ECON 2301 (Exam 3)

ECON 2301 (Exam 3) - ECON 2301-Exam 3 1. GDP is: A) the...

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ECON 2301-Exam 3 1. GDP is: A) the total value of all consumer expenditures within a given period. B) national income after taxes. C) the total value of all final goods and services plus intermediate goods and services produced domestically within a given period. D) the value of all final goods and services produced domestically within a given period. E) the total value of all final goods and services minus the value of intermediate goods and services produced domestically within a given period. 2. The goods and services that are used in the production of other goods and services are called: A) gross domestic goods. B) intermediate goods. C) final goods. D) ultimate goods. E) preliminary goods. 3. If individuals were paid for their household production, GDP would: A) increase. B) not change. C) decrease. D) not change, but the welfare of citizens would improve. 4. The expenditure approach to GDP accounting includes: A) consumption. B) investment. C) government purchases. D) net exports. E) all of the answer choices. 5. Which of the following is not a subcategory of consumption spending? A) consumer services B) consumer investment C) consumer durable goods D) consumer nondurable goods 6. Which of the following is not considered part of the services category under the expenditure approach to GDP accounting? A) sporting events B) haircuts C) commercial airline transportation D) privately owned jets 7. Which of the following is not included in the investment category under the expenditure approach to GDP accounting? A) newly constructed residential housing B) factory buildings C) stocks and bonds D) additions to inventory E) All of the answer choices are included in the investment category. 8. Government purchases, under the expenditure approach to GDP accounting, do not include: A) state government purchases of plumbing services. B) Social Security benefit payments to retirees. C) the salaries of military officers. D) federal government purchases of computers. 9. Fixed investment includes all of the following except: A) all purchases by businesses that add to their inventories. B) all spending on capital goods. C) all spending on producer goods.
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D) all spending on goods that increase future production capabilities. 10. If a nation's imports exceed its exports: A) net exports will be positive. B) GDP will be less than the sum of consumption, investment, and government purchases. C) GDP will be greater than the sum of consumption, investment, and government purchases. D) none of the above apply. 11. The services rendered by a special agent with the Federal Bureau of Investigation is included in which expenditure category of GDP? A) consumption B) investment C) government purchases D) net exports E) none of the above 12. The purchase of a new scanner by a computer graphics business is included in which expenditure category of GDP?
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This note was uploaded on 10/01/2011 for the course ECON 2301 taught by Professor Butler during the Spring '08 term at Blinn College.

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ECON 2301 (Exam 3) - ECON 2301-Exam 3 1. GDP is: A) the...

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