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- 1. Multiple Choice
Which of the following classify as an investment?
Apple Stock
Used Car
Inventory in a factory warehouse
All the above
- 2. Multiple Choice
As a measure of economic welfare, gross domestic product underestimates a country’s production of goods and services when there is an increase in
the production of military goods
the production of antipollution devices
crime prevention services
household production
legal services
- 3. Multiple Choice
If purchases of education and medical care were counted as investment rather than consumption, gross domestic product would
not change, because there is no change in total expenditures
increase, because investment is included in gross domestic product but consumption is not
increase, because consumption is included in gross domestic product but investment is not
decrease, because investment is weighted more heavily than consumption in calculating gross domestic product
decrease, because consumption is weighted more heavily than investment in calculating gross domestic product
- 4. Multiple Choice
How do we calculate DI (Disposable Income) from PI (Personal Income)?
Net Foreign Factor Income is added into PI to get DI
Transfer payments are added into PI to get DI
Personal taxes are taken out of PI to get DI
Deprecation is taken out of PI to get DI
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