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31) The value of intermediate goods not counted in GDP

Question : 31) The value of intermediate goods not counted in GDP : 1418081

 

 

31) The value of intermediate goods is not counted in GDP

A) to keep from including goods that reduce society's welfare.

B) because of the tremendous difficulty in keeping track of all the intermediate goods produced in an economy as large as that of Canada.

C) because they are only sold in factor markets.

D) to avoid counting their value twice and overstating the value of GDP.

E) because they are not consumed in the current year.

32) Intermediate goods are

A) sold to their ultimate user.

B) produced by one firm, bought by another firm, and used as a component of a final good or service.

C) included directly in the measure of GDP.

D) capital.

E) purchased this year but consumed in future years.

 

33) An art collector recently sold a piece of pottery for $300. He had purchased it for $200 two years earlier. How will the most recent sale affect GDP?

A) GDP will increase by $100.

B) GDP will not change.

C) GDP will increase by $300.

D) GDP will increase by $200.

E) GDP 2 years ago must be adjusted downwards by $200, and current GDP will rise by $300.

 

34) Which of the following would not be included in GDP for 2011?

A) A car produced in 2011 and held in inventory until 2012.

B) A car produced in 2011 and sold in 2012.

C) The value of all cars produced in 2011.

D) A car produced in January of 2011 and sold in November of 2011.

E) A car produced in 2010 and sold in 2011.

 

35) Stock and bond sales are not included in GDP because they

A) do not occur in the year in which the production represented by them takes place.

B) represent corporate production.

C) represent indebtedness.

D) are not goods and services.

E) are not sold in the country in which they are produced.

 

36) In calculating GDP, all of the following are excluded except

A) the value of intermediate goods.

B) the value of all homes built in the year in question.

C) the value of used goods.

D) purchases of stocks and bonds.

E) subsidies from the government.

37) From the following list, choose the item that would be included in a current measure of GDP.

A) the purchase of a previously owned house that was built last year

B) a social security cheque for $500

C) the purchase of 10 litres of gasoline for your car

D) a $2,000 cheque from your Aunt Grace

E) income from the sale of your Canadian Snowfun stocks

 

38) Which one of the following would not be counted as part of this year's GDP?

A) The lumber you purchase when building bookshelves for your room.

B) The government bond you buy for your newborn niece.

C) The purchase of a new personal computer that was produced in the current year.

D) The purchase of wheat that was produced in the current year by a Saskatchewan farmer.

E) The purchase of a house that was produced in the current year.

 

39) How much would the production of a kayak add to GDP if the shell costs $250, the paint costs $20, the finisher costs $35, the manufacturer sold it to the dealer for $500, and the dealer sold it to his customer for $800?

A) $1,605

B) $1,300

C) $500

D) $305

E) $800

 

40) Which of the following adds to Canadian GDP?

A) I shovel my own driveway.

B) I sell my used Honda.

C) The production and sale of flour to a bakery.

D) The purchase of a CD made in China.

E) The ice cream I buy from my grocery store.

 

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