Question 6

Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This change in behavior, by itself, has

Question 6 options:

a.reduced measured GDP.

b.not affected measured GDP.

c.increased measured GDP only to the extent that the value of the restaurant meals exceeded the value of meals previously cooked at home.

d.increased measured GDP by the full value of the restaurant meals.

Question 7

If Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself, then GDP

Question 7 options:

a. necessarily rises.

b. necessarily falls.

c. will be unaffected because the same service is produced in either case.

d. will be unaffected because car maintenance is not included in GDP.

Question 8

A professional gambler moves from a state where gambling is illegal to a state where gambling is legal. Most of his income was, and continues to be, from gambling. His move

Question 8 options:

a. necessarily raises GDP.

b. necessarily decreases GDP.

c. doesn't change GDP because gambling is never included in GDP.

d. doesn't change GDP because in either case his income is include

Question 9

One bag of flour is sold for $1.50 to a bakery, which uses the flour to bake bread that is sold for $4.00 to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00. Taking these three transactions into account, what is the effect on GDP?

Question 9 options:

a. GDP increases by $1.50.

b. GDP increases by $3.50.

c. GDP increases by $6.00.

d. GDP increases by $7.50.

Question 10

Which of the following items is included in GDP?

Question 10 options:

a. the sale of stocks and bonds

b. the sale of used goods

c. the sale of services such as those performed by a doctor

d. All of the above are included in GDP.