Chapter 11 Measuring a Nation’s Production and Income

| November 9, 2018

36)
A nation’s net exports consist of
A)
its exports plus its imports.
B)
its exports minus its imports.
C)
its exports plus all other nation’s imports.
D)
its imports plus all other nation’s exports.

37)
Net exports include goods produced
A)
domestically that are sold domestically, less goods produced domestically that
are sold abroad.
B)
domestically that are sold abroad, less goods produced domestically that are
sold domestically.
C)
domestically that are sold abroad, less goods that are produced abroad that are
sold domestically.
D)
abroad that are sold domestically, less goods that are produced domestically
that are sold abroad.

38)
Which of the following should be included in U.S. GDP?
A)
a 3D television manufactured in Thailand and sold in the United States
B)
a 3D television manufactured in Thailand by a U.S. firm and sold in the United
States
C)
a 3D television manufactured in the United States and sold in Thailand
D)
a used 3D television manufactured in the United States and sold in Thailand

39)
A trade surplus occurs when
A)
a country purchases more from abroad than other countries purchase from it.
B)
a country sells more abroad than it purchases from abroad.
C)
a country’s firms open more stores abroad than foreign firms open in the
country.
D)
foreign firms open more stores in a country than the country opens in foreign
countries.

40)
Exports ________ GDP and imports ________ GDP.
A)
increase; decrease
B)
decrease; increase
C)
increase; increase
D)
decrease; decrease

41)
GDP is supposed to measure the goods ________ the United States.
A)
purchased in
B)
produced in
C)
imported to
D)
exported to

42)
When considering imports and exports, economists include the ________ as a
component of the GDP.
A)
total imports
B)
total exports
C)
net exports
D)
gross exports

43)
A “trade deficit” occurs when
A)
we sell more to other countries than we buy from them.
B)
we buy more from other countries than we sell to them.
C)
we sell more to one country than another.
D)
we sell less to one country than another.

44)
The GDP equation is
A)
Y = C + I + G + NX.
B)
Y = C – I – G – NX.
C)
C + I = G + NX.
D)
C + I = Y + G + NX.

45)
Intermediate goods are not counted as part of gross domestic product.

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