Question

economy produced four final goods during the year plates, TVs, bicycles, and 19) y bicycles were produced and sold for $100 each. Three computers were produced 19) A hypothetical computers. Forty plates were produced and sold for $10 each. Five TVs were produced and sold for $300 each. Fif and sold for $750 each. With this information, one could determine A) total income for this economy B) net investment for this economy C) gross investment for this economy D) whether factors had been fully employed in this economy. E) indirect taxes less subsidies for this economy 20) Suppose the economy of Econoworld produces only two goods, kayaks and birdseed. In one year 20) 20 kayaks are produced and sold for $1,000 each and 10 bags of birdseed are produced and sold for $30 each. The value of nominal GDP for this year is A) $300. B) $20,300. C) $23,000 D) $20,000. E) 20 kayaks plus 10 bags of birdseed. 21) Which one of the following would be included in the calculation of GDP by the expenditure 21 approach? A) the value of your brother's services when he mows the lawn for the family B) the purchase of 20 shares of a new issue of IBM stock C) the income you pay to your gardener D) the cost of adding a new kitchen to your house E) the purchase of an original eighteenth century work of art Use the table below to anstoer the follorwing questions. Table 20.23 Item Wages paid to labour Consumption expenditure Taxes paid on wages Firms' profits Investment Taxes paid on profits Government expenditure on goods and service Exports Saving 650,000 200,000 Government payments to support unemployed, sick, & aged50,000 200,000 250,000 50,000 200,000 250,000 200,000 300,000 22) Refer to Table 20.2.3. Consider the economy represented in the table. GDP in this economy, in 22) millions of dollars, is A) $1,150,000 B) $1,350,000. C) $1,050,000 D) $850,000. E) none of the above.

Answer 1

19 (A) from the given information the gross domestic product can be calculated which is equivalent to the total income of the economy.

20 (B) 20*1000+ 30*10= 20,300

21 (B) investing in bond is a part of investment which will be included in GDP