Exam 6: Measuring Total Output and Income

A Japanese worker, working in the U.S., deposits some money in his bank account, and his son collects the money from a branch of the same bank in Japan. This activity reduces the U.S. GDP.

(True/False)

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Question 21

Use the following to answer questions . Exhibit: Circular Flow Model -(Exhibit: Circular Flow Model) The exhibit shows a simplified circular flow model where only consumption goods are being produced. The arrow marked "B" represents the flow of:

(Multiple Choice)

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Question 22

Government expenditure is the largest single category of GDP.

(True/False)

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Question 23

Which of the following is NOT true of the circular model of the economy?

(Multiple Choice)

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Question 24

Which of the following is an advantage of a value added tax (VAT) compared to a final tax on retail sales?

(Multiple Choice)

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Question 25

Goods and services produced and but not sold in the current period are not included in current period GDP.

(True/False)

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Question 26

Which of the following is included in gross private domestic investment in the computation of GDP?

(Multiple Choice)

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Question 27

The cost of producing goods and services includes:

(Multiple Choice)

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Question 28

GDP is the total market value of all final goods and services produced within an economy during a year.

(True/False)

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Question 29

Vikram, an Indian national working for Microsoft in New York, sends $300 every month to his elderly parents who live in Bangalore, India. This activity will:

(Multiple Choice)

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Question 30

In the generation of GDP, pollution often occurs. So, we can infer that

(Multiple Choice)

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Question 31

Double counting occurs when both intermediate and final goods are included in the GDP.

(True/False)

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Question 32

The largest expenditure category in U.S. GDP in 2011 was:

(Multiple Choice)

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Question 33

Use the following to answer questions . Exhibit: Components of GDP for an Economy 2 -(Exhibit: Components of GDP for an Economy 2) What is the value of exports?

(Multiple Choice)

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Question 34

Suppose the clothing manufacturer, Eddie Bauer, produced 10,000 pairs of jeans in 2005 but sold only 9,200 pairs. How will this be recorded in GDP accounts?

(Multiple Choice)

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Question 35

The equality between GDP and GDI in an economy implies that the income generated by final goods and services is equal to:

(Multiple Choice)

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Question 36

All of the following are included in gross domestic income EXCEPT:

(Multiple Choice)

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Question 37

Which of the following is a reason for the discrepancy between GDP and GDI?

(Multiple Choice)

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Question 38

Use the following to answer questions . Exhibit: Stages of Production of Toy Model Airplanes -(Exhibit: Stages of Production of Toy Model Airplanes) The final value of a model airplane is _____.

(Multiple Choice)

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Question 39

Which of the following is a shortcoming of GDP accounts?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 161

A Japanese worker, working in the U.S., deposits some money in his bank account, and his son collects the money from a branch of the same bank in Japan. This activity reduces the U.S. GDP.

Use the following to answer questions . Exhibit: Circular Flow Model -(Exhibit: Circular Flow Model) The exhibit shows a simplified circular flow model where only consumption goods are being produced. The arrow marked "B" represents the flow of:

Government expenditure is the largest single category of GDP.

Which of the following is NOT true of the circular model of the economy?

Which of the following is an advantage of a value added tax (VAT) compared to a final tax on retail sales?

Goods and services produced and but not sold in the current period are not included in current period GDP.

Which of the following is included in gross private domestic investment in the computation of GDP?

The cost of producing goods and services includes:

GDP is the total market value of all final goods and services produced within an economy during a year.

Vikram, an Indian national working for Microsoft in New York, sends $300 every month to his elderly parents who live in Bangalore, India. This activity will:

In the generation of GDP, pollution often occurs. So, we can infer that

Double counting occurs when both intermediate and final goods are included in the GDP.

The largest expenditure category in U.S. GDP in 2011 was:

Use the following to answer questions . Exhibit: Components of GDP for an Economy 2 -(Exhibit: Components of GDP for an Economy 2) What is the value of exports?

Suppose the clothing manufacturer, Eddie Bauer, produced 10,000 pairs of jeans in 2005 but sold only 9,200 pairs. How will this be recorded in GDP accounts?

The equality between GDP and GDI in an economy implies that the income generated by final goods and services is equal to:

All of the following are included in gross domestic income EXCEPT:

Which of the following is a reason for the discrepancy between GDP and GDI?

Use the following to answer questions . Exhibit: Stages of Production of Toy Model Airplanes -(Exhibit: Stages of Production of Toy Model Airplanes) The final value of a model airplane is _____.

Which of the following is a shortcoming of GDP accounts?

Economics: the Study of Choice

Demand and Supply

Applications of Supply and Demand

Macroeconomics: the Big Picture

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

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