Economics Essay

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Multiple Choice Questions Testbank – Chapter 13 Go to memorandum Answer the following questions by selecting the appropriate answer from the list below. Which one of the following does NOT represent a key macroeconomic variable? A. The unemployment rate. B. The inflation rate. C. Gross Domestic Product (GDP). D. Income distribution. E. The population growth rate. If we were to add up the value of output of all firms in the economy, we would: A. obtain GDP at factor cost. B. obtain GDP at market prices. C. obtain GDP using the income method. D. overestimate the value of production taking place in the economy. E. underestimate the value of production taking place in the economy. |Questions (a) and (b) are based on the table below, which describes the process by which a loaf of bread is made available to a consumer | |as a final good. | | |Price (R) of a | | |loaf of bread | |Farmer sells wheat to miller |5,00 | |Miller sells flour to baker |6,00 | |Baker sells bread to grocer |10,00 | |Grocer sells bread to consumer |12,00 | Question (a) The total value of a loaf of bread is: A. R7,00 B. R12,00 C. R4,00 D. R33,00 E. R10,00 Question (b) The value added by the grocer equals: A. R12,00

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