macro95ex2

# If an american construction company built a road in

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17. If an American construction company built a road in Kuwait, this activity would be (a) excluded from U.S. GNP. (b) fully included in U.S. GDP. (c) included in U.S. GNP only for that portion that was attributable to American capital and labor. (d) included in U.S. GDP but not in U.S. GNP. Answer: C Level of difficulty: 3 Section: 2.2

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18 Abel/Bernanke • Macroeconomics, Fifth Edition 18. Nations such as Egypt and Turkey may have wide differences between GNP and GDP because both the countries 19. If C = \$500, I = \$150, G = \$100, NX = \$40, and GNP = \$800, how much is NFP ? 20. The income-expenditure identity says that 21. Which of the following is not a category of consumption spending in the national income accounts? (a) Consumer durables (b) Nondurable goods (c) Services (d) Housing purchases Answer: D Level of difficulty: 1 Section: 2.2 22. Consumer spending is spending by ___________ households on final goods and services produced ___________.
Chapter 2 The Measurement and Structure of the National Economy 19 23. In the expenditure approach to GDP, which of the following would be excluded from measurements of GDP? 24. Net national product equals 25. Monica grows coconuts and catches fish. Last year she harvested 1500 coconuts and 600 fish. She values one fish as having a worth of three coconuts. She gave Rachel 300 coconuts and 100 fish for helping her to harvest coconuts and catch fish, all of which were consumed by Rachel. Monica set aside 200 fish to help with next year’s harvest. In terms of fish, Monica’s income would equal (a) 700 fish. (b) 900 fish. (c) 1100 fish. (d) 2700 fish. Answer: B Level of difficulty: 2 Section: 2.2

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• Spring '11
• carlitos
• Inflation, gross domestic product, Fifth Edition, Difficulty

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