Jocelyn Granger
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Jocelyn Granger
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Lecture 4: Study Quiz

Question 1 of 35

1

Business firms box includes:

Select one of the following:

  • Non-Profit organizations, government agencies, and home owners

  • Savings, expenses, and capital

  • Investments and Intermediate goods & services

  • Construction, labor, and land

Explanation

Question 2 of 35

1

Intermediate goods and services include:

Select one of the following:

  • Government agencies, non-profit organizations, and home owners

  • Components (parts and materials - chemicals, metal, etc), temporary personnel agencies (cleaning, custodian services)

  • Imputation of the value of living

  • Investments of businesses and savings

Explanation

Question 3 of 35

1

Personal Savings is a:

Select one of the following:

  • A net of customer borrowing and drawdown of previously accumulated customer savings.

  • All of the answers are true.

  • It is negative in the case of dissaving.

  • It equals disposable personal income minus consumer spending.

Explanation

Question 4 of 35

1

Why does the implication of Gross Domestic Product equaling Gross National Product imply that the net flow of foreign income is zero?

Select one of the following:

  • The net inflow of foreign income equals the Gross National Income minus the Gross Domestic Product.

  • Gross Domestic Product equals Gross National Income plus the net inflow of foreign income.

  • None of the answers are correct.

  • Gross National Income equals Gross Domestic Product plus the net inflow of foreign income.

Explanation

Question 5 of 35

1

The Net Inflow of Foreign Income include:

Select one or more of the following:

  • Net return to foreign assets.

  • Net return to foreign labor.

  • Net return to foreign land.

  • Net return to foreign workers.

Explanation

Question 6 of 35

1

Arrows omitted from the diagram to avoid excessive clutter are:

Select one or more of the following:

  • Imported Immediate Goods and services.

  • Foreign land and assets.

  • Business loans and mortgage loans.

  • Foreign labor and markets.

Explanation

Question 7 of 35

1

The currency markets not shown would include:

Select one or more of the following:

  • X and M International Financial Capital.

  • Change in international reserves.

  • Net inflow of foreign income.

  • Imported intermediate goods and services.

Explanation

Question 8 of 35

1

Inventory refers to:

Select one of the following:

  • Items that haven't been produced or sold.

  • Items that have been produced and sold.

  • Items that have been produced but not yet have been sold.

  • None of the answers are true.

Explanation

Question 9 of 35

1

It is not possible to produce services without a buyer but it is possible to produce goods without a buyer.

Select one of the following:

  • True
  • False

Explanation

Question 10 of 35

1

What must we distinguish between in the diagram?

Select one of the following:

  • Production and spending in the diagram.

  • The GDP measures production while the GDP minus INV equals spending.

  • All of the above.

  • None of the above.

Explanation

Question 11 of 35

1

It is not possible for production to be either greater or smaller than spending.

Select one of the following:

  • True
  • False

Explanation

Question 12 of 35

1

Inventories serves as a reservoir between production and sales.

Select one of the following:

  • True
  • False

Explanation

Question 13 of 35

1

When does an unplanned change in inventory happen?

Select one of the following:

  • When the net inflow of foreign incomes starts to vary.

  • Whenever the number of GDP changes.

  • Whenever variables in the supply and the demand curve change.

  • Whenever sales exceed or fall short of expectation.

Explanation

Question 14 of 35

1

What is an example of physical capital?

Select one of the following:

  • Building.

  • Knowledge.

  • Money.

  • Education.

Explanation

Question 15 of 35

1

What is an example of human capital?

Select one of the following:

  • Land.

  • Money.

  • Factory.

  • Education.

Explanation

Question 16 of 35

1

What is an example of financial capital?

Select one of the following:

  • Labor

  • Money

  • Land

  • Knowledge.

Explanation

Question 17 of 35

1

National Income is paid to people for providing inputs to the producing entities:

Select one or more of the following:

  • Earned income or employee compensation.

