Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 2, Problem 7MCQ
To determine
To select:
The option which shows the item of real flow in the circular flow model.
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In the circular flow model, households are buyers and firms are sellers in the
a. government market
b. monetary flows
c. goods and services market
d. labor market
Solve all parts
1. Italy's real GDP fell from $2.2 trillion one year to $1.9 trillion the next, the annual growth rate would be:
a
13.6 percent
b
-13.6 percent
c
15.8 percent
d
-15.8 percent
2. good that is most likely to be in the producer price index is:
a
apples
b
gasoline
c
books
d
person in prison
3. The best example of a standardized good would be:
a
an autographed baseball
b
None of these could be considered a standardized good
c
corn
d
a handbag
4. If consumption is $8 billion, investments is $4 billion, government purchases are $2 billion, imports are $1 billion, and exports are $2 billion, GDP must equal:
a
$15 billion
b
$14 billion
c
$17 billion
d
$16 billion
5. market basket:
a
consists of no more than 4 goods.
b
Includes only necessities
c
includes specific goods and services in fixed quantities that roughly correspond to a typical consumer's spending.
d
includes housing, food, clothing, transportation and oil.
Select one or more:
a.
GDP can be measured by adding up all factor incomes paid in an economy
b.
GDP can be measured by adding up the value of all production by all industries.
c.
GDP in expenditure terms can be measured as the sum of C+I+G+X
d.
GDP can be measured by summing the total value added by all industries.
Chapter 2 Solutions
Foundations of Economics (8th Edition)
Ch. 2 - Prob. 1SPPACh. 2 - Prob. 2SPPACh. 2 - Prob. 3SPPACh. 2 - Prob. 4SPPACh. 2 - Prob. 5SPPACh. 2 - Prob. 6SPPACh. 2 - Prob. 7SPPACh. 2 - Prob. 8SPPACh. 2 - Prob. 9SPPACh. 2 - Prob. 10SPPA
Ch. 2 - Prob. 1IAPACh. 2 - Prob. 2IAPACh. 2 - Prob. 3IAPACh. 2 - Prob. 4IAPACh. 2 - Prob. 5IAPACh. 2 - Prob. 6IAPACh. 2 - Prob. 7IAPACh. 2 - Prob. 8IAPACh. 2 - Prob. 9IAPACh. 2 - Prob. 10IAPACh. 2 - Prob. 11IAPACh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 6MCQCh. 2 - Prob. 7MCQ
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- In economic terminology, the inputs used to make goods and services are referred to as A. intangibles . B. factors of production. C. real output . D. durables and nondurables.arrow_forwardfarmer grows a bushel of wheat and sells it to a Miller for $20.00. The Miller turns the wheat into flour and then sells it to a Baker for $25.00. The Baker uses the flour to bake bread and sells the bread to a Musician for $40.00. The Musician eats the bread. The Musician, also grows pumpkins in his backyard garden to feed his family.a. What is the valued added by each person?b. Should the pumpkins be included in GDP? Explain your answer.c. Why does GDP not include in goods that are resold?d. Why is it desirable for a country to have a large GDP?arrow_forwardPart A. In the circular flow diagram what do households do in the factor market, buy or sell? Part B. In the Factor Market do firms buy or sell?arrow_forward
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