Recent Question

Gross investment is equal to 1) Net investment equals A) capital stock minus depreciation. B) gross investment minus depreciation. C) the total quantity of plant, equipment and buildings. D) gross investment/depreciation. 2) Which of the following relationships is correct? A) Net Investment = Gross Investment + Depreciation B) Consumption expenditure = Net Investment - Depreciation C) Gross Investment = Net Investment + Depreciatio ...

Other / Other 26 May 2016

In the circular flow diagram, aggregate expenditure includes the sum of 1) In the circular flow diagram, aggregate expenditure includes the sum of A) saving and investment. B) consumption and investment. C) consumption, investment, and saving. D) income and saving. 2) In the circular flow of economic activity A) aggregate expenditure measures the dollar value of purchases of factors. B) aggregate expenditure measures the dollar valu ...

Other / Other 26 May 2016

GDP counts only final goods and services because this 1) In computing GDP, it is essential to A) avoid double counting. B) include government transfer payments. C) include government tax revenues. D) count all intermediate products directly as they are produced. 2) Double counting (counting the same thing twice) in GDP accounting is avoided by not including A) net exports. B) intermediate goods. C) illegal activities. D) depreci ...

Other / Other 26 May 2016

GDP can be computed as the sum of 1) Two methods of measuring GDP are A) the income approach and the expenditure approach. B) the income approach and the receipts approach. C) the goods approach and the services approach. D) the saving approach and the investment approach. 2) GDP can be computed as the sum of A) all sales that have taken place in an economy over a period of time. B) the total expenditures of consumers and business o ...

Other / Other 26 May 2016

Depreciation is defined as the 1) Gross domestic product is the A) value of the final goods and services produced in a country during a specific time. B) total amount that buyers spent on the final goods and services produced in a country during a specific time. C) total amount of income earned in producing the final goods and services in a country during a specific time. D) All of the above answers are correct. 2) Which of the foll ...

Other / Other 26 May 2016

The difference between gross investment and net investment is 1) Which of the following purchases is included in personal consumption expenditures when determining gross domestic product? A) purchase of a new house because of the arrival of a new baby B) purchase of a new office building C) vacation expenses for a spring trip to Fort Lauderdale D) purchases of jeans to add to a storeʹs inventory 2) Personal consumption expenditure ...

Other / Other 26 May 2016

The calculation of the final goods and services sold in an economy would NOT include 1) Intermediate goods are excluded from GDP because A) their inclusion would involve double counting. B) they represent goods that have never been purchased so they cannot be counted. C) their inclusion would understate GDP D) the premise of the question is incorrect because intermediate goods are directly included in calculating GDP. 2) A ton of c ...

Other / Other 26 May 2016

Consumption expenditure is the payment by households for consumption of 1) In the expenditure approach to GDP, the largest component is A) government expenditure on goods and services. B) personal consumption expenditures. C) gross private domestic investment. D) net exports. 2) Let C represent consumption expenditure, S saving, I gross private domestic investment, G government expenditure on goods and services, and X - M net exports ...

Other / Other 26 May 2016

Gross domestic product can be calculated 1) Total output and total income in the circular flow model A) are measures of the economyʹs level of savings. B) include only intermediate goods. C) are equal to each other. D) are related because national income is less than national product. 2) The circular flow shows that A) aggregate production equals aggregate expenditure. B) aggregate expenditure is less than aggregate income. C) G ...

Other / Other 26 May 2016

A loaf of bread purchased by one of your instructors would be best described as 1) The word ʺfinalʺ in the definition of GDP refers to A) not counting intermediate goods or services. B) the time period when production took place. C) valuing production at market prices. D) counting the intermediate goods and services used to produce GDP. 2) A loaf of bread purchased by one of your instructors would be best described as A) an int ...

Other / Other 26 May 2016