Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
8th Edition
ISBN: 9780134641843
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 2, Problem 2MCQ
To determine
To select:
The statement which is correct about the production in US production.
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An automobile manufacturer uses labor, capital, and a variety of intermediate goods in the production of
cars. The car requires $4,000 of steel, $6,000 seats, $10,000 of electronics, $2,000 tires, $10,000 of labor,
$5,000 of capital and has a 20% sales markup to consumers.
a. What is the total value of intermediate goods?
b. What are the total payments to factors of production?
c. What is the total value of sales?
d. What is the value of GDP from the sale of this car?
An economy's infrastructure refers to its Opublic capital goods, such as roads, schools, and power facilities. O financial and banking institutions. Oland and natural resources. O surplus supplies of unskilled labor.
1. The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called
A) real GDP.
B) nominal GDP.
C) actual GDP.
D) potential GDP.
2. Potential GDP is
A) the maximum GDP that an economy actually achieves throughout its entire history.
B) the level of GDP achieved during periods when 100 percent of the labor force is employed.
C) a goal that can never be achieved by the economy.
D) the maximum amount of GDP that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation.
3. The relationship between real GDP and potential GDP is that
A) real GDP always equals potential GDP.
B) real GDP never equals potential GDP.
C) real GDP fluctuates about potential GDP.
D) real GDP is always below potential GDP.
4. The income approach to measuring GDP sums together
A) compensation of employees, rental income, corporate profits, net…
Chapter 2 Solutions
Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
Ch. 2 - Prob. 1SPPACh. 2 - Prob. 2SPPACh. 2 - Prob. 3SPPACh. 2 - Prob. 4SPPACh. 2 - Prob. 5SPPACh. 2 - Prob. 6SPPACh. 2 - Prob. 7SPPACh. 2 - Prob. 8SPPACh. 2 - Prob. 9SPPACh. 2 - Prob. 10SPPA
Ch. 2 - Prob. 1IAPACh. 2 - Prob. 2IAPACh. 2 - Prob. 3IAPACh. 2 - Prob. 4IAPACh. 2 - Prob. 5IAPACh. 2 - Prob. 6IAPACh. 2 - Prob. 7IAPACh. 2 - Prob. 8IAPACh. 2 - Prob. 9IAPACh. 2 - Prob. 10IAPACh. 2 - Prob. 11IAPACh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 6MCQCh. 2 - Prob. 7MCQ
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