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The total market value of production in an economy must equal total:
 
A. profits.
 
B. revenues from all transactions.
 
C. consumption
 
D. spending on final goods and services.

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Ronaldo Mendoza
Ronaldo MendozaLv10
15 Nov 2020
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Related questions

1. The total market value of production in an economy must equal total:

a. profits.

b. revenues from all transactions.

c. consumption.

d. spending on final goods and services.

2. Participants in our economy include:

a. Business firms and consumers but not foreigners.

b. Consumers only.

c. Consumers, business firms, governments and foreigners.

d. Foreigners but not business firms.

1. In the actual economy, households

a. spend all of their income.

b. divide their income among spending, taxes, and saving.

c. buy all goods and services produced in the economy.

d. Both (a) and (c) are correct.

 

2. Gross domestic product is defined as

a. the quantity of all final goods and services demanded within a country in a given period of time.

b. the quantity of all final goods and services supplied within a country in a given period of time.

c. the market value of all final goods and services produced within a country in a given period of time.

d. Both (a) and (b) are correct.

 

3. GDP adds together many different kinds of products into a single measure of the value of economic activity by using prices determined by

a. banks.

b. economists.

c. the government.

d. markets.

 

4. Over time, people have come to rely more on market-produced goods and less on goods that they produce for themselves. For example, busy people with high incomes, rather than cleaning their own houses, hire people to clean their houses. By itself, this change has

a. caused measured GDP to fall.

b. not caused any change in measured GDP.

c. caused measured GDP to rise.

d. probably changed measured GDP, but in an uncertain direction; the direction of the change depends on the difference in the quality of the cleaning that has resulted.

 

5. A steel company sells some steel to a bicycle company for $150. The bicycle company uses steel to produce a bicycle, which it sells for $250. Taken together, these two transactions contribute

a. $150 to GDP.

b. $250 to GDP.

c. between $250 and $400 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle.

d. $400 to GDP.

 

6. The total sales of all firms in the economy for a year

a. equals GDP for the year.

b. is larger than GDP for the year.

c. is smaller than GDP for the year.

d. Any of the above is possible.

 

7. GDP is equal to

a. the market value of all final goods and services produced within a country in a given period of time.

b. Y.

c. C + I + G + NX.

d. All of the above are correct.

 

8. The consumption component of GDP includes spending on

a. durable goods and nondurable goods, but not spending on services.

b. durable goods and services, but not spending on nondurable goods.

c. nondurable goods and services, but not spending on durable goods.

d. durable goods, nondurable goods, and services.

6)
 
An improvement in technology causes the production possibilities frontier (PPF) to
 
  shift to the right.
  pivot upward.
  shift to the left.
  pivot downward.

 

 

 
(7)
 
Which of the following is not shown by the circular flow model?
 
  The flow of resources in one direction and money in the other
  The equality of aggregate spending and aggregate income
  The interaction of households, firms, and the government
  The total amount of goods and services the economy can produce

 

 

 
(8)
 
Gross domestic product (GDP) is defined as
 
  the market value of all final goods and services produced in an economy in a given period of time.
  the market value of all consumption goods and services produced in an economy in a given period of time.
  the market value of all investment goods and services produced in an economy in a given period of time.
  the real value of all investment goods and services produced in an economy in a given period of time.

 

 

 
(9)
 
Real GDP
 
  includes all domestic and foreign transactions.
  includes the dollar value of domestic transactions only.
  tries to isolate the effect of changing output, holding prices constant.
  measures GDP in terms of prices of goods and services produced.

 

 

 
(10)
 
When economists talk about economic growth, they are usually referring to
 
  the percentage change in nominal GDP.
  the percentage change in real GDP.
  the percentage change in nominal investment.
  the percentage change in real investment.

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