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Suppose that Toyota (a Japanese company) produced 90,000 Camrys in the United States in 2011 and during 2011 sold 69,000 to U.S. customers and exported 14,000 to foreign buyers. The remaining Camrys were sold to U.S. customers in 2012. How many of these Camrys would count as a part of U.S. GDP in 2011?

Suppose that Toyota (a Japanese company) produced 90,000 Camrys in the United States in 2011 and during 2011 sold 69,000 to U.S. customers and exported 14,000 to foreign buyers. The remaining Camrys were sold to U.S. customers in 2012. How many of these Camrys would count as a part of U.S. GDP in 2011?

0
69,000
76,000
83,000
90,000

Suppose that the production function for the economy is: Y = AK3/4 L1/4. Then

Capital is more plentiful than labor.
Capital is a more expensive input that labor.
Capital has a larger share in national income than does labor.
Diminishing returns to capital are three times greater than are diminishing returns to labor.
None of the above.

Suppose that the economy has full-employment output of 5,000. Government purchases are 1,000. The consumption and investment functions are given by:

C = 3,000 – 2,000r + 0.10Y

I = 1,000 – 4000r

where Y equals output and r is the real interest rate. The equilibrium real interest rate is equal to:

25%
50%
00%
33%
00%

If a severe freeze destroys much of the crop of a small open agricultural country, then:

Net foreign lending would increase.
Net foreign lending would decrease.
The real interest rate would increase.
The real interest rate would decrease.
The desired investment curve would shift to the left.
The desired investment curve would shift to the right.

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