Suppose a friend claims he is helping the economy by throwing trash on the street rather than in trash cans because the extra expenditures necessary to clean up the streets will increase GDP. Your friend is Multiple Choice O Wrong. GDP will not be affected because nothing new is being produced. O Right. GDP will increase, ceteris paribus. O Wrong. GDP will not be affected because this is not a socially desirable use of resources and will therefore not be included in GDP. O Wrong. GDP will decline because the neighborhood will be less clean.A nation's GDP is Multiple Choice O The total amount of money in circulation. C + /+ 6 + ( X- M) . O The sum of value added at some stages of the production process. O The total market value of all intermediate goods and services.Goods produced for the purpose of producing other goods are known as Multiple Choice O Exports. O Services. O Investment goods. O Consumption goods.The measure of GDP is Multiple Choice O Geographically focused. O Globally focused. O Horizontally focused. O Vertically focused.To calculate real GDP, we Multiple Choice O Measure in the prices of goods and services of that period. O Estimate future prices of goods and services. O Adjust the market value of goods and services for changing prices. O None of the choices are correct.When calculating GDP, consumption makes up approximately Multiple Choice O Two-thirds of total output. O One-half of total output. O One-third of total output. O One-fifth of total output.When we calculate GDP, imports are Multiple Choice O Added to exports because both represent purchases of final goods. O Subtracted from total spending because they are part of another country's GDP. O Subtracted from exports to obtain gross exports. O Subtracted from exports and included in gross investment.The GDP per capita is the most practical way to Multiple Choice O Analyze the growth rate of the economy through time. O Make international comparisons of the standard of living. O Measure how much output can be consumed on a sustainable basis. O Measure how much income households receive.National Income Accounts (dollar figures are in billions) Expenditures for consumer goods and services $4, 565 Exports $740 Government purchases of goods and services $1, 465 Social Security taxes $510 Net investment $225 Indirect business taxes $520 Imports $825 Gross investment $865 Corporate income taxes $185 Personal income taxes $750 Corporate retained earnings $45 Net foreign factor income $20 Government transfer payments to households $690 Net interest payments to households $0 On the basis of Table 5.1, gross domestic product is Multiple Choice O $6,980 billion.On the basis of Table 5.1, gross domestic product is Multiple Choice O $6,980 billion. O $7,635 billion. O $6,810 billion. O $7,720 billion.The social well-being of a country Multiple Choice O Is best measured by per capita GDP. O Always increases when real GDP increases. O Decreases when real GDP decreases. O Is measured by more than changes in real GDP