Eco 372 Week 4 Quiz

1306 words 6 pages
1. Would Henry Hazlitt more likely: A

a. Say we are already suffering the long-run consequences of the policies of the remote or recent past. b. Advocate public or collective ownership and administration of the means of production and distribution of goods. c. Argue for more governmental stimulus to help the economy.

2. Would Henry Hazlitt more likely say: B a. That government should fund public works to maintain full employment. b. The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups. c. From each according to his ability, to each
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b. Vegetables you buy at the grocery store and vegetables you grow at home are calculated as part of GDP. True or False? FALSE

c. When Joe sells his used car to Jane the value is included in GDP. FALSE True or False?

d. When you buy a CD made by your favorite band and when you pay to hear them in concert is calculated as part of GDP. True or False? TURE

e. When a Mexican citizen works temporarily (and legally) in the United States, his production is part of GDP. True or False? TURE

23. To compute GDP, we C
a. add up the wages paid to all workers.
b. add up the costs of producing all final goods and services.
c. add up the market values of all final goods and services.
d. take the difference between the market value of all final goods and services and the cost of producing those final goods and services.

24. Which of the following is not included in GDP? A
a. a carpenter makes repairs to his own house without buying new tools or materials
b. services such as those provided by lawyers and hair stylists
c. the estimated rental value of owner-occupied housing
d. production of foreign citizens living in the United States

25. A farmer sells wheat to a baker for $2. The baker uses the wheat to make bread, which is sold for $3. What is the total contribution of these transactions to GDP? B a. $2 b. $3 c. $5 d. $6

26. (6 points total, 2 points each) What