1. Which of the following is not an economic investment?
A. The purchase of a drill press by the Ajax Manufacturing Company.
B. The purchase of 100 shares of AT&T by a retired business executive.
C. construction of a suburban housing project.
D. The piling up of inventories on a grocer's shelf.
2. If the economy adds to its inventory of goods during some year:
A. Gross investment will exceed net investment by the amount of the inventory increase.
B. This amount should be ignored in calculating that year's GDP.
C. This amount should be subtracted in calculating that year's GDP.
D. This amount should be included in calculating that year's GDP.
3. Transfer payments are:
A. excluded when calculating GDP because they only reflect inflation.
B. excluded when calculating GDP because they do not reflect current production.
C. included when calculating GDP because they are a category of investment spending.
D. included when calculating GDP because they increase the spending of recipients.
1. Which of the following is not an economic investment?
A. The purchase of a drill press by the Ajax Manufacturing Company.
B. The purchase of 100 shares of AT&T by a retired business executive.
C. construction of a suburban housing project.
D. The piling up of inventories on a grocer's shelf.
2. If the economy adds to its inventory of goods during some year:
A. Gross investment will exceed net investment by the amount of the inventory increase.
B. This amount should be ignored in calculating that year's GDP.
C. This amount should be subtracted in calculating that year's GDP.
D. This amount should be included in calculating that year's GDP.
3. Transfer payments are:
A. excluded when calculating GDP because they only reflect inflation.
B. excluded when calculating GDP because they do not reflect current production.
C. included when calculating GDP because they are a category of investment spending.
D. included when calculating GDP because they increase the spending of recipients.
