b. $9.5 million. d. $10 million.
7. Which of the following is included in computing the nominal gross domestic product? a. $1,000 worth of marijuana sales by a lawyer.
b. $15,000 spent by drug dealers for a new car.
c. $25,00 worth of recently issued corporate bonds.
d. $8,000 worth of dental services provided to a plumber in exchange for a similar amount of plumbing services. e. $10,000 saved by a family by growing their own food.
8. Excluding household and underground production leads to:
a. underestimation of real GDP but not nominal GDP.
b. overestimation of real GDP but not nominal GDP.
c. overestimation of both real GDP and nominal GDP
d. underestimation of both real GDP and nominal GDP
9. Nominal GDP tends to increase at a greater rate than real GDP because: a. nominal GDP includes net exports, while real GDP does not. b. nominal GDP includes government purchases and investment expenditures, while real GDP includes only investment expenditures. c. nominal GDP includes output and price increases, while real GDP includes only output changes. d. nominal GDP includes the value of ¡°off©\the©\books¡± production, while real GDP does not. e. none of the above.
10. Even a constant©\dollar measure of gross national product cannot fully reflect the well©\being of an economy because it cannot take into account: a. the value of only final goods and services.
b. the value of changing inventories in the economy.
c. new and improved goods and services in the economy.
d. all of the above.
11. To measure GDP by using the...