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Gdp of a Country

In: Computers and Technology

Submitted By amrmty
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Study Questions 1 (GDP)
Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Gross domestic product is a measure of the total value of all
A) consumer income in an economy over a period of time.
B) capital accumulation in an economy over a period of time.
C) sales in an economy over a period of time.
D) final goods and services produced in an economy over a period of time.

1)

2) If Nike, an American corporation, produces sneakers in Thailand this would
A) add to neither U.S. GDP nor Thailand's GDP.
B) add to Thailand's GDP but not to U.S. GDP.
C) count as part of U.S. GDP since it is a U.S. corporation.
D) count for both Thailand's GDP and U.S. GDP.

2)

3) In 2009, Ozzie purchased a 1999 Ford Escort from his neighbor for his son, purchased a 1999 "one owner" Camry from Larchmont Toyota for his wife, bought a 2009 new Ford for himself, and sold his 1993 Dodge Caravan to his teenage nephew. Which, if any, of these transactions will be included in GDP in 2009?
A) only the purchase of the Ford
B) the purchase of the Ford and the Caravan
C) all four transactions
D) all three purchases but not the sale

3)

4) Intermediate goods are excluded from GDP because
A) they represent goods that have never been purchased so they cannot be counted.
B) their inclusion would understate GDP
C) their inclusion would involve double counting.
D) the premise of the question is incorrect because intermediate goods are directly included in calculating GDP.

4)

5) Which of the following is NOT a final good?
A) a purse sold to a foreign visitor
B) a new computer sold to an NYU student
C) a hot dog sold to a spectator at a Chicago Bears football game
D) a new car sold to Avis for use in their fleet of rental cars

5)

6) The base-year method of

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