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Chapter 23 /Measuring a Nation's Income ? 37

25. Consider two items that might be included in GDP: (1) the estimated rental value of own-er-occupied housing and (2) purchases of newly-constructed homes. How are these two

items accounted for when GDP is calculated?

a. Both item (1) and item (2) are included in the consumption component of GDP.

b. Item (1) is included in the consumption component of GDP, while item (2) is included

in the investment component of GDP.租房子消费,买房子投资

c. Item (1) is included in the investment component of GDP, while item (2) is included in

the consumption component of GDP.

d. Only item (2) is included in GDP, and it is included in the investment component. ANS: B DIF: 2 REF: 10-3 NAT: Analytic

LOC: The study of economics and definitions in economics TOP: Consumption | Investment

MSC: Applicative

26. A U.S. publisher purchases new computers that were manufactured in the U.S. This pur-chase by itself makes

a. a positive contribution both to investment and to GDP.(此处买电脑是投资) b. a positive contribution both to consumption and to GDP.

c. a positive contribution to GDP, but it does not affect investment or consumption. d. a positive contribution to investment, but it does not affect GDP. ANS: A DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Applicative

27. A Minnesota farmer buys a new tractor 拖拉机made in Iowa(美国) by a German

company. As a result,

a. U.S. investment and GDP increase, but German GDP is unaffected.

b. U.S. investment and German GDP increase, but U.S. GDP is unaffected.

c. U.S. investment, U.S. GDP, and German GDP are unaffected because tractors are

intermediate goods.

d. U.S. investment, U.S. GDP, and German GDP all increase. ANS: A DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Applicative

28. GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located

in Connecticut美国 that uses workers who live in Connecticut. As a result, a. U.S. investment, GDP, and GNP all increase by the same amount.

b. U.S. investment increases, but GDP and GNP are unaffected by the purchase.

c. U.S. investment and GDP increase by the same amount, but U.S. GNP increases by a

smaller amount.

d. U.S. investment and GNP increase by the same amount, but U.S. GDP increases by a

smaller amount.

ANS: C DIF: 3 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment | GDP versus GNP 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.

38 ? Chapter 23/Measuring a Nation's Income

29. The value of goods added to a firm's inventory in a certain year is treated as

a. consumption, since the goods will be sold to consumers in another period. b. intermediate goods, and so is not included in that year’s GDP.

c. investment, since GDP aims to measure the value of the economy's production that year. d. spending on durable goods, since the goods could not be inventoried unless they were

durable.

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

30. Consumer goods that are produced, go into inventory, and are not sold during the current

period are

a. counted as intermediate goods and so are not included in current period GDP.

b. counted in current period GDP only if the firm that produced them sells them to another

firm.

c. included in current period GDP as inventory investment. d. included in current period GDP as consumption. ANS: C DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Inventory MSC: Interpretive

31. During the current quarter, a firm produces consumer goods and adds some of those goods

to its inventory rather than selling them. The value of the goods added to inventory is a. not included in the current quarter GDP.

b. included in the current quarter GDP as investment. c. included in the current quarter GDP as consumption.

d. included in the current quarter GDP as a statistical discrepancy. ANS: B DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Inventory MSC: Interpretive

32. During the third quarter of this year a firm produces consumer goods and adds some of

those goods to its inventory. During the fourth quarter of this year, the firm sells the goods at a retail outlet, with the result that the value of its inventory at the end of the fourth quarter is smaller than the value of its inventory at the end of the third quarter. These actions af-fect which component(s) of fourth-quarter GDP? 存货卖出时价格变低,对卖出时段的GDP有什么影响

a. they increase consumption and have no affect on investment

b. they increase consumption and decrease investment 消费增加,投资减少 c. they have no affect on either consumption or investment d. they have no affect on consumption and decrease investment ANS: B DIF: 2 REF: 10-3 NAT: Analytic

LOC: The study of economics and definitions in economics TOP: Consumption | 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.

