精品文档---下载后可任意编辑CHAPTER 24: MEASURING THE COST OF LIVINGTrue/FalseIndicate whether the statement is true or false. 1. The circular flow diagram describes all transactions between households and firms in a simple economy and shows the equality of expenditures and income.ANSWER: TPOINTS: 0 / 1 2. Gross domestic product includes most items produced and sold illicitly.ANSWER: FPOINTS: 0 / 1 3. Net national product is the total income of a nation’s residents minus losses from depreciation.ANSWER: TPOINTS: 0 / 1 4. Disposable personal income is the income that households and unincorporated business have left after satisfying all their obligations to the government. It equals personal income minus personal taxes and certain non-tax payments to government.ANSWER: TPOINTS: 0 / 1 5. The purchase of new houses by households is included in the calculation of personal consumption expenditures of GDP.ANSWER: FPOINTS: 0 / 1 Multiple ChoiceIdentify the choice that best completes the statement or answers the question. 1. When GDP falls,a.income and expenditure must both fall.b.income and expenditure can both rise.c.income must fall, but expenditure may rise or fall.d.expenditure must fall, but income may rise or fall.ANSWER: APOINTS: 0 / 1 2. Income equals expenditure becausea.firms always pay out all their revenue as income to someone.b.each time a sale is made, there is a buyer and a seller.c.households own the factors of production used to generate incomes.d.All of the above are correct.ANSWER: BPOINTS: 0 / 1 3. If a province makes the production and sale of illicit drugs legal, then GDPa.must increase.b.must decrease.c.wouldn't change.d.may increase or decrease.ANSWER: APOINTS: 0 / 1 4. When a government prov...
