Question 1

Consider the following figure to answer the next  questions:
  
-During which period was the economy in an expansion?

Accepted Answer

A)  2005-2009 
B)  2000-2004 
C)  2009-2013 
D)  2004-2008 
E)  2000-2012 
A)  2005-2009 
B)  2000-2004 
C)  2009-2013 
D)  2004-2008 
E)  2000-2012 A

Question 2

Company X sells paper to company Y for $100,000. Company Y uses the paper to make textbooks, selling them to consumers for $500,000. The total contribution to gross domestic product GDP) is

Accepted Answer

A)  $500,000. 
B)  $400,000. 
C)  $600,000. 
D)  $550,000. 
E)  $450,000. 
A)  $500,000. 
B)  $400,000. 
C)  $600,000. 
D)  $550,000. 
E)  $450,000. A

Question 3

Which country has seen a decline in per capita gross domestic product GDP) since the 1970s?

Accepted Answer

A)  India 
B)  Mexico 
C)  Nicaragua 
D)  Poland 
E)  Turkey 
A)  India 
B)  Mexico 
C)  Nicaragua 
D)  Poland 
E)  Turkey C

Question 4

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the questions. Assume that the base year is 2012. $$\begin{array} { l l l l l } 
\hline \text { Good } & \text { 2012 Price } & \text { 2012 Quantity } & \text { 2013 Price } & \text { 2013 Quantity } \
\hline A & \$ 2.00 & 500 & \$ 2.50 & 600 \
\text { B } & \$ 4.00 & 1,000 & \$ 5.00 & 900 \
\text { C } & \$ 2.00 & 200 & \$ 1.00 & 300 \
\hline
\end{array}$$
-What was the real gross domestic product GDP) in 2013?

Accepted Answer

A)  $5,400 
B)  $6,300 
C)  $6,450 
D)  $1,700 
E)  $13,600 
A)  $5,400 
B)  $6,300 
C)  $6,450 
D)  $1,700 
E)  $13,600

Question 5

Explain why real gross domestic product GDP) is preferred to nominal GDP as a measure of economic growth.

Accepted Answer

Nominal GDP can increase as a result of

Question 6

Which of the following represents the largest share of U.S. gross domestic product GDP)?

Accepted Answer

A)  services 
B)  agricultural production 
C)  the production of manufactured goods 
D)  the production of physical goods 
E)  the production of capital goods 
A)  services 
B)  agricultural production 
C)  the production of manufactured goods 
D)  the production of physical goods 
E)  the production of capital goods

Question 7

Microeconomics includes the study of

Accepted Answer

A)  the unemployment rate. 
B)  the overall level of prices in an economy. 
C)  changes in the price of commercial real estate. 
D)  expansions and contractions of the economy. 
E)  measures of the standard of living. 
A)  the unemployment rate. 
B)  the overall level of prices in an economy. 
C)  changes in the price of commercial real estate. 
D)  expansions and contractions of the economy. 
E)  measures of the standard of living.

Question 8

Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the questions: $$\begin{array} { l l c l } 
\hline \text { Year } & \text { Nominal GDP } & \text { Real GDP } & \text { GDP Deflator } \
\hline 2009 &\underline{\quad\quad} & \$ 500 & 100 \
2010 & \$ 551.2 & \underline{\quad\quad}& 106 \
2011 & \$ 600.6 & \$ 546 &\underline{\quad\quad} \
2012 & & \$ 600.6 & 120 \ 
\hline
\end{array}$$
-What was the growth rate of real gross domestic product GDP) from 2011 to 2012?

Accepted Answer

A)  2 percent 
B)  1 percent 
C)  10 percent 
D)  20 percent 
E)  5 percent 
A)  2 percent 
B)  1 percent 
C)  10 percent 
D)  20 percent 
E)  5 percent

Question 9

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 10

Which of the following is included in the government purchases category of gross domestic product GDP)?

Accepted Answer

A)  Social Security payments 
B)  welfare payments 
C)  payments to people in the military 
D)  interest on the national debt 
E)  payments to unemployed workers 
A)  Social Security payments 
B)  welfare payments 
C)  payments to people in the military 
D)  interest on the national debt 
E)  payments to unemployed workers

Question 11

Nominal gross domestic product GDP) increased from $14.0 trillion to $14.7 trillion, and the price level increased from 120 to 126. Which of the following is true?

