9. Each year an annual charge is estimated to indicate the amount of capital equipment used up in each year's production. This charge is called? A. Investment B. Inventory use C. Indirect business taxes D. Capital consumption 10. To convert GDP at factor cost to GDP at market prices it is necessary to add A. Indirect business taxes and subtract subsidies. B. Expenditures on import C. Gross trading prots of companies D. Net property income from abroad. 11. Which of the following would be included in the calculation of GDP? A. Repairs to your car done by yourself B. A $ 10.000 fee paid to an attorney for legal fees C. The purchase of a 1993 Nissan pickup from your best friend D. A barter transaction between two students 12. Gross domestic product calculations count only nal goods and services because. A. These are the only goods and services that are purchased in an economy B. Counting all goods and services would lead to double counting of many activities C. It is difcult to measure the prices of intermediate good produced D. One cannot calculate the quantities of intermediate goods 13. Final goods and services are those that are: A. produced outside of Jamaica B. used in the production of other goods and services C. double counted in the calculation of GDP D. sold to ultimate nal consumers. 14. Which of the following is an example of consumption expenditure? A. Construction of computer chip factory B. Admission to an amusement park C. Purchase of a commercial airplane D. Wages paid to members of parliament 15. The income approach to calculating National Income includes all of the following main components. A. Salaries, rent and social security benets. B. Prots, interest and unemployment benets C. Subsidies. salaries, rent and stock appreciation D. Salaries. rent, prot and interests. 16. A country's net exports are equal to? A. Imports minus exports B. Exports minus imports C. Total production minus imports D. This year's exports minus last year's exports l. Macroeconomics is A. the study of individual choice and how that choice is inuenced by economic forces. B. an analysis of economic reality that proceeds from the parts to the whole. C. the study of the pricing policies of rms and the purchasing decisions of households. D. the study of the overall economy and aggregate economic relationships. 2. Which of the following is a macroeconomic concern? A. How prots are maximized by a rm. B. The causes of unemployment in the United States. C. The effects of agricultural price supports on the income of farmers. D. Wage rates of electricians in Kansas City 3. GDP includes: A. complementary but not intermediate products. B. intermediate but not nal products. C. nal but not intermediate products. D. substitute but not intermediate products. 4. National Income statistics may overstate the level of standard of living in a country if: A. The average length of the working week has decreased B. Government spending on low income housing is high C. Ination is low D. Government spending on military goods is high 5. An example of transfer payments is: A. The cost of electric power sold by power services company limited B. The postman's wage C. Payments to the Jamaica Public Service Company for electricity supplied D. Unemployment compensation 6. Which of the following is NOT an important use to which National income statistics is put? A. Provides a basis for the application of policies designed to improve the economy's performance. B. Permits measurement of the economic efciency of the economy. C. Makes possible an estimate of output of nal goods and services in an economy. D. Enables the economist to chart the growth or decline of the economy over a period of time. 7. In calculating the National Income using the Income Method, stock appreciation is deducted because A. It is part of the residual error. B. Ination would make stock appear to be worth more than they were in the past. C. It is part of double counting. D. It has already been accounted for in the income of capital stock. 8. GDP (a) market prices in an economy is $4532 billion. Consumer expenditures were estimated at $2433 billion, investments $467 billion and government spending $954 billion. What is the value of the net exports? A. +$532 billion B. +3678 billion C. - $532 billion D. - S 678 billion 17. Which of the following is an intermediate good? A. the purchase of gasoline for a jet ski trip to Negril B. the purchase of basketball uniforms by a professional basket ball team. C. the purchase of a pizza by a college student. D. the purchase of jogging shoes by a professor 18. Which of the following is excluded from the national income statistics of Jamaica? A. The boarding grants paid to student nurses B. The payment made to contract workers for work done for the government C. Rent collected for buildings D. The salary paid to the Prime Minister 19. Which of the following activities is excluded 'om GDP, causing GDP to understate a nation's well- being? A. The services of health care workers B. The services of military personnel C. The construction of new buildings D. Goods and services produced in the underground economy. 20. Which one of the following need NOT be accounted for when using National Income to measure the average standard of living? A. The number of new supermarkets opened. B. An increase in the size of the middle-income groups C. An increase in pollution D. The value of leisure time as measured by the average length of the working week