Question

1.      Which goods did NOT decrease in price between 2000 and 2015?

a.       Personal computers and peripherals

b.      Alcoholic beverages away from home

c.       Television

d.      Toys

2. According to most estimates, the size of the "underground" economy in the United States could be as large as

a.       The “above-ground” economy

b.      The economy of China

c.       10% of GDP

d.      The state of Rhode Island

3.      Imports enter the calculation of GDP

a.       With a positive sign

b.      With a negative sign

c.       As an addition to changes in private inventories

d.      Through the personal consumption category

4.      If gross domestic purchases are ________, then net exports are ________.

a.       Greater than gross domestic product; greater than net imports

b.      Equal to zero; also equal to zero

c.       Greater than gross domestic product; positive

d.      Less than gross domestic product; positive

Answer 1

1) Which goods did NOT decrease in price between 2000 and 2015?

Solution: Alcoholic beverages away from home

Explanation: Because f effective taxation the price has not decreased

2) According to most estimates, the size of the "underground" economy in the United States could be as large as

Solution: 10% of GDP

The underground economy in the United States is nearly 10 percent of GDP,

3) Imports enter the calculation of GDP

Solution: With a negative sign

Explanation: Exports and imports are counted in the GDP as a net number, thus computed as exports minus imports.

4) If gross domestic purchases are ________, then net exports are ________.

Solution: Greater than gross domestic product; positive

Explanation: If gross domestic purchases are greater than gross domestic product, then net exports are positive, GDP will exceed than the sum of consumption, investment, and government purchases