Practice second exam Spring 2010

Practice second exam Spring 2010 - Practice second exam...

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Practice second exam Spring 2010 Student: ___________________________________________________________________________ 1. National-income accounts assist: A. Market investors in making more profitable investments. B. Individuals in maximizing their incomes. C. Economic policy makers in formulating policies and evaluating performance. D. Analysts in measuring the performance of the stock market. 2. A nation's GDP can be calculated as: A. The sum of value added and intermediate goods. B. The total value added at all stages of production. C. NI plus depreciation. D. PI plus depreciation. 3. Suppose Blu-Ray players cost consumers $300 and Blu-Ray discs cost consumers $30. What contribution does the production of 250 Blu-Ray players and 3000 Blu-Ray discs make to the GDP? A. $75,000 B. $165,000 C. $90,000 D. $125,000 4. Which of the following is treated differently in computations of GNP as compared with GDP? A. Sales in the underground economy B. Goods produced by U.S. firms located in foreign countries C. Intermediate goods D. The value of service performed by housewives 5. Which of the following would be included in U.S. GNP but not in U.S. GDP? A. The tips received by a waiter in New Jersey B. Auto parts produced by a Japanese-owned firm operating in North Carolina C. Sales of used cars in the United States D. Chipsets produced by U.S.-owned firms operating in China
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6. GDP per capita: A. Is equal to a nation's GDP divided by its population. B. Does not permit comparisons of the economic welfare of different nations. C. Is real GDP corrected for price-level changes. D. Indicates the most efficient use of resources. 7. If a nation has GDP of $12,500 billion and GDP per capita of $62,500, what is the nation's population? A. 180 million B. 200 million C. 625 million D. 230 million 8. Suppose you volunteer to help clean up your neighborhood and the only payment you receive is the sense of goodwill that develops with your neighbors. Your efforts cause the GDP of the economy to: A. Remain unchanged. B. Fall by the opportunity cost of the time you spend doing volunteer work. C. Rise by the opportunity cost of the time spent by all of the people in the neighborhood on the volunteer project. D. Rise by the value of increased cleanliness of the neighborhood. 9. Which of the following is directly included in the calculation of GDP? A. The final sale of a brand new Cadillac B. The appreciation in value of shares of stock C. The sales of sand to a glass maker D. The sales of land to a builder 10. All of the following count as unreported income except: A. A waiter's tips that are not reported to the IRS. B. The $5 you pay your friend to help you study for a test. C. International trade in cocaine. D. The money you pay a private tutor who works for Tutors Inc.
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This note was uploaded on 07/02/2011 for the course ECON 222 taught by Professor Shimpalee during the Spring '10 term at South Carolina.

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Practice second exam Spring 2010 - Practice second exam...

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