Accepted Answer

A)  Output grew faster than the price level. 
B)  Output grew slower than the price level. 
C)  Real GDP grew faster than nominal GDP. 
D)  Output grew at the same rate as the price level. 
E)  Real GDP grew at the same rate as nominal GDP. 
A)  Output grew faster than the price level. 
B)  Output grew slower than the price level. 
C)  Real GDP grew faster than nominal GDP. 
D)  Output grew at the same rate as the price level. 
E)  Real GDP grew at the same rate as nominal GDP.

Question 12

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

Question 13

Consider the following data that identifies real gross domestic product GDP) in comparison to the long-run trend of real GDP to answer the next questions: $$\begin{array} { l l l } 
\hline \text { Quarter } & \begin{array} { l } 
\text { Real GDP } \
\text { (billions of dollars) }
\end{array} & \begin{array} { l } 
\text { Long-Run Trend of Real } \
\text { GDP (billions of dollars) }
\end{array} \
\hline 1 & 4,000 & 4,000 \
2 & 4,160 & 4,120 \
3 & 4,326 & 4,244 \
4 & 4,413 & 4,371 \
5 & 4,501 & 4,502 \
6 & 4,591 & 4,637 \
7 & 4,499 & 4,776 \
8 & 4,409 & 4,919 \
9 & 4,673 & 5,067 \
10 & 4,954 & 5,219 \
11 & 5,252 & 5,376 \
12 & 5,376 & 5,537 \
\hline
\end{array}$$
-Between quarter 7 and quarter 8, real gross domestic product GDP) grew by what percentage?

Accepted Answer

A)  -2 percent 
B)  3 percent 
C)  1 percent 
D) 6 percent 
E)  2 percent 
A)  -2 percent 
B)  3 percent 
C)  1 percent 
D) 6 percent 
E)  2 percent

Question 14

Consider the following data that identifies real gross domestic product GDP) in comparison to the long-run trend of real GDP to answer the next questions: $$\begin{array} { l l l } 
\hline \text { Quarter } & \begin{array} { l } 
\text { Real GDP } \
\text { (billions of dollars) }
\end{array} & \begin{array} { l } 
\text { Long-Run Trend of Real } \
\text { GDP (billions of dollars) }
\end{array} \
\hline 1 & 4,000 & 4,000 \
2 & 4,160 & 4,120 \
3 & 4,326 & 4,244 \
4 & 4,413 & 4,371 \
5 & 4,501 & 4,502 \
6 & 4,591 & 4,637 \
7 & 4,499 & 4,776 \
8 & 4,409 & 4,919 \
9 & 4,673 & 5,067 \
10 & 4,954 & 5,219 \
11 & 5,252 & 5,376 \
12 & 5,376 & 5,537 \
\hline
\end{array}$$
-Between quarter 10 and quarter 11, real gross domestic product GDP) grew by what percentage?

Accepted Answer

A)  6 percent 
B)  3 percent 
C)  4 percent 
D)  5 percent 
E)  -5 percent 
A)  6 percent 
B)  3 percent 
C)  4 percent 
D)  5 percent 
E)  -5 percent

Question 15

The government purchases category of gross domestic product GDP) includes spending by

Accepted Answer

A)  federal, state, and local governments. 
B)  federal and state governments. 
C)  state and local governments. 
D)  local government only. 
E)  the federal government only. 
A)  federal, state, and local governments. 
B)  federal and state governments. 
C)  state and local governments. 
D)  local government only. 
E)  the federal government only.

Question 16

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the questions. Assume that the base year is 2012. $$\begin{array} { l l l l l } 
\hline \text { Good } & \text { 2012 Price } & \text { 2012 Quantity } & \text { 2013 Price } & \text { 2013 Quantity } \
\hline A & \$ 2.00 & 500 & \$ 2.50 & 600 \
\text { B } & \$ 4.00 & 1,000 & \$ 5.00 & 900 \
\text { C } & \$ 2.00 & 200 & \$ 1.00 & 300 \
\hline
\end{array}$$
-What was the rate of inflation between the two years?

