Question 1

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

Accepted Answer

A)  current 
B)  base year 
C)  average 
D)  marginal 
E)  nominal 
A)  current 
B)  base year 
C)  average 
D)  marginal 
E)  nominal

Question 2

If real gross domestic product (GDP)equals nominal GDP,then

Accepted Answer

A)  output did not grow. 
B)  there was no inflation. 
C)  the current year is the base year. 
D)  the growth in output was equal to the growth in the price level. 
E)  the growth in output was greater than the growth in the price level. 
A)  output did not grow. 
B)  there was no inflation. 
C)  the current year is the base year. 
D)  the growth in output was equal to the growth in the price level. 
E)  the growth in output was greater than the growth in the price level.

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:  
-On average,what percentage does real gross domestic product (GDP)grow over the long run?

Accepted Answer

A)  1 percent 
B)  2 percent 
C)  3 percent 
D)  4 percent 
E)  5 percent 
A)  1 percent 
B)  2 percent 
C)  3 percent 
D)  4 percent 
E)  5 percent

Question 4

The gross domestic product (GDP)deflator is a measure of the price level that includes prices of

Accepted Answer

A)  consumer goods and services only. 
B)  producer goods and services only. 
C)  final and intermediate goods and services. 
D)  final goods and services. 
E)  final services only. 
A)  consumer goods and services only. 
B)  producer goods and services only. 
C)  final and intermediate goods and services. 
D)  final goods and services. 
E)  final services only.

Question 5

Company X sells sugar to company Y for $50,000.Company Y uses the sugar to make chocolate bars,selling them to consumers for $150,000.The total contribution to gross domestic product (GDP)is

Accepted Answer

A)  $200,000. 
B)  $100,000. 
C)  $30,000. 
D)  $150,000. 
E)  $50,000. 
A)  $200,000. 
B)  $100,000. 
C)  $30,000. 
D)  $150,000. 
E)  $50,000.

Question 6

The market price of a gallon of gasoline is a

Accepted Answer

A)  macroeconomic topic,because the market in gasoline is nationwide. 
B)  microeconomic topic,because it involves the price of a single good. 
C)  macroeconomic topic because of the large volume of gasoline bought and sold each day. 
D)  microeconomic topic,because the price of a gallon of gasoline is less than $10. 
E)  macroeconomic topic,because the price of gasoline has implications for the whole economy. 
A)  macroeconomic topic,because the market in gasoline is nationwide. 
B)  microeconomic topic,because it involves the price of a single good. 
C)  macroeconomic topic because of the large volume of gasoline bought and sold each day. 
D)  microeconomic topic,because the price of a gallon of gasoline is less than $10. 
E)  macroeconomic topic,because the price of gasoline has implications for the whole economy.

Question 7

An example of an intermediate good would be

Accepted Answer

A)  lumber used by a consumer to build a fence in his or her yard. 
B)  pencils purchased by a restaurant to be used to take orders. 
C)  a new stove purchased by a consumer. 
D)  an airplane purchased by the government. 
E)  Social Security payments made by the government. 
A)  lumber used by a consumer to build a fence in his or her yard. 
B)  pencils purchased by a restaurant to be used to take orders. 
C)  a new stove purchased by a consumer. 
D)  an airplane purchased by the government. 
E)  Social Security payments made by the government.

Question 8

The long-run average growth rate of real gross domestic product (GDP)in the U.S.economy is about

Accepted Answer

A)  2 percent. 
B)  3 percent. 
C)  5 percent. 
D)  10 percent. 
E)  1 percent. 
A)  2 percent. 
B)  3 percent. 
C)  5 percent. 
D)  10 percent. 
E)  1 percent.

Question 9

Company X sells leather to company Y for $60,000.Company Y uses the leather to make shoes,selling them to consumers for $180,000.The total contribution to gross domestic product (GDP)is

Accepted Answer

A)  $240,000. 
B)  $180,000. 
C)  $60,000. 
D)  $120,000. 
E)  $30,000. 
A)  $240,000. 
B)  $180,000. 
C)  $60,000. 
D)  $120,000. 
E)  $30,000.

Question 10

Bob sells his car to Stan's Used Car Lot for $5,000.Stan's Used Car Lot sells the car to Bill for $5,500.This transaction contributes ________ to gross domestic product (GDP).

Accepted Answer

A)  nothing 
B)  $500 
C)  $5,500 
D)  $5,000 
E)  $10,500 
A)  nothing 
B)  $500 
C)  $5,500 
D)  $5,000 
E)  $10,500

Question 11

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the following questions:  
-The market value of pizza is

Accepted Answer

A)  $25 million. 
B)  $10 million. 
C)  $2.5 million. 
D)  $250 million. 
E)  $750 million. 
A)  $25 million. 
B)  $10 million. 
C)  $2.5 million. 
D)  $250 million. 
E)  $750 million.

Question 12

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the following questions:  
-Assuming these are the only two goods produced in the economy,what is the value of the gross domestic product (GDP)?