  • Rent for natural resources such as a land and mineral rights.

  • Interest for financial capital.

  • Profits paid out to the owners of the physical capital.

  • Investment

Explanation

Question 18 of 35

1

Why is investment important?

Select one or more of the following:

  • It fluctuates up and down and pulls the economy along with it.

  • It increases the production capacity of the economy.

  • It introduces new technology to the economy.

  • It increases the productivity of workers.

Explanation

Question 19 of 35

1

The difference between macro and the micro meaning of investment is for a business, investment is the acquisition of additional physical capital, which could be either newly created or bought used from a business, and only the former is investment from the macro point of view.

Select one of the following:

  • True
  • False

Explanation

Question 20 of 35

1

What is the best answer that describes the meaning of disinvestment?

Select one of the following:

  • When you invest in a business and it becomes a deficit.

  • When you don't invest in a business

  • If a business buys a used machine from another business then the productive capacity rises for one business but falls for the other business.

  • All of the answers are true.

Explanation

Question 21 of 35

1

Sale by one person to another person of stock is an investment.

Select one of the following:

  • True
  • False

Explanation

Question 22 of 35

1

In the National Economic Accounts in Change in Inventories is counted as a part of Investment.

Select one of the following:

  • True
  • False

Explanation

Question 23 of 35

1

Spending on education and job training creates human capital and is an example of:

Select one of the following:

  • Government Spending

  • Consumer Spending

  • Investment

Explanation

Question 24 of 35

1

Spending on infrastructure projects such as roads and airports are an example of:

Select one of the following:

  • Government Spending

  • Investment

  • Consumer Spending

Explanation

Question 25 of 35

1

Construction of new houses is an example of:

Select one of the following:

  • Government Spending

  • Consumer Spending

  • Investment

Explanation

Question 26 of 35

1

Investment goods are considered to be a final good and productions of investment goods counts in GDP.

Select one of the following:

  • True
  • False

Explanation

Question 27 of 35

1

How are investment goods and intermediate goods and services similar?

Select one of the following:

  • Both are bought by business firms and other business firms.

  • All of the above.

  • Both are used in production.

  • None of the above.

Explanation

Question 28 of 35

1

Why are intermediate goods and services and investment goods treated differently when it comes to GDP?

Select one of the following:

  • The number of input.

  • Their effect on the economy.

  • Their number of contributed outputs and their productive lifetime.

  • Their value.

Explanation

Question 29 of 35

1

Fixed Investment Includes:

Select one or more of the following:

  • Non-residential fixed investment

  • Foreign-trade fixed investment

  • Changes inventory

  • residential fixed investment

Explanation

Question 30 of 35

1

One reason to divide GDP into its components is to facilitate the explanation of the size of GDP and the changes that occur over time.

Select one of the following:

  • True
  • False

Explanation

Question 31 of 35

1

What is one type of comparison that is used today for GDP?

Select one of the following:

  • USA today versus the USA earlier in history.

  • Foreign Countries versus foreign countries.

  • Canada versus China.

  • All of the above.

Explanation

Question 32 of 35

1

What are some adjustments required to create a fair comparison of GDP?

Select one or more of the following:

  • Use real GDP to adjust for inflation.

  • Use components of GDP use to create division to monitor changes.

  • Using different components to respond to different influences.

  • Use per capita GDP to adjust differences in population size.

Explanation

Question 33 of 35

1

What is ignored by GDP?

Select one or more of the following:

  • Pollution

  • Working Conditions

  • Labor and marketing laws

  • Depletion of Natural Resources

  • Leisure time

  • Building nuclear bombs.

Explanation

Question 34 of 35

1

The Underground Economy is reported for calculations of GDP.

Select one of the following:

  • True
  • False

Explanation

Question 35 of 35

1

Household work and child care are not counted in the GDP.

Select one of the following:

  • True
  • False

Explanation

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