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A-GNP CHAP 13 QUESTIONS AND ANSWERS
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A-GNP CHAP 13 QUESTIONS AND ANSWERS
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A-GNP CHAP 13 QUESTIONS AND ANSWERSc - Answers -The highest component of GNP is
A) investment.
B) government purchases.
C) consumption.
D) trade.
E) the current account.
b - Answers -Which one of the following statements is the MOST accurate?
A) GNP plus depreciation is called net national product (NNP).
B) GNP less depreciation is called net national product (NNP).
C) GDP plus depreciation is called net national product (NNP).
D) GDP less depreciation is called net national product (NNP).
E) GNP less depreciation is called net factor product (NFP).
c - Answers -GNP equals GDP
A) minus receipts of factor income from the rest of the world.
B) plus receipts of factor income from the rest of the world.
C) plus net receipts of factor income from the rest of the world.
D) minus depreciation.
E) minus net receipts of factor income from the rest of the world.
b - Answers -An example of how GNP accounts for services provided by foreign-owned
capital (and GDP does not) is
A) earnings of a Spanish factory with British owners counts only in Britain's GNP.
B) earnings of a Spanish factory counts in Spain's GDP but are part of Britain's GNP.
C) earnings of a Spanish factory counts in Spain's GNP but are part of Britain's GDP.
D) earnings of a Spanish factory with British owners counts only in Spain's GDP.
E) earnings of a Spanish factory counts in Spain's GNP but not in Britain's GDP or
GNP.
d - Answers -A country's gross national product (GNP) is
A) the value of all final goods produced by its factors of production and sold on the
market in a given time period.
B) the value of all final goods and services produced by its factors of production,
excluding land, and sold on the market in a given time period.
C) the value of all final goods and services produced by its factors of production and
sold on the market.
D) the value of all final goods and services produced by its factors of production and
sold on the market in a given time period.
E) the value of all intermediate goods and services produced by its factors of production
and sold on the market in a given time period.
c - Answers -For most macroeconomists
A) gross national product is much more important than gross national income.
, B) it is hard to tell whether gross national income equal gross national product.
C) gross national income and gross national product are the same.
D) gross national product exceeds gross national product.
E) gross national income exceeds gross national product.
c - Answers -Which one of the following statements is the MOST accurate?
A) The sale of a used textbook is a part of the GNP.
B) It is hard to tell whether a sale of a used textbook does or does not generate income
for factors of production.
C) The sale of a used textbook does not generate income for any factor of production.
D) The sale of a used textbook sometimes does and sometimes does not generate
income for factors of production.
E) The sale of a used textbook does generate income for factors of production.
b - Answers -In open economies
A) as in a closed economy, saving and investment are not necessarily equal.
B) saving and investment are not necessarily equal as they are in a closed economy.
C) investment always refers to the domestic stock market.
D) saving and investment are necessarily equal.
E)saving and investment are necessarily equal contrary to the case of a closed
economy.
e - Answers -In 1929, government purchases accounted for
A) only 18.5 percent of U.S. GNP.
B) 28.5 percent of U.S. GNP.
C) 48.5 percent of U.S. GNP.
D) 38.5 percent of U.S. GNP.
E) only 8.5 percent of U.S. GNP.
b - Answers -Investment is usually
A) It is hard to tell from the data whether investment is more or less variable than
consumption.
B) more variable than consumption.
C) a larger component of the GNP than consumption.
D) as variable as consumption.
E) less variable than consumption.
e - Answers -The CA is equal to
A) Y + (C - I - G).
B)Y - (C + I - G).
C) Y + (C + I + G).
D) Y - (C + I + G).
E) Y - (C - I + G).
d - Answers -Government transfer payments like social security and unemployment
benefits are
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