Question 1

Use the following to answer questions:  
-(Table: Measuring GDP) Use Table: Measuring GDP. Exports are:

Accepted Answer

A)  -$5 billion. 
B)  zero. 
C)  $5 billion. 
D)  $10 billion. 
A)  -$5 billion. 
B)  zero. 
C)  $5 billion. 
D)  $10 billion.

Question 2

Real GDP is:

Accepted Answer

A)  the value of the production of all final goods and services measured in current prices. 
B)  the value of the production of all final goods and services adjusted for price changes. 
C)  the projected future value of GDP. 
D)  calculated by adding up only the real number of all items sold in the United States, regardless of their prices. 
A)  the value of the production of all final goods and services measured in current prices. 
B)  the value of the production of all final goods and services adjusted for price changes. 
C)  the projected future value of GDP. 
D)  calculated by adding up only the real number of all items sold in the United States, regardless of their prices.

Question 3

Historically, _____ spending was the LARGEST component of U.S. GDP, at approximately 70% of aggregate spending.

Accepted Answer

A)  government 
B)  consumer 
C)  investment 
D)  net export 
A)  government 
B)  consumer 
C)  investment 
D)  net export

Question 4

The money spent on domestically produced final goods and services is:

Accepted Answer

A)  equal to GDP. 
B)  equal to exports minus imports. 
C)  subtracted in the circular-flow model. 
D)  equal to GDP, equal to exports minus imports, and subtracted in the circular-flow model. 
A)  equal to GDP. 
B)  equal to exports minus imports. 
C)  subtracted in the circular-flow model. 
D)  equal to GDP, equal to exports minus imports, and subtracted in the circular-flow model.

Question 5

Use the following to answer questions:  
-(Table: Per Capita GDP) Use Table: Per Capita GDP. Per capita nominal GDP in 2014 was:

Accepted Answer

A)  $600. 
B)  $800. 
C)  $300. 
D)  $1,600. 
A)  $600. 
B)  $800. 
C)  $300. 
D)  $1,600.

Question 6

Use the following to answer questions:  
-(Table: Measuring GDP) Use Table: Measuring GDP. GDP is equal to:

Accepted Answer

A)  $500 billion. 
B)  $850 billion. 
C)  $995 billion. 
D)  $1,000 billion. 
A)  $500 billion. 
B)  $850 billion. 
C)  $995 billion. 
D)  $1,000 billion.

Question 7

Real GDP is the same as _____ GDP.

Accepted Answer

A)  current-dollar 
B)  inflation-adjusted 
C)  nominal 
D)  value-added 
A)  current-dollar 
B)  inflation-adjusted 
C)  nominal 
D)  value-added

Question 8

In the circular-flow diagram, firms:

Accepted Answer

A)  supply goods and services. 
B)  demand goods. 
C)  supply resources. 
D)  demand services. 
A)  supply goods and services. 
B)  demand goods. 
C)  supply resources. 
D)  demand services.

Question 9

Gross domestic product is the economy's total production of _____ for a given period.

Accepted Answer

A)  goods and services 
B)  final goods and services 
C)  intermediate goods and services 
D)  consumer goods and services 
A)  goods and services 
B)  final goods and services 
C)  intermediate goods and services 
D)  consumer goods and services

Question 10

Use the following to answer questions:  
-(Table: Per Capita GDP) Per capita nominal GDP in 2011 was:

Accepted Answer

A)  $600. 
B)  $400. 
C)  $300. 
D)  $30. 
A)  $600. 
B)  $400. 
C)  $300. 
D)  $30.

Question 11

Use the following to answer questions:  
-(Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is a decrease in consumer spending, holding everything else constant, which outcome is likely to occur?

Accepted Answer

A)  an increase in nominal GDP 
B)  an increase in real GDP 
C)  an increase in the unemployment rate 
D)  an increase in the inflation rate 
A)  an increase in nominal GDP 
B)  an increase in real GDP 
C)  an increase in the unemployment rate 
D)  an increase in the inflation rate

Question 12

Enchanté Inc., a designer clothing company, buys $400 worth of silk and $30 worth of accessories to produce each dress. If the value added by Enchanté is equal to $200, then according to the value-added approach, the price of the designer dress should be:

Accepted Answer

A)  $630. 
B)  $230. 
C)  $200. 
D)  $830. 
A)  $630. 
B)  $230. 
C)  $200. 
D)  $830.

Question 13

Which item would NOT be a part of GDP?

Accepted Answer

A)  used car sales 
B)  new residential construction 
C)  a new truck purchased by a building contractor 
D)  cable TV service purchased for a home 
A)  used car sales 
B)  new residential construction 
C)  a new truck purchased by a building contractor 
D)  cable TV service purchased for a home

Question 14

Suppose that, in year 1, an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year, the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each. Using year 1 as the base year, real GDP in year 2 is:

Accepted Answer

A)  $900. 
B)  $970. 
C)  $1,000. 
D)  $1,077.50. 
A)  $900. 
B)  $970. 
C)  $1,000. 
D)  $1,077.50.

