answers to homework chapter 5 macroeconomics

# answers to homework chapter 5 macroeconomics - Chapter 7...

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Chapter 7 quick quiz Name:_____________________________ AP Macroeconomics Multiple Choice Per:____ Practice multiple choice…. .take this as if it is the real thing. 1. Gross domestic product (GDP) is defined as A) personal consumption expenditures and gross private domestic investment B) the sum of wage and salary compensation of employees, corporate profits, and interest income C) the market value of final goods and services produced within a country in 1 year D) the market value of all final and intermediate goods and services produced by the economy in 1 year. 2. The sale in 2002 of an automobile produced in 2001 would not be included in the gross domestic product for 2002; doing so would involve A) including a nonmarket transaction B) including a nonproducction transaction C) including a noninvestment transaction D) public transfer payments 3. In an economy, the total expenditure for a market basket of goods in year 1 (the base year) was \$4000 billion. In year 2, the total expenditure for the same market basket of goods was \$4500 billion. What was the GDP price index for the economy in year 2? A) .88 B) 1.13 C) 188 D) 113 4. The service a babysitter performs when she stays at home with her baby brother while her parents are out and for which she receives not payment is not included in the gross domestic product because A) this is a nonmarket transaction B) this is a nonproducction transaction C) this is a noninvestment transaction D) multiple counting would be involved 5. Which would be considered an investment according to economists? A)

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## This note was uploaded on 08/02/2011 for the course ECON 2305 taught by Professor Wunder during the Spring '08 term at UT Arlington.

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answers to homework chapter 5 macroeconomics - Chapter 7...

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