Name: ID: 23. Net exports equals a. the sum of exports and imports. b. exports d

Question

Name: ID: 23. Net exports equals a. the sum of exports and imports. b. exports divided by imports. c. exports minus imports. d. exports during the year. e. none of the above 24. An increase in labor's productivity will cause the SRAS curve to shift and the price level to a. rightward; increase b. leftward; increase c. rightward; decrease d. leftward; decrease 25. The best reason economists take only final goods and services into account when calculating GDP is that a. they want to avoid the problem of final counting. b. this is the only way things can be done. c this is the way things have always been done. d they want to avoid the problem of double counting. The opportunity cost of attending college is a. the least valued alternative one forfeits to attend college. b. the money one spends on college tuition, books, and so forth. c. the highest valued alternative one forfeits to attend college. d. equal to the salary one will earn when one graduates from college 26. 27 Capital consumption allowance refers to a. b. c. the purchase of goods that allow households to consume more services. people sending money between countries. capital goods being used up in production through natural wear, obsolescence, and accidental destruction the purchase of used factories. d.

Explanation / Answer

23) Net exports equal

Solution: Exports minus imports

Explanation: Net exports = Exports - Imports

24) An increase in labor's productivity will cause the SRAS curve to shift __________ and the price level to __________

Solution: rightward; decrease

Explanation: increase in labor's productivity will cause the SRAS curve to shift right and decline price level

25) The best economists take only final goods and services into account when calculating GDP is that:

Solution: they want to avoid the problem of double counting

Explanation: To avoid that the goods is counted double, while calculating GDP economists take only final goods and services into account

26) The opportunity cost of attending college is

Solution: the highest valued alternative one forfeits to attend college

Explanation: Opportunity cost is the loss of other alternatives when one alternative is chosen

27) Capital consumption allowance refer to: the purchase of goods that allow household to consume more services

Solution: capital goods being used up in production through natural wear, obsolescence, and accidental destruction

Explanation: The Capital Consumption Allowance (CCA) refers to that portion of the GDP that occurs due to depreciation.

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