Question: Macroeconomics seeks to understand:

A) public choices, private choices, and consumer maximization. B) product demand, product cost, and profit maximization.

C) industry sales, marketing strategies, and corporate growth.

D) economic growth, business cycles, and inflation.

Answer: D) economic growth, business cycles, and inflation.

Question:

Answer: C) values goods and services at their market prices, multiples them by the quantity produces and then adds them up

Question: Which of the following is not directly counted in GDP?

A) consumer goods

B) investment expenditures

C) intermediate goods

D) government purchases

Answer: C) intermediate goods

Question: Which of the following transactions represents the purchase of a final good?

A) Starbucks purchases coffee beans.

B) Your father buys a new John Deere riding lawn mower. C) Delta buys a new European-made jetliner.

D) Apple computer buys computer processors from Intel.

Answer: B) Your father buys a new John Deere riding lawn Mower

Question: Investment, as defined by economists, would include the purchase of a:

A) government bond.

B) share of stock in ExxonMobil.

C) corporate bond.

D) computer by an accounting firm.

Answer: D) computer by an accounting firm

Question:

Answer: A) consumption spending, investment spending, government spending, and net exports

Question: What is the largest component of spending in the United States?

A) government spending

B) net investment spending

C) investment spending

D) consumption spending

Answer: D) consumption spending

Question: Refer to Table 12-4. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars for this economy equals:

A) $2,200.

B) $2,100.

C) $1,600.

D) $1,400.

Answer: C) $1,600

Question: An example of an intermediate good be:

A) the soda pop by Quiznos

B) a sub sandwich sold by Quiznos.

C) the potato chips sold by Quiznos.

D) the bread that goes into a sub sandwich that is sold by Quiznos.

Answer: D) the bread that goes into a sub sandwich that is sold by Quiznos

Question: An example of a transfer payment is:

A) a welfare payment.

B) a teacher’s paycheck.

C) a purchase of a new bridge in Alaska.

D) a paycheck for a member of the National Guard.

Answer: A) a welfare payment