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Chapter 23 /Measuring a Nation's Income ? 33

6. Which of the following is included in the consumption component of GDP?

a. household purchases of appliances. b. household purchases of medical care. c. household purchases of food.

d. All of the above are included in the consumption component of GDP. ANS: D DIF: 1 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Consumption MSC: Interpretive

7. Which of the following is an example of a durable good?

a. a refrigerator

b. a quart of motor oil c. a business suit d. a can of soup ANS: A DIF: 2 REF: 10-3 NAT: Analytic

LOC: The study of economics and definitions in economics TOP: Durable goods MSC: Applicative

8. Which of the following is not an example of a durable good?

a. a refrigerator b. an automobile

c. a business suit 套装 d. a furnace ANS: C DIF: 2 REF: 10-3 NAT: Analytic

LOC: The study of economics and definitions in economics TOP: Durable goods MSC: Applicative

9. Which of the following is not an example of a nondurable good?

a. a loaf of bread b. a pair of jeans c. a microwave d. a pound of bacon ANS: C DIF: 2 REF: 10-3 NAT: Analytic

LOC: The study of economics and definitions in economics TOP: Nondurable goods MSC: Applicative

10. When economists refer to intangible无形的 items, they are referring to such things as

a. illegal goods, and the value of such items is included in GDP. b. illegal goods, and the value of such items is excluded from GDP.

c. hair styling and dental care, and the value of such items is included in GDP. d. hair styling and dental care, and the value of such items is excluded from GDP. ANS: C DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Services MSC: Applicative

? 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

34 ? Chapter 23/Measuring a Nation's Income

11. Household spending on education is included in (教育是消费不是投资)

a. consumption, although it might be argued that it would fit better in investment. b. investment, although it might be argued that it would fit better in consumption. c. government spending, based on the fact that most higher-education students attend

publicly-supported colleges and universities.

d. None of the above is correct; in general, household spending on services is not included

in any component of GDP.

ANS: A DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Consumption MSC: Interpretive

12. Household spending on education is counted in which component or subcomponent of

GDP?

a. consumption of durable goods b. consumption of nondurable goods c. consumption of services d. investment ANS: C DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Consumption MSC: Interpretive

13. Which of the following is included in the consumption component of U.S. GDP?

a. purchases of staplers, paper clips, and pens by U.S. business firms b. purchases of natural gas by U.S. households

c. purchases of newly constructed homes by U.S. households d. All of the above are correct. ANS: B DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Consumption MSC: Applicative

14. If you buy a burger and fries at your favorite fast food restaurant,

a. then neither GDP nor consumption will be affected because you would have eaten at

home had you not bought the meal at the restaurant.

b. then GDP will be higher, but consumption spending will be unchanged. c. then GDP will be unchanged, but consumption spending will be higher. d. then both GDP and consumption spending will be higher. ANS: D DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Consumption MSC: Applicative

15. John buys a used car for $5,400 and spends $600 on new parts, made in the U.S., to fix the

car. The end result of these two transactions is

a. U.S. consumption purchases increase by $5,400 and U.S. GDP increases by $5,400. b. U.S. consumption purchases increase by $6,000 and U.S. GDP increases by $6,000. c. U.S. consumption purchases increase by $600 and U.S. GDP increases by $600. d. U.S. consumption purchases increase by $600 and U.S. GDP increases by $6,000. ANS: C DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Consumption MSC: Analytical

? 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 23 /Measuring a Nation's Income ? 35

16. For the purpose of calculating GDP, investment is spending on(房地产、金融不是投资)

a. stocks, bonds, and other financial assets.

b. real estate and financial assets such as stocks and bonds.

c. capital equipment, inventories, and structures, including household purchases of new

housing.

d. capital equipment, inventories, and structures, excluding household purchases of new

housing.

ANS: C DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Interpretive

17. What word do economists use to refer to the purchase of goods that will be used in the fu-ture to produce more goods and services? a. capital

b. consumption c. investment d. costs ANS: C DIF: 1 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Definitional

18. Which of the following is included in the investment component of GDP?

a. households’ purchases of newly constructed homes b. net additions to firms’ inventories c. firms’ purchases of capital equipment d. All of the above are correct. ANS: D DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Interpretive

19. Which of the following examples of household spending is categorized as investment rather

than consumption?

a. expenditures on durable goods such as automobiles and refrigerators b. expenditures on intangibles items such as medical care c. expenditures on new housing d. All of the above are correct. ANS: C DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Applicative

20. Which of the following items is the one type of household expenditure that is categorized as

investment rather than consumption? a. spending on education

b. the purchase of stocks and bonds c. the purchase of a new house

d. the purchase of durable goods such as stoves and washing machines ANS: C DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Applicative

? 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

36 ? Chapter 23/Measuring a Nation's Income

21. Which of the following is included in the investment component of GDP?

a. spending to build new houses b. spending to build new factories

c. spending on business equipment such as welding equipment

d. All of the above are included in the investment component of GDP. ANS: D DIF: 1 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Definitional

22. Which of the following is included in the investment component of GDP?

a. spending on new residential construction and spending on stocks and bonds b. spending on new residential construction but not spending on stocks and bonds c. spending on stocks and bonds but not spending on new residential construction d. neither spending on stocks and bonds nor spending on new residential construction ANS: B DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Definitional

23. Which of the following is included in the investment component of GDP?

a. spending on new business equipment such as power tools and spending on stocks and

bonds

b. spending on new business equipment such as power tools but not spending on stocks

and bonds

c. spending on stocks and bonds but not spending on new business equipment such as

power tools

d. neither spending on new business equipment such as power tools nor spending on stocks

and bonds

ANS: B DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Definitional

24. The Carters’ oldest son attends Big State University. He and his parents pay all his fees

and tuition. These payments count in GDP as a. investment.

b. government spending. c. consumption of services.

d. consumption of durable goods. ANS: C DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Interpretive

? 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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