2023年宏观经济学题库

Macroeconomics^lOe(Parkin)

Chapter4MeasuringGDPandEconomicGrowth

1GrossDomesticProduct

1)Grossdomesticproductisthetotalproducedwithinacountryinagiventime

period.

A)marketvalueofallfinalandintermediategoodsandservices

B)marketvalueofallgoodsandservices

C)amountoffinalandintermediategoodsandservices

D)marketvalueofallfinalgoodsandservices

Answer:D

Topic:GDP

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

2)Grossdomesticproduct

A)includesallthegoodsandnoneoftheservicesproducedinaneconomyinagiventime

period.

B)measuresthevalueoftheaggregateproductionofgoodsandservicesinacountryduringa

giventimeperiod.

C)measuresthevalueoflaborpaymentsgeneratedinaneconomyinagiventimeperiod.

D)isgenerallylessthanfederalexpenditureinanytimeperiod.

Answer:B

Topic:GDP

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

3)Grossdomesticproductisameasureofthetotalvalueofall

A)salesinaneconomyoveraperiodoftime.

B)consumerincomeinaneconomyoveraperiodoftime.

C)capitalaccumulationinaneconomyoveraperiodoftime.

D)finalgoodsandservicesproducedinaneconomyoveraperiodoftime.

Answer:D

Topic:GDP

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

4)Grossdomesticproduct(GDP)istheinagiventimeperiod.

A)valueofpersonalconsumptionexpenditures,grossprivatedomesticinvestment,andfederal

governmentexpenditures

B)sumofwageandsalarycompensationofemployeesandcorporateprofits

C)valueofallfinalandintermediategoodsandservicesproducedbytheeconomyexcluding

thosegoodsexportedtoforeignnations

D)marketvalueoffinalgoodsandservicesproducedbytheeconomy

Answer:D

Topic:GDP

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

5)Grossdomesticproduct(GDP)measuresthe

A)numberoffinalgoodsandservicesproducedintheeconomyinagiventimeperiod.

B)numberoffinalgoodsandservicessoldintheeconomyinagiventimeperiod.

C)marketvalueofoldandnewfinalgoodsandservicessoldintheeconomyinagivenlime

period.

D)marketvalueoffinalgoodsandservicesproducedintheeconomyinagiventimeperiod.

Answer:D

Topic:GDP

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

6)GDPisdefinedasthemarketvalueofallinagiventimeperiod.

A)finalgoodsproducedinacountry

B)finalgoodsandservicesproducedbycitizensofaparticularcountryregardlessofwherein

theworldtheyarclocated

C)finalgoodsandservicesproducedinacountrybyonlythecitizensofthecountry

D)finalgoodsandservicesproducedinacountry

Answer:D

Topic:GDP

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

7)InthedefinitionofGDP,"marketvalue"refersto

A)valuingproductioninproductionunits.

B)notcountingintermediateproducts.

C)valuingproductionaccordingtothemarketprice.

D)whentheproductiontookplace.

Answer:C

Topic:MarketValue

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinkin?

8)IntheUnitedStates,GDPistypicallymeasured

A)monthly.

B)quarterly.

C)daily.

D)weekly.

Answer:B

Topic:TimePeriod

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

9)IfNike,anAmericancorporation,producessneakersinThailandthiswould

A)countaspartofU.S.GDPsinceitisaU.S.corporation.

B)countforbothThailand'sGDPandU.S.GDP.

C)addtoThailand'sGDPbutnottoU.S.GDP.

D)addtoneitherU.S.GDPnorThailand'sGDP.

Answer:C

Topic:Production

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

10)IfFritoLay,anAmericansnackcompany,opensanewmanufacturingfacilityinMexicoand

producessnackswhicharedistributedinSouthAmerica,thenMexico'sGDPandU.S.

GDP.

A)increases;doesnotchange

B)doesnotchange;increases

C)increases;decreases

D)increases;increases

Answer:A

Topic:Production

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

11)Theword''final"inthedefinitionofGDPrefersto

A)notcountingintermediategoodsorservices.

