Question

grow. Specifically, the cowy grow at least as fast as the labor force to avoid plot When conomic growth slows below this threshold, unemploy rates start to rise. Full Employment Goal hapters we examine the cause responses. At the CHAPTER 6: UNEMPLOYMENT Oy 123 Name: Marie 1. The GDP is: A) C+I+G+(X-M). B) The sum of value added at every stage of the production process. © The total market value of final goods and services. D) All of the above. 2. Which of the following is excluded from calculations of GDP? A) Goods that are produced but not sold during the time period. B) Income received by managers of corporations. C) The value of lawn mowing provided by a teenager for his own family. D) Goods that bring little value to society. 3. Which of the following would be included in Canada's GDP but excluded from Canada's GNP? A) Some of the output produced by a U.S.-owned firm operating in Canada. B) Some of the output produced by Canadian-owned firms operating in France. C) The sale of used cars. D) All output is counted in both GDP and GNP. 4. The labor force is defined as all persons:

Answer 1

Q1 Answer is option D. All these could be called GDP.

Q2 Answer is C. Lawn mowing in own home is not included in GDP because it is not purchased or sold in market. All the goods and services having Market value are added.

Q3 Answer is Option A. While calculating GNP from GDP we deduct the payment made to foreign nation earned in home country and add the income earned by nationals outside the country. Here income is earned by US company so it will be deducted from GDP while calculating GNP.

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