Question 1

The value of what Burger King produces in France is included in the United States ________ and in the French ________.

Accepted Answer

A)  GDP; GDP 
B)  GNP; GNP 
C)  GNP; GDP 
D)  GDP; GNP 
A)  GDP; GDP 
B)  GNP; GNP 
C)  GNP; GDP 
D)  GDP; GNP

Question 2

Refer to the information provided in Table 21.5 below to answer the question(s) that follow.
Table 21.5  
-Refer to Table 21.5. The value for net exports in billions of dollars is

Accepted Answer

A)  -200. 
B)  100. 
C)  200. 
D)  400. 
A)  -200. 
B)  100. 
C)  200. 
D)  400.

Question 3

Gross national product is the total market value of

Accepted Answer

A)  all final and intermediate goods and service produced by resources owned by a country in a given year. 
B)  all final and intermediate goods and services produced in a country, regardless of who owns the resources. 
C)  all final goods and services produced in a country in a given year, regardless of who owns the resources. 
D)  all final goods and services produced by resources owned by a country, regardless of where production takes place. 
A)  all final and intermediate goods and service produced by resources owned by a country in a given year. 
B)  all final and intermediate goods and services produced in a country, regardless of who owns the resources. 
C)  all final goods and services produced in a country in a given year, regardless of who owns the resources. 
D)  all final goods and services produced by resources owned by a country, regardless of where production takes place.

Question 4

The GDP deflator is the

Accepted Answer

A)  difference between real GDP and nominal GDP multiplied by 100. 
B)  difference between nominal GDP and real GDP multiplied by 100. 
C)  ratio of nominal GDP to real GDP multiplied by 100. 
D)  ratio of real GDP to nominal GDP multiplied by 100. 
A)  difference between real GDP and nominal GDP multiplied by 100. 
B)  difference between nominal GDP and real GDP multiplied by 100. 
C)  ratio of nominal GDP to real GDP multiplied by 100. 
D)  ratio of real GDP to nominal GDP multiplied by 100.

Question 5

Nominal GDP measures the value of all goods and services

Accepted Answer

A)  in constant dollars. 
B)  in current dollars. 
C)  in fixed dollars. 
D)  without inflation. 
A)  in constant dollars. 
B)  in current dollars. 
C)  in fixed dollars. 
D)  without inflation.

Question 6

If GDP is $400 billion, depreciation is $100 billion, and net factor income from the rest of the world is -$60 billion, then net national product is

Accepted Answer

A)  $240 billion. 
B)  $300 billion. 
C)  $360 billion. 
D)  $440 billion. 
A)  $240 billion. 
B)  $300 billion. 
C)  $360 billion. 
D)  $440 billion.

Question 7

Refer to the information provided in Table 21.3 below to answer the question(s) that follow.
Table 21.3  
-Refer to Table 21.3. The value of net factor payments to the rest of the world in billions of dollars is

Accepted Answer

A)  5. 
B)  15. 
C)  25. 
D)  35. 
A)  5. 
B)  15. 
C)  25. 
D)  35.

Question 8

Per capita gross national income (GNI) increases when

Accepted Answer

A)  GNI and the population increase at the same rate. 
B)  GNI does not change and the population increases. 
C)  GNI and the population decrease at the same rate. 
D)  GNI increases and the population does not change. 
A)  GNI and the population increase at the same rate. 
B)  GNI does not change and the population increases. 
C)  GNI and the population decrease at the same rate. 
D)  GNI increases and the population does not change.

Question 9

Refer to the information provided in Table 21.6 below to answer the question(s) that follow.
Table 21.6  
-Refer to Table 21.6. The value for gross domestic product in billions of dollars is

Accepted Answer

A)  3,800. 
B)  4,000. 
C)  4,500. 
D)  4,600. 
A)  3,800. 
B)  4,000. 
C)  4,500. 
D)  4,600.

Question 10

Gross domestic product calculations count only final goods and services because

Accepted Answer

A)  one cannot calculate the quantities of intermediate goods produced. 
B)  it is difficult to measure the prices of intermediate goods produced. 
C)  these are the only goods and services that are produced in an economy. 
D)  counting all goods and services would lead to double-counting of many activities. 
A)  one cannot calculate the quantities of intermediate goods produced. 
B)  it is difficult to measure the prices of intermediate goods produced. 
C)  these are the only goods and services that are produced in an economy. 
D)  counting all goods and services would lead to double-counting of many activities.

