Question

ECON 250 30. Which of the following is NOT included in U.S. GDP? the estimated rental value of owner-occupied housing in the U.S.A. b.US. home grown garden for family consumption c. production of foreign citizens living in the United States d services such as those provided by American lawyers and America hair stylists working in the USA 31. One bag of flour is sold for $2.50 to a bakery, which uses the flour to bake bread. Five loafs of bread was baked and will $1.50 per loaf to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00 per bag. Taking the transactions into account, what is the effect on GDP? . GDP increases by S1.50. b. GDP increases by S3.50. c. GDP increases by S6.00. d. GDP increases by $9.50. 32. If Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself, then GDP a will be unaffected because the same service is produced in either case. b. necessarily falls. c. will be unaffected because car maintenance is not included in GDP. d. necessarily rises. 33. Until recently, George lived in a home that was newly constructed in 2005. In 2005, he paid $200,000 for the brand new He sold the house in 2006 for $225,000. Which of the following statements is correct regarding the sale of the house? a. The 2006 sale affected neither 2005 GDP nor 2006 GDP. b. The 2006 sale increased 2006 GDP by $25,000 and had no effect on 2005 GDP. c. The 2006 sale increased 2006 GDP by S225,000 and had no effect on 2005 GDP d. The 2006 sale increased 2006 GDP by $225,000; furthermore, the 2006 sale caused 2005 GDP to be revised upward by S2 34. Consumption consists of spending by households on goods and services such as purchasing intangible services, durable non-durable goods. If you buy a burger and fries at your favorite fast food restaurant, 1. neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the b. GDP will be higher, but consumption spending will be unchanged. c. GDP will be unchanged, but consumption spending will be higher. d both GDP and consumption spending will be higher. 35. For the purpose of calculating GDP nestent is spending on new canital equipment, inventories, and structures, include housing. If a U.S. publisher purchases new computers that were manufactured in the US, then this purchase by itself makes a. a positive contribution to investment, but it does not affect GDP. b. a positive contribution to GDP, but it does not affect investment or consumption c. a positive contribution both to investment and to GDP. d. a positive contribution both to consumption and to GDP 36. Government purchases include spending on goods and services by local state and federal governments. Thus, which oft following items is NOT counted as part of government purchases? a. Social Security payments. b. The federal government pays the salary of a Navy officer. c. The state of Nevada pays a private firm to repair a Nevada state highway. d. The city of Las Vegas, Nevada pays a private firm to collect garbage in that city A transfer payment is a form of government spending that is not made in exchange for a currently produced good or se example, to encourage formation of small businesses the powerment could provide subsidies; these subsidies a would not be included in GDP because the government raises taxes to pay for them b. would be included in GDP because they are part of government expenditures c. would be included in GDP because they are part of investment expenditures. d. would not be included in GDP because they are transfer payments. 38. If net exports is a positive number for a particular year, then a the value of fimms' inventories declined over the course of the year b. consumption exceeded the sum of investment and government purchases during the year c. the value of goods sold to foreigners exceeded the value of foreign ses sold to forei uners exceeded the value of foreign exis purchased during the year. 0, the value of foreign goods purchased exceeded the value of goods sold to foreigners during the se T T GP . in the economy of Wrexington in 2008, consumption was $3000, exports were $400, GDP was S5000, imports were so investment was $100. According to the expenditure approach Wrexington's government purchases in 2008 15, $1,100. b. S1,330 c. $1,230. d. S11,230 RMUNNICHA

Answer 1

Answer 30.b.  US homegrown garden for family consumption

It will not be we considered for GDP calculation as it is a internal consumption . No one pays , no one gets paid either.

Answer 31.d. ​​​​ GDP increases by $9.50

​​​​​​The worth of goods for final consumption is : ($1.50 x 5) + $2.00 =$ 9.50

Answer 32 .b. ​​​​ necessarily falls

As the service is no longer being served the value of service is not accounted for GDP does reducing the GDP.

Answer 33. a. The 2006 sale neither affected 2005 GDP nor 2006 GDP

Arasan resale of a house is not considered in GDP calculation only the manufacturing of a house is considered. The construction of the house and its value was considered in 2005 GDP the 2006 same had no bearing over the GDP of any of these two years.