Question 1

Which of the following is included in GDP?

Accepted Answer

A)   the market value of rental housing services,but not the market value of owner-occupied housing services.
B)   the market value of owner-occupied housing services,but not the market value of rental housing services
C)   both the market value of rental housing services and the market value of owner-occupied housing services
D)   neither the market value of owner-occupied housing services nor the market value of rental housing services.E) All of the above
F) B) and C)

Question 2

Table 15-7
The table below contains data for the country of Togogo.The base year is 1974.
 
-Refer to Table 15-7.Which of the following is not correct?

Accepted Answer

A)   This economy experienced growth from 1974 to 1975.
B)   This economy experienced growth from 1975 to 1976.
C)   This economy experienced growth from 1976 to 1977.
D)   This economy experienced inflation from 1974 to 1975,from 1975 to 1976,and from 1976 to 1977.E) A) and D)
F) All of the above

Question 3

Which of the following represents a transfer payment?

Accepted Answer

A)   You transfer $1,000 from your bank account to a mutual fund.
B)   The government sends your grandfather his Social Security check.
C)   You make a payment to get legal documents showing you purchased a previously owned home.
D)   Your employer automatically transfers $100 each month from your wages to a non-taxable medical spending account.E) All of the above
F) None of the above

Question 4

What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

Accepted Answer

A)   capital
B)   consumption
C)   investment
D)   costsE) All of the above
F) B) and C)

Question 5

If someone in the United States buys a surfboard produced in Australia,then that purchase is included in both the consumption component of U.S.GDP and the net exports component of U.S.GDP.

Accepted Answer

A) True 
 B)False

Question 6

GDP includes the value of paper clips but does not also count the value of the metal used to make them.

Accepted Answer

A) True 
 B)False

Question 7

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself.Which of the following is correct? The value of changing the oil is

Accepted Answer

A)   included in GDP whether Susan pays Speedy Lube to change it or changes it herself.
B)   included in GDP if Susan pays Speedy Lube to change it but not if she changes it herself.
C)   included in GDP if Susan changes it herself,but not if she pays Speedy Lube to change it.
D)   not included in GDP whether Susan pays Speedy lube to change it or she changes it herself.E) All of the above
F) A) and B)

Question 8

In the economy of Ukzten in 2010,consumption was one-half of GDP,government purchases were $2000 more than investment,investment was one-sixth of GDP,and the value of imports exceeded the value of exports by $500.What was Ukzten's GDP in 2010?

Accepted Answer

A)   $3000
B)   $4500
C)   $9000
D)   $15,000E) All of the above
F) A) and B)

Question 9

Suppose an economy produces only iPhones and bananas.In 2010,1000 iPhones are sold at $300 each and 5000 pounds of bananas are sold at $3 per pound.In 2009,the base year,iPhones sold at $400 each and bananas sold at $2 per pound.For 2010,

Accepted Answer

A)   nominal GDP is $315,000,real GDP is $410,000,and the GDP deflator is 76.83.
B)   nominal GDP is $410,000,real GDP is $315,000,and the GDP deflator is 130.16.
C)   nominal GDP is $315,000,real GDP is $410,000,and the GDP deflator is 130.16.
D)   nominal GDP is $410,000,real GDP is $315,000,and the GDP deflator is 76.83.E) A) and B)
F) C) and D)

Question 10

Which of the following items is included in U.S.GDP?

Accepted Answer

A)   the estimated value of production accomplished at home,such as backyard production of fruits and vegetables
B)   the value of illegally-produced goods and services
C)   the value of cars and trucks produced in foreign countries and sold in the U.S.
D)   None of the above is included in U.S.GDP.E) None of the above
F) B) and C)

Question 11

Macroeconomists study

Accepted Answer

A)   the decisions of individual households and firms.
B)   the interaction between households and firms.
C)   economy-wide phenomena.
D)   regulations imposed on firms and unions.E) A) and C)
F) None of the above

Question 12

The output of goods and services produced in the United States has grown on average 3 percent per year since 1965.

Accepted Answer

A) True 
 B)False

Question 13

Both the value of hamburgers sold by a restaurant and the value of the beef it used to make these hamburgers are included in GDP.

Accepted Answer

A) True 
 B)False

Question 14

U.S.GDP includes the market value of rental housing,but not the market value of owner-occupied housing services.

