ANSWER: C

POINTS: 0 / 1

5. Diesel fuel is

a. always considered a final good.

b. counted as an intermediate good if a company uses it to provide transportation services.

c. counted as a final good if a farmer uses it to run a tractor to grow crops.

d. Both b and c are correct.

ANSWER: B

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6. Gross domestic product

a. is the market value of all final goods and services produced within a country in a given

period (usually a year)

b. is the income in the hands of individuals after deducting income taxes; income available

to households to spend and save

c. is the value of goods and services purchased by all levels of government—federal,

provincial, and local—in a given period

d. is the market value of all final goods and services produced by permanent residents of a

nation in a given time period

ANSWER: A

POINTS: 0 / 1

7. Macroeconomics is that branch of economics that studies a. the conditions of individual markets

b. the influence of governments on individual markets

c. economy-wide phenomena

d. only the private sector of the economy

ANSWER: C

POINTS: 0 / 1

8. Suppose that nominal GDP is $6,000 billion and real GDP is $3,000. What is the GDP price deflator? a. 125

b. 150

c. 200

d. 250

ANSWER: C