Review_Game_-_Chapter_7

Review_Game_-_Chapter_7 - Chapter 7 Review Game In...

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Chapter 7 Review Game
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In calculating GDP, governmental transfer payments, such as social security or unemployment compensation, are: A)not counted. B)counted as investment spending. C)counted as government spending. D)counted as consumption spending. Answer: A
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Transfer payments are A)excluded when calculating GDP because they only reflect inflation. B)excluded when calculating GDP because they do not reflect current production. C)included when calculating GDP because they are a category of investment spending. D)included when calculating GDP Answer: B
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Gross domestic product (GDP) measures and reports output: A)as an index number. B)in percentage terms. C) in dollar amounts. D)in quantities of physical units (for example, pounds, gallons, and bushels).
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In national income accounting, consumption expenditures include: A)purchases of both new and used consumer goods. B)consumer durable goods and consumer nondurable goods, but not services. C)consumer durable goods, consumer nondurable goods, and services. D)changes in business inventories. Answer: C
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Gross investment refers to A)private investment minus public investment. B)net investment plus replacement investment. C)net investment after it has been "inflated" for changes in the price level. D)net investment plus net exports. Answer:
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If the economy adds to its inventory of goods during some year: A)gross investment will exceed net investment by the amount of the inventory increase. B)this amount should be ignored in calculating that year's GDP. C)this amount should be subtracted in calculating that year's GDP. D)this amount should be included in calculating that year's GDP. Answer: D
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GDP excludes: A)the market value of unpaid work in the home. B)the production of services. C)the production of nondurable goods. D)positive changes in inventories. Answer: A
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Value added can be determined by: A)summing the profits of all enterprises in the economy. B)subtracting the purchase of intermediate products from the value of the sales of final products. C)calculating the year-to-year changes in real GDP. D)deflating nominal GDP. Answer:
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Real GDP measures: A)current output at current prices. B)current output at base year prices. C)base year output at current prices. D)base year output at current exchange rates Answer: B
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to another, we can conclude that: A)deflation occurred. B)inflation occurred.
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This note was uploaded on 02/24/2012 for the course ECON 180364203 taught by Professor Edwardmcdevitt during the Spring '09 term at UCLA.

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Review_Game_-_Chapter_7 - Chapter 7 Review Game In...

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