Test2_004_VA

Test2_004_VA - Economics 004 Exam #2 VERSION A Name_...

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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? a. In February 2007, Amanda sells a 1996 Honda Accord to Isabella. b. In February 2007, Amanda buys a ticket to visit a zoo in Florida. She visits the zoo in April 2007. c. In December 2007, Isabella eats onions that she harvested from her backyard garden in October 2007. d. All of the above are correct. ____ 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? a. $8 million b. $6.5 million c. $6 million d. $4.5 million 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 ____ 4. Refer to Table 23-1. Using 2006 as the base year, a. nominal GDP for 2007 is $184,200 and real GDP for 2007 is $180,000. b.
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This note was uploaded on 12/28/2010 for the course ECON 004 at Penn State.

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Test2_004_VA - Economics 004 Exam #2 VERSION A Name_...

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