1)Macroeconomics studies the following topics: a) national output, the inflation rate, and the trade deficit

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1)Macroeconomics studies the following topics:

a) national output, the inflation rate, and the trade deficit.

b) differences in market structure.

c) the price of Cisco stock and wage differences.

d) all of the above.

2. To compute GDP:

a) sum the cost of producing final goods and services.

b) sum the market values of final goods and services.

c) simply sum the number of final goods and services.

d) use a weighted average by a survey regarding how much people value different goods and services.

3. In a circular-flow diagram, total income and total expenditures in an economy are:

a) equal because every transaction has a buyer and a seller.

b) equal because firms are ultimately owned by households.

c) equal only if there is no saving.

d) always equal because some people's income is not for production.

4. In an open economy, firms sell goods and services to:

a) just the government.

b) households, government, and foreigners.

c) just households.

d) none of the above.

5. In a closed economy, firms sell goods and services to:

a) just the government.

b) households and the government.

c) households and foreigners.

d) none of the above.

6. The payments to the factors of production are:

a) wages.

b) rent and interest.

c) wages, rent, interest, and profits.

d) rent.

7. Suppose an apartment complex is converted to an owner occupied condominium. Suppose that the estimated value of the condominium owners' housing services is now the same as their former rent.

a) GDP decreases.

b) GDP increases.

c) GDP is unaffected because neither the rent nor the estimate of the value of housing services is included in GDP.

d) None of the above.

8. Over time, Americans have chosen to cook less at home and dine out more. This change in behavior:

a) does not affect GDP.

b) increases GDP.

c) reduces GDP.

d) none of the above.

9. Prostitution is made legal in the United States, what is the impact on GDP?

a) GDP increases.

b) GDP is unchanged.

c) GDP decreases.

d) None of the above.

10. Zoran, a Croatian citizen, only works in the United States. The value added to production from his employment is:

a) included only in U.S. GDP.

b) included only in U.S. GNP.

c) included in Croatian GDP.

d) not included in either U.S. GDP or U.S. GNP.