CHAPTER 5 - Assignment Essays

question

Which of the following would not be considered a macroeconomicquestion?

answer

What factors determine the price of computers?

question

Macroeconomics involves the study of economics from the stand point of:

answer

the aggregate economy.

question

In factor markets

answer

households supply inputs which firms demand.

question

A nation's gross domestic product:

answer

reflects the total market value of all final goods and services produced within an economy in a given year.

question

An intermediate good is:

answer

a good used only in the production of other products.

question

If an economy produced 10 bushels of corn at $20 each and 20 jars of peanut butter at $3 each in 1995, real gross domestic product (GDP) would be:

answer

$260.

question

We measure gross domestic product by multiplying the quantities of goods by their prices because it allows us to:

answer

express the values of products in a common unit of measurement.

question

How does real gross domestic product(GDP) differ from nominal GDP?

answer

Real GDP controls for price changes, while nominal GDP does not.

question

When there are sustained increases in real GDP overtime, we say that the economy is undergoing:

answer

economic growth.

question

Which of the following is not a component of gross domestic product?

answer

Purchases by consumers of used goods

question

Which of the following is an example of a consumption expenditure?

answer

admission to an amusement park

question

For the purpose of GDP accounting, consumption expenditures include:

answer

durable goods, non-durable goods, and services.

question

Refrigerators are examples of:

answer

durable goods

question

Which of the following is not a component of private investment, for purposes of GDP accounting?

answer

purchases by firms of used machinery

question

Suppose that a hardware store had $1000 of paintbrushes on its shelves at the beginning of the year and $1500 at year-end. The inventory amount included in GDP would be:

answer

$500.

question

Depreciation is:

answer

the wear and tear on private investment.

question

For the purposes of GDP accounting, government purchases include:

answer

the purchases of new buildings, such as airports and schools.
the wages spent on government workers.

question

Government transfer payments include all of the following except:

answer

wage payments to police officers.

question

Which of the following should be included in U.S. GDP?

answer

A car manufactured in the United States and sold in Japan.

question

When a country runs a trade deficit it must:

answer

must sell assets to individuals or governments in foreign countries.

question

The difference between U.S. GDP is that GDP includes ______________and U.S. GNP _____________ and excludes

answer

income of foreign firms producing in the U.S.; income of U.S. firms producing in foreign countries

question

If a music company purchases 50 cents worth of materials and pays $5.00 per CD to workers to produce an $18.00 CD, that firm's value added per CD is:

answer

$17.50

question

Suppose that in 1995 a country produced 20 computers at a price of $2,000 each and 4 cars at a price of $5,000 each. In 1996 a country produced 15 computers at a price of $3,000 each and 5 cars at a price of $6,000 each. What do we know has happened?

answer

Nominal GDP has increased and real GDP has decreased

question

Suppose that in 1995 a country produced 30 computers at a price of $2,000 each and 10 cars at a price of $5,000 each. In 1996 a country produced 30 computers at a price of $1,000 each and 8 cars at a price of $5,000 each. What do we know has happened?

answer

Nominal GDP has decreased, and real GDP has decreased

question

If real GDP were 200 in year 1 and 220 in year 2, the growth rate of real GDP between these years would be

answer

10 percent

question

GDP understates the value of output produced by an economy because it

answer

excludes transactions that do not take place in organized markets, such as home-cooked meals.

question

Suppose that a factory produces $5,000 of output and causes $3,000 worth of pollution as a result of production. The factory's official contribution to GDP would be ______ and its overall contribution to society would be _______.

answer

$5,000, $2,000

1 of 27

question

Which of the following would not be considered a macroeconomicquestion?

answer

What factors determine the price of computers?

question

Macroeconomics involves the study of economics from the stand point of:

answer

the aggregate economy.

question

In factor markets

answer

households supply inputs which firms demand.

question

A nation's gross domestic product:

answer

reflects the total market value of all final goods and services produced within an economy in a given year.

question

An intermediate good is:

answer

a good used only in the production of other products.

question

If an economy produced 10 bushels of corn at $20 each and 20 jars of peanut butter at $3 each in 1995, real gross domestic product (GDP) would be:

answer

$260.

question

We measure gross domestic product by multiplying the quantities of goods by their prices because it allows us to:

answer

express the values of products in a common unit of measurement.

question

How does real gross domestic product(GDP) differ from nominal GDP?

answer

Real GDP controls for price changes, while nominal GDP does not.

question

When there are sustained increases in real GDP overtime, we say that the economy is undergoing:

answer

economic growth.

question

Which of the following is not a component of gross domestic product?

answer

Purchases by consumers of used goods

question

Which of the following is an example of a consumption expenditure?

answer

admission to an amusement park

question

For the purpose of GDP accounting, consumption expenditures include:

answer

durable goods, non-durable goods, and services.

question

Refrigerators are examples of:

answer

durable goods

question

Which of the following is not a component of private investment, for purposes of GDP accounting?

answer

purchases by firms of used machinery

question

Suppose that a hardware store had $1000 of paintbrushes on its shelves at the beginning of the year and $1500 at year-end. The inventory amount included in GDP would be:

answer

$500.

question

Depreciation is:

answer

the wear and tear on private investment.

question

For the purposes of GDP accounting, government purchases include:

answer

the purchases of new buildings, such as airports and schools.
the wages spent on government workers.

question

Government transfer payments include all of the following except:

answer

wage payments to police officers.

question

Which of the following should be included in U.S. GDP?

answer

A car manufactured in the United States and sold in Japan.

question

When a country runs a trade deficit it must:

answer

must sell assets to individuals or governments in foreign countries.

question

The difference between U.S. GDP is that GDP includes ______________and U.S. GNP _____________ and excludes

answer

income of foreign firms producing in the U.S.; income of U.S. firms producing in foreign countries

question

If a music company purchases 50 cents worth of materials and pays $5.00 per CD to workers to produce an $18.00 CD, that firm's value added per CD is:

answer

$17.50

question

answer

Nominal GDP has increased and real GDP has decreased

question

answer

Nominal GDP has decreased, and real GDP has decreased

question

If real GDP were 200 in year 1 and 220 in year 2, the growth rate of real GDP between these years would be

answer

10 percent

question

GDP understates the value of output produced by an economy because it

answer

excludes transactions that do not take place in organized markets, such as home-cooked meals.

question

answer

$5,000, $2,000

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order