1. Carolyn spends $2.50 for a hamburger at a restaurant. Which of the following would be included in the gross domestic product? A) The $2.50 Carolyn spends for the hamburger B) The price the restaurant paid for the meat in the hamburger C) The price the restaurant paid for the bun D) all of the above E) none of the above 2. Most goods and services included in the U.S.Document Preview:
1. Carolyn spends $2.50 for a hamburger at a restaurant. Which of the following would be included in the gross domestic product? A) The $2.50 Carolyn spends for the hamburger B) The price the restaurant paid for the meat in the hamburger C) The price the restaurant paid for the bun D) all of the above E) none of the above
2. Most goods and services included in the U.S. gross domestic product are bought by A) businesses in the United States B) state, local, and federal governments in the United States C) people and businesses in other nations D) consumers in the United states E) none of the above
3. Which of the following makes an adjustment for both inflation and population change? A) the consumer price index B) the unemployment rate C) real GDP per capita D) final goods and services E) all of the above
4. A nation's standard of living will rise if A) GDP and population increase at the same rate B) real GDP per capita increases C) population increases more than GDP D) production and consumption decrease E) all of the above
5. Productivity is A) a measure of the total amount of goods manufactured. B) a measure of how much output is produced per unit of input. C) an unimportant statistic commonly ignored by economists. D) an important measure of how the U.S. economy is doing. E) B and D.
6. A nation's productivity is directly affected by A) the education of its labor force. B) the amount of physical capital used. C) the level of innovation used. D) all of the above E) none of the above
7. A farmer produces wheat and sells it for $.50. A miller buys the wheat, grinds it into flour, and sells the flour for $1.00. A baker buys the flour, produces a loaf of bread, and sells it to a consumer for $2.00. The amount added to gross domestic product in this example is A) 50 cents B) $1.00 C) $2.00 D) $3.50 E) none of the above
8. In the U.S. economy, the total value of goods and services produced per year is measured by A) the gross.