If an economy produces 3 million oranges that sell for $0.25 each and 100,000 cars that sell for $25,000 each, then when the market value of total output is calculated:
A. oranges receive a smaller weight than cars.
B. oranges receive the same weight as cars.
C. oranges receive a greater weight than cars.
D. the market value of oranges is excluded.
Answer: A
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Which of the following advances contributed to the "new economy" of the mid-1990s?
A) the increased use of the Internet in selling products and services B) the lower cost and increased availability of laptop computers C) expanded cell phone use D) all of the above
Refer to Figure 18-1. Italians cut back on smoking and cut their demand for American cigarettes in half. Assuming all else remains constant, this would be represented as a movement from
A) B to A. B) A to D. C) D to C. D) B to C.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and GDP Price Index falls. b. The real risk-free interest rate falls, and GDP Price Index rises. c. The real risk-free interest rate rises, and GDP Price Index falls. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The real risk-free interest rate and GDP Price Index remain the same.
U.S. gross national product is defined as
A) the value of final goods and services produced within the United States. B) the value of final goods and services produced outside of the United States. C) the value of final goods and services produced by residents of the United States even if the production takes place outside of the United States. D) the value of final goods and services produced within the United States, by United States residents.