Accepted Answer

A)  19.44 percent 
B)  8.57 percent 
C)  6.67 percent 
D)  2.38 percent 
E)  16.67 percent 
A)  19.44 percent 
B)  8.57 percent 
C)  6.67 percent 
D)  2.38 percent 
E)  16.67 percent

Question 17

Nominal gross domestic product GDP) is GDP measured in_______ prices.

Accepted Answer

A)  current 
B)  base 
C)  average 
D)  fixed 
E)  marginal 
A)  current 
B)  base 
C)  average 
D)  fixed 
E)  marginal

Question 18

Draw a graph to illustrate the phases of the business cycle. Be sure to identify the length of a contraction and an expansion. Identify a peak and a trough.

Accepted Answer

The accompanying figure shows a typical

Question 19

The difference between nominal gross domestic product GDP) and real GDP is

Accepted Answer

A)  real output growth. 
B)  the price level. 
C)  nominal output growth. 
D)  long-run trend GDP. 
E)  average output growth. 
A)  real output growth. 
B)  the price level. 
C)  nominal output growth. 
D)  long-run trend GDP. 
E)  average output growth.

Question 20

If nominal gross domestic product GDP) is increasing, which of the following may be true?

Accepted Answer

A)  More final goods and services are being produced. 
B)  Prices on average are rising at a slower rate than the decline in the quantity of final goods and services produced. 
C)  Less is being produced, and prices on average are falling. 
D)  Production of final goods and services is increasing at a faster rate than prices are falling. 
E)  Prices and the amount of final goods and services produced on average are constant. 
A)  More final goods and services are being produced. 
B)  Prices on average are rising at a slower rate than the decline in the quantity of final goods and services produced. 
C)  Less is being produced, and prices on average are falling. 
D)  Production of final goods and services is increasing at a faster rate than prices are falling. 
E)  Prices and the amount of final goods and services produced on average are constant.

Consider the following figure to answer the next questions: -During which period was the economy in an expansion?

Company X sells paper to company Y for $100,000. Company Y uses the paper to make textbooks, selling them to consumers for $500,000. The total contribution to gross domestic product GDP) is

Which country has seen a decline in per capita gross domestic product GDP) since the 1970s?

Explain why real gross domestic product GDP) is preferred to nominal GDP as a measure of economic growth.

Which of the following represents the largest share of U.S. gross domestic product GDP)?

Microeconomics includes the study of

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).

Which of the following is included in the government purchases category of gross domestic product GDP)?

Nominal gross domestic product GDP) increased from $14.0 trillion to $14.7 trillion, and the price level increased from 120 to 126. Which of the following is true?

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.

The government purchases category of gross domestic product GDP) includes spending by

Nominal gross domestic product GDP) is GDP measured in_______ prices.

Draw a graph to illustrate the phases of the business cycle. Be sure to identify the length of a contraction and an expansion. Identify a peak and a trough.

The difference between nominal gross domestic product GDP) and real GDP is

If nominal gross domestic product GDP) is increasing, which of the following may be true?

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Market Outcomes and Tax Incidence

Price Controls

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 Learning Objectives

International Trade

International Finance

Filters

Exam 6: Introduction to Macroeconomics and Gross Domestic Product

Consider the following figure to answer the next questions: -During which period was the economy in an expansion?

Company X sells paper to company Y for $100,000. Company Y uses the paper to make textbooks, selling them to consumers for $500,000. The total contribution to gross domestic product GDP) is

Which country has seen a decline in per capita gross domestic product GDP) since the 1970s?

Explain why real gross domestic product GDP) is preferred to nominal GDP as a measure of economic growth.

Which of the following represents the largest share of U.S. gross domestic product GDP)?

Microeconomics includes the study of

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).

Which of the following is included in the government purchases category of gross domestic product GDP)?

Nominal gross domestic product GDP) increased from $14.0 trillion to $14.7 trillion, and the price level increased from 120 to 126. Which of the following is true?

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.

The government purchases category of gross domestic product GDP) includes spending by

Nominal gross domestic product GDP) is GDP measured in_______ prices.

Draw a graph to illustrate the phases of the business cycle. Be sure to identify the length of a contraction and an expansion. Identify a peak and a trough.

The difference between nominal gross domestic product GDP) and real GDP is

If nominal gross domestic product GDP) is increasing, which of the following may be true?

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Market Outcomes and Tax Incidence

Price Controls

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 Learning Objectives

International Trade

International Finance

Filters

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).