Accepted Answer

A) True 
 B)False

Question 15

When an Egyptian firm purchases a cement mixer from Slovakia,

Accepted Answer

A)   Egyptian investment does not change,Egyptian net exports decrease,Egyptian GDP decreases,Slovakian net exports increase,and Slovakian GDP increases.
B)   Egyptian investment increases,Egyptian net exports decrease,Egyptian GDP is unaffected,Slovakian net exports increase,and Slovakian GDP increases.
C)   Egyptian investment decreases,Egyptian net exports increase,Egyptian GDP is unaffected,Slovakian net exports decrease,and Slovakian GDP decreases.
D)   Egyptian investment increases,Egyptian net exports do not change,Egyptian GDP increases,Slovakian net exports do not change,and Slovakian GDP is unaffected.E) A) and B)
F) A) and C)

Question 16

Gina,a U.S.citizen,works only in Bermuda.The value of Gina's production is included in

Accepted Answer

A)   U.S.GDP and Bermudan GDP.
B)   U.S.GDP and Bermudan GNP.
C)   U.S.GNP and Bermudan GDP.
D)   U.S.GNP and Bermudan GNP.E) B) and C)
F) A) and D)

Question 17

Table 15-6
The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009.
Prices and Quantities
 
-Refer to Table 15-6.In 2011,this country's real GDP was

Accepted Answer

A)   $540.
B)   $800.
C)   $930.
D)   $1380.E) All of the above
F) A) and B)

Question 18

How is net national product (NNP) calculated?

Accepted Answer

A)   Saving is subtracted from the total income of a nation's citizens.
B)   Saving is added to the total income of a nation's citizens
C)   Depreciation losses are subtracted from the total income of a nation's citizens.
D)   Depreciation losses are added to the total income of a nation's citizens.E) B) and D)
F) A) and D)

Question 19

Changes in real GDP reflect

Accepted Answer

A)   only changes in prices.
B)   only changes in the amounts being produced.
C)   both changes in prices and changes in the amounts being produced.
D)   neither changes in prices nor changes in the amounts being produced.E) None of the above
F) A) and B)

Question 20

Table 15-5
A hypothetical country of Lahland produces only movies and popcorn.Quantities and prices of these goods for the last several years are shown below.The base year is 2009.
Prices and Quantities
 
-Refer to Table 15-5 In which year was this country's real GDP highest?

Accepted Answer

A)   2008
B)   2009
C)   2010
D)   2011E) B) and C)
F) A) and D)

Exam 15: Measuring a Nations Income

Table 15-5 A hypothetical country of Lahland produces only movies and popcorn.Quantities and prices of these goods for the last several years are shown below.The base year is 2009. Prices and Quantities -Refer to Table 15-5 In which year was this country's real GDP highest?

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In the economy of Ukzten in 2010,consumption was one-half of GDP,government purchases were $2000 more than investment,investment was one-sixth of GDP,and the value of imports exceeded the value of exports by $500.What was Ukzten's GDP in 2010?

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Table 15-7 The table below contains data for the country of Togogo.The base year is 1974. -Refer to Table 15-7.Which of the following is not correct?

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Which of the following represents a transfer payment?

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Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself.Which of the following is correct? The value of changing the oil is

Correct AnswerverifiedShow Answer

How is net national product (NNP) calculated?

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Macroeconomists study

Correct AnswerverifiedShow Answer

If someone in the United States buys a surfboard produced in Australia,then that purchase is included in both the consumption component of U.S.GDP and the net exports component of U.S.GDP.

Correct AnswerverifiedShow Answer

GDP includes the value of paper clips but does not also count the value of the metal used to make them.

Correct AnswerverifiedShow Answer

Which of the following is included in GDP?

Correct AnswerverifiedShow Answer

Changes in real GDP reflect

Correct AnswerverifiedShow Answer

Suppose an economy produces only iPhones and bananas.In 2010,1000 iPhones are sold at $300 each and 5000 pounds of bananas are sold at $3 per pound.In 2009,the base year,iPhones sold at $400 each and bananas sold at $2 per pound.For 2010,

Correct AnswerverifiedShow Answer

U.S.GDP includes the market value of rental housing,but not the market value of owner-occupied housing services.

Correct AnswerverifiedShow Answer

When an Egyptian firm purchases a cement mixer from Slovakia,

Correct AnswerverifiedShow Answer

What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

Correct AnswerverifiedShow Answer

Which of the following items is included in U.S.GDP?

Correct AnswerverifiedShow Answer

Table 15-6 The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009. Prices and Quantities -Refer to Table 15-6.In 2011,this country's real GDP was

Correct AnswerverifiedShow Answer

Gina,a U.S.citizen,works only in Bermuda.The value of Gina's production is included in

Correct AnswerverifiedShow Answer

Both the value of hamburgers sold by a restaurant and the value of the beef it used to make these hamburgers are included in GDP.

Correct AnswerverifiedShow Answer

The output of goods and services produced in the United States has grown on average 3 percent per year since 1965.

Correct AnswerverifiedShow Answer

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