Chapter 6 Econ Assignment Answers Exam Questions (131 Terms) With Verified Definitions Updated 2024

Which of the following items is included in gross private domestic investment? A) An increase in the level of government spending on new schools B) The purchase of medical equipment by the Marines for use in its field hospitals C) An increase in business inventories D) An increase in the value of corporate stocks sold during the year {Ans: An increase in business inventories}If your ticket wins the lottery, the earnings you receive: A) raises GDI but does not affect GDP. B) increases both GDI and GDP. C) raises both GDI and GNP. D) does not affect GDI or GNP. {Ans: does not affect GDI or GNP}A country's exports minus its imports measures: A) net exports. B) gross exports. C) net imports. D) gross imports. {Ans: net exports}If we sum up the value added at every stage of production of a good, we will get: A) the total cost of the labor used to produce the good. B) the prices of the factors of production used to produce the good. C) the final value of the good. D) the capital-labor ratio. {Ans: the final value of the good}The largest expenditure category in U.S. GDP in 2011