Chapter_19 - YourResultsfor:"SelfStudyQuiz"...

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Your Results for: "Self-Study Quiz" Print this page Site Title: Principles of Economics, Eighth Edition Book Title: Principles of Economics, 8/e Book Author: Case/Fair Location on  Site: Chapter 19 > Self-Study Quiz Date/Time  Submitted: February 8, 2012 at 7:06 AM  (UTC/GMT) Summary of Results 30% Correct  of 40 Scored items: 12 Correct:  30% 28 Incorrect:  70% 3 questions not scored. 40 scored questions. More information about scoring 1. Which of the following fits the  definition of GDP? Your Answer: The market value of a country’s o Correct Answer: All of the above.   Incorrect. This answer is correct, however, other choices are also correct. 2. To arrive at GDP, the Bureau of  Economic Analysis (BEA) counts: Your Answer:   Correct. The value of final sales, or sales at the retail level, is the same as the total value  added in the production process. We can use one or the other to calculate GDP, but not  both added together. 3. What is  value added Your Answer: Value added refers to goods that 
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in further processing by another fi Correct Answer: Value added is the difference betw leave a stage of production and th entered that stage.   Incorrect. This is the definition of intermediate goods. 4. Which of the following is counted in  GDP? Your Answer: The sale of stocks and bonds. Correct Answer: The fee paid to a broker for selling   Incorrect. These sales are exchanges of paper assets and do not correspond to current  production. 5. Which of the following is counted in  GDP?  Your Answer: The output produced by foreigner abroad. Correct Answer: The profits earned in the Unites S companies.   Incorrect. When foreigners work for a U.S. company in another country, the output is  included in the GDP of that country, not U.S. GDP. 6. Which of the following is true about  the difference between gross  domestic product (GDP) and gross  national product (GNP)? Your Answer:
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  Correct. All of the output produced by a foreign company in the United States would be  counted as part of U.S. GDP but not as part of U.S. GNP. Wages are part of U.S. GNP,  while profits are part of Japanese GNP, but not included in Japanese GDP. 7. What are the two ways in which  GDP can be computed? Your Answer:   Correct. GDP can be computed in two ways. One is to add up the total amount spent on  all final goods during a given period. This is the  expenditure approach  to calculating GDP.  The other is to add up the income—wages, rents, interest, and profits—received by all  factors of production in producing final goods. This is the  income approach  to calculating  GDP. 8.
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Chapter_19 - YourResultsfor:"SelfStudyQuiz"...

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