Which of the following expenditures is included in the consumption component of the gross domestic product (GDP)?
a. The money spent on the purchase of stocks
b. The money spent on the purchase of used furnitures
c. The money spent on the purchase of a used car
d. The money spent on the purchase of kitchen appliances
e. The money spent on the purchase of bonds issued by the government
QUESTION 2If the market price of bicycle frames is 500, and frame welders earn a wage of 50, how many welders will be hired?
a. 10.
b. More than 10.
c. Fewer than 10.
d. Hiring will stop when the MP is 10.
e. Hiring will stop when the MP is 0.1.
QUESTION 3When net taxes increase and government purchases decrease, _____.
a. the price level will rise
b. money supply must rise
c. the aggregate demand curve shifts leftward
d. output and employment increase
e. the aggregate supply curve shifts leftward
QUESTION 4If a firm increases output and its average total cost rises, then the firm is experiencing economies of scale.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5The gross domestic product (GDP) excludes:
a. the increase in inventories during a given period.
b. the expenditures by government for newly produced goods and services during a given period.
c. the value of intermediate goods produced in an economy during a given period.
d. the value of final output during a given period.
e. household expenditure on durable goods.
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