# If an economy produces 3 million oranges that sell

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8. If an economy produces 3 million oranges that sell for \$0.25 each and 100,000 cars that sell for \$25,000 each, then when the market value of total output is calculated: A. oranges receive a greater weighting than cars. B. oranges receive the same weighting as cars. C. oranges receive a smaller weighting than cars. D. the market value of oranges is excluded. 9. Net export spending is expenditures on: 10. An economy produces 500,000 tables valued at \$100 each. Households purchase 100,000 tables of which 50,000 are imported. Businesses purchase 200,000 domestically produced tables. The government purchases 100,000 domestically produced tables and 50,000 domestically produced tables are sold abroad. The unsold tables at the end of the year are held in inventory by the table manufacturers. What is value of GDP? 11. GDP excludes important factors that affect people's well being, such as the value of:

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12. A CPI that equals 1.34 in 2005 (when 2000 is the base year) means that: A. prices in 2005 are 34 percent higher than in 2004. B. the CPI equals \$1.34 in 2005. C. the inflation rate in 2005 is 134 percent. D. the average level of prices is 34 percent higher in 2005 than in the base year. 13. In the United States the real wages of the least-skilled, least educated workers have ____ and the wages of best-educated, highest skilled workers have ______. 14. According to the principle of diminishing returns to labor, if the amount of capital and other inputs are held constant, employing additional workers:
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