51. Gross national product equals: A) the aggregate output of the citizens & bus
ID: 1253141 • Letter: 5
Question
51. Gross national product equals:
A) the aggregate output of the citizens & businesses of an economy in a 1-year period.
B) the aggregate final output of the citizens & businesses of an economy in a 1-year period.
C) the total market value of all goods & services produced in an economy in a 1-year period.
D) the total market value of all final goods & services produced in an economy in a 1-year period.
52. Which of the following is not included in GNP but is included in GDP?
A) The value of a Portuguese company's production in the United States.
B) The income of a U.S. citizen working in Portugal.
C) The value of a U.S. company's production in Portugal.
D) The sales of a U.S. company to U.S. citizens.
53. To calculate GDP, multiply the __________ of each final good and service produced in an economy in a year by its __________ and then sum the result.
A) quantity; share in total output C) price, share in total output
B) quantity; price D) price, quality
54. Counting both the value of the flour used to make a loaf of bread and the value of the loaf of bread as part of GDP:
A) is necessary to accurately compute GDP.
B) is incorrect because bread is an intermediate product.
C) is incorrect because flour is an intermediate good.
D) is incorrect because flour is a final good.
55. Suppose the value of your home increases from $100,000 to $125,000. If you continue to live in your home, the increase in its value:
A) adds nothing to GDP. C) increases GDP by $100,000.
B) increases GDP by $25,000. D) increases GDP by $125,000.
56. If a used car dealer buys a car for $6000 and resells it for $6500, how much has been added to GDP?
A) nothing. B) $500. C) $6000. D) $6500
57. Which of the following is not a part of this year's GDP?
A) The value of a product produced last year but sold this year.
B) The value of a haircut.
C) The value of a new car produced and purchased during the year.
D) The value of new homes built this year, regardless of whether they are sold.
58. Which of the following would not increase this year's GDP?
A) Home repairs performed by the owner.
B) A commission charged by your broker when you sold 100 shares of Borden stock.
C) The sales of a corporation.
D) The value of a doctor's services to his or her patients.
59. The circular flow model shows:
A) the movement of expenditures and factor payments through the economy.
B) how national income is distributed to individuals.
C) how national income changes over time.
D) the movement of goods from one business to another.
Explanation / Answer
51. Gross national product equals: B) the aggregate final output of the citizens & businesses of an economy in a 1-year period. 52. Which of the following is not included in GNP but is included in GDP? A) The value of a Portuguese company's production in the United States. 53. To calculate GDP, multiply the __________ of each final good and service produced in an economy in a year by its __________ and then sum the result. B) quantity; price 54. Counting both the value of the flour used to make a loaf of bread and the value of the loaf of bread as part of GDP: C) is incorrect because flour is an intermediate good. 55. Suppose the value of your home increases from $100,000 to $125,000. If you continue to live in your home, the increase in its value: A) adds nothing to GDP. 56. If a used car dealer buys a car for $6000 and resells it for $6500, how much has been added to GDP? A) nothing. 57. Which of the following is not a part of this year's GDP? A) The value of a product produced last year but sold this year. 58. Which of the following would not increase this year's GDP? C) The sales of a corporation. (I am not 100% on this one) 59. The circular flow model shows: A) the movement of expenditures and factor payments through the economy.
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