Question

One of those for t wold for 3.00 to GO AWON h e store for $2.00. Taking these two cenas a. GDP r by 12.00 CHO NHAU ĐI SAO GOP ITS 5.00 d. OOP increases by 5.00 5. The nominal Verest you a. how at the number of dollars in your b. how fast the purchasing power of your br the number of dollars in your br o wy y d. the purchasing power of your bod , KIL representa c 6. Figure 25-1: On the hormonas vertical axis, YIL represents output (Dow ). o n The shape of the curve is consistent with which of the following statements economy to which the curve applies? a. In the long run, a higher saving rate leads to a higher growth b. In the long run, a higher saving rate leads to a higher growth incon c. Returns to capital become increasingly smaller as the amount of capital Increases d. Returns to capital become increasingly bigger as the amount of capital Increases 7. When Mexico experiences investment from abroad, t experiences, as are a. an increase in productivity. b. a decrease in Gross Domestic Product (GDP). c. lower wages for Mexican workers. d. None of the above is correct. 8. Government transfer payments, such as social security, are a. Included in GDP because they are in return for a service b. Excluded from GDP because they are not in return for a servic C. Included in GDP as part of net exports d. Included in GDP as part of government investment spending

Answer 1

4)

Answer: (C)

Only final consumption is counted in the calculation of GDP. Thus, final consumption is 3+2 = 5.

The right answer is: the increase in GDP is equal to $ 5.

5)

Answer: (A)

Nominal interest rate talks about the rise in the amount of money only. it does not talk about the purchasing power of money.

6)

Answer: ( C)

Shape of production function shows that marginal productivity of capital is declining.

7)

Answer: (A)

Inflow of foreign capital leads to rise in the productivitiy.

8)

Answer: (B)

transfer payments are not included in GDP calculation.