MSC: Applying 35. U.S. expenditure shares by households, firms, and the government were relatively ________ except during ________. constant; the Vietnam War d. constant; the 1970s a. variable; the 1990s e. variable; the Great Depression b. constant; World War II c. ANS: C DIF: Moderate REF: 2.2 TOP: II.C. MSC: Understanding 36. Since about ________, U.S. expenditure shares by households, firms, and the government have been relatively ________. 1939; constant a. the Great Depression era; constant b. 1950; variable c. 1950; constant d. 1945; constant e. ANS: D DIF: Moderate REF: 2.2 TOP: II.C. MSC: Understanding 37. According to the text, the gains in consumption share have: GDP’s caused a rapid decline in inventories. a. driven investment below 10 percent. b. no impact on net exports. c. been at a cost to net exports and government spending. d. also pushed up the government expenditure share. e. ANS: D DIF: Moderate REF: 2.2 TOP: II.C. MSC: Understanding 38. Prior to the late 1970s, the United States ________ about as much as it ________. invested; exported d. exported; consumed a. imported; invested e. exported; imported b. imported; consumed c. ANS: B DIF: Moderate REF: 2.2 TOP: II.C. MSC: Understanding 39. According to the approach to GDP, the largest percentage of GDP comes from: income depreciation of fixed capital. d. indirect business taxes. a. None of these answers is correct. e. firm profits. b. compensation to employees. c. ANS: C DIF: Easy REF: 2.2 TOP: II.C. MSC: Understanding Refer to the following table when answering the following questions. Table 2.2: U.S. 2014–2015 Domestic Income ($ billions) 2015 2014 9,704 9,264 Compensation of employees, paid 7,866 7,487 Wages and salaries
MSC: Applying 35. U.S. expenditure shares by households, firms, and the government were relatively ________ except during ________. a. constant; the 1970s d. constant; the Vietnam War b. variable; the Great Depression e. variable; the 1990s c. constant; World War II ANS: C DIF: Moderate REF: 2.2 TOP: II.C. MSC: Understanding 36. Since about ________, U.S. expenditure shares by households, firms, and the government have been relatively ________. a. 1939; constant b. the Great Depression era; constant c. 1950; variable d. 1950; constant e. 1945; constant ANS: D DIF: Moderate REF: 2.2 TOP: II.C. MSC: Understanding 37. According to the text, the gains in GDP’s consumption share have: a. caused a rapid decline in inventories. b. driven investment below 10 percent. c. no impact on net exports. d. been at a cost to net exports and government spending. e. also pushed up the government expenditure share. ANS: D DIF: Moderate REF: 2.2 TOP: II.C. MSC: Understanding 38. Prior to the late 1970s, the United States ________ about as much as it ________. a. exported; consumed d. invested; exported b. exported; imported e. imported; invested c. imported; consumed ANS: B DIF: Moderate REF: 2.2 TOP: II.C. MSC: Understanding 39. According to the income approach to GDP, the largest percentage of GDP comes from: a. indirect business taxes. d. depreciation of fixed capital. b. firm profits. e. None of these answers is correct. c. compensation to employees. ANS: C DIF: Easy REF: 2.2 TOP: II.C. MSC: Understanding Refer to the following table when answering the following questions. Table 2.2: U.S. 2014–2015 Domestic Income ($ billions) 2014 2015 Compensation of employees, paid 9,264 9,704 Wages and salaries 7,487 7,866