Question 1

To determine living standards for the average person,we calculate

Accepted Answer

A)  GDP. 
B)  per capita GDP. 
C)  the average level of prices in the country. 
D)  the length of time the average person is unemployed. 
E)  the growth rate of GDP. 
A)  GDP. 
B)  per capita GDP. 
C)  the average level of prices in the country. 
D)  the length of time the average person is unemployed. 
E)  the growth rate of GDP. B

Question 2

Does the value of cleaning your house count toward the value of gross domestic product (GDP)?

Accepted Answer

A)  Yes,this value counts in GDP. 
B)  No,cleaning your house is not a market activity. 
C)  Yes,this counts if you pay a person or company to clean your house. 
D)  No,people who clean houses for a living do not pay taxes. 
E)  No,this is a leisure activity. 
A)  Yes,this value counts in GDP. 
B)  No,cleaning your house is not a market activity. 
C)  Yes,this counts if you pay a person or company to clean your house. 
D)  No,people who clean houses for a living do not pay taxes. 
E)  No,this is a leisure activity. C

Question 3

Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to answer the following questions:  
-Between quarter 10 and quarter 11,real gross domestic product (GDP)grew by what percentage?

Accepted Answer

A)  6 percent 
B)  3 percent 
C)  4 percent 
D)  5 percent 
E)  -5 percent 
A)  6 percent 
B)  3 percent 
C)  4 percent 
D)  5 percent 
E)  -5 percent A

Question 4

A country with a small per capita gross domestic product (GDP)is

Accepted Answer

A)  efficient. 
B)  poor. 
C)  economically healthy. 
D)  isolated. 
E)  too productive. 
A)  efficient. 
B)  poor. 
C)  economically healthy. 
D)  isolated. 
E)  too productive.

Question 5

Which of the following is a topic of microeconomics?

Accepted Answer

A)  the level of national income 
B)  the level of employment in the country 
C)  the prices of all goods in the country 
D)  the profit of firms in the banking industry 
E)  the level of national output 
A)  the level of national income 
B)  the level of employment in the country 
C)  the prices of all goods in the country 
D)  the profit of firms in the banking industry 
E)  the level of national output

Question 6

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2012.  
-What was the growth rate of real gross domestic product (GDP)between the two years?

Accepted Answer

A)  1.67 percent 
B)  0 percent 
C)  3.2 percent 
D)  2.4 percent 
E)  4.4 percent 
A)  1.67 percent 
B)  0 percent 
C)  3.2 percent 
D)  2.4 percent 
E)  4.4 percent

Question 7

The consumption category includes all purchases

Accepted Answer

A)  made by consumers. 
B)  of goods and services made by consumers. 
C)  of final goods and services made by consumers. 
D)  of final goods and services made by consumers except new houses. 
E)  of final goods and services made by consumers except new houses and new cars. 
A)  made by consumers. 
B)  of goods and services made by consumers. 
C)  of final goods and services made by consumers. 
D)  of final goods and services made by consumers except new houses. 
E)  of final goods and services made by consumers except new houses and new cars.

Question 8

Nominal gross domestic product (GDP)is GDP measured in ________ prices.

Accepted Answer

A)  current 
B)  base 
C)  average 
D)  fixed 
E)  marginal 
A)  current 
B)  base 
C)  average 
D)  fixed 
E)  marginal

Question 9

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2012.  
-What was the gross domestic product (GDP)deflator in 2012?

Accepted Answer

A)  100 
B)  108 
C)  103 
D)  109 
E)  106 
A)  100 
B)  108 
C)  103 
D)  109 
E)  106

Question 10

Gross domestic product (GDP)is best defined as the total market value of all

Accepted Answer

A)  goods and services produced within a country within a given time. 
B)  final goods and services produced within a country within a given time. 
C)  services produced within a country within a given time. 
D)  goods produced within a country within a given time. 
E)  final goods produced within a country within a given time. 
A)  goods and services produced within a country within a given time. 
B)  final goods and services produced within a country within a given time. 
C)  services produced within a country within a given time. 
D)  goods produced within a country within a given time. 
E)  final goods produced within a country within a given time.

Question 11

An accurate measure of gross domestic product (GDP)is derived by adding the

Accepted Answer

A)  dollar value of all goods and services produced. 
B)  value added at each stage of the production process. 
C)  value of all materials used to make the final goods and services. 
D)  profit earned from the sale of the final goods and services. 
E)  value of the intermediate goods used to produce the final goods and services. 
A)  dollar value of all goods and services produced. 
B)  value added at each stage of the production process. 
C)  value of all materials used to make the final goods and services. 
D)  profit earned from the sale of the final goods and services. 
E)  value of the intermediate goods used to produce the final goods and services.