B)thetimeperiodwhenproductiontookplace.

C)valuingproductionatmarketprices.

D)countingtheintermediategoodsandservicesusedtoproduceGDP.

Answer:A

Topic:FinalGood

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

12)Aloafofbreadpurchasedbyoneofyourinstructorswouldbebestdescribedas

A)anintermediategood.

B)afinancialasset.

C)ausedgood.

D)afinalgood.

Answer:D

Topic:FinalGood

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

13)Whichofthefollowingisafinalgood?

A)thememorychipsinyournewsmartphone

B)ashareofIBMstock

C)flourpurchasedatthestoretobakecookies

D)flourusedbythebakerytobakecookies

Answer:C

Topic:FinalGood

Skill:Recognition

Questionhistory:NewIOthedition

AACSB:ReflectiveThinking

14)In2023,Ozziepurchaseda2023FordEscortfromhisneighborforhisson,purchaseda

2023"oneowner"CamryfromLarchmontToyotaforhiswife,boughta2023newFordfor

himself,andsoldhis2023DodgeCaravantohisteenagenephew.Which,ifany,ofthese

transactionswillbeincludedinGDPin2023?

A)allfourtransactions

B)allthreepurchasesbutnotthesale

C)thepurchaseoftheFordandtheCaravan

D)onlythepurchaseoftheFord

Answer:D

Topic:FinalGood

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

15)Whichofthefollowingexpendituresassociatedwiththeproductionofanewhigh-

performanceSUVwillbedirectlyincludedinGDP?

A)thesaleofbondstofinancetheconstructionoftheassemblyplant

B)thepurchaseofusedweldingrobotstoassembletovehicles

C)thepurchaseofnewtirestobeinstalledonthenewvehicles

D)thepurchaseofnewmachinetoolstomanufacturetheengines

Answer:D

Topic:FinalGood

Skill:Conceptual

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

16)IntermediategoodsareexcludedfromGDPbecause

A)theirinclusionwouldinvolvedoublecounting.

B)theyrepresentgoodsthathaveneverbeenpurchasedsotheycannotbecounted.

C)theirinclusionwouldunderstateGDP

D)thepremiseofthequestionisincorrectbecauseintermediategoodsaredirectlyincludedin

calculatingGDP.

Answer:A

Topic:IntermediateGoodsandServices

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

17)Atonofcoalpurchasedbyyourlocalutilitytoburntomakeelectricitywouldbebest

describedas

A)anintermediategood.

B)afinancialasset.

C)ausedgood.

D)afinalproduct.

Answer:A

Topic:IntermediateGoodsandServices

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

18)Whichofthefollowingexpendituresisforanintermediategood?

A)Thegovernmentbuysnewtiresforitsmilitaryvehicles.

B)AU.S.tirefirmsellsnewtirestoCanada.

C)GeneralMotorsbuysnewtirestoputonthecarsit'sbuilding.

D)Youbuynewtiresforyourusedcar.

Answer:C

Topic:IntermediateGoodsandServices

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

19)GDPdoesnotdirectlyincludeintermediategoodsbecause

A)intermediategoodsarcnotvaluable.

B)intermediategoodsarenotusefultoconsumers.

C)thatwouldcounttheintermediategoodstwice.

D)thatwouldunderstatetherruesizeofGDP.

Answer:C

Topic:IntermediateGoodsandServices

Skill:Conceptual

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

20)ThecalculationofthefinalgoodsandservicessoldinaneconomywouldNOTinclude

A)thepurchaseofalawnmowerbyahousehold.

B)GeneralMotors'purchasesoftiresfornewautomobiles.

C)FordMotorCompany'spurchaseofanewindustrialrobottobeusedtoproducecars.

D)thepurchaseofaservicebyahousehold.

Answer:B

Topic:IntermediateGoodsandServices

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

21)IncomputingGDP,itisessentialto

A)avoiddoublecounting.

B)includegovernmenttransferpayments.

