Question 1

Table 10-1
The table below contains data for country A for the year 2010.
  
-Refer to Table 10-1.What was country A's GDP in 2010?

Accepted Answer

A)  $6359 
B)  $7136 
C)  $7253 
D)  $8147 
A)  $6359 
B)  $7136 
C)  $7253 
D)  $8147

Question 2

Real GDP is a better gauge of economic well-being than is nominal GDP.

Accepted Answer

A) True 
 B)False

Question 3

A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009.It also reported a GDP deflator of 85 in 2010 and 100 in 2009.Between 2009 and 2010,

Accepted Answer

A)  real output and the price level both rose. 
B)  real output rose and the price level fell. 
C)  real output fell and the price level rose. 
D)  real output and the price level both fell. 
A)  real output and the price level both rose. 
B)  real output rose and the price level fell. 
C)  real output fell and the price level rose. 
D)  real output and the price level both fell.

Question 4

When an American doctor opens a practice in Bermuda,his production there is part of U.S.GDP.

Accepted Answer

A) True 
 B)False

Question 5

If an economy's GDP falls,then it must be the case that the economy's

Accepted Answer

A)  income falls and saving rises. 
B)  income and saving both fall. 
C)  income falls and expenditure rises. 
D)  income and expenditure both fall. 
A)  income falls and saving rises. 
B)  income and saving both fall. 
C)  income falls and expenditure rises. 
D)  income and expenditure both fall.

Question 6

Tom and Lilly rented a house for $12,000 last year.At the start of the year they bought the house they had been renting directly from the owner for $250,000.They believe they could rent it for $12,000 this year,but stay in the house.How much does Tom and Lilly's decision to buy the house change GDP?

Accepted Answer

A)  it reduces GDP by $12,000 
B)  it does not change GDP 
C)  it raises GDP by $238,000 
D)  it raises GDP by $250,000 
A)  it reduces GDP by $12,000 
B)  it does not change GDP 
C)  it raises GDP by $238,000 
D)  it raises GDP by $250,000

Question 7

Table 10-5
A hypothetical country of Lahland produces only movies and popcorn.Quantities and prices of these goods for the last several years are shown below.The base year is 2009.
Prices and Quantities
  
-Refer to Table 10-5 What was this country's nominal GDP in 2009?

Accepted Answer

A)  $7,600 
B)  $9,100 
C)  $9,500 
D)  $10,500 
A)  $7,600 
B)  $9,100 
C)  $9,500 
D)  $10,500

Question 8

If exports are $500,GDP is $8000,government purchases are $1200,imports are $700,and investment is $800,then consumption is $6200.

Accepted Answer

A) True 
 B)False

Question 9

Table 10-1
The table below contains data for country A for the year 2010.
  
-Refer to Table 10-1.What were country A's imports in 2010?

Accepted Answer

A)  -$32 
B)  $32 
C)  $88 
D)  $120 
A)  -$32 
B)  $32 
C)  $88 
D)  $120

Question 10

Social Security payments are

Accepted Answer

A)  included in GDP because they represent current income. 
B)  included in GDP because they represent potential consumption. 
C)  excluded from GDP because they are not private pensions. 
D)  excluded from GDP because they do not reflect the economy's production. 
A)  included in GDP because they represent current income. 
B)  included in GDP because they represent potential consumption. 
C)  excluded from GDP because they are not private pensions. 
D)  excluded from GDP because they do not reflect the economy's production.

Question 11

The information below for 2008 in millions was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of GDP per person from highest to lowest? Country
GDP (Constant US$)
GDP(Current US$)
Population
Ghana
7,690
16,653
23)35
Kenya
17,569
30,354
38)76
Tanzania
15,394
20,490
41)276

Accepted Answer

A)  Ghana,Kenya,Tanzania 
B)  Ghana,Tanzania,Kenya 
C)  Kenya,Tanzania,Ghana 
D)  Kenya,Ghana,Tanzania 
A)  Ghana,Kenya,Tanzania 
B)  Ghana,Tanzania,Kenya 
C)  Kenya,Tanzania,Ghana 
D)  Kenya,Ghana,Tanzania

Question 12

In the economy of Ukzten in 2010,consumption was $5000,exports were $100,government purchases were $900,imports were $200,and investment was $1000.What was Ukzten's GDP in 2010?

Accepted Answer

A)  $6700 
B)  $6800 
C)  $7000 
D)  $7200 
A)  $6700 
B)  $6800 
C)  $7000 
D)  $7200

Question 13

Table 10-4
The country of Caspir produces only cereal and milk.Quantities and prices of these goods for the last several years are shown below.The base year is 2008.
Prices and Quantities
  
-Refer to Table 10-4.This country's output grew

Accepted Answer

A)  29.9% from 2008 to 2009. 
B)  33.3% from 2009 to 2010. 
C)  24.3% from 2009 to 2010. 
D)  15.4% from 2010 to 2011. 
A)  29.9% from 2008 to 2009. 
B)  33.3% from 2009 to 2010. 
C)  24.3% from 2009 to 2010. 
D)  15.4% from 2010 to 2011.

