Question 1

Explain the difference between gross domestic product (GDP)and the older concept of gross national product (GNP).

Accepted Answer

The difference is in the treatment of co

Question 2

Real gross domestic product (GDP)increases if

Accepted Answer

A)  current prices increase. 
B)  current quantities increase. 
C)  current prices are constant. 
D)  nominal GDP increases. 
E)  nominal GDP decreases. 
A)  current prices increase. 
B)  current quantities increase. 
C)  current prices are constant. 
D)  nominal GDP increases. 
E)  nominal GDP decreases.

Question 3

The phase of the business cycle where economic activity is decreasing is called

Accepted Answer

A)  an economic trough. 
B)  the long-run trend of gross domestic product (GDP). 
C)  an economic expansion. 
D)  an economic contraction. 
E)  an economic peak. 
A)  an economic trough. 
B)  the long-run trend of gross domestic product (GDP). 
C)  an economic expansion. 
D)  an economic contraction. 
E)  an economic peak.

Question 4

A doctor receives $50,000 per month from her patients (and their insurance companies)as payment for her services.Each month she buys medical supplies for $10,000 and she pays a lab $15,000 for analyzing slides.The total contribution to gross domestic product (GDP)this month is

Accepted Answer

A)  $50,000. 
B)  $65,000. 
C)  $75,000. 
D)  $25,000. 
E)  $55,000. 
A)  $50,000. 
B)  $65,000. 
C)  $75,000. 
D)  $25,000. 
E)  $55,000.

Question 5

When an unemployed worker receives a payment from the government as a result of being unemployed,it is

Accepted Answer

A)  included in the consumption category of GDP. 
B)  included in the investment category of GDP. 
C)  included in the government purchases category of GDP. 
D)  included in the net export category of GDP. 
E)  not included in any of the expenditure categories. 
A)  included in the consumption category of GDP. 
B)  included in the investment category of GDP. 
C)  included in the government purchases category of GDP. 
D)  included in the net export category of GDP. 
E)  not included in any of the expenditure categories.

Question 6

Real gross domestic product (GDP)would be a better measure of economic well-being if it included the value of

Accepted Answer

A)  stocks and bonds purchases. 
B)  intermediate goods. 
C)  used goods. 
D)  leisure time. 
E)  Social Security payments. 
A)  stocks and bonds purchases. 
B)  intermediate goods. 
C)  used goods. 
D)  leisure time. 
E)  Social Security payments.

Question 7

A company produces a computer.It pays $100 for the keyboard and outer case,$200 for the internal hardware,and $100 for the software.It sells the computer to a consumer for $500.The contribution to gross domestic product (GDP)is

Accepted Answer

A)  $400. 
B)  $500. 
C)  $100. 
D)  $900. 
E)  $800. 
A)  $400. 
B)  $500. 
C)  $100. 
D)  $900. 
E)  $800.

Question 8

The best measure of the average living standards of people in the country is the

Accepted Answer

A)  dollar value of final goods and services produced. 
B)  dollar value of final goods and services produced per person. 
C)  amount of final goods and services produced. 
D)  amount of final goods and services produced per person. 
E)  average price of final goods and services produced. 
A)  dollar value of final goods and services produced. 
B)  dollar value of final goods and services produced per person. 
C)  amount of final goods and services produced. 
D)  amount of final goods and services produced per person. 
E)  average price of final goods and services produced.

Question 9

What does economics research have to say about the old adage that money can't buy happiness? Be specific.

Accepted Answer

Economists do not,simplistically,declare

Question 10

Assuming the price level increased,real gross domestic product (GDP)is greater than nominal GDP if the current period is ________ the base period,and real GDP is less than nominal GDP if the current year is ________ the base period.

Accepted Answer

A)  before; before 
B)  before; after 
C)  after; after 
D)  after; before 
E)  equal to; the same as 
A)  before; before 
B)  before; after 
C)  after; after 
D)  after; before 
E)  equal to; the same as

Question 11

The table shows a series of market transactions in the life of an automobile.Describe two different ways that these transactions could contribute to gross domestic product (GDP)for the years 2017 and 2018.Which way is used in practice?

Accepted Answer

One way to calculate the contributions t

Question 12

The difference between microeconomics and macroeconomics is a matter of

Accepted Answer

A)  scale. 
B)  time. 
C)  demographics. 
D)  politics. 
E)  cost. 
A)  scale. 
B)  time. 
C)  demographics. 
D)  politics. 
E)  cost.

Question 13

How does the focus of macroeconomics differ from that of microeconomics when it comes to income,output,employment,and prices?

Accepted Answer

Where microeconomics focuses on the inco

Question 14

When you buy a new car built by Ford,it is included in the ________ category of gross domestic product (GDP).

Accepted Answer

A)  consumption 
B)  investment 
C)  government purchases 
D)  export 
E)  import 
A)  consumption 
B)  investment 
C)  government purchases 
D)  export 
E)  import

Question 15

Country A has a gross domestic product (GDP)of $200,000 and a population of 1,000.Country B has a GDP of $400,000 and a population of 4,000.Which of the following is true?

