Suppose Smith pays $100 to Jones. We can say with certainty that the GDP has 30. Suppose the total market value of all final goods and services produced in a particular country in 2004 is $500 billion and the total market value of final goods and services sold is $450 billion. We can conclude that: 31. National income accountants can avoid multiple counting by: 32. Gross domestic product (GDP) measures and reports output: 33. GDP is: 34. In the United States, the rate of unemployment is highest for: 35. Kimberly voluntarily quit her job as an insurance agent to return to school full-time to earn an MBA degree. With degree in hand she is now searching for a position in management. Kimberly presently is:
The correct answer and explanation is:
Here are the correct answers along with explanations for each question:
29. Suppose Smith pays $100 to Jones. We can say with certainty that the GDP has
Answer: Not necessarily changed.
Explanation: GDP measures the total market value of all final goods and services produced in a country within a given time period. A simple monetary transaction between individuals, such as Smith paying $100 to Jones, does not necessarily represent the production of a new good or service. If this payment is for a service, then it would contribute to GDP, but if it is merely a transfer payment (such as a gift or repayment of debt), GDP remains unchanged.
30. Suppose the total market value of all final goods and services produced in a particular country in 2004 is $500 billion, and the total market value of final goods and services sold is $450 billion. We can conclude that:
Answer: There was an increase in inventory investment of $50 billion.
Explanation: GDP includes not only the value of goods and services sold but also inventory investment. If production exceeds sales, the unsold goods are added to inventories, which counts as part of GDP. In this case, the difference of $50 billion indicates that businesses have added this amount to their inventories.
31. National income accountants can avoid multiple counting by:
Answer: Only counting the value of final goods and services.
Explanation: If we counted the value of intermediate goods multiple times, GDP would be overstated. To avoid this, economists include only final goods and services in GDP calculations or use the value-added method, which sums the contributions of each stage of production without double-counting.
32. Gross domestic product (GDP) measures and reports output:
Answer: For a specific time period, usually a year or a quarter.
Explanation: GDP provides a measure of economic activity over a defined period. It helps policymakers and economists assess economic growth, productivity, and overall economic health.
33. GDP is:
Answer: The market value of all final goods and services produced within a country in a given time period.
Explanation: GDP captures the total economic output of a country, reflecting the sum of consumption, investment, government spending, and net exports. It is a key indicator of a country’s economic performance.
34. In the United States, the rate of unemployment is highest for:
Answer: Teenagers.
Explanation: Historically, teenagers experience the highest unemployment rates because they have less experience, fewer job skills, and often work in industries prone to high turnover rates, such as retail and food service.
35. Kimberly voluntarily quit her job as an insurance agent to return to school full-time to earn an MBA degree. With a degree in hand, she is now searching for a position in management. Kimberly presently is:
Answer: Frictionally unemployed.
Explanation: Frictional unemployment occurs when individuals voluntarily leave jobs to find better opportunities. Since Kimberly is transitioning between jobs after completing her education, she is temporarily unemployed for job-search reasons.
Now, I will generate an image representing economic concepts such as GDP, employment, and transactions.
Here is the conceptual illustration representing economic concepts, including GDP growth, unemployment, and economic transactions. Let me know if you need any modifications or further explanations!
