ANSWER MULTIPLE CHOICE QUESTIONS: 1. Which of the following…

Question Answered step-by-step ANSWER MULTIPLE CHOICE QUESTIONS: 1. Which of the following…  ANSWER  MULTIPLE CHOICE QUESTIONS: 1.      Which of the following represents the single largest expenditure component of GDP?          a.   Personal consumption expenditures.          b.   Gross private investment.          c.   Net exports of goods and services.          d.   Government consumption expenditures and gross investment.          2.      A company produced 10 dishwasher machines in 1998. The company sold           8 in 1998 and added 2 to its inventories. The market value of the           dishwasher machines in 1998 was $200 per unit. What is the value of this           company’s output that will be included in the 1998 GDP?          a.   $1,600          b.   $400          c.   $2,000          d.   $1,800 3.      If the price index is greater than 100, then          a.   nominal GDP is greater than real GDP.          b.   nominal GDP is lower than real GDP.          c.   nominal GDP equals real GDP.          d.   prices decreased by more than double between the current and the base years. 4.      GDP is not a perfect measure of social welfare and the society’s economic well-being because          a.   it does not say anything about the distribution of income.          b.   GDP accounting rules do not adjust for production that causes negative externalities.          c.   it does not include all economic activities in the economy.          d.   All of the above 5.      Refer to Table 6.1. The value of gross private domestic investment in           billions of dollars is:          a.   430.          b.   450.          c.   335.          d.   680.                                          $ Billions Durable goods                           400Nonresidential investment               300Federal purchases of goods              250Exports                                 550State and local purchases of goods      250Residential investment                   50Services                                650Imports                                 150Change in business inventories          -15Nondurable goods                        500 Table 6.1 6.      Refer to Table 6.1. Personal consumption expenditures in billions of dollars are          a.   1650.          b.   1150.          c.   1300.          d.   1550. 7.      Refer to Table 6.1. The value of government spending in billions of dollars is          a.   -150       b. 500   c.-300    d.-500 8.      Refer to Table 6.1. The value of net exports in billions of dollars is          a.   -150       b. 400   c.-300    d.-400 9.      Refer to Table 6.1. The value of gross domestic product in billions of dollars is          a.   1855.          b.   2785.          c.   2405.          d.   2355. 10.    Refer to Table 6.1. The share of personal consumption expenditures (C) in           GDP is approximately:          a.   55%.          b.   65%.          c.   70%.          d.   75%.    11.    Nominal GDP is gross domestic product measured          a.   in the prices of a base year.          b.   in current dollars.          c.   at a constant output level but at the base-year prices.          d.   as the difference between the current year’s GDP and last year’s GDP. 12.    Which of the following is not one of the primary expenditure categories of GDP?          a.   Personal consumption expenditures.          b.   Gross private investment.          c.   Net exports of goods and services.          d.   Profits. 13.    Refer to the Table below. The growth rate of real GDP from year 2010          to year 2011 is approximately  _______. (Please note that GDP is quoted in           billions of dollars.) Year GDP in current $GDP in constant $201014,964.414,783.8201115,517.915,020.6               a.   1.6%          b.   237 billions of $.          c.   3.6%.          d.   553 billions of $.                                      14.    Where do employment and unemployment statistics come from?The Current Population Survey.The U.S. population Census.People filing claims for Unemployment Insurance benefits.Contacting and counting every employed and unemployed person each month. 15.    Lisa Fox has a job but did not work during the “reference           week” because she was on maternity leave. Lisa is considered           to be:Unemployed for the entire month.Employed.Unemployed only for that week.Not in the labor force since she gave birth already. 16.    Classifying discouraged workers as unemployed would          a.   increase the unemployment rate.          b.   decrease the unemployment rate.          c.   not change the unemployment rate.          d.   have an indeterminate impact on the unemployment rate.17.    In June there are 30,000 people classified as unemployed and the size of the labor force is 600,000. The only change between June and July is that 10,000 people give up looking for work. Which of the following is true?          a.   In June the unemployment rate was 6% and in July the unemployment rate was 3.8%.          b.   The unemployment rate in both June and July was 5%.          c.   In June the unemployment rate was 5% and in July the unemployment rate was 3.39%.          d.   In June the unemployment rate was 3.8% and in July the unemployment rate was 6%. 18.    People who are neither employed nor looking for a job are:Unemployed.Very rich.Lazy.Not in the labor force.   Employed                   11,000 peopleUnemployed                  2,500 peopleNot in the Labor Force      3,000 people Table 7.1  19.    Refer to Table 7.1. The labor-force participation rate is          a.   71.43%.          b.   81.8%.          c.   90.91%.          d.   136.36%. 20.   The civilian population consists of those who are:a. 16 years or older            b.not in an institution (prison or mental hospital)            c.not on active duty in the Armed Forces            d.all of the above      Business Economics Macroeconomics ECON 1101 Share QuestionEmailCopy link Comments (0)