Question 1

GDP is the:

Accepted Answer

A)  total market value of all final goods and services produced in an economy in one year. 
B)  total accumulated wealth of an economy. 
C)  volume of all dollar transactions made in an economy in one year. 
D)  dollar amount of all sales made in the economy in one year. 
A)  total market value of all final goods and services produced in an economy in one year. 
B)  total accumulated wealth of an economy. 
C)  volume of all dollar transactions made in an economy in one year. 
D)  dollar amount of all sales made in the economy in one year.

Question 2

An example of an intermediate good is:

Accepted Answer

A)  wages paid to an employee. 
B)  steel purchased by aircraft manufacturers. 
C)  vegetables purchased for your dinner. 
D)  electric bills for your house. 
A)  wages paid to an employee. 
B)  steel purchased by aircraft manufacturers. 
C)  vegetables purchased for your dinner. 
D)  electric bills for your house.

Question 3

The value of _____ is counted in GDP.

Accepted Answer

A)  glass for windshields purchased by a car manufacturer 
B)  a new car sold by a dealer 
C)  a used car sold by a dealer 
D)  a share of stock in a car manufacturer 
A)  glass for windshields purchased by a car manufacturer 
B)  a new car sold by a dealer 
C)  a used car sold by a dealer 
D)  a share of stock in a car manufacturer

Question 4

The BEST available common measure of a nation's standard of living is:

Accepted Answer

A)  nominal GDP. 
B)  market GDP. 
C)  real GDP per capita. 
D)  nominal GDP per capita. 
A)  nominal GDP. 
B)  market GDP. 
C)  real GDP per capita. 
D)  nominal GDP per capita.

Question 5

Use the following to answer questions:  
-(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. Nominal GDP in 2014 was:

Accepted Answer

A)  $400. 
B)  $420. 
C)  $445. 
D)  $820. 
A)  $400. 
B)  $420. 
C)  $445. 
D)  $820.

Question 6

Goods that are produced in a particular period but NOT sold in that period:

Accepted Answer

A)  count as consumption in the next year. 
B)  are included in investment. 
C)  are treated like exports. 
D)  are classified as purely financial transactions. 
A)  count as consumption in the next year. 
B)  are included in investment. 
C)  are treated like exports. 
D)  are classified as purely financial transactions.

Question 7

GDP is the sum of:

Accepted Answer

A)  personal consumption, investment, government purchases of goods and services, exports, and imports. 
B)  personal consumption, investment, government purchases of goods and services, and net exports. 
C)  personal consumption, investment, government purchases of goods and services, and net imports. 
D)  value added, net imports, and government purchases of goods and services. 
A)  personal consumption, investment, government purchases of goods and services, exports, and imports. 
B)  personal consumption, investment, government purchases of goods and services, and net exports. 
C)  personal consumption, investment, government purchases of goods and services, and net imports. 
D)  value added, net imports, and government purchases of goods and services.

Question 8

Use the following to answer questions:  
-(Table: Pizza Economy III) Use Table: Pizza Economy III. Considering 2010 as the base year, real GDP between 2010 and 2011 grew at a rate of:

Accepted Answer

A)  53.19%. 
B)  39.47%. 
C)  -39.47%. 
D)  -58.67%. 
A)  53.19%. 
B)  39.47%. 
C)  -39.47%. 
D)  -58.67%.

Question 9

A country's exports minus its imports during a period are:

Accepted Answer

A)  net exports. 
B)  gross exports. 
C)  net imports. 
D)  gross imports. 
A)  net exports. 
B)  gross exports. 
C)  net imports. 
D)  gross imports.

Question 10

Use the following to answer questions:  
-(Table: Peanut Butter and Jelly Economy) Use Table: Peanut Butter and Jelly Economy. In 2011, nominal GDP was _____ and real GDP was _____.

Accepted Answer

A)  $450; $400 
B)  $525; $450 
C)  $525; $400 
D)  $450; $575 
A)  $450; $400 
B)  $525; $450 
C)  $525; $400 
D)  $450; $575

Question 11

The total income of households after taxes and government transfers is called:

Accepted Answer

A)  disposable income. 
B)  private savings. 
C)  aggregate spending. 
D)  investment. 
A)  disposable income. 
B)  private savings. 
C)  aggregate spending. 
D)  investment.

Question 12

Use the following to answer questions:  
-(Table: Pizza Economy III) Use Table: Pizza Economy III. Using 2010 as the base year, nominal GDP in 2010 was:

Accepted Answer

A)  $47,000. 
B)  $69,000. 
C)  $72,000. 
D)  $114,000. 
A)  $47,000. 
B)  $69,000. 
C)  $72,000. 
D)  $114,000.

Question 13

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, the growth rate of real GDP from year 1 to year 2 is _____%.

Accepted Answer

A)  10 
B)  7.8 
C)  19.7 
D)  8.8 
A)  10 
B)  7.8 
C)  19.7 
D)  8.8

Question 14

Use the following to answer questions:  
-(Table: Per Capita GDP) Use Table: Per Capita GDP. If 2011 is the base year, real GDP in 2014 was:

Accepted Answer

A)  $400. 
B)  $3,000. 
C)  $4,000. 
D)  $80,000. 
A)  $400. 
B)  $3,000. 
C)  $4,000. 
D)  $80,000.