Question 12

To evaluate the change in average living standards over time,it is best to use

Accepted Answer

A)  the inflation rate. 
B)  GDP. 
C)  the literacy rate. 
D)  real GDP per capita. 
E)  the employment rate. 
A)  the inflation rate. 
B)  GDP. 
C)  the literacy rate. 
D)  real GDP per capita. 
E)  the employment rate.

Question 13

If nominal gross domestic product (GDP)is increasing,which of the following may be true?

Accepted Answer

A)  More final goods and services are being produced. 
B)  Prices on average are rising at a slower rate than the decline in the quantity of final goods and services produced. 
C)  Less is being produced,and prices on average are falling. 
D)  Production of final goods and services is increasing at a faster rate than prices are falling. 
E)  Prices and the amount of final goods and services produced on average are constant. 
A)  More final goods and services are being produced. 
B)  Prices on average are rising at a slower rate than the decline in the quantity of final goods and services produced. 
C)  Less is being produced,and prices on average are falling. 
D)  Production of final goods and services is increasing at a faster rate than prices are falling. 
E)  Prices and the amount of final goods and services produced on average are constant.

Question 14

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2015.  
-What was the growth rate of real gross domestic product (GDP)between the two years?

Accepted Answer

A)  30 percent 
B)  3 percent 
C)  2 percent 
D)  20 percent 
E)  8.3 percent 
A)  30 percent 
B)  3 percent 
C)  2 percent 
D)  20 percent 
E)  8.3 percent

Question 15

When people in the United States buy clothing made in China,this counts as

Accepted Answer

A)  consumption. 
B)  consumption and exports. 
C)  consumption and imports. 
D)  imports. 
E)  investment. 
A)  consumption. 
B)  consumption and exports. 
C)  consumption and imports. 
D)  imports. 
E)  investment.

Question 16

The investment component of gross domestic product (GDP)can be broken down into three main categories.Identify these categories and briefly explain what is included in each category.

Accepted Answer

The three categories are business fixed

Question 17

Consider the following data to answer the following questions:  
-Which country has the highest level of gross domestic product (GDP)per capita?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
E)  E 
A)  A 
B)  B 
C)  C 
D)  D 
E)  E

Question 18

A student had the following expenditures last month: rent-$500,food expense-$200,cost of a used textbook from the bookstore-$50,cost of new shoes-$100,and cost of gas for the car-$100.Which of these items are included in gross domestic product (GDP)?

Accepted Answer

The rent is included because the landlor

Question 19

An index of the average prices of all goods and services throughout the economy is called

Accepted Answer

A)  the inflation rate. 
B)  the GDP deflator. 
C)  the interest rate. 
D)  the consumer price index. 
E)  nominal GDP. 
A)  the inflation rate. 
B)  the GDP deflator. 
C)  the interest rate. 
D)  the consumer price index. 
E)  nominal GDP.

Question 20

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2015.  
-What was the nominal gross domestic product (GDP)in 2015?

Accepted Answer

A)  $3,600 
B)  $3,900 
C)  $3,350 
D)  $3,000 
E)  $8,550 
A)  $3,600 
B)  $3,900 
C)  $3,350 
D)  $3,000 
E)  $8,550

Exam 19: Introduction to Macroeconomics and Gross Domestic Product

To determine living standards for the average person,we calculate

Does the value of cleaning your house count toward the value of gross domestic product (GDP)?

Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to answer the following questions: -Between quarter 10 and quarter 11,real gross domestic product (GDP)grew by what percentage?

A country with a small per capita gross domestic product (GDP)is

Which of the following is a topic of microeconomics?

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2012. -What was the growth rate of real gross domestic product (GDP)between the two years?

The consumption category includes all purchases

Nominal gross domestic product (GDP)is GDP measured in ________ prices.

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2012. -What was the gross domestic product (GDP)deflator in 2012?

Gross domestic product (GDP)is best defined as the total market value of all

An accurate measure of gross domestic product (GDP)is derived by adding the

To evaluate the change in average living standards over time,it is best to use

If nominal gross domestic product (GDP)is increasing,which of the following may be true?

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2015. -What was the growth rate of real gross domestic product (GDP)between the two years?

When people in the United States buy clothing made in China,this counts as

The investment component of gross domestic product (GDP)can be broken down into three main categories.Identify these categories and briefly explain what is included in each category.

Consider the following data to answer the following questions: -Which country has the highest level of gross domestic product (GDP)per capita?

A student had the following expenditures last month: rent-$500,food expense-$200,cost of a used textbook from the bookstore-$50,cost of new shoes-$100,and cost of gas for the car-$100.Which of these items are included in gross domestic product (GDP)?

An index of the average prices of all goods and services throughout the economy is called

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2015. -What was the nominal gross domestic product (GDP)in 2015?

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Elasticity

Market Outcomes and Tax Incidence

Price Controls

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

The Demand and Supply of Resources

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

Unemployment

The Price Level and Inflation

Savings,interest Rates,and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy

International Trade

International Finance

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