Quiz No3 Chapter 3 Goods Market

Total points 20/24

Student Name: 0 of 0 points

Name:  *

Shain fernandez

Untitled section 20 of 24 points

Consumption is the
lowest component of GDP
* 2/2

True

False

Other:
 Imports need to be added from purchases of goods and
services by *0/2
consumers, firms and the government. This is because they are
goods
and services bought abroad.     

True

False

Other:

Correct answer

False

  If imports are greater than exports than there

is a trade surplus    
* 2/2

True

False

Other:

 
If imports is more than exports than it is a trade
deficit.    
* 0/2

True

False

Other:

Correct answer

False
 The inventory investment is the difference between goods produced and *2/2
goods
sold in a given year - the difference between production and sales. 
  

True

False

Other:

Which of the following

expenditures is NOT included in fixed investment *2/2
spending

A. A financial planner buys a new computer for

her office.

B. An individual buys a newly built home for

herself and her family.

C. Apple Computer builds a new factory.

D. Toyota increases its inventories of unsold

automobiles

E. General Motors 
buys a new robot for its assembly line.

E
Which of the following conditions must
be satisfied in a closed economy? * 2/2

A. Private saving equals investment

B. There is no government spending or taxes.

C. Total saving equals investment.

D. Government spending equals taxes.

E. Exports equal imports.

E
 Disposable income is: * 2/2

A. the same as "income".

B. income minus both saving and taxes.

C. income minus saving.

D. consumption minus taxes.

E. income after adding transfers and subtracting

taxes.

E
 When disposable income is zero, we know
that: * 2/2

A. saving must be zero.

B. saving equals investment

C. consumption must be zero.

D. saving is negative.

E. the marginal propensity to consume must be

zero

E
 Equilibrium in the goods market requires
that: * 2/2

A. 
production equals demand

B. consumption equals saving.

C. production equals income

D. consumption equals income.

E. 
government spending equals taxes minus transfers.

E
  Which of the following represents total
saving for an economy? *2/2

A. the sum of private saving and the excess of

taxes over government
spending

B. the sum of consumption and the excess of taxes

over government
spending

C. the excess of taxes over government spending

D. the sum of private saving and fixed investment

E. the sum of taxes and government spending

E
  Which of the following events will cause
an increase in equilibrium *2/2
output?

A. an increase in taxes

B. an increase in the marginal propensity to save

C. a decrease in the marginal propensity to

consume

D. an increase in the marginal propensity to consume

E. a decrease in the marginal propensity to save

Option 1

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