Question 1

The basic tools of supply and demand are central to microeconomic analysis but are of little use to macroeconomics.

Accepted Answer

A) True 
 B)False

Question 2

Table 10-1
The table below contains data for Bahkan for the year 2010.
  
-Refer to Table 10-1.The market value of all final goods and services produced within Bahkan in 2010 is

Accepted Answer

A)  $95. 
B)  $100. 
C)  $110. 
D)  $120. 
A)  $95. 
B)  $100. 
C)  $110. 
D)  $120.

Question 3

A form of government spending that is not made in exchange for a currently produced good or service is called

Accepted Answer

A)  a transfer payment. 
B)  consumption. 
C)  investment. 
D)  None of the above is correct. 
A)  a transfer payment. 
B)  consumption. 
C)  investment. 
D)  None of the above is correct.

Question 4

GDP is a good measure of economic well-being for all purposes.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following examples of production of goods and services would be included in U.S.GDP?

Accepted Answer

A)  Samantha,a Canadian citizen,grows sweet corn in Minnesota and sells it to a grocery store in Canada. 
B)  Ian,an American citizen,grows peaches for his family in the back yard of their Atlanta home. 
C)  Leo,an American citizen,grows marijuana in his Seattle home and sells it to his friends and neighbors. 
D)  None of the above examples of production would be included in U.S.GDP. 
A)  Samantha,a Canadian citizen,grows sweet corn in Minnesota and sells it to a grocery store in Canada. 
B)  Ian,an American citizen,grows peaches for his family in the back yard of their Atlanta home. 
C)  Leo,an American citizen,grows marijuana in his Seattle home and sells it to his friends and neighbors. 
D)  None of the above examples of production would be included in U.S.GDP.

Question 6

Which of the following is not included in U.S.GDP?

Accepted Answer

A)  additions of newly produced output to inventory 
B)  production of U.S citizens working in foreign countries. 
C)  the estimated rental value of owner-occupied housing 
D)  the value of food purchased from a grocery store to make meals at home without pay 
A)  additions of newly produced output to inventory 
B)  production of U.S citizens working in foreign countries. 
C)  the estimated rental value of owner-occupied housing 
D)  the value of food purchased from a grocery store to make meals at home without pay

Question 7

If you buy a burger and fries at your favorite fast food restaurant,

Accepted Answer

A)  then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant. 
B)  then GDP will be higher,but consumption spending will be unchanged. 
C)  then GDP will be unchanged,but consumption spending will be higher. 
D)  then both GDP and consumption spending will be higher. 
A)  then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant. 
B)  then GDP will be higher,but consumption spending will be unchanged. 
C)  then GDP will be unchanged,but consumption spending will be higher. 
D)  then both GDP and consumption spending will be higher.

Question 8

Table 10-4
The table below reports nominal and real GDP for the U.S.from 1929 to 1932.
  
-Refer to Table 10-3.What is the GDP deflator and the inflation rate for 1932?

Accepted Answer

A)  8.09,-11.7 
B)  8.09.16,-13.3 
C)  1236.46,11.7 
D)  1236.46,13.3 
A)  8.09,-11.7 
B)  8.09.16,-13.3 
C)  1236.46,11.7 
D)  1236.46,13.3

Question 9

If total spending rises from one year to the next,then the economy must be producing a larger output of goods and services.

Accepted Answer

A) True 
 B)False

Question 10

In the economy of Ukzten in 2010,exports were $200,GDP was $2000,government purchases were $300,imports were $130,and investment was $400.What was Ukzten's consumption in 2010?

Accepted Answer

A)  $970 
B)  $1230 
C)  $1370 
D)  $1630 
A)  $970 
B)  $1230 
C)  $1370 
D)  $1630

Question 11

If in some year nominal GDP was $28 trillion and real GDP was $32 trillion,what was the GDP deflator ?

Accepted Answer

A)  87.5 
B)  114.3 
C)  400 
D)  896 
A)  87.5 
B)  114.3 
C)  400 
D)  896

Question 12

Last quarter Newton computers produced 3,000 computers.Two thousand of these computers were sold to households,750 were sold to businesses,and 250 were added to Newton's inventory.How many of the computers should have been included in last quarter's GDP?

Accepted Answer

The answer of Last quarter Newton computers produced 3,000 computers.Two...

Question 13

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

Accepted Answer

A) True 
 B)False

Question 14

In the national income accounts,depreciation is called

Accepted Answer

A)  "consumption of fixed capital." 
B)  "negative investment." 
C)  "diminished value." 
D)  "loss due to wear." 
A)  "consumption of fixed capital." 
B)  "negative investment." 
C)  "diminished value." 
D)  "loss due to wear."

