ch2 - Exam Name_

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Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Gross domestic product is defined as A) the market value of all goods and services produced by Canadian residents domestically and abroad. B) the value of all goods produced in the economy in a given time period within the borders of Canada. C) the total market value of the final goods and services produced during a given time period within the borders of Canada. D) the market value of all goods and services produced in the economy during a given time period within the borders of Canada. E) the total market value of all the intermediate goods and services produced in the economy for a given time period within the borders of Canada. 1) 2) The three approaches to measuring GDP are called the A) accounting approach, the income approach, and the expenditure approach. B) accounting approach, the statistical approach, and the product approach. C) product approach, the income approach, and the expenditure approach. D) accounting approach, the statistical approach, and the income approach. E) product approach, the cost approach, and the expenditure approach. 2) 3) Intermediate goods are A) purchased by consumers. B) that are produced and used as inputs into the production process. C) sold to foreigners. D) irrelevant in the overall economy. E) are not a consumption good. 3) 4) Jim ʹ s Nursery produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim ʹ s contribution to GDP is A) $2000. B) $1100. C) $1000. D) $1800. E) $900. 4) 5) Acme Steel Co. produces 1000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme ʹ s contribution to GDP is A) $20000. B) $15000. C) $30000. D) $60000. E) $45000. 5) 6) Value added is equal to the value of a firm ʹ s production minus A) intermediate goods used in production. B) costs of production. C) all of its costs of production. D) investment expenditures.
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ch2 - Exam Name_

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