5. GDP during a period can be calculated by summing either (A) the purchases of domestically produced final goods and services or the cost incurred in the production of those goods. (B) the amount received by business firms for consumer goods and services or the spending of business firms on investment goods and services. (C) all household expenditures on final goods and services or all business purchases of factors of production. (D) sales of goods and services to foreigners or the purchase of goods and services from foreigners. (E) the final market value of all goods purchased or the income generated from all labor services rendered.

5. GDP during a period can be calculated by summing either (A) the purchases of domestically produced final goods and services or the cost incurred in the production of those goods. (B) the amount received by business firms for consumer goods and services or the spending of business firms on investment goods and services. (C) all household expenditures on final goods and services or all business purchases of factors of production. (D) sales of goods and services to foreigners or the purchase of goods and services from foreigners. (E) the final market value of all goods purchased or the income generated from all labor services rendered.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. GDP during a period can be calculated by summing either
(A)
the purchases of domestically produced final goods and services or the cost incurred in
the production of those goods.
(B)
the amount received by business firms for consumer goods and services or the
spending of business firms on investment goods and services.
(C)
all household expenditures on final goods and services or all business purchases of
factors of production.
(D)
sales of goods and services to foreigners or the purchase of goods and services from
foreigners.
(E) the final market value of all goods purchased or the income generated from all labor
services rendered.
6. Which one of the following would count as investment in the national income accounts?
(A) buying a U.S. government bond
(B) buying 100 shares of Wal-Mart stock
(C) buying an existing house
(D) a freight-hauling firm buying a new domestically produced truck
(E) a car manufacturer buying tires from a tire manufacturer

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