Intermediate goods are excludedfrom the GDP calculation to avoiddouble counting.Select one:a. Trueb. FalseWhich of the following is trueabout banks?Select one:a. Banks are financialinstitutions through whichsavers can directly providefunds to borrowers.b. Typically, banks receive fewbut big deposits, which theythen use to make many smallloans.c. Through the checkingaccounts they facilitate, banksprovide a medium ofexchange.d. The interest rate bankscharge when they lend is thesame they pay for the depositsthey receive.The CPI measures:Select one:a. The overall cost of goodsand services bought by atypical customerb. All the abovec. The cost of goods andservices produceddomesticallyd. The cost of common localgoods and servicesChanges in the consumer priceindex are useful in predictingchanges in the producer priceindex.Select one:a. Falseb. True

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Intermediate goods are excluded from the GDP calculation to avoid double counting. Select one: a. True b. False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

Intermediate goods are excluded
from the GDP calculation to avoid
double counting.
Select one:
a. True
b. False
Which of the following is true
about banks?
Select one:
a. Banks are financial
institutions through which
savers can directly provide
funds to borrowers.
b. Typically, banks receive few
but big deposits, which they
then use to make many small
loans.
c. Through the checking
accounts they facilitate, banks
provide a medium of
exchange.
d. The interest rate banks
charge when they lend is the
same they pay for the deposits
they receive.
The CPI measures:
Select one:
a. The overall cost of goods
and services bought by a
typical customer
b. All the above
c. The cost of goods and
services produced
domestically
d. The cost of common local
goods and services
Changes in the consumer price
index are useful in predicting
changes in the producer price
index.
Select one:
a. False
b. True

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