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Econ 104 - Goffe Questions, Answers, Rationales
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Econ 104 - Goffe Questions, Answers, Rationales
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Econ 104 - GoffeStudy online at https://quizlet.com/_ek6t7d
1. Which would be the best example of capital? a tractor owned by
a farmer
- a tractor owned by a farmer
- a house owned by a family
- GM purchasing a robot for a car factory
- stock traded on Wall Street
2. Which would be the best example of a final good or gasoline pur-
service? chased by a family
- a homeowner painting their house
- electricity purchased by Amazon
- seeds purchased by a farmer
- gasoline purchased by a family
3. What would you expect to occur if the number of only nominal GDP
goods produced in the economy did not change from would grow
one year to the next, but their prices rose?
- neither real nor nominal GDP would grow
- only real GDP would grow
- only nominal GDP would grow
- both real and nominal GDP would grow
4. Which of the following would NOT be included in U.S. concern by a
GDP homeowner about
rising burglary
- a jetliner made by Boeing in the U.S. that is sold to rates in their
British Airways neighborhood
- apple buying a tool that will build iPhones in the U.S.
- a person buying lumber to build a porch for their
house
- concern by a homeowner about rising burglary rates
in their neighborhood
5. When would inventories grow in the economy? when production
is greater than fi-
- when production is less than final sales nal sales
, Econ 104 - Goffe
Study online at https://quizlet.com/_ek6t7d
- when production equals final sales
- when production is greater than final sales
6. Which of the following is NOT a component (or part) K
of GDP when measured by expenditures?
-G
-C
-K
-I
7. Which currently has the largest numerical value? nominal GDP
- nominal GDP
- real GDP
8. Why are final goods, and not intermediate goods, to avoid counting
used in the definition of GDP? items more than
once
- to remove imports from the GDP calculation
- to keep household production out of GDP
- to ensure the GDP measures domestic production
- to avoid counting items more than once
9. What is the best definition of a bond? a security that
offers fixed pay-
- a security that offers fixed payments in the future ments in the future
- a security that offers ownership in a country
- a security that offers ownership in a firm
10. Which of the following occurs most often in the U.S. the government
since 1970? sells bonds when
there is a deficit
- the government sells bonds when there is a deficit
- the government buys bonds when there is a deficit
- the government lowers taxes when there is a deficit
- the government raises taxes when there is a deficit
11. Is GDP adjusted for crime or pollution? no
, Econ 104 - Goffe
Study online at https://quizlet.com/_ek6t7d
12. Most economists feel that the current level of the false
federal debt is now at a crisis level
13. Which of the following is NOT a reason why the fed- inflation
eral debt grew in the last two decades?
- tax cuts
- the war on terror
- inflation
- recessions
14. Highly paid professional investors can consistently false
predict stock prices.
15. When computing U.S. GDP by expenditures, we sub- imports, they are
tract ___ as ___. not produced in
the U.S.
- imports, they are produced in the U.S.
- exports, they are not produced in the U.S.
- imports, they are not produced in the U.S.
- exports, they are produced in the U.S.
16. Which of the following is the best example of invest- Amazon adding
ment? books to sell to
their customers
- an investor purchasing stock on Wall Street
- Amazon adding books to sell to their customers
- a college student paying tuition this semester
- a taxi owned by a taxi company in New York
17. Which of the following is correct? all capital goods
are final goods
- all final goods are capital goods
- all capital goods are final goods
18. What part of fiscal policy changed the most during transfers
the Covid Recession of 2020?
- government purchases
- transfers
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