C)includegovernmenttaxrevenues.

D)countallintermediateproductsdirectlyastheyareproduced.

Answer:A

Topic:IntermediateGoodsandServices

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

22)Doublecounting(countingthesamethingtwice)inGDPaccountingisavoidedbynot

including

A)netexports.

B)intermediategoods.

C)illegalactivities.

D)depreciation.

Answer:B

Topic:IntermediateGoodsandServices

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

23)GDPcountsonlyfinalgoodsandservicesbecausethis

A)methodavoidsincludinganygoodsthatareproducedthisyearandsoldnextyear.

B)methodavoidsdoublecountingofgoodsgoingthroughseveralstagesofproduction.

C)amountcanbemoreeasilydeterminedinthemarketplace.

D)methodavoidsunderstatingthevalueofGDPproducedduringagivenyear.

Answer:B

Topic:FinalGoodsandIntermediateGoods

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

24)Thecircularflowmodelshowsthatconsumergoodsandservicesproducedbybusinessfirms

aresoldinthe

A)goodsmarket.

B)factormarket.

C)labormarket.

D)financialmarket.

Answer:A

Topic:CircularFlow

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

25)Thefactormarketcanbestbedescribedaswhere

A)householdsbuygoodsandservices.

B)firmsbuygoodsandservices.

C)firmsbuytheservicesoflabor,landandcapital.

D)governmentssellgoodsandservices.

Answer:C

Topic:CircularFlow

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

26)Inthecircularflowofincome

A)householdsdemandgoodsandservicesthataresuppliedbyfirms,andthefirmsdemand

factorsthataresuppliedbyintermediatefirms.

B)householdsdemandgoodsandservicesthataresuppliedbyfirms,whilesupplyingfactors

thataredemandedbyfirms.

C)householdssellgoodsandserviceswhilefirmssellfactors.

D)householdsbuygoodsandserviceswhilefirmssellgoodsandservices.Firmsobtainlabor

fromhouseholds,capitalfromgovernment,andrawmaterialsfromotherfirms.

Answer:B

Topic:CircularFlow

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

27)Thecircularflowshowsthatthehouseholdsectorearnsitsincomeby

A)sellingfactorsofproduction.

B)buyingfactorsofproduction.

C)sellinggoodsandservices.

D)sellingfinancialassets.

Answer:A

Topic:CircularFlow

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

28)Thecircularflowofincomeshowsthat

A)householdstransactonlyinthegoodsmarket.

B)governmentspurchasegoodsandservices.

C)firmsgenerallyarethedemandersinthegoodsmarketsandsuppliersinthefactormarkets.

D)NoneoftheaboveanswersiscoiTect.

Answer:B

Topic:CircularFlow

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

29)Whichofthefollowingistrueregardingthecircularflowdiagram?

I."Aggregateincome"istheflowofincomeearnedbyfirms.

II.Retainedearningsareconsideredincomeearnedbyfirmsratherthanpartofhouseholds*

income.

III.Thegovernment,households,andfirmsallhavetransactionsinthegoodsmarket.

A)Ionly

B)IandII

C)IandIII

D)IIIonly

Answer:D

Topic:CircularFlow

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

30)Ifwecomparethefoursourcesofspendingintheeconomyweseethat

A)householdconsumptionisthesmallest.

B)governmentexpenditureisthelargest.

C)businessinvestmentisthelargest.

D)householdconsumptionisthelargest.

Answer:D

Topic:CircularFlow

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

31)Comparedtotheothersourcesofspending,netexportsis

A)largeandnegative.

B)smallandnegative.

C)largeandpositive.

D)smallandpositive.

Answer:B

Topic:CircularFlow

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinkin?

32)Thecircularflowdiagramshowsthat

A)theflowofpaymentstothefactorsusedtoproducegoodsandservicesexceedstheflowof

paymentsforfinalgoodsandservices.

B)goodsandfactormarketsareindependent.

C)thetotalamountofincomegeneratedbytheeconomyequalsthetotalpurchasesoffinal

goodsandservices.

