Question

2. Which of the following is  not a component of gross domestic product?

Select one:

a. purchases by consumers of finished goods

b. net exports

c. purchases by consumers of used goods

d. government purchases

5. Double counting can be avoided by

Select one:

a. including the value of intermediate goods in the GNP but not in the GDP.

b. including the value of intermediate goods in the production year but not in the selling year of those goods.

c. not counting the value of intermediate goods in GDP.

d. including the value of intermediate goods in the current year.

6. Which of the following would  not be counted in 2016's GDP?

Select one:

a. the 2016 salary of a used motorcycle salesperson

b. the commissions earned by a real estate agent in selling condominiums built prior to 2016

c. the value of a 2008 boat you purchase from a boat dealer in 2016

d. the value of a refrigerator manufactured in 2016 but not sold in 2016

9. Profits earned in the United States by foreign-owned companies are included in

Select one:

a. the U.S. GDP but not GNP.

b. neither the U.S. GDP nor GNP.

c. the U.S. GNP but not GDP.

d. both the U.S. GDP and GNP.

11. The value of what Burger King produces in France is included in the United States ________ and in the French ________.

Select one:

a. GNP; GDP

b. GNP; GNP

c. GDP; GNP

d. GDP; GDP

12. Profits earned in a foreign country by U.S.-owned companies are included in

Select one:

a. both the United States GDP and GNP.

b. the United States GDP but not GNP.

c. the United States GNP but not GDP.

d. neither the United States GDP nor GNP.

13. Which prices are used to measure goods and services in calculating GDP?

Select one:

a. average prices

b. current prices

c. past year prices

d. projected prices

15. Intermediate goods are produced by one firm for use in further processing by another firm.

Select one:

True

False

16. Double counting can be avoided by using the value-added approach when calculating GDP.

Select one:

True

False

17. GDP calculations include goods, but not services.

Select one:

True

False

Answer 1

2. Ans: purchases by consumers of used goods

Explanation:

Second hand or used goods are not included in calculation of GDP.

5. Ans: not counting the value of intermediate goods in GDP.

Explanation:

GDP is the market value of all final goods . it does not include value of intermediate goods.

6. Ans: the value of a 2008 boat you purchase from a boat dealer in 2016

Explanation:

The value of a 2008 boat is already included in 2008 GDP. So, it cannot be included in 2016 GDP.

9. Ans: the U.S. GDP but not GNP

11. Ans: GNP;GDP

12. Ans: the United States GNP but not GDP.

13. Ans: current prices

15. Ans: True

16. Ans: True

17. Ans: False

Explanation:

GDP calculations include both goods and services.