Question

1. Since the U.S. is organized as a market economy, the government sector does not play any role in economic activity.

Group of answer choices

True

False

2. ​GDP equals $8 trillion. If consumption equals $5.5 trillion, investment equals $500 billion, and government spending equals $1.5 trillion, then:

Group of answer choices

​exports exceed imports by $500 billion.

​imports exceed exports by $500 billion.

​net exports equal zero.

​exports exceed imports by $1 trillion.

3. ​GDP excludes:

Group of answer choices

​business purchases of investment goods, such as factories.

​government purchases of military equipment.

​the building of a new apartment complex.

​none of the above.

Answer 1

a) False, even in the market economy government has the management role and they interfere to ensure optimal utilization of the resources.

b) "A"

Exports will exceed the imports by $500 billion as the net exports will be $500.

c) "D"

none of the above options are excluded in the GDP calculations.