ECON 2101 Exam 2 ( 61
questions and answers)
oranges receive a smaller weight than cars. - answer If an economy produces
3 million oranges that sell for $0.25 each and 100,000 cars that sell for
$25,000 each, then when the market value of total output is calculated:
adding the market value of all final goods and services. - answer The
expenditure approach to calculating GDP eliminates the issue of double-
counting by:
sum the value added of producers of both intermediate and final goods and
services. - answer sum the value added of producers of both intermediate
and final goods and services.
measuring total expenditures or total income both equal total production of
an economy. - answer One of the most crucial ideas in macroeconomics is
understanding that:
GDP will not be affected by the transaction. - answer Jake, Sr. sells the family
business, a factory that produces snake oil, to Jake, Jr., for $100, even though
the factory has been assessed at $400,000. How will this transaction affect
GDP?
spending on final goods and services - answer The total market value of
production in an economy must equal total:
Honda produces cars in Ohio - answer Which of the following transactions
would be included in the GDP of the United States?
, is not; is - answer The value of unpaid work by a homemaker ______ included
in GDP and the value of housekeeping services sold in the market ______
included in GDP.
No, it is a transfer payment - answer Does this government's expenditure on
income support count as part of GDP? If so, in which category of expenditure
does it fall?
Yes, it is part of consumption - answer When the families buy groceries with
the money they've received, does this expenditure count as part of GDP? If
so, in which category does it fall?
Yes, when it is spent it represents investment. - answer If the families buy
new houses with the money they've received, does this count as part of
GDP? If so, in which category does it fall?
consumption. - answer The largest expenditure component of U.S. GDP is:
services. - answer Consumption expenditures include spending by
households on:
purchases of final goods and services. - answer The government expenditure
component of GDP includes:
increase - answer The U.S. government pays $1 billion in salaries for
government workers. GDP will
not change - answer The U.S. government pays $1 billion to Social Security
recipients. GDP will
increase - answer The U.S. government pays a U.S. firm $1 billion for newly
produced airplane parts. GDP will
questions and answers)
oranges receive a smaller weight than cars. - answer If an economy produces
3 million oranges that sell for $0.25 each and 100,000 cars that sell for
$25,000 each, then when the market value of total output is calculated:
adding the market value of all final goods and services. - answer The
expenditure approach to calculating GDP eliminates the issue of double-
counting by:
sum the value added of producers of both intermediate and final goods and
services. - answer sum the value added of producers of both intermediate
and final goods and services.
measuring total expenditures or total income both equal total production of
an economy. - answer One of the most crucial ideas in macroeconomics is
understanding that:
GDP will not be affected by the transaction. - answer Jake, Sr. sells the family
business, a factory that produces snake oil, to Jake, Jr., for $100, even though
the factory has been assessed at $400,000. How will this transaction affect
GDP?
spending on final goods and services - answer The total market value of
production in an economy must equal total:
Honda produces cars in Ohio - answer Which of the following transactions
would be included in the GDP of the United States?
, is not; is - answer The value of unpaid work by a homemaker ______ included
in GDP and the value of housekeeping services sold in the market ______
included in GDP.
No, it is a transfer payment - answer Does this government's expenditure on
income support count as part of GDP? If so, in which category of expenditure
does it fall?
Yes, it is part of consumption - answer When the families buy groceries with
the money they've received, does this expenditure count as part of GDP? If
so, in which category does it fall?
Yes, when it is spent it represents investment. - answer If the families buy
new houses with the money they've received, does this count as part of
GDP? If so, in which category does it fall?
consumption. - answer The largest expenditure component of U.S. GDP is:
services. - answer Consumption expenditures include spending by
households on:
purchases of final goods and services. - answer The government expenditure
component of GDP includes:
increase - answer The U.S. government pays $1 billion in salaries for
government workers. GDP will
not change - answer The U.S. government pays $1 billion to Social Security
recipients. GDP will
increase - answer The U.S. government pays a U.S. firm $1 billion for newly
produced airplane parts. GDP will
