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A dairy buys $50,000 worth of milk and spend $5,000 on cartons and utilities. It sells the cartons of milk to a grocery store for$60,000 that then sells all of the cartons to consumers for $65,000. How much do these actions add to GDP?Which of the following is a determinant of productivity?A:$65,000 B:$120,000 C:$55,000 D:None of the above are correct. 答案: $65,000A:natural resources per worker B:human capital C:physical capital 答案: natural resources per worker
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GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because
A:measuring them is so difficult.
B: the quality of these items is not high enough to contribute value to GDP.
C: the government wants to discourage the production and consumption of these items.
D: these items are not reported on income tax forms.
答案: measuring them is so difficult.
For an economy as a whole,
A:the market value of production must equal expenditure.
B:wages must equal income.
C:investment must equal the value of stocks and bonds purchased.
D:consumption must equal saving.
答案: the market value of production must equal expenditure.
If an economy’s GDP falls, then it must be the case that the economy’s
A:income rises and market value of all production falls.
B:income and saving fall.
C: income falls and market value of all production rises.
D:income and market value of all production both fall.
答案: income and market value of all production both fall.
According to the circular-flow diagram GDP
A:can be computed as payments firms make to factors of production but not as revenues they receive from the sales of goods andservices.
B:can be computed as the revenue firms receive from the sales of goods and services but not as the payments they make to factorsof production.
C: cannot be computed as either the revenue firms receive or the payments they make to factors of production.
D: can be computed as either the revenue firms receive from the sales of goods and services or the payments they make to factorsof production.
答案: can be computed as either the revenue firms receive from the sales of goods and services or the payments they make to factorsof production.
If the price of a dress is three times the price of a pair of shoes, then a pair of shoes contributes
A:less than one-third as much to GDP as does a dress.
B: more than one-third as much to GDP as does a dress.
C:exactly one-fourth as much to GDP as does a dress.
D:exactly one-third as much to GDP as does a dress.
答案: exactly one-third as much to GDP as does a dress.
GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because
A:measuring them is so difficult.
B: the government wants to discourage the production and consumption of these items.
C: the quality of these items is not high enough to contribute value to GDP.
D: these items are not reported on income tax forms.
答案: measuring them is so difficult.
A steel company sells some steel to a bicycle company for $150. The bicycle company uses the steel to produce a bicycle,which it sells for $250. Taken together, these two transactions contribute
A:$400 to GDP.
B: $250 to GDP.
C: $150 to GDP.
D:between $250 and $400 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle.
答案: $250 to GDP.
A dairy buys $50,000 worth of milk and spend $5,000 on cartons and utilities. It sells the cartons of milk to a grocery store for$60,000 that then sells all of the cartons to consumers for $65,000. How much do these actions add to GDP?
A:$65,000
B:$120,000
C:$55,000
D:None of the above are correct.
答案: $65,000
Sheri, a U.S. citizen, works only in Germany. The value she adds to production in Germany is included
A:in both German GDP and U.S. GDP.
B:in U.S. GDP, but is not included in German GDP.
C:in German GDP, but is not included in U.S. GDP.
D:in neither German GDP nor U.S. GDP.
答案: in German GDP, but is not included in U.S. GDP.
Consumption consists of spending by households on goods and services, with the exception of
A:purchases of new houses.
B:purchases of intangible services.
C:purchases of durable goods.
D:spending on education.
答案: purchases of new houses.
Which of the following items is included in GDP?
A: All of the above are included in GDP.
B:the sale of used goods
C: the sale of stocks and bonds
D: the sale of services such as those performed by a doctor
答案: the sale of services such as those performed by a doctor
Most, but not all, athletic apparel sold in the United States is imported from other nations. If the price of athletic apparelincreases, the GDP deflator will
A:increase, but the consumer price index will not increase.
B:not increase, but the consumer price index will increase.
C: increase less than will the consumer price index.
D: increase more than will the consumer price index.
答案: increase less than will the consumer price index.
Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best baseball players can earn more than 400times as much as Babe Ruth earned in 1931. However, prices have also risen since 1931. We can conclude that
A:because prices have also risen, the standard of living of baseball stars hasn’t changed since 1931.
B:one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruth did in 1931 withoutadditional information regarding increases in prices since 1931.
C: the best baseball players today are about 400 times better off than Babe Ruth was in 1931.
D: one cannot make judgments about changes in the standard of living based on changes in prices and changes in incomes.
答案: one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruth did in 1931 withoutadditional information regarding increases in prices since 1931.
The economy’s inflation rate is the
A:change in the gross domestic product from the previous period.
B:change in the price level from the previous period.
C:price level in the current period.
D:percentage change in the price level from the previous period.
答案: percentage change in the price level from the previous period.
When the quality of a good deteriorates while its price remains the same, the purchasing power of the dollar
A:decreases, so the CPI understates the change in the cost of living if the quality change is not accounted for.
