Multiple Choice Questions: Choose the BEST answer from the options given below.
ID: 1143041 • Letter: M
Question
Multiple Choice Questions: Choose the BEST answer from the options given below. There is only ONE correct answer for each question. MCQ are worth 2 points each MCQ1. A seamstress buys $60 of material from a craft store and $20 of needles from the sewing machine store. She also has $20 of buttons left over from 5 years ago. She makes 5 pairs of pants, selling them for $25 each. GDP will increase by: $and the seamstress is value- adding $ to this year's GDP a. $125; $125 b. $125; $45. c. $124; $25 d. $80; $125 e. $100; $125 MCQ2. The service industry makes calculating GDP difficult because: a. It is uncertain what is an input and what is a final product when using the production process to calculate GDP. b. It is uncertain what the final value of any service is c. The service industry has too many inputs to be able to calculate. d. Too much of the service industry is paid via the black market. e. People working in the service industry are typically less satisfied than other workers. MCO3. Purchasing Power Parity is only an effective measure of differences in income between two countries when the representative good or basket contains many services as compared to goods a. b. compares the cost of a representative good (like the Big Mac) across different countries to compare income between these two countries.Explanation / Answer
McQ1) The answer is a) $125 ;$125
Because GDP is the value of final goods . So seamstress final good is 5 paints which he sold at $25. So 25*5= $125. Therefore GDP will increase by $125. And value added is the value of each input used in the production. So (60+20+20+25 =125) so value added of seamstress is adding $125 to this year .GDP.
Mc2 ) please upload it again. It against chegg policy.
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