Chapter 23 /Measuring a Nation's Income ? 39

33. A movie company makes 500,000 DVDs of one of its latest releases. It sells 300,000 of

them before the end of the second quarter, and holds the others in its warehouse. How will the 200,000 unsold DVDs be treated in the GDP statistics?

a. Since the DVDs eventually will be bought by consumers, they will be included as

consumption in the second quarter.

b. Since the DVDs were not purchased in the second quarter, they will be counted as an

increase in third-quarter GDP.

c. The DVDs will be counted as a change in inventory in the second quarter and so will be

included in second-quarter GDP.

d. The DVDs will be counted as a change in inventory in the second quarter, and when

sold in the third quarter will raise third-quarter GDP.

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

34. The local Chevrolet dealership has an increase in inventory of 25 newly produced cars in

2006. In 2007, it sells all 25 cars. Which of the following statements is correct?

a. The value of the cars in inventory will be counted as part of 2006 GDP, and the value of

the cars sold in 2007 will not increase 2007 GDP.

b. The value of the cars in inventory will not affect 2006 GDP, and the value of the cars

sold in 2007 will increase 2007 GDP.

c. The value of the cars in inventory will be counted as part of 2006 GDP, and the value of

the cars sold in 2007 will increase 2007 GDP.

d. The value of the cars in inventory will not affect 2006 GDP, and the value of the cars

sold in 2007 will not increase 2007 GDP.

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

35. A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory.

In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarter(s) does(do) these transactions raise investment? a. the first and the second b. the first but not the second c. the second but not the first d. neither the first nor the second ANS: B DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Investment MSC: Applicative

36. A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory.

In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarter(s) is (are) GDP higher? a. the first and the second b. the first but not the second c. the second but not the first d. neither the first nor the second ANS: B 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.

40 ? Chapter 23/Measuring a Nation's Income

37. A U.S. firm produces sweatshirts in the first quarter of 2010 and adds them to its inventory.

In the second quarter of 2010 the firm sells the sweatshirts to consumers. In which quar-ter(s) does(do) these transactions raise consumption? a. the first and the second b. the first but not the second c. the second but not the first d. neither the first nor the second ANS: C DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Inventory MSC: Applicative

38. A good is produced by a firm in 2009, added to the firm’s inventory in 2010, and sold to a

household in 2010. As a result, on net,

a. 2009 GDP increased and 2010 GDP decreased. b. 2009 GDP decreased and 2010 GDP increased. c. 2009 GDP did not change and 2010 GDP increased. d. 2009 GDP increased and 2010 GDP did not change. ANS: D DIF: 2 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Inventory MSC: Applicative

39. A good is produced by a firm in 2010, added to the firm’s inventory in 2010, and sold to a

household in 2011. It follows that

a. the value of the good is added to the investment category of 2010 GDP, added to the

consumption category of 2011 GDP, and subtracted from the investment category of 2011 GDP.

b. the value of the good is added to the investment category of 2010 GDP, added to the

consumption category of 2011 GDP, and not included in the investment category of 2011 GDP.

c. the value of the good is added to the investment category of 2010 GDP, subtracted from

the consumption category of 2011 GDP, and not included in the investment category of 2011 GDP.

d. the value of the good is added to the investment category of 2010 GDP, subtracted from

the consumption category of 2011 GDP, and added to the investment category of 2011 GDP.

ANS: A DIF: 3 REF: 10-3 NAT: Analytic

LOC: The study of economics and definitions in economics TOP: Consumption | Investment

MSC: Analytical

40. Rocket Energy Drink Company buys sugar to produce energy drinks. At the end of a

quarter both its inventory of sugar and its inventory of energy drinks has increased. In-vestment for the quarter will include 为何中间产物也算进投资增加?

a. both the increased inventory of sugar and the increased inventory of energy drinks. b. the increased inventory of sugar, but not the increased inventory of energy drinks. c. the increased inventory of energy drinks, but not the increased inventory of sugar. d. neither the increased inventory of sugar nor the increased inventory of energy drinks. ANS: A DIF: 3 REF: 10-3 NAT: Analytic LOC: The study of economics and definitions in economics TOP: Inventory 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.