macro_tif1_ch07

The purchaseofanewautomobileisincludedin a

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Unformatted text preview: lain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 20. Which of the following is not an example of a transfer payment? A) unemployment insurance payments B) social security payments to retirees C) health insurance payments to an army private D) social security payments to disabled persons Answer: C Diff: 1 Type: MC Page Ref: To pic : 638/218 M S Factual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 21. The purchase of a new automobile is included in A) consumption expenditures on services. B) consumption expenditures on durable goods. C) consumption expenditures on nondurable goods D) investment expenditures. Answer: B Diff: 1 Type: MC Page Ref: To pic : 638/218 C S Factual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 22. Which of the following is not a durable good? A) furniture B) clothing C) refrigerator D) automobile Answer: A Diff: 1 Type: MC Page Ref: To pic : 638/218 C S Conceptual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 23. The factors of production include A) capital. B) investment. C) wages. D) transfers. Answer: A Diff: 1 Type: MC Page Ref: To pic : 638/218 P S Definition Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 24. Investmen t, as defined by economists, would include the purchase of a A) government bond. B) share of stock in ExxonMobil. C) computer by an accounting firm. D) corporate bond. Answer: C Diff: 1 Type: MC Page Ref: To pic : 638/218 C S Conceptual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 25. An example of business fixed investment spending is A) $200 million of unsold cars at a car dealership. B) a purchase of a bond by General Electric Corporation. C) a purchase of a home by a household. D) a purchase of a computer by an accounting firm. Answer: D 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: None 26. To calculate GDP by the expenditure method one must add A) consumption spending, investment spending, government spending and net exports. B) consumption spending, investment spending, government spending and exports. C) labor, natural resources, entrepreneurship, and capital. D) wages, rents, interest, and profits. Answer: A Diff: 1 Type: MC Page Ref: To pic : 638-40/218-20 M S Definition Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 27. Investmen t, as defined by economists, would not include which of the following? General Motors A) adds 1000 new cars to inventories. B) builds another assembly plant in the U.S. C) buys U.S. government bonds. D) buys a new robotic machine (from a plant in Ohio) to assemble cars. Answer: C...
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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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