Question 1

If exports are $500,GDP is $8000,government purchases are $1200,imports are $700,and investment is $800,then consumption is $6200.

Accepted Answer

A) True 
 B)False

Question 2

Changes in the GDP deflator reflect only changes in the prices of goods and services.

Accepted Answer

A) True 
 B)False

Question 3

Suppose there are only two firms in an economy: Cowhide,Inc.produces leather and sells it to Couches,Inc.,which produces and sells leather furniture.With each $1,000 of leather that it buys from Cowhide,Inc.,Couches,Inc.produces a couch and sells it for $3,000.Neither firm had any inventory at the beginning of 2009.During that year,Cowhide produced enough leather for 20 couches.Couches,Inc.bought 80% of that leather for $16,000 and promised to buy the remaining 20% for $4,000 in 2010.Couches,Inc.produced 16 couches during 2009 and sold each one during that year for $3,000.What was the economy's GDP for 2009?

Accepted Answer

A)   $48,000
B)   $52,000
C)   $64,000
D)   $68,000E) A) and D)
F) A) and C)

Question 4

GDP is defined as the market value of all final goods and services produced within a country in a given period of time.In spite of this definition,some production is left out of GDP.Explain why some final goods and services are not included.

Accepted Answer

GDP excludes some products because they ...

Question 5

Which of the following is a way to compute GDP?

Accepted Answer

A)   add up the wages paid to all workers
B)   add up the quantities of all final goods and services
C)   add up the market values of all final goods and services
D)   add up the difference between the market values of all final goods and services and then subtract the costs of producing those goods and servicesE) A) and B)
F) A) and C)

Question 6

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

Accepted Answer

A)   final goods and services that are purchased by the U.S.federal government
B)   intermediate goods that are produced in the U.S.but that are unsold at the end of the GDP accounting period
C)   goods and services produced by foreign citizens working in the U.S.
D)   All of the above are included in U.S.GDP.E) C) and D)
F) B) and C)

Question 7

Rank the countries from highest to lowest based on underground economic activity as a percentage of GDP.

Accepted Answer

A)   Bolivia,Thailand,United States,Sweden.
B)   Thailand,United States,Sweden,Bolivia.
C)   United States,Bolivia,Sweden,Thailand.
D)   Bolivia,Thailand,Sweden,United States.E) A) and D)
F) A) and C)

Question 8

Macroeconomic statistics include GDP,the inflation rate,the unemployment rate,retail sales,and the trade deficit.

Accepted Answer

A) True 
 B)False

Question 9

When an American doctor opens a practice in Bermuda,his production there is part of U.S.GDP.

Accepted Answer

A) True 
 B)False

Question 10

In the United States in 2009,consumption represented approximately

Accepted Answer

A)   60 percent of GDP.
B)   70 percent of GDP.
C)   80 percent of GDP.
D)   90 percent of GDP.E) C) and D)
F) B) and D)

Question 11

Table 15-4
The table below reports nominal and real GDP for the U.S.from 1929 to 1932.
 
-Refer to Table 15-3.What was the growth rate of real GDP for 1930?

Accepted Answer

A)   -8.62%.Real GDP is a better gauge of economic well-being than nominal GDP.
B)   -8.62%.Nominal GDP is a better gauge of economic well-being than real GDP.
C)   -9.43%.Real GDP is a better gauge of economic well-being than nominal GDP.
D)   -9.43%.Nominal GDP is a better gauge of economic well-being than real GDP.E) B) and C)
F) A) and C)

Question 12

Estimates of the values of which of the following non-market goods or services are included in GDP?

Accepted Answer

A)   the value of unpaid housework
B)   the value of services provided by major household appliances purchased in a previous period
C)   the estimated rental value of owner-occupied homes
D)   All of the above are included in GDP.E) None of the above
F) A) and C)

Question 13

Which of the following statements about GDP is correct?

Accepted Answer

A)   Nominal GDP values production at current prices,whereas real GDP values production at constant prices.
B)   Nominal GDP values production at constant prices,whereas real GDP values production at current prices.
C)   Nominal GDP values production at market prices,whereas real GDP values production at the cost of the resources used in the production process.
D)   Nominal GDP values production at the cost of the resources used in the production process,whereas real GDP values production at market prices..E) A) and D)
F) All of the above

Question 14

According to the circular-flow diagram GDP

Accepted Answer

A)   can be computed as the total income paid by firms or as expenditures on final goods and services.
B)   can be computed as the total income paid by firms,but not as expenditures on final goods and services.
C)   can be computed as expenditures on final goods and services,but not as the total income paid by firms.
D)   cannot be computed as either total income paid by firms or expenditures on final goods and services.E) None of the above
F) A) and B)

Question 15

Total income from the domestic production of final goods and services equals

Accepted Answer

A)   only household expenditures for these goods.
B)   only household and business expenditures for these goods.
C)   only household and government expenditures for these goods.
D)   the expenditures for these goods whoever buys them.E) C) and D)
F) All of the above

Question 16

Expenditures on a nation's domestic production

Accepted Answer

A)   are less than its domestic production.
B)   are equal to its domestic production.
C)   are greater than its domestic production.
D)   could be less than,equal to,or greater than its domestic production.E) B) and D)
F) A) and C)

Question 17

John buys a used car for $5,400 and spends $600 on new parts,made in the U.S.,to fix the car.The end result of these two transactions is

Accepted Answer

A)   U.S.consumption purchases increase by $5,400 and U.S.GDP increases by $5,400.
B)   U.S.consumption purchases increase by $6,000 and U.S.GDP increases by $6,000.
C)   U.S.consumption purchases increase by $600 and U.S.GDP increases by $600.
D)   U.S.consumption purchases increase by $600 and U.S.GDP increases by $6,000.E) None of the above
F) B) and C)

Question 18

GDP is defined as the

Accepted Answer

A)   value of all goods and services produced within a country in a given period of time.
B)   value of all goods and services produced by the citizens of a country,regardless of where they are living,in a given period of time.
C)   value of all final goods and services produced within a country in a given period of time.
D)   value of all final goods and services produced by the citizens of a country,regardless of where they are living,in a given period of time.E) None of the above
F) B) and C)

Question 19

Which of the following statements about GDP is correct?