Accepted Answer

A)  The value of output is higher in country A. 
B)  The value of income is higher in country A. 
C)  The value of GDP per capita is higher in country A. 
D)  The value of GDP per capita is higher in country B. 
E)  The average living standard is higher in country B. 
A)  The value of output is higher in country A. 
B)  The value of income is higher in country A. 
C)  The value of GDP per capita is higher in country A. 
D)  The value of GDP per capita is higher in country B. 
E)  The average living standard is higher in country B.

Question 16

Ford produces 100,000 cars this year and only sells 95,000.The 5,000 cars that are not sold ________ listed in ________ category of gross domestic product (GDP).

Accepted Answer

A)  are not; any 
B)  are; the consumption 
C)  are; the investment 
D)  are; the unsold good 
E)  are; the excess production 
A)  are not; any 
B)  are; the consumption 
C)  are; the investment 
D)  are; the unsold good 
E)  are; the excess production

Question 17

The four major expenditure categories of gross domestic product (GDP)are

Accepted Answer

A)  consumption,imports,exports,and government purchases. 
B)  consumption,government purchases,taxes,and investment. 
C)  consumption,investment,government purchases,and net exports. 
D)  consumption,investment,government purchases,and stocks. 
E)  consumption,investment,taxes,and net exports. 
A)  consumption,imports,exports,and government purchases. 
B)  consumption,government purchases,taxes,and investment. 
C)  consumption,investment,government purchases,and net exports. 
D)  consumption,investment,government purchases,and stocks. 
E)  consumption,investment,taxes,and net exports.

Question 18

Many economists say that the Great Recession of 2007-2009,rather than being simply an unusually long cyclical contraction,produced permanent changes in the economy.How is this claim supported by the graph,shown below,of U.S.real gross domestic product (GDP)since the year 1993?

Accepted Answer

It may be that at some point in the futu

Question 19

Nominal gross domestic product (GDP)increases if

Accepted Answer

A)  current prices increase,while current quantities decrease. 
B)  current quantities increase,while current prices decrease. 
C)  current prices or current quantities increase. 
D)  real GDP increases. 
E)  real GDP decreases. 
A)  current prices increase,while current quantities decrease. 
B)  current quantities increase,while current prices decrease. 
C)  current prices or current quantities increase. 
D)  real GDP increases. 
E)  real GDP decreases.

Question 20

The sale of American-grown corn to China is included in the ________ category of gross domestic product (GDP).

Accepted Answer

A)  consumption 
B)  investment 
C)  government purchases 
D)  export 
E)  import 
A)  consumption 
B)  investment 
C)  government purchases 
D)  export 
E)  import

Exam 19: Introduction to Macroeconomics and Gross Domestic Product

Explain the difference between gross domestic product (GDP)and the older concept of gross national product (GNP).

Real gross domestic product (GDP)increases if

The phase of the business cycle where economic activity is decreasing is called

A doctor receives $50,000 per month from her patients (and their insurance companies)as payment for her services.Each month she buys medical supplies for $10,000 and she pays a lab $15,000 for analyzing slides.The total contribution to gross domestic product (GDP)this month is

When an unemployed worker receives a payment from the government as a result of being unemployed,it is

Real gross domestic product (GDP)would be a better measure of economic well-being if it included the value of

A company produces a computer.It pays $100 for the keyboard and outer case,$200 for the internal hardware,and $100 for the software.It sells the computer to a consumer for $500.The contribution to gross domestic product (GDP)is

The best measure of the average living standards of people in the country is the

What does economics research have to say about the old adage that money can't buy happiness? Be specific.

Assuming the price level increased,real gross domestic product (GDP)is greater than nominal GDP if the current period is ________ the base period,and real GDP is less than nominal GDP if the current year is ________ the base period.

The table shows a series of market transactions in the life of an automobile.Describe two different ways that these transactions could contribute to gross domestic product (GDP)for the years 2017 and 2018.Which way is used in practice?

The difference between microeconomics and macroeconomics is a matter of

How does the focus of macroeconomics differ from that of microeconomics when it comes to income,output,employment,and prices?

When you buy a new car built by Ford,it is included in the ________ category of gross domestic product (GDP).

Country A has a gross domestic product (GDP)of $200,000 and a population of 1,000.Country B has a GDP of $400,000 and a population of 4,000.Which of the following is true?

Ford produces 100,000 cars this year and only sells 95,000.The 5,000 cars that are not sold ________ listed in ________ category of gross domestic product (GDP).

The four major expenditure categories of gross domestic product (GDP)are

Many economists say that the Great Recession of 2007-2009,rather than being simply an unusually long cyclical contraction,produced permanent changes in the economy.How is this claim supported by the graph,shown below,of U.S.real gross domestic product (GDP)since the year 1993?

Nominal gross domestic product (GDP)increases if

The sale of American-grown corn to China is included in the ________ category of gross domestic product (GDP).

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

Assuming the price level increased,real gross domestic product (GDP)is greater than nominal GDP if the current period is the base period,and real GDP is less than nominal GDP if the current year is the base period.

Ford produces 100,000 cars this year and only sells 95,000.The 5,000 cars that are not sold listed in category of gross domestic product (GDP).