Question 1

The Carters' oldest son attends Big State University.He and his parents pay all his fees and tuition.These payments count in GDP as

Accepted Answer

A)  investment. 
B)  government spending. 
C)  consumption of services. 
D)  consumption of durable goods. 
A)  investment. 
B)  government spending. 
C)  consumption of services. 
D)  consumption of durable goods.

Question 2

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut.As a result,

Accepted Answer

A)  U.S.investment,GDP,and GNP all increase by the same amount. 
B)  U.S.investment increases,but GDP and GNP are unaffected by the purchase. 
C)  U.S.investment and GDP increase by the same amount,but U.S.GNP increases by a smaller amount. 
D)  U.S.investment and GNP increase by the same amount,but U.S.GDP increases by a smaller amount. 
A)  U.S.investment,GDP,and GNP all increase by the same amount. 
B)  U.S.investment increases,but GDP and GNP are unaffected by the purchase. 
C)  U.S.investment and GDP increase by the same amount,but U.S.GNP increases by a smaller amount. 
D)  U.S.investment and GNP increase by the same amount,but U.S.GDP increases by a smaller amount.

Question 3

Rachel babysits for her sister for no pay.When she babysits for someone else she charges $8 an hour.When is Rachel's babysitting included in GDP?

Accepted Answer

A)  When she babysits for her sister and when she babysits for someone else. 
B)  When she babysits for her sister,but not when she babysits for someone else. 
C)  When she babysits for someone else,but not when she babysits for her sister. 
D)  Neither when she babysits for her sister nor for someone else. 
A)  When she babysits for her sister and when she babysits for someone else. 
B)  When she babysits for her sister,but not when she babysits for someone else. 
C)  When she babysits for someone else,but not when she babysits for her sister. 
D)  Neither when she babysits for her sister nor for someone else.

Question 4

Which of the following newspaper headlines is more closely related to what microeconomists study than to what macroeconomists study?

Accepted Answer

A)  Unemployment rate rises from 5 percent to 5.5 percent. 
B)  Real GDP grows by 3.1 percent in the third quarter. 
C)  Retail sales at stores show large gains. 
D)  The price of oranges rises after an early frost. 
A)  Unemployment rate rises from 5 percent to 5.5 percent. 
B)  Real GDP grows by 3.1 percent in the third quarter. 
C)  Retail sales at stores show large gains. 
D)  The price of oranges rises after an early frost.

The Carters' oldest son attends Big State University.He and his parents pay all his fees and tuition.These payments count in GDP as

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut.As a result,

Rachel babysits for her sister for no pay.When she babysits for someone else she charges $8 an hour.When is Rachel's babysitting included in GDP?

Which of the following newspaper headlines is more closely related to what microeconomists study than to what macroeconomists study?

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

Exam 23: Measuring a Nations Income

The Carters' oldest son attends Big State University.He and his parents pay all his fees and tuition.These payments count in GDP as

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut.As a result,

Rachel babysits for her sister for no pay.When she babysits for someone else she charges $8 an hour.When is Rachel's babysitting included in GDP?

Which of the following newspaper headlines is more closely related to what microeconomists study than to what macroeconomists study?

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