Question 1

A transfer payment is a payment made by

Accepted Answer

A)   consumers, but not in exchange for a tangible product.
B)   firms, but not in exchange for capital equipment.
C)   foreigners, but not in exchange for a domestically-produced good or service.
D)   government, but not in exchange for a currently produced good or service.E) C) and D)
F) All of the above

Question 2

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) B) and C)
F) A) and D)

Question 3

Much of macroeconomics attempts to explain

Accepted Answer

A)   changes in the price of oil and gasoline.
B)   long-run growth and short-run fluctuations in real GDP.
C)   changes in the growth rate of state government spending.
D)   changes in the prices and quantities of individual goods and services.E) A) and D)
F) A) and C)

Question 4

The value of goods added to a firm's inventory in a certain year is treated as

Accepted Answer

A)   consumption, since the goods will be sold to consumers in another period.
B)   intermediate goods, and so is not included in that year's GDP.
C)   investment, since GDP aims to measure the value of the economy's production that year.
D)   spending on durable goods, since the goods could not be inventoried unless they were durable.E) None of the above
F) A) and D)

Question 5

If real GDP is 5,100 and nominal GDP is 4,900, then the GDP deflator is

Accepted Answer

A)   104.1 so prices are higher than in the base year.
B)   104.1 so prices are lower than in the base year.
C)   96.1 so prices are higher than in the base year.
D)   96.1 so prices are lower than in the base year.E) B) and C)
F) B) and D)

Question 6

If nominal GDP is $12,000 and the GDP deflator is 80, then real GDP is $15,000.

Accepted Answer

A) True 
 B)False

Question 7

Explain how GNP differs from GDP.

Accepted Answer

GNP includes income from a nat...

Question 8

Table 23-8
A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year.
 
-Refer to Table 23-8. In 2012, GDP deflator is

Accepted Answer

A)   122.
B)   134.
C)   92.
D)   113.E) None of the above
F) A) and B)

Question 9

In the economy of Talikastan in 2015, consumption was 75% of GDP, government purchases were $200, imports were $50 and 125% of the value of exports, investment was one-sixth of the value of consumption. What was Talikastan's GDP in 2015?

Accepted Answer

A)   $218
B)   $2500
C)   $1520
D)   $2100E) B) and D)
F) None of the above

Question 10

Nominal GDP uses constant base­year prices to place a value on the economy's production of goods and services, while real GDP uses current prices to place a value on the economy's production of goods and services.

Accepted Answer

A) True 
 B)False

Question 11

Microeconomics and macroeconomics are closely linked.

Accepted Answer

A) True 
 B)False

Question 12

Ryan lives in an apartment where he pays $7,000 a year in rent. Sarah lives in a house that could be rented for $21,000 a year. How much do these housing services contribute to GDP?

Accepted Answer

A)   $21,000
B)   $28,000
C)   $7,000
D)   $14,000E) B) and C)
F) A) and D)

Question 13

Table 23-1
The table below contains data for Chereaux for the year 2015.
 
-Refer to Table 23-1. Personal income for Chereaux in 2015 is

Accepted Answer

A)   $178.
B)   $201.
C)   $259.
D)   $196.E) A) and B)
F) A) and C)

Question 14

Table 23-2
The table below contains data for country A for the year 2010.
 
-Refer to Table 23-2. What were country A's exports in 2010?

Accepted Answer

A)   -$32
B)   $32
C)   $88
D)   $120E) All of the above
F) A) and B)

Question 15

Table 23-3
The table below contains data for the country of Crete for the year 2010.
 
-Refer to Table 23-3. What was Crete's consumption in 2010?

Accepted Answer

A)   $1810
B)   $2013
C)   $2315
D)   $3131E) None of the above
F) A) and C)

Question 16

Table 23-2
The table below contains data for country A for the year 2010.
 
-Refer to Table 23-2. What were country A's imports in 2010?