D)consumptionexpenditureequalssaving.

Answer:C

Topic:CircularFlow

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

33)Thecircularflowdiagramshows

A)hownominalGDPisdistinctfromrealGDP.

B)howthepricesoffactorsaredetermined.

C)theeffectsofinflationinasimpleeconomy.

D)theflowsbetweendifferentsectorsoftheeconomy.

Answer:D

Topic:CircularFlows

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

34)Thecircularflowdiagramindicatesthat

A)householdsselltheservicesoffactorsofproductiontofirms.

B)firmsbuytheservicesoffactorsofproductionfromthegovernment.

C)householdssellgoodsandservicestothegovernment.

D)firmsbuygoodsandservicesfromhouseholds.

Answer:A

Topic:CircularFlows

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

35)Inthecircularflowmodelofaneconomy,households

A)receiveincomefrombuyersofgoodsandservices.

B)receiveincomefromthesaleoffactorsinthegoodsmarkets.

C)payfirmsfortheuseoftheirfactors.

D)receiveincomefromproducersfortheuseoffactorsinthefactormarkets.

Answer:D

Topic:CircularFlows

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

36)Inthecircularflowdiagram,aggregateexpenditureincludesthesumof

A)savingandinvestment.

B)consumptionandinvestment.

C)consumption,investment,andsaving.

D)incomeandsaving.

Answer:B

Topic:CircularFlow,AggregateExpenditures

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

37)Inthecircularflowofeconomicactivity

A)aggregateexpendituremeasuresthedollarvalueofpurchasesoffactors.

B)aggregateexpendituremeasuresthedollarvalueofpurchasesoffinalgoodsandservices.

C)aggregateincomemeasuresthedollarvalueoflaborresourcesonly.

D)aggregateexpenditureismeasuredasitmovesthroughthefinancialmarkets.

Answer:B

Topic:CircularFlow,AggregateExpenditures

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

38)Inthecircularflowdiagram,aggregateexpenditureincludes

A)consumptionexpenditure,saving,investmentandgovernmentexpenditure

B)consumptionexpenditure,saving,investmentandnetexports

C)consumptionexpenditure,investment,governmentexpenditureandnetexports

D)consumptionexpenditure,saving,governmentexpenditureandnetexports

Answer:C

Topic:CircularFlow,AggregateExpenditures

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

E

/Housers,

A，\hold^/\ments/

FactorGoods

marketsmarkets

1c

^Worl^^

39)Intheabovefigure,HowBrepresents_

A)householdpurchasesofgoodsandservices

B)householdborrowing

C)householdincome

D)firms'paymentsforlaborservices

Answer:A

Topic:CircularFlow

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

40)Intheabovefigure,HowBrepresentshouseholds'

A)income

B)consumptionexpenditures

C)saving

D)investment

Answer:B

Topic:CircularFlow

Skill:Analytical

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

41)Intheabovefigure,householdincomeisshownbyflow

A)A.

B)及

C)C.

D)F.

Answer:A

Topic:CircularFlow

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

42)Intheabovefigure,consumptionexpenditureisshownbyflow

A)A.

B)B.

C)C.

D)F.

Answer:B

Topic:CircularFlow

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

43)Whichofthefollowingareequaltooneanother?

I.aggregateproduction

II.aggregateexpenditure

III.aggregateincome

A)IequalsII,butnotIII.

B)IequalsIII,butnotII.

C)IIequalsIII,butnotI.

D)IequalsIIequalsIII.

Answer:D

Topic:ExpenditureEqualsIncome

Skill:Conceptual

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

44)Choosethebeststatement.

A)GDPequalsaggregateexpenditureandequalsaggregateincome.

B)Anincreaseingovernmentpurchasesincreasesaggregateexpenditurebutdoesnotchange

GDP.

C)Anincreaseincompensationofemployeesincreasesaggregateincomebutdoesnotchange

GDP.

D)GDPalwaysequalsaggregateexpenditureandsometimesequalsaggregateincome.