Question 15

Use the following to answer questions:  
-(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model What is the value of net exports?

Accepted Answer

A)  -$20 
B)  $20 
C)  $50 
D)  $130 
A)  -$20 
B)  $20 
C)  $50 
D)  $130

Question 16

The equation that breaks GDP down by the four sources of aggregate spending is:

Accepted Answer

A)  GDP = C + I + G + X + IM. 
B)  GDP = C + I + G - X - IM. 
C)  GDP = C - I - G - X + IM. 
D)  GDP = C + I + G + X - IM. 
A)  GDP = C + I + G + X + IM. 
B)  GDP = C + I + G - X - IM. 
C)  GDP = C - I - G - X + IM. 
D)  GDP = C + I + G + X - IM.

Question 17

GDP is the total:

Accepted Answer

A)  value of all transactions in a year. 
B)  value of all final goods and services produced in a year. 
C)  value of all final goods and services produced by Americans at home and abroad in a year. 
D)  value of all goods produced in the economy in a year. 
A)  value of all transactions in a year. 
B)  value of all final goods and services produced in a year. 
C)  value of all final goods and services produced by Americans at home and abroad in a year. 
D)  value of all goods produced in the economy in a year.

Question 18

Goods that are produced domestically but sold abroad are:

Accepted Answer

A)  imports. 
B)  exports. 
C)  part of domestic consumption. 
D)  investment. 
A)  imports. 
B)  exports. 
C)  part of domestic consumption. 
D)  investment.

Question 19

Use the following to answer questions:  
-(Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is a decrease in exports, holding everything else constant, which outcome is likely to occur?

Accepted Answer

A)  a decrease in the nominal GDP 
B)  an increase in the real GDP 
C)  a decrease in the unemployment rate 
D)  an increase in the inflation rate 
A)  a decrease in the nominal GDP 
B)  an increase in the real GDP 
C)  a decrease in the unemployment rate 
D)  an increase in the inflation rate

Question 20

A transfer payment is a payment for:

Accepted Answer

A)  a military transfer to a war zone. 
B)  which no services were rendered by the government. 
C)  transfer of a debt to a different person. 
D)  being transferred to a different city by your employer. 
A)  a military transfer to a war zone. 
B)  which no services were rendered by the government. 
C)  transfer of a debt to a different person. 
D)  being transferred to a different city by your employer.

Use the following to answer questions: -(Table: Measuring GDP) Use Table: Measuring GDP. Exports are:

Real GDP is:

Historically, _____ spending was the LARGEST component of U.S. GDP, at approximately 70% of aggregate spending.

The money spent on domestically produced final goods and services is:

Use the following to answer questions: -(Table: Per Capita GDP) Use Table: Per Capita GDP. Per capita nominal GDP in 2014 was:

Use the following to answer questions: -(Table: Measuring GDP) Use Table: Measuring GDP. GDP is equal to:

Real GDP is the same as _____ GDP.

In the circular-flow diagram, firms:

Gross domestic product is the economy's total production of _____ for a given period.

Use the following to answer questions: -(Table: Per Capita GDP) Per capita nominal GDP in 2011 was:

Enchanté Inc., a designer clothing company, buys $400 worth of silk and $30 worth of accessories to produce each dress. If the value added by Enchanté is equal to $200, then according to the value-added approach, the price of the designer dress should be:

Which item would NOT be a part of GDP?

Suppose that, in year 1, an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year, the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each. Using year 1 as the base year, real GDP in year 2 is:

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model What is the value of net exports?

The equation that breaks GDP down by the four sources of aggregate spending is:

GDP is the total:

Goods that are produced domestically but sold abroad are:

A transfer payment is a payment for:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Exam 7: GDP and the CPI: Tracking the Macroeconomy

Use the following to answer questions: -(Table: Measuring GDP) Use Table: Measuring GDP. Exports are:

Real GDP is:

Historically, _____ spending was the LARGEST component of U.S. GDP, at approximately 70% of aggregate spending.

The money spent on domestically produced final goods and services is:

Use the following to answer questions: -(Table: Per Capita GDP) Use Table: Per Capita GDP. Per capita nominal GDP in 2014 was:

Use the following to answer questions: -(Table: Measuring GDP) Use Table: Measuring GDP. GDP is equal to:

Real GDP is the same as _____ GDP.

In the circular-flow diagram, firms:

Gross domestic product is the economy's total production of _____ for a given period.

Use the following to answer questions: -(Table: Per Capita GDP) Per capita nominal GDP in 2011 was:

Enchanté Inc., a designer clothing company, buys $400 worth of silk and $30 worth of accessories to produce each dress. If the value added by Enchanté is equal to $200, then according to the value-added approach, the price of the designer dress should be:

Which item would NOT be a part of GDP?

Suppose that, in year 1, an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year, the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each. Using year 1 as the base year, real GDP in year 2 is:

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model What is the value of net exports?

The equation that breaks GDP down by the four sources of aggregate spending is:

GDP is the total:

Goods that are produced domestically but sold abroad are:

A transfer payment is a payment for:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters