Econ 203- Exam 3 || with 100% Correct Answers.
______ is/are the market value of final goods and services produced within a country during a
given period of time. correct answers GDP
Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each
orange sells for $0.20, and each candy bar sells for $1.00. What is the market value of production
in this economy? correct answers $7.00
The value of unpaid childcare services provided by a stay-at-home dad ______ included in GDP;
the value of daycare services purchased from a licensed childcare provider ______ included in
GDP. correct answers is not; is
Intermediate goods and services are ______ production and ______ counted in GDP. correct
answers used up in the process of; are not
Goods and services that are used up in the production of other goods and services are called
______ goods and services. correct answers intermediate
Which of the following is an example of an intermediate good?
A. A new car sold to a family
B. A metal-stamping machine used to produce cars sold to an automaker
C. A new CD player sold to an automaker for installation in a car
D. A new CD player sold to a teenager correct answers C. A new CD player sold to an
automaker for installation in a car
Factories and machines are examples of: correct answers capital goods
GDP equals the value added by producers of: correct answers intermediate goods and services,
as well as final goods and services.
In 2015, Pete Rich purchases a 1642 painting by Rembrandt for $20 million. He also pays a one
percent commission to the auction house that sold the painting. What is the contribution of these
transactions to GDP in the year 2015? correct answers $200,000
The four components of aggregate expenditures are: correct answers consumption
investment
government spending
net exports.
Spending on durable goods, nondurable goods, and services is included in: correct answers
consumption expenditures.
Spending on new capital goods, new homes, and the addition of unsold goods to company
inventories is included in: correct answers investment spending.
, Which of the following would increase the investment component of U.S. GDP?
A. You purchase a vacation at Disney World in Florida.
B. You purchase shares of Disney stock.
C. Disney World purchases tires for the monorail from a firm in Ohio.
D. A French man purchases a vacation at a Disney theme park in France. correct answers C.
Disney World purchases tires for the monorail from a firm in Ohio.
The government purchases component of GDP includes: correct answers purchases of final
goods and services.
An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are
sold to consumers, 300,000 are sold to businesses, 300,000 are sold to the government, and
100,000 are sold abroad. No computers are imported. At the end of the year, the computer
manufacturers hold the unsold computers in inventory. What is the value of the investment
component of GDP? correct answers $0.8 billion
An economy produces 500,000 tables valued at $100 each. Households purchase 100,000 tables,
of which 50,000 are imported. Businesses purchase 200,000 domestically produced tables, the
government purchases 100,000 domestically produced tables, and 50,000 domestically produced
tables are sold abroad. At the end of the year, the table manufacturers hold the unsold tables in
inventory. What is value of GDP? correct answers $50 million
Labor income in the U.S. equals approximately ______ of GDP. correct answers 2/3
Profits, rents, interest, and royalties are examples of: correct answers capital income.
Real GDP measures the ______ of production; nominal GDP measures the ______ of
production. correct answers physical volume; current dollar value
If prices in the current year are higher on average than in the base year, real GDP in the current
year ______ correct answers is less than
Bob's Barber Shop cut 3,000 heads of hair in 2014and 3,100 in 2015. The price of a hair cut was
$7 in 2014and $8 in 2015. If 2014is the base year, what was Bob's contribution to real GDP in
2014? correct answers $21,000
Peg's Manicure Manor did 4,000 sets of nails in 2010 and 4,500 sets of nails in 2011. The price
of a set of nails was $20 in 2010 and $22 in 2011. If 2010 is the base year, Peg's contribution to
nominal GDP in 2010 was ______ and in 2011 was _______. correct answers $80,000; $99,000
Real GDP is not a perfect measure of economic well-being because it excludes the value of all of
the following except:
A. leisure time.
