Question 1

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

Question 2

GDP is equal to

Accepted Answer

A) the market value of all final goods and services produced within a country in a given period of time. 
B) Y. 
C) C + I + G + NX. 
D) All of the above are correct. 
A) the market value of all final goods and services produced within a country in a given period of time. 
B) Y. 
C) C + I + G + NX. 
D) All of the above are correct.

Question 3

According to the circular-flow diagram GDP

Accepted Answer

A) can be computed as either the revenue firms receive from the sales of goods and services or the payments they make to factors of production. 
B) can be computed as the revenue firms receive from the sales of goods and services but not as the payments they make to factors of production. 
C) can be computed as payments firms make to factors of production but not as revenues they receive from the sales of goods and services. 
D) cannot be computed as either the revenue firms receive or the payments they make to factors of production. 
A) can be computed as either the revenue firms receive from the sales of goods and services or the payments they make to factors of production. 
B) can be computed as the revenue firms receive from the sales of goods and services but not as the payments they make to factors of production. 
C) can be computed as payments firms make to factors of production but not as revenues they receive from the sales of goods and services. 
D) cannot be computed as either the revenue firms receive or the payments they make to factors of production.

Question 4

Which of the following statements about recessions is true?

Accepted Answer

A) An old rule of thumb defining recession is two consecutive quarters of falling nominal GDP. 
B) Recessions occur at regular intervals and last standard amounts of time. 
C) There is no ironclad rule for the declaration of recessions. 
D) Recessions are associated with low unemployment and high income. 
A) An old rule of thumb defining recession is two consecutive quarters of falling nominal GDP. 
B) Recessions occur at regular intervals and last standard amounts of time. 
C) There is no ironclad rule for the declaration of recessions. 
D) Recessions are associated with low unemployment and high income.

Question 5

A country's real GDP rose from $500 to $530 while its nominal GDP rose from $600 to $700. What was this country's inflation rate?

Accepted Answer

A) 16.7%. 
B) 10.0%. 
C) 15.0%. 
D) -9.1%. 
A) 16.7%. 
B) 10.0%. 
C) 15.0%. 
D) -9.1%.

Question 6

Typically in countries with lower levels of real GDP person, a smaller percentage of the population is literate.

Accepted Answer

A) True 
 B)False

Question 7

Income generated by a nation's domestic production

Accepted Answer

A) is less than its domestic production. 
B) is equal to its domestic production. 
C) is greater than its domestic production. 
D) could be less than, equal to, or greater than its domestic production. 
A) is less than its domestic production. 
B) is equal to its domestic production. 
C) is greater than its domestic production. 
D) could be less than, equal to, or greater than its domestic production.

Question 8

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

Accepted Answer

A) The market value of an oil change that Ben performs on his own car. 
B) The market value of an oil change at Speedy Lube. 
C) The market value of oil purchased by Ben. 
D) Production of foreign citizens living in the United States that work in an oil packaging facility. 
A) The market value of an oil change that Ben performs on his own car. 
B) The market value of an oil change at Speedy Lube. 
C) The market value of oil purchased by Ben. 
D) Production of foreign citizens living in the United States that work in an oil packaging facility.

Question 9

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 10

International data on GDP and socioeconomic variables

Accepted Answer

A) are inconclusive about the relationship between GDP and the economic well-being of citizens. 
B) suggest that poor nations actually might enjoy a higher standard of living than do rich nations. 
C) leave no doubt that a nation's GDP is closely associated with its citizens' standard of living. 
D) indicate that there are few real differences in living standards around the world, in spite of the large differences in GDP between nations. 
A) are inconclusive about the relationship between GDP and the economic well-being of citizens. 
B) suggest that poor nations actually might enjoy a higher standard of living than do rich nations. 
C) leave no doubt that a nation's GDP is closely associated with its citizens' standard of living. 
D) indicate that there are few real differences in living standards around the world, in spite of the large differences in GDP between nations.

