Which of the following would be counted as a final good for inclusion in gdp?

plz explain the answer (5)which of the following would be counted as a final good for inclusion in GDP? A. a price of glass bought this year by a consumer to fix a broken window. B. A sheet of glass produced this year by Ford for windows in a new car. C. A tire produced this year and sold to a car make for a new car sold this year. D. None of these would be counted in GDP. My choice C The correct answer A Explain: (6) When net exports are negative, A. exports are greater than investment. B. depreciation is greater than net investment. C. imports are greater than investment. D. exports are greater than imports. E. imports are greater than exports. (7) GDP does not count; A. the estimated value of homemaker production, B. state and local government purchases. C. spending for new homes. D. changes in inventories. (10) Economists usually use the term “recession” to refer to: A. any slowdown in the growth of real GDP. B. zero real GDP growth. C. two or more consecutive quarters of declining real GDP D. a reduction in nominal GDP lasting more than six months. (11) which one of the following transactions would be included in GDP? A. Ms. Kim pays $50 for a used picture frame at a neighborhood garage sale. B. Mr. Doe donates $500 his town’s junior college scholarship fund. C. Ms. Bartolini pays $500 to fix the front end of her car damaged in a recent accident. D. Ms. Smith pays $5,000 to purchase 100 shares of Microsoft stock. (15) For a given year, productivity in a particular country is most closely matched with that country’s A. level of real GDP over that year. B. level of real GDP divided by hours worked over that year. C. growth rate of real GDP divided by hours worked over that year. D. growth rate of real GDP per person over that year. (18) Janet is a farmer. Which of the following are included in her human capital? A. her tractor and what she’s learned from experience B. her tractor but not what she’s learned from experience. C. what she’s learned from experience but not her tractor. D. neither her tractor nor what she’s learned from experience. (19) Technological knowledge A. is the same thing as human capital. B. can be discovered but it can never be kept secret. C. is a determinant of productivity. D. does not play a role in the relationship that economists call the production function. (21) the catch-up effect refers to the idea that A. saving will always catch-up with investment spending. B. it is easier for a country to grow fast and so catch-up if it starts out relatively poor. C. population eventually catches-up with increased output. D. if investment spending is low, increased saving will help investment to “catch-up.” (22). The overriding reason why households and societies dace many decisions is that A. resources are scarce. B. goods and services are not scarce. C. incomes fluctuate with business cycles. D. people, by nature, tend to disagree. (24). Melody decides to spend three hours working overtime rather than going to the park with her friends. She earns $20 per hour for overtime work. Her opportunity cost of working is A. the $60 she earns working. B. the $60 minus the enjoyment she would have received from going to the park. C. the enjoyment she would have received had she gone to the park. D. nothing, since she would have received less than $60 worth of enjoyment form going to the park. (26) “prices rise when the quantity of money rises rapidly” is an example of a A. negative economic statement. B. positive economic statement. C. normative economic statement. D. statement that contradicts one of the basic principles of economics. (30) exhibit 2-1 production possibilities curve data. 2-1 consumption goods capital goods 10 0 9 1 7 2 4 3 0 4 In Exhibit 2-1, the opportunity cost of producing the fourth unit of capital is: A. 0 B. 1 units of consumption goods C. 2 units of consumption goods D. 4 units of consumption goods E. There is not enough information to estimate the opportunity cost. (31) If an economy is operating at a point inside the production possibilities curve, A. its resources are not being used efficiently. B. the curve will begin to shift inward. C. the curve will begin to shift outward. D. this is a trick question because an economy cannot produce at a point inside the curve. (32) which of the following would be least likely to cause the production possibilities curve to shift outward? A. a decreased desire for leisure by workers in the economy. B. an invention that requires fewer resources to produce a good. C. a shift in consumer preferences that causes expansion in the output of one product and a decline in output of other products. D. an expansion in the man-made productive resources available to the economy as the result of a high rate of investment. (34) Susan switches from going to speedy lube for an oil charge to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is A. included in GDP whether Susan pays speedy lube to change it or changes it herself. B. included in GDP if Susan pays speedy lube to change it but not if she changes it herself. C. included in GDP if Susan changes it herself, but not if she pays Speedy Lube to change it. D. not included in GDP whether Susan pays Speedy lube to change it or she changes it herself.

Answer

5) A. a price of glass bought this year by a consumer to fix a broken window. This is because GDP includes final goods and consumer purchase glass to use it finally in fixing broken window. 6) E. imports are greater than exports. Net Exports = Exports – Imports When Exports are greater than imports then net exports is positive and vice-versa. (7) A. the estimated value of homemaker production GDP of a country does not include homemaker production because the person is not getting paid for it. (10) C. two or more consecutive quarters of declining real GDP The recession is fall in the real GDP during a period of time. (11) C. Ms. Bartolini pays $500 to fix the front end of her car damaged in a recent accident.

Payment is made for the final consumption of good. Expenditure on final consumption included in GDP.

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