Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Question
Chapter 2, Problem 3QQ
To determine
The correct option.
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Students have asked these similar questions
Classify the type of expenditure in the following transactions.
Tuition paid by your parents
is
_______.
A new office building
is _______.
A.
consumption expenditure; consumption expenditure
B.
investment; investment
C.
government expenditure; investment
D.
consumption expenditure; investment
Classify each of the following items as a final good or service or an intermediate good or service, and identify which is a component of consumption expenditure, investment, or government expenditure on goods and services.
A. A textbook bought by a student
B. A computer purchased for a senator's office
C. New cars bought by Hertz, the car rental firm
D. Aluminum sheets bought by Boeing
1.
A is
a final good that is consumption expenditure,
B is
a final good that is government expenditure,
C is
a final good that is investment,
and D is
an intermediate good.
2.
A is
a final good that is investment,
B is
an intermediate good,
C is
a final good that is investment,
and D is
an intermediate good.
3.
A is
a final good that is consumption expenditure,
B is
an intermediate good,
C is
a final good that is consumption expenditure,
and D is
a final good that is investment.
4.
A is
a final good that is consumption expenditure,
B is
a final good…
When the Japanese car maker Toyota expands one ofits car factories in the United States, what is the likelyimpact of this event on the gross domestic productand gross national product of the United States?a. GDP rises and GNP falls.b. GNP rises and GDP falls.c. GDP and GNP both rise but GDP rises by more.d. GDP and GNP both rise but GNP rises by more.
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- 1- When opening a print shop you need to buy printers, computers, furniture, and similar items, economists call these expenditures is capital investment. Select one: a. False b. True 2- M/S - Saud Bahwan Group, Muscat buys 30 Hyundai Accent cars from South Korea to sell during 2018 Ramadan sale. Each car is purchased at a cost of 8500 OMR. Which component of the GDP shows the reflection and how much? Select one: a. Consumption - OMR 255,000 b. Imports – OMR 255,000 c. Government purchases - OMR 255,000 d. Investment - OMR 255,000arrow_forwardWhat 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 economyarrow_forward1. What is GDP? 2. What is net export? 3. What is the difference between Microeconomics and Macroeconomics? 4. What is consumption? 5. What are investments? 6. Write the equation for GDParrow_forward
- How will an increase in taxes applied to businesses affect the GDP based on the Expenditure Approach? a. Negative effect on net exports b. Negative effect on the gross domestic capital formation c. Increase in government’s budget d. Positive effect on private consumptionarrow_forward20. Which of the following represents the measurement of GDP as the sum of consumption expenditures, investment, government purchases of goods and services, and net exports? a.Wealth approach b.Income approach c.Expenditure approach d.Saving approacharrow_forwardFor a consumption dependent economy like Malaysia and the United States, which factor contributes most to their GDP? a. Government spending b. Gross private domestic consumption c. Foreign direct investments d. Net exportsarrow_forward
- 27,28arrow_forwardWhen the Japanese car maker Toyota expands one of its car factories in the United States, What is the likely impact of this event on the gross domestic product and gross national product of the United States? a.GDP rises and GNP falls. b.GNP rises and GDP falls. c. GDP shows a larger increase than GNP d. GNP shows a larger increase than GDParrow_forwardQ.1.8 In the national income accounts: (2)(1) Total spending is always equal to total production and income. (2) Total spending is always greater than total production and income. (3) Total spending is always less than total production and income. (4) Total spending may be greater than, equal to or less than total productionand income.arrow_forward
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