Test2_004_VA - Economics 004 Exam#2 VERSION A Name Multiple...

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Economics 004 Exam #2 VERSION A Name_____________________________________________________________________ Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Marijuana is an illegal good and broccoli is a legal good. Which of the following statements is true? a. Darin grows and sells marijuana to Lisa. When Darin and Lisa get married, GDP falls. b. Darin grows and sells marijuana to Lisa. When Darin and Lisa get married, GDP rises. c. Darin grows and sells broccoli to Lisa. When Darin and Lisa get married, GDP falls. d. Darin grows and sells broccoli to Lisa. When Darin and Lisa get married, GDP rises. ____ 2. Which of the following events would cause GDP for 2007 to increase? ____ 3. In 2007, XYZ Corn Company grows and sells $2 million worth of corn to Tasty Cereal Company, which makes corn flakes. Tasty Cereal Company produces $6 million worth of corn flakes in 2007, with sales to households during the year of $4.5 million. The unsold $1.5 million worth of corn flakes remains in Tasty Cereal Company’s inventory at the end of 2007. The transactions just described contribute how much to GDP for 2007? Table 23-1. The table applies to a hypothetical economy that produces only computers and DVD players. Prices and Quantities Year Price of Computers Quantity of Computers Price of DVD Players Quantity of DVD Players 2006 $900 90 $200 300 2007 $875 120 $220 360 2008 $825 140 $250 x ____
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