midterm2 fall04 - NAME_ SECTION_ ECON 162B-90, 91 Kenny...

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NAME___________________________________ SECTION_________ ECON 162B-90, 91 Kenny Christianson Fall 2004 November 12, 2004 MIDTERM EXAM NUMBER TWO (A) PART I MULTIPLE CHOICE (30 points) Choose the single best answer. 1. Which of the following is included in the calculation of U.S. GDP? a. intermediate goods produced in the United States b. final goods and services produced in the United States c. final goods and services produced by American resources around the world d. secondhand goods produced in the United States e. all of the above 2. One difference between GDP and GNP is that a. GNP generally increases during a recession. b. GNP includes the output produced by foreign resources domestically. c. GDP includes the output produced by domestic resources in foreign countries. d. GDP includes the value of goods and services produced in the household. e. none of the above. 3. Which of the following statements is false? a. National Income is the sum of wages, interest, rents, and profits. b. If households consume more leisure, GDP will decrease. c. Nominal GDP is measured using current prices. d. If output increases, then both nominal and real GDP must always increase. e. Net National Product is equal to Gross National Product minus the Capital Consumption Allowance. 4. If one dollar trades for 0.5 pound, and one pound trades for 2 euros, then purchasing power theory would suggest that one dollar should trade for a. two euros. b.
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midterm2 fall04 - NAME_ SECTION_ ECON 162B-90, 91 Kenny...

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