Which of the following is included in both the U.S. GDP and GNP?
A. The value of cars produced by Nissan in Japan and the U.S.
B. The value of all cars produced by Ford in Mexico.
C. The value of all cars produced by General Motors in the U.S.
D. The value of all cars produced by Toyota in the U.S.
Answer: C
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In chapter 1 your authors marveled at the way highway traffic is orderly and self-regulating. In chapter 6, however, they discuss a growing problem on urban roadways—congestion. What's the cause of roadway congestion?
A) Typically, road use is a scarce good with a zero price tag. B) Not enough drivers have studied economics. C) More and more drivers think only of themselves. D) Population growth
Which of the following illustrates that at any point in time, a fully employed economy must sacrifice some amount of one good to obtain more of another good?
a. A budget line b. Macroeconomics c. Marginal analysis d. A production possibilities table e. A budget constraint
When a U.S. resident increases her holdings of a foreign financial asset, this item is recorded as a
A. debit entry in the U.S. current account. B. credit entry in the U.S. current account. C. credit entry in the U.S. financial account. D. debit entry in the U.S. financial account.
A recessionary GDP gap is the
A. Difference between leakages and injections. B. Sum of leakages and injections. C. Same as an inflationary gap. D. Horizontal distance between full-employment GDP and equilibrium GDP.