ECO 372 WEEK 1 QUESTION AND ANSWERS LATEST 2023

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ECO 372 WEEK 1 QUESTION AND ANSWERS 1. The equation for net investment is written as: a. Net Investment = Consumption – Gross Investment b. Net Investment = Nominal GDP – Gross Investment c... . Net Investment = Depreciation – Gross Investment d. Net Investment = Gross Investment – Depreciation 2. Which of the following scenarios would be included in GDP? a. Miguel won $100 in his office fantasy football league b. Sandra is a waitress at Morton’s Steakhouse. She receives a cash tip of $50 that she pockets and does not report c. Pam buys a new 40-inch television at Walmart d. Darius unclogs the drain in his sink using a plunger he owns 3. Which of the following statements correctly explains exports versus net exports? a. Exports are goods, services, or resources produced abroad and sold domestically, while net exports are equal to exports minus imports b. Exports are goods, services, or resources produced domestically and sold abroad, while net exports are equal to exports minus imports. c. Exports are goods, services, or resources produced abroad and sold domestically, while net exports are equal to imports minus exports d. Exports are goods, services, or resources produced domestically and sold abroad, while net exports are equal to imports minus exports. 4. Which of the following expenditures is an example of a consumer durable good? a. Latisha gets a manicure from the nail salon in the mall b. Arti buys a new refrigerator from Sears c. Colin buys a large coffee and donut from Dunkin’ Donuts d. Marcus buys some new soccer cleats at the sporting goods store 5. Henry and his girlfriend ate dinner at the new Thai restaurant that recently opened in his neighborhood. This expenditure would be included in: a. Government purchases b. Services c. Consumer nondurables d. Consumer durables 6. Government expenditures for social security and unemployment insurance are, for GDP accounting purposes, considered . a. Gover [Show More]

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