Question 15

Nominal GDP is:

Accepted Answer

A)  inflation-adjusted GDP. 
B)  real GDP minus depreciation. 
C)  current-dollar GDP. 
D)  constant-dollar GDP. 
A)  inflation-adjusted GDP. 
B)  real GDP minus depreciation. 
C)  current-dollar GDP. 
D)  constant-dollar GDP.

Question 16

Real GDP is nominal GDP adjusted for:

Accepted Answer

A)  double counting. 
B)  changes in prices. 
C)  population. 
D)  imports. 
A)  double counting. 
B)  changes in prices. 
C)  population. 
D)  imports.

Question 17

Boeing buys $3 million worth of steel, $2.5 million worth of computer hardware and software, and $1 million worth of mechanical tools to manufacture a certain model of aircraft. Boeing sells this particular model at $10 million. The value added by Boeing is equal to:

Accepted Answer

A)  $3.5 million. 
B)  $16.5 million. 
C)  $13 million. 
D)  $15.5 million. 
A)  $3.5 million. 
B)  $16.5 million. 
C)  $13 million. 
D)  $15.5 million.

Question 18

Use the following to answer question 128:  
-(Table: Pizza Economy I) Use Table: Pizza Economy I. GDP in this economy is:

Accepted Answer

A)  $73,000. 
B)  $65,000. 
C)  $57,000. 
D)  $51,000. 
A)  $73,000. 
B)  $65,000. 
C)  $57,000. 
D)  $51,000.

Question 19

Disposable income in a particular period is:

Accepted Answer

A)  total earned income. 
B)  earned income plus government transfer payments. 
C)  earned income plus government transfer payments less taxes. 
D)  earned income plus government transfer payments less taxes and savings. 
A)  total earned income. 
B)  earned income plus government transfer payments. 
C)  earned income plus government transfer payments less taxes. 
D)  earned income plus government transfer payments less taxes and savings.

Question 20

Disposable income equals:

Accepted Answer

A)  income plus government transfers minus taxes. 
B)  income plus government spending minus taxes. 
C)  income minus taxes plus government spending. 
D)  income minus taxes minus government transfers. 
A)  income plus government transfers minus taxes. 
B)  income plus government spending minus taxes. 
C)  income minus taxes plus government spending. 
D)  income minus taxes minus government transfers.

GDP is the:

An example of an intermediate good is:

The value of _____ is counted in GDP.

The BEST available common measure of a nation's standard of living is:

Use the following to answer questions: -(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. Nominal GDP in 2014 was:

Goods that are produced in a particular period but NOT sold in that period:

GDP is the sum of:

Use the following to answer questions: -(Table: Pizza Economy III) Use Table: Pizza Economy III. Considering 2010 as the base year, real GDP between 2010 and 2011 grew at a rate of:

A country's exports minus its imports during a period are:

Use the following to answer questions: -(Table: Peanut Butter and Jelly Economy) Use Table: Peanut Butter and Jelly Economy. In 2011, nominal GDP was _ and real GDP was _.

The total income of households after taxes and government transfers is called:

Use the following to answer questions: -(Table: Pizza Economy III) Use Table: Pizza Economy III. Using 2010 as the base year, nominal GDP in 2010 was:

Use the following to answer questions: -(Table: Per Capita GDP) Use Table: Per Capita GDP. If 2011 is the base year, real GDP in 2014 was:

Nominal GDP is:

Real GDP is nominal GDP adjusted for:

Boeing buys $3 million worth of steel, $2.5 million worth of computer hardware and software, and $1 million worth of mechanical tools to manufacture a certain model of aircraft. Boeing sells this particular model at $10 million. The value added by Boeing is equal to:

Use the following to answer question 128: -(Table: Pizza Economy I) Use Table: Pizza Economy I. GDP in this economy is:

Disposable income in a particular period is:

Disposable income equals:

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

GDP is the:

An example of an intermediate good is:

The value of _____ is counted in GDP.

The BEST available common measure of a nation's standard of living is:

Use the following to answer questions: -(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. Nominal GDP in 2014 was:

Goods that are produced in a particular period but NOT sold in that period:

GDP is the sum of:

Use the following to answer questions: -(Table: Pizza Economy III) Use Table: Pizza Economy III. Considering 2010 as the base year, real GDP between 2010 and 2011 grew at a rate of:

A country's exports minus its imports during a period are:

Use the following to answer questions: -(Table: Peanut Butter and Jelly Economy) Use Table: Peanut Butter and Jelly Economy. In 2011, nominal GDP was _____ and real GDP was _____.

The total income of households after taxes and government transfers is called:

Use the following to answer questions: -(Table: Pizza Economy III) Use Table: Pizza Economy III. Using 2010 as the base year, nominal GDP in 2010 was:

Use the following to answer questions: -(Table: Per Capita GDP) Use Table: Per Capita GDP. If 2011 is the base year, real GDP in 2014 was:

Nominal GDP is:

Real GDP is nominal GDP adjusted for:

Boeing buys $3 million worth of steel, $2.5 million worth of computer hardware and software, and $1 million worth of mechanical tools to manufacture a certain model of aircraft. Boeing sells this particular model at $10 million. The value added by Boeing is equal to:

Use the following to answer question 128: -(Table: Pizza Economy I) Use Table: Pizza Economy I. GDP in this economy is:

Disposable income in a particular period is:

Disposable income equals:

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

Use the following to answer questions: -(Table: Peanut Butter and Jelly Economy) Use Table: Peanut Butter and Jelly Economy. In 2011, nominal GDP was _ and real GDP was _.