shares of stock in the United States Steel Corporation C. The payment of social security benefits to a retired worker D. The birthday gift of a check for $5 sent by a grandmother to her grandchild Chapter 7 Material 6 The sale in 1999 of an automobile produced in 1998 would not be included in the gross domestic product for 1999; doing so would involve… A. Including a nonmarket transaction B. Including a nonproduction transaction C. Including a noninvestment transaction D. Multiple counting Chapter 7 Material 7 The service a babysitter performs when she stays at home with her baby brother while her parents are out and for which she receives no payment is not included in the gross domestic product because A. Including a nonmarket transaction B. Including a nonproduction transaction C. Including a noninvestment transaction D. Multiple counting Chapter 7 Material 8 According to national income accounting, money income derived from the production of this year’s output is equal to… A. Corporate profits and indirect business taxes B. The amount spent to purchase this year’s total B....
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This note was uploaded on 12/01/2010 for the course ECON 2291 taught by Professor Bryd during the Fall '05 term at Baldwin-Wallace.

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Chapter 7 Multiple Choice Questions - KEY - Chapter 7...

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