Answer the following statements true (T) or false (F)
1. U.S. gross domestic product (GDP) measures the market value of all goods and services
produced by Americans in one year.
2. A product that was produced in 2013 and not sold until 2014 is counted as part of GDP in
2013.
3. The value added in an industry includes the wages earned by workers in the industry.
4. Personal consumption expenditures include expenditures for new houses.
5. The value of a sale of a share of stock is considered to be an investment in national income
accounting.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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In 2002 some politicians and many representatives of the steel and iron-ore mining industries in the U.S. complained foreign steel producers were illegally "dumping" steel and contributing to a potential unemployment problem
According to the economic way of thinking, their argument is questionable because A) it is not at all clear what the appropriate or correct price of steel is. B) it is not at all clear what the appropriate or correct cost of steel is. C) it is not at all clear that such an activity increases total unemployment in the U.S. D) all of the above are true.
If a firm can charge different prices for each consumer it can practice
A) second degree price discrimination. B) perfect price discrimination. C) third degree price discrimination. D) consumer surplus reversal
When compared to the average household in most low-income countries, poor people in the United States, on average, receive
A. Somewhat fewer goods and services. B. Far more goods and services. C. Far fewer goods and services. D. About the same amount of goods and services.
In the dollar-euro foreign exchange market, if many financial investors become worried about the stability of the euro and thus invest in U.S. financial assets instead of in European assets, then the:
A. Supply of euros will decrease and the euro will appreciate B. Supply of euros will increase and the euro will depreciate C. Demand for euros will increase and the euro will appreciate D. Demand for U.S. dollars will decrease and the dollar will depreciate