For each of the following, how would they be included in the national income accounts?
a. The University of California buys a new computer.
b. Charles buys a new MP3 player.
c. Marian buys a new mountain cabin.
d. Vikki buys an old mansion with hopes of restoring it.
e. Farmer Brown buys a used combine harvester.
What will be an ideal response?
a. Government purchases. Purchased by a state university.b. Consumption. Purchased by an individual.c. Investment. New house purchased by an individual.d. Not included. Built in a previous year.e. Not included. Only newly produced goods are included.
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The national debt is defined as the total
A. amount that U.S. citizens owe to foreigners. B. value that U.S. citizens borrow from foreigners during any time period. C. value of government’s indebtedness at any moment in time. D. amount by which government’s expenditures exceed receipts during any time period.
The addition to revenue obtained from hiring an additional unit of labor is
A) total product. B) marginal revenue product. C) marginal factor cost. D) marginal physical product of labor.
Refer to the above figure. The top two arrows of the figure refer to the product markets. The bottom arrows refer to the factor markets. Which arrow represents the final consumer goods and services?
A) Arrow A B) Arrow B C) Arrow C D) Arrow D
Which of the following statements is true?
A) The growth rate of South Korea has been less than the growth rate of the United States over the last 40 years. B) The United States and the United Kingdom have recorded a growth rate of over 10% per annum in the last 40 years. C) The gap between the GDP per capita of the United States and Singapore has increased over the last 40 years. D) The gap between the GDP per capita of the United States and China has decreased over the last 40 years.