Answer:A

Topic:ExpenditureEqualsIncome

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

45)Accordingtothecircularflowdiagram,thedollarvalueofanation'soutputisequalto

A)profits.

B)totalincome.

C)netincomeminustaxes.

D)wages.

Answer:B

Topic:ExpenditureEqualsIncome

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

46)Totaloutputandtotalincomeinthecircularflowmodel

A)aremeasuresoftheeconomy'slevelofsavings.

B)includeonlyintermediategoods.

C)areequaltoeachother.

D)arcrelatedbecausenationalincomeislessthannationalproduct.

Answer:C

Topic:ExpenditureEqualsIncome

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

47)Thecircularflowshowsthat

A)aggregateproductionequalsaggregateexpenditure.

B)aggregateexpenditureislessthanaggregateincome.

C)GDPequalsaggregateincome.

D)BothanswersAandCarccorrect.

Answer:D

Topic:ExpenditureEqualsIncome

Skill:Conceptual

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

48)Comparingaggregateexpenditureandaggregateincomesshowsthat

A)aggregateexpenditureisusuallygreaterthanaggregateincome.

B)aggregateincomeisusual.ygreaterthanaggregateexpenditure.

C)theyareequal.

D)aggregateincomecannotequalaggregateexpenditureifwehaveanysavings.

Answer:C

Topic:ExpenditureEqualsIncome

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

49)Grossdomesticproduct(GDP)is

A)thevalueofallfinalgoodsandservicesproducedinacountryduringayear.

B)thesumofconsumptionexpenditure,investment,governmentexpenditureongoodsand

services,andnetexports.

C)thesumofcompensationofemployees,proprietors'income,netinterest,rentalincome,

corporateprofits,depreciation,andindirectbusinesstaxesminussubsidies.

D)alloftheabove

Answer:D

Topic:ExpenditureEqualsIncome

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

50)Grossdomesticproductcanbecalculated

A)eitherbyvaluingthenation'soutputofgoodsandservicesorbyvaluingtheincomegenerated

intheproductionprocess.

B)byaddingupthepersonalconsumptionofallmembersofthesociety.

C)byaddingupthevalueofallintermediategoodsusedintheeconomy.

D)byaddinguptheincometaxreturnsofallmembersofthesociety.

Answer:A

Topic:ExpenditureEqualsIncome

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinkin?

51)Grossdomesticproductisthe

A)valueofthefinalgoodsandservicesproducedinacountryduringaspecifictime.

B)totalamountthatbuyersspentonthefinalgoodsandservicesproducedinacountryduringa

specifictime.

C)totalamountofincomeearnedinproducingthefinalgoodsandservicesinacountryduringa

specifictime.

D)Alloftheaboveanswersarecorrect.

Answer:D

Topic:ExpenditureEqualsIncome

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

52)Whichofthefollowingiscorrect?

A)AggregateexpenditureequalsGDPbutislessthanaggregateincome.

B)AggregateincomeisgreaterthanGDPbutequaltoaggregateexpenditure.

C)AggregateincomeisgreaterthanaggregateexpenditurebutequaltoGDP.

D)Aggregateincome,aggregateexpenditureandGDPareallequal.

Answer:D

Topic:ExpenditureEqualsIncome

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

53)GDPequals

A)C+S+G+(X-M

B)C+I+G+(X+M)

C)C+I+G+(X-M)

D)C+S+G+(X-M)

Answer:C

Topic:ExpenditureEqualsIncome

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

54)Depreciationisdefinedasthe

A)decreaseinthestockofcapitalduetowearandtear.

B)increaseinthestockofcapitalduetoinvestmentbyfirms.

C)increaseinthestockofcapitalduetowearandtear.

D)decreaseinthestockofcapitalduetoinvestmentbyfirms.

Answer:A

Topic:Depreciation

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

55)SupposeMailBoxesEtc.buysanewcopierforitsstorefor$1000.Ayearlater,whenthe

firmwantstoupgradetoanewcopier,itfindsthattheoldcopierisonlyworth$750.Overthe

yearthecopierwasused,hasoccurred.

