Question Details

A new 2010 Honda Civic produced in 2010 and purchased in 2011 is



1) Goods that are produced this year, stored in inventories, and then sold to consumers next year
A) count in this yearʹs GDP.
B) count in next yearʹs GDP.
C) count in both this yearʹs and next yearʹs GDP.
D) are not counted as a part of GDP.

2) A new 2010 Honda Civic produced in 2010 and purchased in 2011 is
A) part of GDP in 2010.
B) part of GDP in 2011.
C) not part of GDP in either year because it was produced in one year and sold in another
year.
D) part of GDP in both 2010 and 2011.
3) Which of the following are examples of the gross private domestic investment component of
GDP?
I. the purchase of production machinery by IBM
II. an increase in the finished goods inventory at Intel
A) I only
B) II only
C) both I and II
D) neither I nor II
4) In the calculation of gross domestic product by the expenditure approach, the ʺinvestmentʺ
component is
A) net investment.
B) gross investment minus depreciation.
C) gross investment plus depreciation.
D) gross investment.
5) An example of ʺinvestmentʺ in computing real GDP using the expenditure approach is the
purchase of
A) a new set of tools by an auto mechanic, for use in repairing cars.
B) 100 shares of IBM stock.
C) a 100 year old house by a married couple.
D) computer chips by Dell to put in their personal computers.



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