Which of the following is false?O We do not have information on nonmarket transactions output that is reliable enough to include itin the GDP.O The most important nonmarket transaction omitted from GDP are services provided directly inthe home.O The value that individuals place on leisure is omitted in calculating GDP.O All goods and services exchanged in the current period are included in this year's GDP.Question 15Which of the following will lead to GDP underestimating our true output?O Mary begins a catering business.O James begins drawing Social Security benefits upon his retirement.O David accepts a position as a software specialist at Microsoft.O Gretchen begins an accounting and bookkeeping service in her home, accepting cash as payment,which is not reported to tax authorities.

A crucial economic metric, the gross domestic product (GDP) is the total monetary worth of all…

Answered: Which of the following is false? O We…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Calculate GDP using the information in the table below: $Billions Government purchases of goods 1200 Services 500 Imports 400 Change in business inventories 50 Durable goods 300 Nondurable goods 600 Exports 250 Residential investment 200 Government purchases of services 500 Nonresidential investment 650 Select one: O a. 4650 O b. 4150 O c. 4000 O d. 3850
2. Consider the following table showing the breakdown of GDP (in billions) for China. GDP Category Amount (in billions) Consumption 1700 Investment 700 Government 100 Expenditure Еxports 50 Imports 40 Using the expenditure approach, calculate GDP for China.
GDP excludes O the production of nondurable goods. O the market value of unpaid work in the home. O the production of services. O positive changes in inventories.
Companies often produce more goods in a year than they end up selling. How do the unsold goods impact GDP in the year they are produced? O The unsold goods are considered inventory and their value will increase investment spending in the year they are produced. O None of these statements is correct. O The unsold goods are not counted until they are sold in a later year. O The unsold goods are considered durable goods, and their value will increase consumption spending in the year they are produced. « Previous Next » ASUS 14 18 E3 [X & 4 8 9. Y 6
Classify each of the following items as a final good or an intermediate good, and identify whether it is a component of consumption expenditure, investment, or government expenditure on goods and services: Item 1. Packing boxes bought by Amazon.com. Item 2. Starbuck's grande mocha frappuccino bought by a student. Item 3. A new limousine for the president. Item 4. New airplanes bought by United Airlines. Item 1 is and item 2 is O A. an intermediate good; a final good that is consumption expenditure B. a final good that is consumption expenditure; a final good that is consumption expenditure C. a final good that is consumption expenditure; a final good that is investment D. an intermediate good; a final good that is investment Item 3 is and item 4 is O A. an intermediate good; an intermediate good O B. a final good that is government expenditure; a final good that is investment O C. an intermediate good; a final good that is investment D. a final good that is government expenditure; an…
Only two goods are produced in Macroland - Pens and Notepads. Given below are the quantities and prices of these goods in the years 2016 and 2017 Price (2016) Quantity (2016) Price (2017) Quantity (2017) 325 Pens 300 1.5 Notepads 3 200 4 250 Assume 2016 is the base year. Calculate the Real GDP for the year 2017. O so00 O $1487.5 O $1075 O $100
Which would be included in the category of investment spending in the calculation of GDP? O The purchase of stock in MacDonald's. The purchase of a new machine by Ford. O The selling of IBM corporate bonds. O The buying of shares of Janus mutual funds.
What is total expenditure in an economy? Total expenditure is equal to expenditure ______. A. on goods and services produced in the economy and goods imported. B. by households, firms, governments, and the rest of the world on goods and services produced in the economy. C. by firms and governments on goods and services produced in the economy
Use the following table to answer this question The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis. Consumer spending Durable goods Nondurable goods Services Investment spending Fixed investment spending Nonresidential Structures Equipment and software Residential Change in private inventories Net exports Exports Imports Government purchases of goods and services Federal Category National defense Nondefense State and local What is the value of l? O A. $9,710.2B. O B. $2,130.4B. O C. $2,674.8B. O D. $5,794.4B Components of GDP in 2020 (billions of dollars) $1,082.80 2,833.00 5,794.40 2,134.00 1,503.80 480.3 1,023.50 630.2 -3.6 1,662.40 2,370.20 979.3 662.2 317.1 1.695.50
Explain how net exports affect the U.S. economy.Describe both positive and negative impacts onGDP. Why do national income accountants usenet exports to compute GDP, rather than simplyadding exports to the other expenditure componentsof GDP?
Question 18 Which of the following is included as investment in GDP? i. cars produced during the year but unsold at the end of the year ii. new capital equipment produced and purchased during the year iii. purchases of a company's stocks and bonds Oi only O ii only O iii only i and ii O i, ii, and iii Moving to another question will save this response.
Consider an economy that produces wood, boats, and has a marketing agency.This year domestic wood production generates revenues of $80. Of this $80 worth of wood, $40were purchased by the boat producer and $40 were sold abroad to a foreign company. The woodproducer paid $40 worth of wages and $10 worth of taxes.The boat producer combines the services of the marketing agency, the wood it purchased from thewood producer, and $20 worth of labor (wages) to produce $120 worth of boats. Its revenues,which include a boat produced in the previous year and that was carried as inventory, are $130.Domestic families buy all these boats. This company pays $10 worth of taxes.The marketing agency, whose sole client is the boat company, generates a revenue of $40 whichis enough to cover its labor costs of $40. This company pays no taxes.The government in this economy uses the $20 worth of taxes and builds a port. The cost of theport is $40 that are paid to workers. This port is partially financed by…

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