Accepted Answer

A)  $110 million 
B)  $750 million 
C)  $2 million 
D)  $250 million 
E)  $500 million 
A)  $110 million 
B)  $750 million 
C)  $2 million 
D)  $250 million 
E)  $500 million

Question 13

Explain how economic growth is related to change in gross domestic product (GDP).

Accepted Answer

Economic growth is measured as the perce

Question 14

Bob wins the lottery.This ________ included in ________ category of gross domestic product (GDP).

Accepted Answer

A)  is; the consumption 
B)  is; the investment 
C)  is; the government purchases 
D)  is; the net export 
E)  is not; any 
A)  is; the consumption 
B)  is; the investment 
C)  is; the government purchases 
D)  is; the net export 
E)  is not; any

Question 15

Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the following questions:  
-What was the inflation rate between 2010 and 2011? Round to the nearest decimal.

Accepted Answer

A)  3.8 percent 
B)  4.0 percent 
C)  3.6 percent 
D)  2.0 percent 
E)  2.2 percent 
A)  3.8 percent 
B)  4.0 percent 
C)  3.6 percent 
D)  2.0 percent 
E)  2.2 percent

Question 16

Consider the following figure to answer the following questions:  
-In which year was the economy growing at the long-run average growth rate?

Accepted Answer

A)  2001 
B)  2004 
C)  2005 
D)  2009 
E)  2013 
A)  2001 
B)  2004 
C)  2005 
D)  2009 
E)  2013

Question 17

The country of Aqua has an economy that is based entirely on lobsters.When it produces and sells ________ lobsters in a given day,income earned will ________.

Accepted Answer

A)  more; stay the same 
B)  more; increase 
C)  more; decrease 
D)  fewer; stay the same 
E)  fewer; increase 
A)  more; stay the same 
B)  more; increase 
C)  more; decrease 
D)  fewer; stay the same 
E)  fewer; increase

Question 18

Explain why intermediate goods and used goods do not count in gross domestic product (GDP).

Accepted Answer

Used goods do not count because they wer

Question 19

The investment spending category of gross domestic product (GDP)does NOT include

Accepted Answer

A)  purchases of new equipment. 
B)  purchases of stocks and bonds. 
C)  purchases of new homes. 
D)  the value of changes to business inventory. 
E)  purchases of computer software. 
A)  purchases of new equipment. 
B)  purchases of stocks and bonds. 
C)  purchases of new homes. 
D)  the value of changes to business inventory. 
E)  purchases of computer software.

Question 20

You bought a popular video game last year for $75 and sold it to a store this year for $20.The store sells the used game to a consumer for $50.This adds ________ to gross domestic product (GDP)when the store sells the game to the consumer.

Accepted Answer

A)  nothing 
B)  $30 
C)  $50 
D)  $20 
E)  $25 
A)  nothing 
B)  $30 
C)  $50 
D)  $20 
E)  $25

Exam 19: Introduction to Macroeconomics and Gross Domestic Product

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

If real gross domestic product (GDP)equals nominal GDP,then

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: -On average,what percentage does real gross domestic product (GDP)grow over the long run?

The gross domestic product (GDP)deflator is a measure of the price level that includes prices of

Company X sells sugar to company Y for $50,000.Company Y uses the sugar to make chocolate bars,selling them to consumers for $150,000.The total contribution to gross domestic product (GDP)is

The market price of a gallon of gasoline is a

An example of an intermediate good would be

The long-run average growth rate of real gross domestic product (GDP)in the U.S.economy is about

Company X sells leather to company Y for $60,000.Company Y uses the leather to make shoes,selling them to consumers for $180,000.The total contribution to gross domestic product (GDP)is

Bob sells his car to Stan's Used Car Lot for $5,000.Stan's Used Car Lot sells the car to Bill for $5,500.This transaction contributes ________ to gross domestic product (GDP).

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the following questions: -The market value of pizza is

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the following questions: -Assuming these are the only two goods produced in the economy,what is the value of the gross domestic product (GDP)?

Explain how economic growth is related to change in gross domestic product (GDP).

Bob wins the lottery.This ________ included in ________ category of gross domestic product (GDP).

Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the following questions: -What was the inflation rate between 2010 and 2011? Round to the nearest decimal.

Consider the following figure to answer the following questions: -In which year was the economy growing at the long-run average growth rate?

The country of Aqua has an economy that is based entirely on lobsters.When it produces and sells ________ lobsters in a given day,income earned will ________.

Explain why intermediate goods and used goods do not count in gross domestic product (GDP).

The investment spending category of gross domestic product (GDP)does NOT include

You bought a popular video game last year for $75 and sold it to a store this year for $20.The store sells the used game to a consumer for $50.This adds ________ to gross domestic product (GDP)when the store sells the game to the consumer.

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

Filters

Bob wins the lottery.This included in category of gross domestic product (GDP).

The country of Aqua has an economy that is based entirely on lobsters.When it produces and sells lobsters in a given day,income earned will .