# If an american construction company built a road in

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Chapter 11 / Exercise 60
Nature of Mathematics
Smith
Expert Verified
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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Chapter 11 / Exercise 60
Nature of Mathematics
Smith
Expert Verified
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
Level of difficulty: 2 Section: 2.2 19. If C = \$500, I = \$150, G = \$100, NX = \$40, and GNP = \$800, how much is NFP ?
Level of difficulty: 3 Section: 2.2 20. The income-expenditure identity says that
Level of difficulty: 1 Section: 2.2 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 ___________.
Level of difficulty: 1 Section: 2.2
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?
Level of difficulty: 2 Section: 2.2 24. Net national product equals
Level of difficulty: 2 Section: 2.2 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