Chapter 6 Quiz Econ 2100
with complete verified
solutions
GDP reflects many things; however, it does not reflect the depletion of
natural resources, leisure, or many things we as individuals do for ourselves.
- answer True
Which of the following is the largest component of GDP? - answer
Consumption (C)
If currently illegal drugs are made legal, GDP will increase. - answer True
Marianne and Laura are both homemakers with children. Then Laura takes a
volunteer (unpaid) job at a hospital and hires Marianne to care for her
preschool-age child. What happens to GDP? - answer GDP increases
Double counting in the value added approach to GDP refers to - answer
counting the total value of a final output in addition to the value of the inputs
used to make it
To determine the CPI, you would need to know the - answer base-year market
basket at current- and base-year prices
The consumer price index measures changes in - answer the total cost of a
specific market basket of consumer goods and services
The price index in the base year always equals - answer 100
with complete verified
solutions
GDP reflects many things; however, it does not reflect the depletion of
natural resources, leisure, or many things we as individuals do for ourselves.
- answer True
Which of the following is the largest component of GDP? - answer
Consumption (C)
If currently illegal drugs are made legal, GDP will increase. - answer True
Marianne and Laura are both homemakers with children. Then Laura takes a
volunteer (unpaid) job at a hospital and hires Marianne to care for her
preschool-age child. What happens to GDP? - answer GDP increases
Double counting in the value added approach to GDP refers to - answer
counting the total value of a final output in addition to the value of the inputs
used to make it
To determine the CPI, you would need to know the - answer base-year market
basket at current- and base-year prices
The consumer price index measures changes in - answer the total cost of a
specific market basket of consumer goods and services
The price index in the base year always equals - answer 100
