MacroEconomics Practice Problems, Chapter 7

MacroEconomics Practice Problems, Chapter 7 -...

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Practice Problems: Chapter 7 Question 1  (1 point)   In the circular-flow diagram, when households purchase goods and services this is known as Question 1 options: money creation. consumer spending. economic growth. indexing the market basket. Question 2  (1 point)   Households receive income in the form of Question 2 options: stocks, taxes, and savings. savings and interest. wages, dividends, interest, and rent. market baskets. Question 3  (1 point)   Disposable income is income earned by households in factor markets Question 3 options: minus taxes and government transfers. plus taxes and government transfers. minus taxes plus government transfers. plus taxes minus government transfers. Question 4  (1 point)   The income households have available for spending or saving is Question 4 options: disposable income.
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nominal GDP. real GDP. a microeconomic variable. Question 5  (1 point)   Which of the following transactions does NOT represent an addition to U.S. GDP? Question 5 options: A U.S. firm manufactures a bicycle sold to a U.S. consumer. A U.S. firm manufactures a bicycle sold to a Canadian consumer. A U.S. firm hires construction workers to expand its manufacturing facility. A German citizen buys stock in a U.S. company. Question 6  (1 point)   Which one of the following statements is true?
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