macro_tif1_ch07

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Unformatted text preview: Diff: 1 Type: MC Page Ref: To pic : 638-9/218-9 C S Conceptual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: Don't Let This Happen to YOU!: Remember What Economists Mean by 28. Investme nt The purchase of a new house is included in A) investment expenditures. B) consumption expenditures. C) government purchases. D) net exports. Answer: A Diff: 1 Type: MC Page Ref: To pic : 639/219 C S Factual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 29. The purchase by a Chinese household of a CD produced in the United States is included in U.S. A) consumption expenditures. B) government purchases. C) net exports. D) investment expenditures. Answer: C Diff: 1 Type: MC Page Ref: To pic : 640/220 C S Conceptual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 30. The purchase by a foreign government of an airplane produced in the United States is included in U.S. A) government purchases. B) investment expenditures. C) net exports. D) consumption expenditures. Answer: C Diff: 1 Type: MC Page Ref: To pic : 640/220 C S Conceptual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 31. In 2007, Kendall Ford, an automobil e dealership, spends $20,000 on a new car lift for its repair shop, $2,000 on a new copy machine for its sales division, and $500,000 on Ford Motor company stock. Unsold cars and trucks were valued at $900,000 on January 1, 2007 and unsold cars and trucks were valued at $600,000 on December 31, 2007. What is Kendall Ford’s total investment spending in 2007? A) $322,000 B) $522,000 C) $922,000 D) $22,000 Answer: A Diff: 3 Type: MC Page Ref: To pic : 640-2/220-2 C S Analytical Objective: LO1: Explain how total production is measured AACSB Coding: Analytic Skills Special Feature: Don't Let This Happen to YOU!: Remember What Economists Mean by 32. Investme nt In 2006, which component of GDP had a negative value? A) government spending B) investment C) net exports D) consumption Answer: C Diff: 1 Type: MC Page Ref: To pic : 640/220 C S Factual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 33. What is the largest component of spending in the U.S? A) investment spending B) government spending C) consumption spending D) net investment spending Answer: C Diff: 1 Type: MC Page Ref: To pic : 640/220 C S Factual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 34. Table 7-3 Exports Imports Wages 100 200 800 Refer to Table 7-3. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals A) $1,200. B) $1,400. C) $2,200. D) $1,600. Answer: A Diff: 2 Type: MC Page Ref: To pic : 640-1/220-1 C S Analytical Objective: LO1: Explain how t...
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