MyEconLab (macro &micro econ)

Why in microeconomics can we measure production in terms of quantity, but in macroeconomics we measure production in terms of market value? - If in macroeconomics, we measured production using quantities, we would add tons of wheat grown by US farmers to the number of iPods produced by Apple, etc when we measure total production, we can't just add together the quantities of every good and service because the result would be meaningless measuring production using market value in dollar terms allows us to add together many different goods and services Which equation represents the relationship between GDP and the four major expenditure components? - Y = C + I + G + NX Which component of GDP will be affected by each of the following transactions involving Ford 1) You buy a car 2) You buy a preowned car 3) Ford buys parts for the car from Indiana 4) Ford sells cars to China 5) Ford buys machines for the factory 6) Missouri builds a highway to help improve access to Ford plant - 1) Consumption 2) Not Included 3) Not Included 4) Net Export 5) Investment 6) Government The circular-flow diagram shows that ___ should equal ___ - Total expenditure should equal total income Which of the following statements about the consumption component of GDP is not correct? A. The consumption component of GDP in the U.S. is greater than all three of the other components (government, investment, and net exports) combined. B. Consumption as a fraction of total GDP in the U.S. is larger compared to all other high income nations in the world. C. Spending on services is smaller than the amount of consumption spending on durable and nondurable goods. D. Since 1960, the consumption component of GDP has generally increased as a fraction of GDP. - C. Spending on services is smaller than the amount of consumption spending on durable and nondurable goods. Indicate whether each of the following is a final good, an intermediate good, or neither. Coffee beans purchased by a coffee shop One share of google stock A new truck purchased by a consumer A new home purchased by a family - Intermediate Neither Final Final An artist buys scrap metal from a local steel mill as a raw material for her sculptures. Last year, she purchased $6000 worth of scrap metal. With the steel she produced 10 authentic sculptures that she sold for $900 each to a local art dealer. The art dealer then sold all of the sculptures to art collectors for