Question 14

In 2009,U.S.net exports were

Accepted Answer

A)  positive and about 3 percent the size of GDP. 
B)  positive and about 6 percent the size of GDP. 
C)  negative and about 3 percent the size of GDP. 
D)  negative and about 6 percent the size of GDP. 
A)  positive and about 3 percent the size of GDP. 
B)  positive and about 6 percent the size of GDP. 
C)  negative and about 3 percent the size of GDP. 
D)  negative and about 6 percent the size of GDP.

Question 15

GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?

Accepted Answer

A)  spending on education 
B)  the purchase of stocks and bonds 
C)  the purchase of a new house 
D)  the purchase of durable goods such as stoves and washing machines 
A)  spending on education 
B)  the purchase of stocks and bonds 
C)  the purchase of a new house 
D)  the purchase of durable goods such as stoves and washing machines

Question 17

Which of the following is included in the investment component of GDP?

Accepted Answer

A)  spending on new business equipment such as power tools and spending on stocks and bonds 
B)  spending on new business equipment such as power tools but not spending on stocks and bonds 
C)  spending on stocks and bonds but not spending on new business equipment such as power tools 
D)  neither spending on new business equipment such as power tools nor spending on stocks and bonds 
A)  spending on new business equipment such as power tools and spending on stocks and bonds 
B)  spending on new business equipment such as power tools but not spending on stocks and bonds 
C)  spending on stocks and bonds but not spending on new business equipment such as power tools 
D)  neither spending on new business equipment such as power tools nor spending on stocks and bonds

Question 18

Which of the following is included in the investment component of GDP?

Accepted Answer

A)  spending to build new houses 
B)  spending to build new factories 
C)  spending on business equipment such as welding equipment 
D)  All of the above are included in the investment component of GDP. 
A)  spending to build new houses 
B)  spending to build new factories 
C)  spending on business equipment such as welding equipment 
D)  All of the above are included in the investment component of GDP.

Question 19

Table 10-5
A hypothetical country of Lahland produces only movies and popcorn.Quantities and prices of these goods for the last several years are shown below.The base year is 2009.
Prices and Quantities
  
-Refer to Table 10-5 What was this country's GDP deflator in 2010?

Accepted Answer

A)  86.9 
B)  115.1 
C)  120.5 
D)  None of the above is correct. 
A)  86.9 
B)  115.1 
C)  120.5 
D)  None of the above is correct.

Question 20

Which of the following statements about nominal GDP and real GDP is correct?

Accepted Answer

A)  Nominal GDP is a better gauge of economic well-being than real GDP. 
B)  Real GDP is a better gauge of economic well-being than nominal GDP. 
C)  Real GDP and nominal GDP are equally good measures of economic well-being. 
D)  Neither nominal nor real GDP provide a measure of economic well-being. 
A)  Nominal GDP is a better gauge of economic well-being than real GDP. 
B)  Real GDP is a better gauge of economic well-being than nominal GDP. 
C)  Real GDP and nominal GDP are equally good measures of economic well-being. 
D)  Neither nominal nor real GDP provide a measure of economic well-being.

Exam 23: Measuring a Nations Income

Table 10-1 The table below contains data for country A for the year 2010. -Refer to Table 10-1.What was country A's GDP in 2010?

Real GDP is a better gauge of economic well-being than is nominal GDP.

A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009.It also reported a GDP deflator of 85 in 2010 and 100 in 2009.Between 2009 and 2010,

When an American doctor opens a practice in Bermuda,his production there is part of U.S.GDP.

If an economy's GDP falls,then it must be the case that the economy's

Table 10-5 A hypothetical country of Lahland produces only movies and popcorn.Quantities and prices of these goods for the last several years are shown below.The base year is 2009. Prices and Quantities -Refer to Table 10-5 What was this country's nominal GDP in 2009?

If exports are $500,GDP is $8000,government purchases are $1200,imports are $700,and investment is $800,then consumption is $6200.

Table 10-1 The table below contains data for country A for the year 2010. -Refer to Table 10-1.What were country A's imports in 2010?

Social Security payments are

In the economy of Ukzten in 2010,consumption was $5000,exports were $100,government purchases were $900,imports were $200,and investment was $1000.What was Ukzten's GDP in 2010?

Table 10-4 The country of Caspir produces only cereal and milk.Quantities and prices of these goods for the last several years are shown below.The base year is 2008. Prices and Quantities -Refer to Table 10-4.This country's output grew

In 2009,U.S.net exports were

GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality.

Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?

Which of the following is included in the investment component of GDP?

Which of the following is included in the investment component of GDP?

Table 10-5 A hypothetical country of Lahland produces only movies and popcorn.Quantities and prices of these goods for the last several years are shown below.The base year is 2009. Prices and Quantities -Refer to Table 10-5 What was this country's GDP deflator in 2010?

Which of the following statements about nominal GDP and real GDP is correct?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply,demand,and Government Policies

Consumers,producers,and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Market for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring the Cost of Living

Production and Growth

Saving,investment,and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters