quiz 8 chapter 8 solution

quiz 8 chapter 8 solution - Self-Test Questions Chapter 8...

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Self-Test Questions Chapter 8 MULTIPLE CHOICE 1. Which of the following is correct for an economy? a. Income is greater than production. b. Production is greater than income. c. Income always equals production. d. Income equals production only when saving is zero. ANS: C 2. Suppose that an apartment complex converts to a condominium where the renters are now owners of their former apartments. a. The rent was included in GDP; the purchases of the condominiums are not. b. The rent was included in GDP, and so is the purchase of the condominiums. c. The rent was not included in GDP; the purchases of the condominiums are. d. Neither the rent of the apartments nor the purchases of the condominium are included in GDP. ANS: A 3. GDP is computed using market prices as the value of final goods and services because a. market prices don't change much, so it is easy to make comparisons between years. b.
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This note was uploaded on 03/30/2011 for the course ECON 2200 taught by Professor N/a during the Fall '10 term at Algonquin College.

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quiz 8 chapter 8 solution - Self-Test Questions Chapter 8...

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