B:increases, so the CPI overstates the change in the cost of living if the quality change is not accounted for.
C:decreases, so the CPI overstates the change in the cost of living if the quality change is not accounted for.
D:increases, so the CPI understates the change in the cost of living if the quality change is not accounted for.
答案: decreases, so the CPI understates the change in the cost of living if the quality change is not accounted for.
In 1983, one could buy a model radio-controlled airplane for $11.50 each. Those same planes are available today and theprice increased at exactly the rate of inflation. If the CPI today is 220.5 and in 1983 was 105, what is the price of theairplane today?
A: $11.50
B:$5.48
C:$2.10
D: $24.15
答案: $24.15
Which of the following is not correct?
A:The purchasing power of an interest-earning deposit can increase or decrease over time, but it cannot B:If there is deflation, then the purchasing power of an interest-earning deposit rises by more than C:The higher the rate of inflation, the smaller the increase in the purchasing power of an D:If the inflation rate exceeds the nominal interest rate, then the purchasing power of an interest-earning deposi 答案: The purchasing power of an interest-earning deposit can increase or decrease over time, but it cannot
The real interest rate tells you
A:how fast the number of dollars in your bank account rises over time.
B:the number of dollars in your bank account today.
C:how fast the purchasing power of your bank account rises over time.
D:the purchasing power of your bank account today.
答案: how fast the purchasing power of your bank account rises over time.
If the nominal interest rate is 5 percent and the rate of inflation is -2.5 percent, then the real interest rate is
A: -2.5 percent.
B:7.5 percent.
C:2.5 percent.
D:-7.5 percent.
答案: 7.5 percent.
Suppose the price of a quart of milk rises from $1.00 to $1.20 and the price of a T-shirt rises from $8.00 to $9.60. If theCPI rises from 150 to 195, then people likely will buy
A:less milk and fewer T-shirts.
B:less milk and more T-shirts.
C:more milk and fewer T-shirts.
D:more milk and more T-shirts.
答案: more milk and more T-shirts.
The primary purpose of measuring the overall level of prices in the economy is to
A:allow consumers to know what kinds of prices to expect in the future.
B:allow for the comparison of dollar figures from the same point in time.
C:allow for the comparison of dollar figures from different points in time.
D:allow for the measurement of GDP.
答案: allow for the comparison of dollar figures from different points in time.
Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the samecountry had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country’s productivity was
A: lower this year than last year. A change in the size of the capital stock does not affect productivity.
B:higher this year than last year. A possible source of this change in productivity is a change in the size of thecapital stock.
C:lower this year than last year. A possible source of this change in productivity is a change in the size of thecapital stock.
D: higher this year than last year. A change in the size of the capital stock does not affect productivity.
答案: lower this year than last year. A possible source of this change in productivity is a change in the size of thecapital stock.
Which of the following is an example of a produced factor of production?
A: skills that people accumulate through experience
B:a plant in which automobiles are assembled
C:skills that people accumulate in junior middle school
答案: a plant in which automobiles are assembled
Which of the following is considered human capital? Knowledge acquired from
A:experience
B:job training
C:education programs
答案: job training
Ralph is a plumber. Which of the following are included in his human capital?
A: the knowledge he learned on the job, but not the tools he uses
B:the knowledge he learned on the job, and the tools he uses
C: the tools he uses, but not the knowledge he learned on the job
D:neither the knowledge he learned on the job nor the tools he uses
答案: the knowledge he learned on the job, but not the tools he uses
In a market economy, we know that a resource has become scarcer when
A:it is non-renewable and some of it is used.
B:its price rises relative to other prices.
C:people search for substitutes.
D:All of the above are correct.
答案: its price rises relative to other prices.
Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time ameasure of the overall price level increased from 150 to 156. The price of iron ore increased by
A:more than inflation, so it became less scarce.
B:more than inflation, so it became more scarce.
C:less than inflation, so it became less scarce.
D:less than inflation, so it became more scarce.
答案: more than inflation, so it became more scarce.
An understanding of the best ways to produce goods and services is called
A:physical capital.
B:technology.
C:human capital.
D: productivity.
答案: technology.
Your company discovers a better way to produce mousetraps, but your better methods are not apparent from themousetraps themselves. Your knowledge of how to more efficiently produce mousetraps is
A:common, but not technological, knowledge.
B:common technological knowledge.
C:proprietary technological knowledge.
D:proprietary, but not technological, knowledge.
答案: proprietary technological knowledge.
Which of the following is a determinant of productivity?
A:natural resources per worker
B:human capital
C:physical capital
答案: natural resources per worker
If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns toscale, productivity would
A:fall, but it would still be greater than one-half of its former value.
B:fall to less than one-half of its former value.
C:stay the same.
D:rise but less than double.
答案: fall, but it would still be greater than one-half of its former value.
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