Question 11

Figure 23-1.
​  
-Refer to Figure 23-1. Which of the following correctly identifies the flow of dollars?

Accepted Answer

A) W, X, Y and Z 
B) K, M, L and N 
C) C, K, M and D 
D) A, L, N and B 
A) W, X, Y and Z 
B) K, M, L and N 
C) C, K, M and D 
D) A, L, N and B

Question 12

GDP excludes most of two types of production. List one.

Accepted Answer

GDP excludes most items that a

Question 13

Table 23-6
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013 .
Prices and Quantities  
-Refer to Table 23-6. This country's inflation rate from 2012 to 2013 was

Accepted Answer

A) 35.6%. 
B) 25.8%. 
C) 34.8%. 
D) 100.0%. 
A) 35.6%. 
B) 25.8%. 
C) 34.8%. 
D) 100.0%.

Question 14

​In the simple circular-flow diagram, with households and firms, GDP can be computed

Accepted Answer

A) ​as the income received by households, in the form of wages, rent and profit. 
B) ​as the income received by households in the form of wages. 
C) ​as the payments made by firms for labor. 
D) ​as the profits received by households. 
A) ​as the income received by households, in the form of wages, rent and profit. 
B) ​as the income received by households in the form of wages. 
C) ​as the payments made by firms for labor. 
D) ​as the profits received by households.

Question 15

Table 23-10
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 2015 .
Prices and Quantities  
-Refer to Table 23-10. In which year was this country's real GDP highest?

Accepted Answer

A) 2014 
B) 2015 
C) 2016 
D) 2017 
A) 2014 
B) 2015 
C) 2016 
D) 2017

Question 16

Write the formula for calculating a country's inflation rate using the GDP deflator.

Accepted Answer

The answer of Write the formula for calculating a country's...

Question 17

​Which of the following measures includes the effects of taxes?

Accepted Answer

A) ​Net national product. 
B) ​Gross national product. 
C) ​National income. 
D) ​Personal income. 
A) ​Net national product. 
B) ​Gross national product. 
C) ​National income. 
D) ​Personal income.

Question 18

Which of the following is an example of depreciation?

Accepted Answer

A) falling stock prices 
B) the retirement of several employees 
C) computers becoming obsolete 
D) All of the above are examples of depreciation. 
A) falling stock prices 
B) the retirement of several employees 
C) computers becoming obsolete 
D) All of the above are examples of depreciation.

Question 19

A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10. Smith's Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP?

Accepted Answer

A) $22.50 
B) $29.50 
C) $21.50 
D) $31.50 
A) $22.50 
B) $29.50 
C) $21.50 
D) $31.50

Question 20

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Accepted Answer

A) True 
 B)False

Exam 23: Measuring a Nation S Income

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

GDP is equal to

According to the circular-flow diagram GDP

Which of the following statements about recessions is true?

A country's real GDP rose from $500 to $530 while its nominal GDP rose from $600 to $700. What was this country's inflation rate?

Typically in countries with lower levels of real GDP person, a smaller percentage of the population is literate.

Income generated by a nation's domestic production

Which of the following is not included in U.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.

International data on GDP and socioeconomic variables

Figure 23-1. ​ -Refer to Figure 23-1. Which of the following correctly identifies the flow of dollars?

GDP excludes most of two types of production. List one.

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013 . Prices and Quantities -Refer to Table 23-6. This country's inflation rate from 2012 to 2013 was

​In the simple circular-flow diagram, with households and firms, GDP can be computed

Table 23-10 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 2015 . Prices and Quantities -Refer to Table 23-10. In which year was this country's real GDP highest?

Write the formula for calculating a country's inflation rate using the GDP deflator.

​Which of the following measures includes the effects of taxes?

Which of the following is an example of depreciation?

A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10. Smith's Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP?

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

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

Applications: 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 Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

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 Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Figure 23-1. -Refer to Figure 23-1. Which of the following correctly identifies the flow of dollars?

In the simple circular-flow diagram, with households and firms, GDP can be computed

Which of the following measures includes the effects of taxes?