macro_tif1_ch07

B themajorityof consumerspendingisondurablegoods c

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Unformatted text preview: otal production is measured AACSB Coding: Reflective Thinking Special Feature: None 35. Table 7-4 Government transfer payments Exports Imports 400 300 100 Refer to Table 7-4. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals A) $1,700. B) $1,400. C) $2,100. D) $2,200. Answer: A Diff: 2 Type: MC Page Ref: To pic : 640-1/220-1 C S Analytical Objective: LO1: Explain how total production is measured AACSB Coding: Analytic Skills Special Feature: None 36. Which of the following is not true about the composition of GDP in 2006? A) Business fixed investment is the largest component of investment. B) The majority of consumer spending is on durable goods. C) Purchases made by state and local governments are greater than purchases made by the federal government. D) Imports are greater than exports. Answer: B Diff: 2 Type: MC Page Ref: To pic : 641/221 C S Factual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 37. The sum value added of every firm involved in producing all final goods and services ________ gross domestic of the product. A) equals B) is less than C) is greater than D) is sometimes greater than and other times less than Answer: A Diff: 1 Type: MC Page Ref: To pic : 641-2/221-2 M S Factual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None Table 7-5 Stage of Production 1 2 3 Seller Steel Mill Auto Manufacturer Auto Dealer Buyer Auto Manufacturer Auto Dealer Consumer Consider the table above showing three stages of production of an automobile. 38. Price (Dollars) $10,000 18,000 25,000 Refer to Table 7-5. The value added by the automobile dealer equals A) $7,000. B) $18,000. C) $25,000. D) $15,000. Answer: A Diff: 2 Type: MC Page Ref: To pic : 641-2/221-2 M S Analytical Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 39. Refer to Table 7-5. The value of each automobile in gross domestic product equals A) $25,000. B) $15,000. C) $18,000. D) $7,000. Answer: A Diff: 2 Type: MC Page Ref: To pic : 641-2/221-2 M S Analytical Objective: LO1: Explain how total production is measured AACSB Coding: Analytic Skills Special Feature: None Scenario 7-1 CANOES-R-US makes canoes. It buys the shell of the canoe from another firm for $300 and uses its labor and intermediate goods to make the canoe. It sells the finished canoe to a retail canoe store for $800. The retail canoe store then sells the canoe to a consumer for $1,200. 40. Refer to Scenario 7-1. The value added of CANOES-R-US for each canoe equals A) $400. B) $800. C) $500. D) $1,200. Answer: C Diff: 2 Type: MC Page Ref: To pic : 641-2/221-2 M S Analytical Objective: LO1: Explain how total production is measured AACSB Coding: Analytic Skills Special Feature: None 41. Refer to Scenario 7-1. The value of each canoe in gross domestic product equals A) $400. B) $800. C) $1,200. D)...
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This note was uploaded on 09/21/2012 for the course ECON 2010 taught by Professor Roussel during the Spring '08 term at LSU.

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