A)replacementinvestment

B)grossinvestment

C)depreciation

D)netinvestment

Answer:C

Topic:Depreciation

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

56)Netinvestmentequals

A)capitalstockminusdepreciation.

B)grossinvestmentminusdepreciation.

C)thetotalquantityofplant,equipmentandbuildings.

D)grossinvestment/depreciation.

Answer:B

Topic:NetInvestmentandGrossInvestment

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

57)Whichofthefollowingrelationshipsiscorrect?

A)NetInvestment=GrossInvestment+Depreciation

B)Consumptionexpenditure=NetInvestment-Depreciation

C)GrossInvestment=NetInvestment+Depreciation

D)Depreciation=GrossInvestment-Consumptionexpenditure

Answer:C

Topic:NetInvestmentandGrossInvestment

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

58)Grossinvestmentequalsnetinvestmentplus

A)capital.

B)capitalgains.

C)depreciation.

D)dividendspaidtotheownersofthecompany.

Answer:C

Topic:NetInvestmentandGrossInvestment

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

59)Grossinvestmentisequalto

A)depreciationminusnetinvestment.

B)netinvestmentpluscapitalstock.

C)depreciationplusnetinvestment.

D)netinvestmentminuscapitalstock.

Answer:C

Topic:NetInvestmentandGrossInvestment

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

60)Grossinvestmentequals

A)netinvestment-depreciation+changeininventories.

B)netinvestment+depreciation.

C)netinvestment+changeininventories.

D)depreciation+changeininventories.

Answer:B

Topic:NetInvestmentandGrossInvestment

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

61)isgrossinvestmentminus.

A)Thecapitalstock;netinvestment

B)Thecapitalstock;depreciation

C)Depreciation;replacementinvestment

D)Netinvestment;depreciation

Answer:D

Topic:NetInvestmentandGrossInvestment

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

62)Thedifferencebetweengi'ossinvestmentandnetinvestmentis

A)thecapitalstock.

B)depreciation.

C)therealinterestrate.

D)equaltosaving.

Answer:B

Topic:NetInvestmentandGrossInvestment

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

63)Ifdepreciationislessthangrossinvestment,thennetinvestmentis

A)positive.

B)negative.

C)zero.

D)Thissituationcouldneveroccurbecauseitisimpossiblefordepreciationtobelessthangross

investment.

Answer:A

Topic:NetInvestmentandGrossInvestment

Skill:Conceptual

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

64)Netinvestment

A)equalsgrossinvestmentplusdepreciation.

B)istheonlymeasureofinvestmentusedtocalculateGDP.

C)equalsgrossinvestmentminusdepreciation.

D)isequivalenttotheexistingcapitalstockintheeconomy.

Answer:C

Topic:NetInvestmentandGrossInvestment

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

65)Netinvestmentequals

A)grossinvestment+depreciation.

B)depreciation+additiontoinventories.

C)savings-depreciation.

D)grossinvestment-depreciation.

Answer:D

Topic:NetInvestmentandGrossInvestment

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

66)Netinvestmentisthe

A)totalamountofgrossinvestmentminusdepreciation.

B)valueofsoftwareandothernetworkrelatedproducts.

C)profitorlossinthestockmarket.

D)valueofthedepreciatedcapitalmultipliedbythechangesinthepricelevel.

Answer:A

Topic:NetInvestmentandGrossInvestment

Skill:Recognition

Questionhistory:Previousedition.Chapter4

AACSB:ReflectiveThinking

67)WhichofthefollowingisNOTafinalgood?

A)anewcomputersoldtoanNYUstudent

B)anewcarsoldtoAvisforuseintheirfleetofrentalcars

C)apursesoldtoaforeignvisitor

D)ahotdogsoldtoaspectatorataChicagoBearsfootballgame

Answer:B

Topic:StudyGuideQuestion,GDP

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:Ref