An example of "investment" in computing real GDP using the expenditure approach is the purchase of O A 100-year old house bought by a married couple. O Computer chips by DELL to put in their personal computers. O 100 shares of Microsoft stock. O A new set of tools by a car mechanic, for use in repairing cars.

An example of "investment" in computing real GDP using the expenditure approach is the purchase of O A 100-year old house bought by a married couple. O Computer chips by DELL to put in their personal computers. O 100 shares of Microsoft stock. O A new set of tools by a car mechanic, for use in repairing cars.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Companies often produce more goods in a year than they end up selling. How do the unsold goods impact GDP in the year they are produced? O The unsold goods are considered inventory and their value will increase investment spending in the year they are produced. O None of these statements is correct. O The unsold goods are not counted until they are sold in a later year. O The unsold goods are considered durable goods, and their value will increase consumption spending in the year they are produced. « Previous Next » ASUS 14 18 E3 [X & 4 8 9. Y 6
Classify each of the following items as a final good or an intermediate good, and identify whether it is a component of consumption expenditure, investment, or government expenditure on goods and services: Item 1. Packing boxes bought by Amazon.com. Item 2. Starbuck's grande mocha frappuccino bought by a student. Item 3. A new limousine for the president. Item 4. New airplanes bought by United Airlines. Item 1 is and item 2 is O A. an intermediate good; a final good that is consumption expenditure B. a final good that is consumption expenditure; a final good that is consumption expenditure C. a final good that is consumption expenditure; a final good that is investment D. an intermediate good; a final good that is investment Item 3 is and item 4 is O A. an intermediate good; an intermediate good O B. a final good that is government expenditure; a final good that is investment O C. an intermediate good; a final good that is investment D. a final good that is government expenditure; an…
Help Save Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells the dresses for $1,400 to kids attending the prom. The total contribution to GDP of this series of transactions is 37:07 Multiple Choice O $2,500. ○ $700. O SC $1,400. $1,300. 1 2 zoom Q W A S $ % 54 #3 E ய сла 5 MacBook Pro K6 & * ( 7 8 9 R T Y U - +1 יו O O D F G H J K L Z X C T H option command > B N M - A جو P { } [ ] = ? command option
Only two goods are produced in Macroland - Pens and Notepads. Given below are the quantities and prices of these goods in the years 2016 and 2017 Price (2016) Quantity (2016) Price (2017) Quantity (2017) 325 Pens 300 1.5 Notepads 3 200 4 250 Assume 2016 is the base year. Calculate the Real GDP for the year 2017. O so00 O $1487.5 O $1075 O $100
If nominal GDP is $900 and GDP deflator is 120, what is the real GDP in the economy? O a. 1350 Ob. 750 Oc. 850
Which would be included in the category of investment spending in the calculation of GDP? O The purchase of stock in MacDonald's. The purchase of a new machine by Ford. O The selling of IBM corporate bonds. O The buying of shares of Janus mutual funds.
What is total expenditure in an economy? Total expenditure is equal to expenditure ______. A. on goods and services produced in the economy and goods imported. B. by households, firms, governments, and the rest of the world on goods and services produced in the economy. C. by firms and governments on goods and services produced in the economy
Use the following table to answer this question The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis. Consumer spending Durable goods Nondurable goods Services Investment spending Fixed investment spending Nonresidential Structures Equipment and software Residential Change in private inventories Net exports Exports Imports Government purchases of goods and services Federal Category National defense Nondefense State and local What is the value of l? O A. $9,710.2B. O B. $2,130.4B. O C. $2,674.8B. O D. $5,794.4B Components of GDP in 2020 (billions of dollars) $1,082.80 2,833.00 5,794.40 2,134.00 1,503.80 480.3 1,023.50 630.2 -3.6 1,662.40 2,370.20 979.3 662.2 317.1 1.695.50
You Answered Suppose that the economy is made up of a single firm, which pays $300rin interest payments, pays $300 in its labour costs, and pays $2,000 in rental costs for its building. The rest of its revenues are paid out to the owners of this firm. Correct Answer This firm also produces $10,000 of its final product, selling $7,000 to domestic consumers, keeping $2,000 to replenish its inventories, and selling the rest abroad. In this little economy, using the Income Approach, what is the total amount of Business Profits? Note: Round your answers to two decimal places. 8,700 9.400 margin of error +/-0.1
Calculate GDP using the information in the table below: SBillion Durable goods 500 Nonresidential investment 300 Government purchase of goods 400 Exports 300 Government purchases of services 150 Residential investment 100 Services 700 Imports 200 Change in business inventories -50 Nondurable goods 700 Select one: O a. 1950 O b. 2500 O c. 2900 O d. 2750
2. Consumption spending is $3.708 trillion, spending on nondurable goods is $1.215 trillion, and spending on services is $2.041 trillion. What does spending on durable goods equal? 3. Inventory investment is $62 billion and total investment is $1.122 trillion. What does fixed investment equal?
What does our book argue about leisure and GDP? O If we worked like in the past, GDP would be larger, but leisure would be less. If we worked like in the past, GDP would be less, and leisure would be less. O If we worked like in the past, GDP would be less, but leisure would be larger. If we worked like in the past, GDP would be larger, and leisure would be larger. Save Answer *Unsaved Changes