Question 15

We would expect a macroeconomist,as opposed to a microeconomist,to be particularly interested in

Accepted Answer

A)  explaining how economic changes affect prices of particular goods. 
B)  devising policies to deal with market failures such as externalities and market power. 
C)  devising policies to promote low inflation. 
D)  identifying those markets that are competitive and those that are not competitive. 
A)  explaining how economic changes affect prices of particular goods. 
B)  devising policies to deal with market failures such as externalities and market power. 
C)  devising policies to promote low inflation. 
D)  identifying those markets that are competitive and those that are not competitive.

Question 16

A country reported nominal GDP of $100 billion in 2010 and $75 billion in 2009.It also reported a GDP deflator of 125 in 2010 and 120 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 17

In a simple circular-flow diagram,households buy goods and services with the income they get from

Accepted Answer

A)  wages. 
B)  rents. 
C)  profits. 
D)  All of the above are correct. 
A)  wages. 
B)  rents. 
C)  profits. 
D)  All of the above are correct.

Question 18

In the economy of Ukzten in 2010,consumption was $6000,exports were $1000,GDP was $10,000,government purchases were $2000,and imports were $600.What was Ukzten's investment in 2010?

Accepted Answer

A)  $1400 
B)  $1600 
C)  $2400 
D)  $3600 
A)  $1400 
B)  $1600 
C)  $2400 
D)  $3600

Question 19

Which of the following transactions would be included in GDP for 2010?

Accepted Answer

A)  In February 2010,Amanda sells a 1996 Honda Accord to Isabella. 
B)  In February 2010,Amanda buys a ticket to visit a zoo in Florida.She visits the zoo in April 2011. 
C)  In December 2010,Isabella eats onions that she harvested from her backyard garden in October 2010. 
D)  All of the above are correct. 
A)  In February 2010,Amanda sells a 1996 Honda Accord to Isabella. 
B)  In February 2010,Amanda buys a ticket to visit a zoo in Florida.She visits the zoo in April 2011. 
C)  In December 2010,Isabella eats onions that she harvested from her backyard garden in October 2010. 
D)  All of the above are correct.

Question 20

How does U.S.gross domestic product (GDP)differ from U.S.gross national product (GNP)?

Accepted Answer

A)  GNP = GDP - losses from depreciation 
B)  GNP = GDP + income earned by U.S.citizens abroad - income that foreign citizens earned in the U.S. 
C)  GNP = GDP + transfer payments to households + - indirect sales taxes 
D)  GNP = GDP - depreciation - retained earnings 
A)  GNP = GDP - losses from depreciation 
B)  GNP = GDP + income earned by U.S.citizens abroad - income that foreign citizens earned in the U.S. 
C)  GNP = GDP + transfer payments to households + - indirect sales taxes 
D)  GNP = GDP - depreciation - retained earnings

Exam 23: Measuring a Nations Income

The basic tools of supply and demand are central to microeconomic analysis but are of little use to macroeconomics.

Table 10-1 The table below contains data for Bahkan for the year 2010. -Refer to Table 10-1.The market value of all final goods and services produced within Bahkan in 2010 is

A form of government spending that is not made in exchange for a currently produced good or service is called

GDP is a good measure of economic well-being for all purposes.

Which of the following examples of production of goods and services would be included in U.S.GDP?

Which of the following is not included in U.S.GDP?

If you buy a burger and fries at your favorite fast food restaurant,

Table 10-4 The table below reports nominal and real GDP for the U.S.from 1929 to 1932. -Refer to Table 10-3.What is the GDP deflator and the inflation rate for 1932?

If total spending rises from one year to the next,then the economy must be producing a larger output of goods and services.

In the economy of Ukzten in 2010,exports were $200,GDP was $2000,government purchases were $300,imports were $130,and investment was $400.What was Ukzten's consumption in 2010?

If in some year nominal GDP was $28 trillion and real GDP was $32 trillion,what was the GDP deflator ?

Last quarter Newton computers produced 3,000 computers.Two thousand of these computers were sold to households,750 were sold to businesses,and 250 were added to Newton's inventory.How many of the computers should have been included in last quarter's GDP?

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

In the national income accounts,depreciation is called

We would expect a macroeconomist,as opposed to a microeconomist,to be particularly interested in

A country reported nominal GDP of $100 billion in 2010 and $75 billion in 2009.It also reported a GDP deflator of 125 in 2010 and 120 in 2009.Between 2009 and 2010,

In a simple circular-flow diagram,households buy goods and services with the income they get from

In the economy of Ukzten in 2010,consumption was $6000,exports were $1000,GDP was $10,000,government purchases were $2000,and imports were $600.What was Ukzten's investment in 2010?

Which of the following transactions would be included in GDP for 2010?

How does U.S.gross domestic product (GDP)differ from U.S.gross national product (GNP)?

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

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