Economics > QUESTIONS & ANSWERS > ECON301: exam. Questions and Answers (All)

ECON301: exam. Questions and Answers

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Chapter 5 Q.1 Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production? What problem is posed by any compari... son over time of the market values of various total outputs? How is this problem resolved? Q.2 Why are only final goods counted in measuring GDP for a particular year? Why is the value of used furniture that’s bought and sold not counted? Answer: Q.3 What are the three main types of consumption expenditures? Why are purchases of new houses considered to be investment expenditures rather than consumption expenditures? Answer: Q.6 Which of the following are included in this year’s GDP? Explain your answer in each case. a. The services of a commercial painter in painting the family home. b. An auto dealer’s sale of a new car to a nonbusiness customer. c. The money received by Smith when she sells her biology textbook to a used-book buyer. d. The publication and sale of a new economics textbook. e. A $2 billion increase in business inventories. f. Government purchases of newly produced aircraft. [Show More]

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