Rules of Macroeconomics, 9e - TB1 (Case/Fair/Oster)

Chapter 6th

Measuring National Output and National Cash flow

6. you

Gross Home-based Product

you

Multiple Decision

1)

The whole market value of all final services and goods produced within a given period by elements of creation located in a country is A)

low domestic product.

B)

major national product.

C)

net national product.

D)

net national cash flow.

Answer:

A

Diff: 1

Topic:

Low Domestic Product

Skill:

Classification

2)

Major domestic product measures

A)

the total spending of everyone in the economy.

B)

the importance of all outcome in the economy.

C)

the total income of everyone throughout the economy.

D)

each of the above

Solution:

D

Diff: 2

Subject:

Gross Domestic Product

Skill:

Definition

3)

Which in the following is definitely an example of one final good or perhaps service? A)

wheat a bakery buys to make loaf of bread

B)

coffees Starbucks buys to make espresso

C)

lumber purchased by a construction company to used in building houses D)

a computer purchased by Government Express to track shipments

Answer:

D

Diff: 2

Theme:

Gross Household Product

Skill:

Conceptual

AACSB:

Reflective Pondering

4)

Which usually of the pursuing is a good or service counted in GROSS DOMESTIC PRODUCT?

A)

four tires Ford will buy to put on a car

B)

a used tire you get for your personal car

C)

a new car tire you buy to your personal car

D)

used tires bought by a car dealer to put on a car in the lot Solution:

C

Difference: 2

Subject:

Gross Household Product

Skill:

Conceptual

AACSB:

Reflective Pondering

5)

Which usually of the subsequent is one of an intermediate good? A)

the money you buy to fix yourself a pizzas for dinner

B)

the chocolates you buy to make yourself some cookies

C)

the pizza sauce you purchase to create pizzas to market for a fund-raiser for an organization you belong to D)

wood you buy to make a house for your dog

Response:

C

Difference: 2

Subject:

Gross Household Product

Skill:

Conceptual

AACSB:

Reflective Pondering

6)

Double counting can be avoided simply by

A)

such as the value of intermediate products in the current yr. B)

not really counting the significance of intermediate items in GROSS DOMESTIC PRODUCT.

C)

like the value of intermediate goods in the GNP but not inside the GDP. D)

including the value of advanced goods from the manufacturing year but is not in the providing year of people goods. Response:

B

Difference: 2

Topic:

Gross Home Product

Skill:

Conceptual

AACSB:

Reflective Pondering

7)

Which of the pursuing would NOT end up being counted in 2007's GDP?

A)

the cost of a june 2006 boat you get from your own boat dealer in 2007 B)

the 2007 salary of any used bike salesperson

C)

the commissions earned by a real estate agent to offer condominiums built prior to 3 years ago D)

the cost of a refrigerator manufactured in 2007 but not bought from 2007 Solution:

A

Diff: 2

Theme:

Gross Home Product

Skill:

Conceptual

AACSB:

Reflective Considering

8)

Which usually of the pursuing would be measured in 2003's GDP?

A)

the value of that loan you ingest 2003

B)

the value of a TV that was produced in 2002 although not sold till 2003 C)

the bonus check a stockbroker gets from his or her company in 2003 D)

the value of a bond marketed by the government

Answer:

C

Diff: 2

Topic:

Low Domestic Product

Skill:

Conceptual

AACSB:

Refractive Thinking

9)

Which in the following can be NOT included in 2008's GROSS DOMESTIC PRODUCT?

A)

the cost of a motor bike...