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Unformatted text preview: CHAPTER 5 1. The total market value of all final goods and services produced in an economy during a given time period is the definition of: A) Gross domestic product. B) Net domestic product. C) National income. D) Personal income. 2. GDP can be calculated by: A) Adding up the spending on goods and services by business, government, households, and foreigners, and subtracting imports. B) Adding up the "value added" at every stage of production in the economy. C) Adding up all of the receipts of households, government, and business. D) All of the above. 3. Suppose autos cost consumers $20,000 and trucks cost consumers $10,000. What contribution does the production of 100 autos and 100 trucks make to the GDP? A) $30,000. B) $2,000,000. C) $3,000,000. D) $300,000. 4. The GDP per capita: A) Measures a country's productivity. B) Permits international comparisons of the economic welfare of different nations. C) Is nominal GDP corrected for price-level changes. D) Indicates the distribution of output. 5. If the real U.S. GDP was $6,928.8 billion in 1996 and the U.S. population was 266 million, the per capita real GDP would have been approximately: A) $462,700 per person. B) $12,194 per person. C) $38,390 per person. D) $26,048 per person. 6. Which of the following is directly included in the calculation of the GDP?...
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This note was uploaded on 04/11/2011 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.
- Spring '09
- National Income