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Microeconomics Practice

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Microeconomics Practice
1)
Which of the following most correctly describes GDP? GDP is the sum of the market value of all A) goods and services purchased within a country in a given time period. B) final goods and services produced within a country in a given time period. C) final goods and services purchased within a country in a given time period. D) intermediate goods and services produced within a country in a given time period. E) final goods and services produced by a country's citizens no matter where they are located in a given time period.

2)
Of the following, which best describes how GDP is computed? A) by adding the market value of everything produced B) by adding the market value of all final goods and services C) by asking all households what they produced during the current year D) by multiplying the total number of hours worked by the average wage rate E) by surveying households on what they purchased during the current year

8)
If you make dinner for yourself A) the market value of your dinner is added to GDP. B) your service in preparing the meal is valued at a cook's wage and added to GDP. C) none of what you bought to prepare for dinner is included in GDP. D) only the market value of ingredients that you purchased this year is added to GDP. E) the difference between the cost of the ingredients that you purchased this year and the market value of the dinner is added to GDP.

4)
Honda has an assembly plant for Civics in Ohio. The production of U.S.-made Civics is A) added to U.S. GDP. B) added to Japan's GDP because Honda is a Japanese company. C) not included in either the U.S. or Japanese GDP. D) added to U.S. GDP only if the Civic is sold in the United States in the year it is produced. E) added to both U.S. GDP, because the car is produced in the United States, and to

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