Accepted Answer

A)   -$32
B)   $32
C)   $88
D)   $120E) A) and B)
F) All of the above

Question 17

A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarters)  is are)  GDP higher?

Accepted Answer

A)   the first and the second
B)   the first but not the second
C)   the second but not the first
D)   neither the first nor the secondE) None of the above
F) A) and D)

Question 18

Jackie, a Canadian citizen, works only in the United States. The value of the output she produces is

Accepted Answer

A)   included in both U.S. GDP and U.S. GNP.
B)   included in U.S. GDP, but it is not included in U.S. GNP.
C)   included in U.S. GNP, but it is not included in U.S. GDP.
D)   included in neither U.S. GDP nor U.S. GNP.E) None of the above
F) A) and C)

Question 19

Unemployment compensation is

Accepted Answer

A)   part of GDP because it represents income.
B)   part of GDP because the recipients must have worked in the past to qualify.
C)   not part of GDP because it is a transfer payment.
D)   not part of GDP because the payments reduce business profits.E) A) and B)
F) C) and D)

Question 20

Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?

Accepted Answer

A)   the effect of taxes on the prices of airline tickets, and the profitability of automobile-manufacturing firms
B)   the price of beef, and wage differences between genders
C)   how consumers maximize utility, and how prices are established in markets for agricultural products
D)   the percentage of the labor force that is out of work, and differences in average income from country to countryE) A) and D)
F) B) and C)

Exam 5: Measuring a Nations Income

Which of the following is a way to compute GDP?

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Table 23-2 The table below contains data for country A for the year 2010. -Refer to Table 23-2. What were country A's imports in 2010?

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A transfer payment is a payment made by

Correct AnswerverifiedShow Answer

Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?

Correct AnswerverifiedShow Answer

Nominal GDP uses constant base­year prices to place a value on the economy's production of goods and services, while real GDP uses current prices to place a value on the economy's production of goods and services.

Correct AnswerverifiedShow Answer

Much of macroeconomics attempts to explain

Correct AnswerverifiedShow Answer

Unemployment compensation is

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If nominal GDP is $12,000 and the GDP deflator is 80, then real GDP is $15,000.

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Table 23-2 The table below contains data for country A for the year 2010. -Refer to Table 23-2. What were country A's exports in 2010?

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Table 23-3 The table below contains data for the country of Crete for the year 2010. -Refer to Table 23-3. What was Crete's consumption in 2010?

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Jackie, a Canadian citizen, works only in the United States. The value of the output she produces is

Correct AnswerverifiedShow Answer

Table 23-1 The table below contains data for Chereaux for the year 2015. -Refer to Table 23-1. Personal income for Chereaux in 2015 is

Correct AnswerverifiedShow Answer

The value of goods added to a firm's inventory in a certain year is treated as

Correct AnswerverifiedShow Answer

Table 23-8 A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-8. In 2012, GDP deflator is

Correct AnswerverifiedShow Answer

In the economy of Talikastan in 2015, consumption was 75% of GDP, government purchases were $200, imports were $50 and 125% of the value of exports, investment was one-sixth of the value of consumption. What was Talikastan's GDP in 2015?

Correct AnswerverifiedShow Answer

Ryan lives in an apartment where he pays $7,000 a year in rent. Sarah lives in a house that could be rented for $21,000 a year. How much do these housing services contribute to GDP?

Correct AnswerverifiedShow Answer

If real GDP is 5,100 and nominal GDP is 4,900, then the GDP deflator is

Correct AnswerverifiedShow Answer

A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarters) is are) GDP higher?

Correct AnswerverifiedShow Answer

Explain how GNP differs from GDP.

Correct AnswerverifiedGNP includes income from a nat...View AnswerShow Answer

Microeconomics and macroeconomics are closely linked.

Correct AnswerverifiedShow Answer

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Nominal GDP uses constant baseyear prices to place a value on the economy's production of goods and services, while real GDP uses current prices to place a value on the economy's production of goods and services.

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GNP includes income from a nat...
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