Accepted Answer

A)   GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy's output of goods and services.
B)   Money continuously flows from households to firms and then back to households,and GDP measures this flow of money.
C)   GDP is generally regarded as the best single measure of a society's economic well-being.
D)   All of the above are correct.E) A) and B)
F) None of the above

Question 20

Spots,Inc.produces ink and sells it to Write on Target,which makes pens.The ink produced by Spots,Inc.is called

Accepted Answer

A)   an inventory good.
B)   a transitory good.
C)   a final good.
D)   an intermediate good.E) None of the above
F) A) and B)

Exam 15: Measuring a Nations Income

John buys a used car for $5,400 and spends $600 on new parts,made in the U.S.,to fix the car.The end result of these two transactions is

Correct Answer
verified

Rank the countries from highest to lowest based on underground economic activity as a percentage of GDP.

Correct Answer
verified

Which of the following is a way to compute GDP?

Correct Answer
verified

GDP is defined as the

Correct Answer
verified

In the United States in 2009,consumption represented approximately

Correct Answer
verified

Spots,Inc.produces ink and sells it to Write on Target,which makes pens.The ink produced by Spots,Inc.is called

Correct Answer
verified

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

Correct Answer
verified

Expenditures on a nation's domestic production

Correct Answer
verified

Macroeconomic statistics include GDP,the inflation rate,the unemployment rate,retail sales,and the trade deficit.

Correct Answer
verified

Which of the following statements about GDP is correct?

Correct Answer
verified

Total income from the domestic production of final goods and services equals

Correct Answer
verified

When an American doctor opens a practice in Bermuda,his production there is part of U.S.GDP.

Correct Answer
verified

According to the circular-flow diagram GDP

Correct Answer
verified

Correct Answer
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Table 15-4 The table below reports nominal and real GDP for the U.S.from 1929 to 1932. -Refer to Table 15-3.What was the growth rate of real GDP for 1930?

Correct Answer
verified

Estimates of the values of which of the following non-market goods or services are included in GDP?

Correct Answer
verified

Which of the following statements about GDP is correct?

Correct Answer
verified

GDP is defined as the market value of all final goods and services produced within a country in a given period of time.In spite of this definition,some production is left out of GDP.Explain why some final goods and services are not included.

Correct Answer
verified
GDP excludes some products because they ...
View Answer

If exports are $500,GDP is $8000,government purchases are $1200,imports are $700,and investment is $800,then consumption is $6200.

Correct Answer
verified

Changes in the GDP deflator reflect only changes in the prices of goods and services.

Correct Answer
verified

Exam 15: Measuring a Nations Income

John buys a used car for $5,400 and spends $600 on new parts,made in the U.S.,to fix the car.The end result of these two transactions is

Correct AnswerverifiedShow Answer

Rank the countries from highest to lowest based on underground economic activity as a percentage of GDP.

Correct AnswerverifiedShow Answer

Which of the following is a way to compute GDP?

Correct AnswerverifiedShow Answer

GDP is defined as the

Correct AnswerverifiedShow Answer

In the United States in 2009,consumption represented approximately

Correct AnswerverifiedShow Answer

Spots,Inc.produces ink and sells it to Write on Target,which makes pens.The ink produced by Spots,Inc.is called

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Expenditures on a nation's domestic production

Correct AnswerverifiedShow Answer

Macroeconomic statistics include GDP,the inflation rate,the unemployment rate,retail sales,and the trade deficit.

Correct AnswerverifiedShow Answer

Which of the following statements about GDP is correct?

Correct AnswerverifiedShow Answer

Total income from the domestic production of final goods and services equals

Correct AnswerverifiedShow Answer

When an American doctor opens a practice in Bermuda,his production there is part of U.S.GDP.

Correct AnswerverifiedShow Answer

According to the circular-flow diagram GDP

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 15-4 The table below reports nominal and real GDP for the U.S.from 1929 to 1932. -Refer to Table 15-3.What was the growth rate of real GDP for 1930?

Correct AnswerverifiedShow Answer

Estimates of the values of which of the following non-market goods or services are included in GDP?

Correct AnswerverifiedShow Answer

Which of the following statements about GDP is correct?

Correct AnswerverifiedShow Answer

GDP is defined as the market value of all final goods and services produced within a country in a given period of time.In spite of this definition,some production is left out of GDP.Explain why some final goods and services are not included.

Correct AnswerverifiedGDP excludes some products because they ...View AnswerShow Answer

If exports are $500,GDP is $8000,government purchases are $1200,imports are $700,and investment is $800,then consumption is $6200.

Correct AnswerverifiedShow Answer

Changes in the GDP deflator reflect only changes in the prices of goods and services.

Correct AnswerverifiedShow Answer

Correct Answer
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GDP excludes some products because they ...
View Answer

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