macro_tif1_ch07

Andservicesat b valuesgoodsat

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ices produced. This means that the BEA A) values goods their market prices, multiplies them by the quantity produced, and thenadds them up. and services at B) values goods at their market prices, multiplies them by the quantity produced, and then adds them up. C) simply counts the total number of goods produced in the market place and then adds them up. D) simply counts the total number of goods and services produced in the marketplace and then adds them up. Answer: A Diff: 1 Type: MC Page Ref: To pic : 635/215 M S Factual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 8. Suppose purchased in 2006 a house built in 2000. Which of the following would be included in gross domestic you product for 2006? A) the value of the house in 2006 minus depreciation B) the value of the house in 2006 C) the value of the services of the real estate agent D) the value of the house in 2000 Answer: C Diff: 2 Type: MC Page Ref: To pic : 635/215 M S Conceptual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 9. Gross Domestic Product is calculated by summing up A) the total quantity of goods and services in the economy. B) the total market value of goods and services in the economy. C) the total market value of final goods and services produced in the economy during a period of time. D) the total quantity of goods and services produced in the economy during a period of time. Answer: C Diff: 2 Type: MC Page Ref: To pic : 635/215 M S Definition Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 10. Which of the following goods is directly counted in GDP? A) the lettuce that Subway purchases for its sandwiches B) a 12 inch Subway sandwich purchased by a student C) the bread that Subway purchases for its sandwiches D) the plastic bags that Subway purchases to wrap its sandwiches Answer: B Diff: 2 Type: MC Page Ref: To pic : 635/215 F S Conceptual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 11. Which of the following transactions represents the purchase of a final good? A) The purchase of coffee beans by Starbucks. B) Your father buys a new John Deere riding lawn mower. C) Apple computer buys computer processors from Intel. D) Delta buys a new European-made jetliner. Answer: B Diff: 2 Type: MC Page Ref: To pic : 635/215 F S Conceptual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 12. Which of the following is not directly counted in GDP? A) consumer goods B) government purchases C) investment expenditures D) intermediate goods Answer: D Diff: 1 Type: MC Page Ref: To pic : 635/215 F S Factual Objective: LO1: Explain how total production is measured AACSB Coding: Reflective Thinking Special Feature: None 13. Value added equals the market price of the firm's product minus A) the price of...
View Full Document

Ask a homework question - tutors are online