11.which of the following is the best example of an intermediate product? a) a h
ID: 1185468 • Letter: 1
Question
11.which of the following is the best example of an intermediate product?
a) a highway built by a state government
b) steel manufactured in sheets and sold for construction purposes
c) a loaf of bread purchased at a local grocery store
d) a television set purchased at "best buy"
12. a housewife take over the job of a deceased family member in runnin the family business and hires help to clean house and baby sit. As a result, the GDP of the economy, ceteris peribus
a) remains unchanged, since the amount of productive activity remains unchanged.
b) rises by the amount paid to house cleaners and baby-sitters.
c) falls by the amount of household work left undone by the house cleaners and baby-sitters
d) falls by the amount of income generated previously by the deceased family member
e) cannot be determined with the information given
13. International comparisons of GDP are difficult because
a) different countries use different national icnome accounting methods
b) changing currency exchange rates will hide real differences in the GDP of different nations
c) data provided by other countries may not be reliable
d) all of the above is correct none of the above is correct
14. The underground economy
a) consists mainly of such involuntary transfer payments as fraud, embezzlement and bank robberies.
b) consists only of illegal activities such as prostitution, loan-sharking, and narcotics
c) is a very stable percentage of GDP
d) causes GDP to be underestimated by 10 to 15%
15. net exports are equal to
a) exports plus imports
b) imports minus exports
c) exports minus imports
d) exports less depreciation
e) none of the above
16.the value of total output must equal the value of total income in an economy because
a) one person's expenditures on goods and services is another person's income
b) income earned is spent on goods and services, which creates additional production
c) of the circular nature of the economy
d) all of the above are correct
e) none of the above is correct
17. the social well-being of a country
a) is best measured by per capita GDP
b) always increases when real GDP increases
c) decreases when real GDP decreases
d) is measured by more than changes in real GDP
e) none of the above is correct
18.net exports are
a) the smallest component of aggregate spending
b) simply income after taxes
c) the largest component of aggregate spending
d) included as a part of government spending
19. GDP includes
a) intermediate but not final goods
b) substitute but not intermediate products
c) final but not intermediate products
d) complementary but not intermediate products
20.which of the following are criticisms of GDP as a measure of citizen well-being?
a) a large percentage of total economic activity is excluded from the calculation of GDP such as household production and "under-the-table" employment
b) no value is given for leisure time, overextended worker stress, or family breakdown
c) negative activities such as crime prevention, prison construction, pollution clean-up add to GDP but mask the true welfare of citizens
d) all of the above are criticisms of GDP as a measure of well-being
e) none of the above is criticism of GDP as a measure of well-being
Explanation / Answer
11)a
12)b
13)d
14)c
15)d
16)c
17)a
18)b
19)d
20)b
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