Exam 6: Tracking the U S Economy

Suppose the respective prices of yogurt,candy bars,and popcorn in Year 1 are $1,$2,and $3.In Year 2,the unit prices of each are $2,$3,and $4 respectively.Which of the following statements is true of the price level between Year 1 and Year 2?

Which of the following actions will decrease the gross domestic product (GDP)?

Gross domestic product (GDP)is a good measure of social welfare since it includes the value of leisure time.

Gross domestic product (GDP)figures tend to understate the quantity of goods and services available because:

A fixed-weight price index uses a process that adjusts the weights continuously year by year.

Which of the following is not true about gross domestic product (GDP)?

A nation's aggregate expenditure decreases with an increase in imports,other things constant.

Gross domestic product (GDP)will increase if illegal drugs are made legal.

If the value of exports equals $6.5 billion and the value of imports equals $8.0 billion in a year,then:

If the consumer price index (CPI)rises over a year from 220 to 230,then the inflation rate is 10 percent.

Nominal gross domestic product (GDP)is measured in terms of the _____.

Which of the following is true of an intermediate good?

If the nominal gross domestic product (GDP)for a particular year is $4 trillion and the real GDP for that year is $3 trillion,then the GDP price index is 133.

The table below shows the price indexes and the nominal gross domestic product (GDP)for an economy from 2001 to 2005.The real GDP _____ between 2002 and 2003. Table 6.3 ? ? Year Price Index Nominal GDP 2001 100 \ 95 billion 2002 105 \ 110 billion 2003 110 \ 120 billion 2004 120 \ 125 billion 2005 132 \ 137.5 billion

Which of the following is the best indicator of the performance of the national economy?

Rhonda sells a house she has owned for 15 years and starts living in a rented apartment.To make it more marketable,she buys carpeting that she has professionally installed and buys wallpaper that her daughter hangs.Which items would be included in this year's gross domestic product (GDP)?

Which of the following would be included in the gross domestic product (GDP)?

If a firm's inventory decreases,the gross domestic product (GDP)also decreases.

The value added by a firm is defined as:

The value added at all stages of production sums to the market value of the final good,and the value added for all final goods sums to GDP based on the income approach.