Measuring a Nation’s Income

2084 WordsMar 2, 20129 Pages
TOPIC_1_2011: MEASURING A NATION’S INCOME PART 1: MULTIPLE CHOICES: 1. Macroeconomists study a. decisions of households and firms. b. the interaction of households and firms. c. economy-wide phenomena. d. regulations on firms and unions. 2. Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist? a. Why do prices in general rise by more in some countries than in others? b. Why do wages differ across industries? c. Why do production and income increase in some periods and not in others? d. How rapidly is GDP currently increasing? 3. Which of the following statistics is usually regarded as the best single measure of a society’s economic well-being? a.…show more content…
b. not affected measured GDP. c. increased measured GDP only to the extent that the value of the restaurant meals exceeded the value of meals previously cooked at home. d. increased measured GDP by the full value of the restaurant meals. 13. Which of the following statements is correct? a. The value of all intermediate goods and final goods is included in GDP. b. The value of intermediate goods is included in GDP only if those goods were produced in the previous year. c. The value of intermediate goods is included in GDP only if those goods are added to firms’ inventories to be used or sold at a later date. d. The value of intermediate goods is never included in GDP. 14. ABC Company produces ink and sells it to XYZ Company, which makes pens. The ink produced by ABC Company is called a. an inventory good. b. a transitory good. c. a preliminary good. d. an intermediate good. 15. The local Chevrolet dealership has an increase in inventory of 25 cars in 2006. In 2007 it sells all 25 cars. Which of the following statements is correct? a. The full value of the increased inventory will be counted as part of GDP in 2006, and the value of the cars sold in 2007 will not cause 2007 GDP to increase. b. The value of the increased inventory will not affect 2006 GDP; instead, the full value of the inventory will be counted as part of 2007 GDP. c. The value of the increased inventory will be counted as part
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