Which of the following is included in U.S. GDP? i) the rental value of homes own

Question

Which of the following is included in U.S. GDP?

i) the rental value of homes owned by U.S. citizens.

ii) the production of Suburban SUVs by GM in its plant in Mexico.

iii) Tickets sold by U2 for concerts held in the United States.

A) ii only.

B) ii and iii.

C) i, ii and iii.

D) i and iii.

E) i only.

Which of the following is NOT directly included in Canadian GDP?

A) The purchase of tickets to a Kanye West concert in Montreal.

B) The sale of tickets to the Vancouver Oympics to U.S. citizens.

C) Gasoline purchased by a tour bus operator in Quebec.

D) Bus tickets sold to tourists for a tour bus ride in Montreal.

E) All of the items would be included in Canadian GDP.

Which of the following is classified as a final good or service?

i. tires bought by GM to put on new Tahoes

ii. mustard bought by Subway to put on its sub sandwiches

iii. your purchase of online access to the Wall Street Journal

A) i and ii.

B) i, ii and iii.

C) iii only.

D) ii and iii.

E) ii only.

Which of the following correctly describes a final good?  

i) A final good is bought by its final consumer.

ii) A final good can be used by a firm as a component of another good or service.

iii) Investment goods cannot be a final good.

A) i only.

B) i and ii.

C) i, ii and iii.

D) i and iii.

E) ii and iii.

A restaurant buys fish to offer as a daily menu special. The purchase of the fish by the restaurant is

A) a consumption expenditure.

B) an investment.

C) an intermediate good.

D) an example of government expenditures on goods and services.

E) part of net exports if the fish was caught beyond the U.S. border.

Which of the following is classified as an intermediate good?

    i) the purchase of a Big Mac by a college student

   ii) McDonald's purchase of pickles

iii) a McDonald's restaurant owner's interest payment for the loan on her building.

A) ii only.

B) ii and iii.

C) i only.

D) i and iii..

E) i, ii and iii.

Which of the following would NOT be directly included in the U.S. GDP in 2010?

A) the market value of restaurant meals sold in 2010

B) the market value of the jet fuel bought by Delta to use for its flights in 2010

C) the value of the automobiles produced in 2010 at the Toyota plant located in Georgetown, KY

D) legal services provided to first time home buyers during 2010

E) the purchase of a new home in Atlanta, Georgia in 2010

Explanation / Answer

ANS -1

(i and iii ) is the right answer as only goods and services produced domestically are included within the GDP range, which means that goods produced by Americans outside the U.S. will not be counted as part of the GDP.

ANS -2

I am not absolutely sure about the right answer sorry for the inconvenience.

ANS -3

(iii only) because above two points 1 and 2 belongs to Intermediate goods and are not considered as final goods. But purchasing an online wall street journal is finally consumed by the consumer itself it is not being used in any other commercial activity which will help in generating profits.

ANS -4

(i only) A final goods is brought by its final consumer, which means once agood is brought by a consumer that good is not being used in any other operation or activity.

Point 2 and 3 are not a perfect match for final goods as both comes under the defination of Intermediary goods.

ANS -5

(E) part of net exports if the fish was caught beyond the U.S. border.

ANS -6

(ii only) cuz pickels are not for self consumption of MC donald's owner or McD itself it will be used for other activity

ANS - 7

D) legal services provided to first time home buyers during 2010

Hope these answers will help you out

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