Question 11

Proprietors' income is

Accepted Answer

A)  the income of unincorporated businesses. 
B)  the income of all businesses-incorporated and unincorporated. 
C)  the income of sole proprietorships. 
D)  the income of partnerships. 
A)  the income of unincorporated businesses. 
B)  the income of all businesses-incorporated and unincorporated. 
C)  the income of sole proprietorships. 
D)  the income of partnerships.

Question 12

The GDP includes

Accepted Answer

A)  the value of all intermediate goods and services. 
B)  the value of all final goods and services. 
C)  the value of both intermediate and final goods and services. 
D)  the value of all transactions. 
A)  the value of all intermediate goods and services. 
B)  the value of all final goods and services. 
C)  the value of both intermediate and final goods and services. 
D)  the value of all transactions.

Question 13

Nominal GDP is gross domestic product measured

Accepted Answer

A)  in the prices of a base year. 
B)  in current dollars. 
C)  at a constant output level but at the base-year prices. 
D)  as the difference between the current year's GDP and last year's GDP. 
A)  in the prices of a base year. 
B)  in current dollars. 
C)  at a constant output level but at the base-year prices. 
D)  as the difference between the current year's GDP and last year's GDP.

Question 14

Refer to the information provided in Table 21.8 below to answer the question(s) that follow.
Table 21.8  
-Refer to Table 21.8. The value for NNP in billions of dollars is

Accepted Answer

A)  970. 
B)  1,030. 
C)  1,060. 
D)  1,200. 
A)  970. 
B)  1,030. 
C)  1,060. 
D)  1,200.

Question 15

Final sales plus changes in inventories equals GDP.

Accepted Answer

A) True 
 B)False

Question 16

The income of U.S. citizens working abroad counts in U.S. GNP.

Accepted Answer

A) True 
 B)False

Question 17

The GDP deflator in year 2 is 95 using year 1 as a base year. This means that, on average, the price of goods and services is

Accepted Answer

A)  105% higher in year 2 than in year 1. 
B)  5% higher in year 2 than in year 1. 
C)  5% higher in year 1 than in year 2. 
D)  105% higher in year 1 than in year 2. 
A)  105% higher in year 2 than in year 1. 
B)  5% higher in year 2 than in year 1. 
C)  5% higher in year 1 than in year 2. 
D)  105% higher in year 1 than in year 2.

Question 18

If nominal GDP rises, then so must real GDP.

Accepted Answer

A) True 
 B)False

Question 19

If GNP is $200 billion and depreciation is $20 billion, then net national product is

Accepted Answer

A)  $100 billion. 
B)  $180 billion. 
C)  $210 billion. 
D)  $220 billion. 
A)  $100 billion. 
B)  $180 billion. 
C)  $210 billion. 
D)  $220 billion.

Question 20

National income

Accepted Answer

A)  is always less than personal income. 
B)  is always greater than personal income. 
C)  may be greater than or less than personal income. 
D)  will always equal personal income. 
A)  is always less than personal income. 
B)  is always greater than personal income. 
C)  may be greater than or less than personal income. 
D)  will always equal personal income.

Exam 21: Measuring National Output and National Income

The value of what Burger King produces in France is included in the United States ________ and in the French ________.

Refer to the information provided in Table 21.5 below to answer the question(s) that follow. Table 21.5 -Refer to Table 21.5. The value for net exports in billions of dollars is

Gross national product is the total market value of

The GDP deflator is the

Nominal GDP measures the value of all goods and services

If GDP is $400 billion, depreciation is $100 billion, and net factor income from the rest of the world is -$60 billion, then net national product is

Refer to the information provided in Table 21.3 below to answer the question(s) that follow. Table 21.3 -Refer to Table 21.3. The value of net factor payments to the rest of the world in billions of dollars is

Per capita gross national income (GNI) increases when

Refer to the information provided in Table 21.6 below to answer the question(s) that follow. Table 21.6 -Refer to Table 21.6. The value for gross domestic product in billions of dollars is

Gross domestic product calculations count only final goods and services because

Proprietors' income is

The GDP includes

Nominal GDP is gross domestic product measured

Refer to the information provided in Table 21.8 below to answer the question(s) that follow. Table 21.8 -Refer to Table 21.8. The value for NNP in billions of dollars is

Final sales plus changes in inventories equals GDP.

The income of U.S. citizens working abroad counts in U.S. GNP.

The GDP deflator in year 2 is 95 using year 1 as a base year. This means that, on average, the price of goods and services is

If nominal GDP rises, then so must real GDP.

If GNP is $200 billion and depreciation is $20 billion, then net national product is

National income

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

Filters

The value of what Burger King produces in France is included in the United States and in the French .