Copy of midterm1_practice_v1

Copy of midterm1_practice_v1 - Sams Semiconductors produces...

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Unformatted text preview: Sams Semiconductors produces computer chips, which it sells for $10 million to Carls Computer Company (CCC). CCCs computers are sold for a total of $16 million. What is the value added of CCC? A) $6 million B) $26 million C) $10 million D) $16 million In the expenditure approach to GDP, which of the following would be excluded from measurements of GDP? A) Government payments for goods produced by firms owned by state or local governments B) Government payments for goods produced by foreign firms C) All government payments are included in GDP D) Government payments for welfare The income-expenditure identity says that A) Y = C + I + G + NX + CA . B) Y = C + S + T . C) Y = C + I + G . D) Y = C + I + G + NX . The country of Myrule has produced the following quantity of gauges and potatoes, with the price of each listed in dollar terms. Year 1 2 Quantity Price Quantity Price Gauges 8,000 $4 10,000 $3 Potatoes 6,000 $8 5,000 $14 Using Year 1 as the base Year, what is the growth rate of real GDP from Year 1 to Year 2? A) 10% B) 0% C) 25% D) 1.25% Year 1 2 Quantity Price Quantity Price Gauges 8,000 $4 10,000 $3 Potatoes 6,000 $8 5,000 $14 Based on the GDP deflator, what is the inflation rate from Year 1 to Year 2 in the country of Myrule? A) 1.25% B) 0% C) 25% D) 10% If nominal GDP for 2009 is $6400 billion and real GDP for 2010 is $6720 billion (in 2009 dollars), then the growth rate of real GDP is A) 5% B) 0.5% C) 0% D) 50% If the price index was 100 in 2000 and 120 in 2010, and nominal GDP was $360 billion in 2000 and $480 billion in 2010, then the value of 2010 GDP in terms of 2000 dollars would be A) $384 Billion B) $424 Billion C) $400 Billion D) $300 Billion If the marginal product of capital doesnt change as the amount of...
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This note was uploaded on 02/15/2011 for the course BUAD 350 at USC.

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Copy of midterm1_practice_v1 - Sams Semiconductors produces...

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