ECON 2105 Homework 2: Gross Domestic Product and Value Added, Assignments of Introduction to Macroeconomics

Download ECON 2105 Homework 2: Gross Domestic Product and Value Added and more Assignments Introduction to Macroeconomics in PDF only on Docsity! ECON 2105 Name________________________________ Homework 2 True/False ____1. When you voluntarily cook dinner for your family every Sunday night, the value of that service is included in gross domestic product (GDP). ____2. The factor payment for land is rent. ____3. GDP does not include an accurate measure of illegal production of goods and services. Multiple Choice (Choose the best answer for each question.) ____4. Which of the following pairs correctly matches the final user and the category they are associated with? a. households ~ investment spending b. businesses ~ government spending c. government agencies ~ consumption spending d. foreigners ~ net exports ____5. Which of the following is NOT a component of private investment (I)? a. Human capital investment b. New home construction c. Changes in inventories d. Purchases of plant, equipment & software Short Answer 6. Using the expenditure approach, calculate GDP for the economy detailed below. Imports = $4 mil Exports = $2 mil Gov’t purchases of G/S = $3 mil Gov’t transfer payments = $2 mil Private investment = $5 mil Consumption expenditures = $6 mil Stocks & Bonds purchases = $1 mil