Question 1

Which of the following would not be counted in 2016's GDP?

Accepted Answer

A)  the value of a laser printer manufactured in 2016 but not sold in 2016 
B)  the commissions earned by a sales associate in selling home theater systems built prior to 2016 
C)  the value of a 1976 convertible you purchase from a dealer in 2016 
D)  the 2016 salary of a used furniture salesperson 
A)  the value of a laser printer manufactured in 2016 but not sold in 2016 
B)  the commissions earned by a sales associate in selling home theater systems built prior to 2016 
C)  the value of a 1976 convertible you purchase from a dealer in 2016 
D)  the 2016 salary of a used furniture salesperson

Question 2

The data in the national income and product accounts are compiled by

Accepted Answer

A)  the Bureau of Economic Analysis. 
B)  the House Ways and Means Committee. 
C)  the Federal Reserve. 
D)  the Bureau of Labor Statistics. 
A)  the Bureau of Economic Analysis. 
B)  the House Ways and Means Committee. 
C)  the Federal Reserve. 
D)  the Bureau of Labor Statistics.

Question 3

The total value of all capital goods newly produced in a given period is

Accepted Answer

A)  the change in business inventories. 
B)  depreciation. 
C)  net investment. 
D)  gross investment. 
A)  the change in business inventories. 
B)  depreciation. 
C)  net investment. 
D)  gross investment.

Question 4

If in the same period output doubles and the price level remains the same, nominal GDP doubles.

Accepted Answer

A) True 
 B)False

Question 5

Gross domestic product measures

Accepted Answer

A)  the total spending of everyone in the economy. 
B)  the value of all output in the economy. 
C)  the total income of everyone in the economy. 
D)  all of the above 
A)  the total spending of everyone in the economy. 
B)  the value of all output in the economy. 
C)  the total income of everyone in the economy. 
D)  all of the above

Question 6

If nominal GDP is $18 trillion and real GDP is $3 trillion, the GDP deflator is

Accepted Answer

A)  6. 
B)  21. 
C)  54. 
D)  600. 
A)  6. 
B)  21. 
C)  54. 
D)  600.

Question 7

If net investment in 2016 is $350 billion and gross investment in 2016 is $500 billion, depreciation in 2016 is

Accepted Answer

A)  $0.7 billion. 
B)  $150 billion. 
C)  $175 billion. 
D)  $250 billion. 
A)  $0.7 billion. 
B)  $150 billion. 
C)  $175 billion. 
D)  $250 billion.

Question 8

Gross domestic product measured in terms of the prices of a fixed, or base, year is

Accepted Answer

A)  current GDP. 
B)  base GDP. 
C)  real GDP. 
D)  nominal GDP. 
A)  current GDP. 
B)  base GDP. 
C)  real GDP. 
D)  nominal GDP.

Question 9

If GDP is $500 billion and depreciation is $40 billion, then net national product

Accepted Answer

A)  is $460 billion. 
B)  is $500 billion. 
C)  is $540 billion. 
D)  cannot be determined from this information. 
A)  is $460 billion. 
B)  is $500 billion. 
C)  is $540 billion. 
D)  cannot be determined from this information.

Question 10

In 2016 the change in business inventories is -$70 billion and GDP is $200 billion. Final sales in 2016

Accepted Answer

A)  are $130 billion. 
B)  are $200 billion. 
C)  are $270 billion. 
D)  are $340 billion. 
A)  are $130 billion. 
B)  are $200 billion. 
C)  are $270 billion. 
D)  are $340 billion.

Question 11

Refer to the information provided in Table 21.10 below to answer the question(s) that follow.
Table 21.10  
-Refer to Table 21.10. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 1 is

Accepted Answer

A)  $110. 
B)  $130. 
C)  $140. 
D)  $160. 
A)  $110. 
B)  $130. 
C)  $140. 
D)  $160.

Question 12

Refer to the information provided in Table 21.4 below to answer the question(s) that follow.
Table 21.4  
-Refer to Table 21.4. The value for national income in billions of dollars is

Accepted Answer

A)  890. 
B)  910. 
C)  940. 
D)  970. 
A)  890. 
B)  910. 
C)  940. 
D)  970.

Exam 21: Measuring National Output and National Income

Which of the following would not be counted in 2016's GDP?

The data in the national income and product accounts are compiled by

The total value of all capital goods newly produced in a given period is

If in the same period output doubles and the price level remains the same, nominal GDP doubles.

Gross domestic product measures

If nominal GDP is $18 trillion and real GDP is $3 trillion, the GDP deflator is

If net investment in 2016 is $350 billion and gross investment in 2016 is $500 billion, depreciation in 2016 is

Gross domestic product measured in terms of the prices of a fixed, or base, year is

If GDP is $500 billion and depreciation is $40 billion, then net national product

In 2016 the change in business inventories is -$70 billion and GDP is $200 billion. Final sales in 2016

Refer to the information provided in Table 21.10 below to answer the question(s) that follow. Table 21.10 -Refer to Table 21.10. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 1 is

Refer to the information provided in Table 21.4 below to answer the question(s) that follow. Table 21.4 -Refer to Table 21.4. The value for national income in billions of dollars is

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: The Labor and Land Markets

Input Demand: The Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: The Economics of Taxation

Introduction to Macroeconomics

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

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