Question 1

Gina, a U.S. citizen, works only in Bermuda. The value of Gina's production is included in

Accepted Answer

A) U.S. GDP and Bermudan GDP. 
B) U.S. GDP and Bermudan GNP. 
C) U.S. GNP and Bermudan GDP. 
D) U.S. GNP and Bermudan GNP. 
A) U.S. GDP and Bermudan GDP. 
B) U.S. GDP and Bermudan GNP. 
C) U.S. GNP and Bermudan GDP. 
D) U.S. GNP and Bermudan GNP.

Question 2

Which of the following is included in GDP?

Accepted Answer

A) the market value of rental housing services, but not the market value of owner-occupied housing services. 
B) the market value of owner-occupied housing services, but not the market value of rental housing services 
C) both the market value of rental housing services and the market value of owner-occupied housing services 
D) neither the market value of owner-occupied housing services nor the market value of rental housing services. 
A) the market value of rental housing services, but not the market value of owner-occupied housing services. 
B) the market value of owner-occupied housing services, but not the market value of rental housing services 
C) both the market value of rental housing services and the market value of owner-occupied housing services 
D) neither the market value of owner-occupied housing services nor the market value of rental housing services.

Question 3

In the economy of Talikastan in 2015, exports were $200, GDP was $2000, government purchases were $200, imports were $270, and investment was $500. What was Talikastan's consumption in 2015?

Accepted Answer

A) $830 
B) $1230 
C) $1370 
D) $1770 
A) $830 
B) $1230 
C) $1370 
D) $1770

Question 4

The GDP deflator is the ratio of

Accepted Answer

A) real GDP to nominal GDP multiplied by 100. 
B) real GDP to the inflation rate multiplied by 100. 
C) nominal GDP to real GDP multiplied by 100. 
D) nominal GDP to the inflation rate multiplied by 100. 
A) real GDP to nominal GDP multiplied by 100. 
B) real GDP to the inflation rate multiplied by 100. 
C) nominal GDP to real GDP multiplied by 100. 
D) nominal GDP to the inflation rate multiplied by 100.

Question 5

Table 23-11
The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009.
Prices and Quantities  
-Refer to Table 23-11.
What was nominal GDP, real GDP, and the GDP deflator for 2009? Show your work.

Accepted Answer

Nominal GDP was $5x90 + $50x15

Question 6

The Patersons bought a home that was newly constructed in 2007 for $275,000. They sold the home in 2015 for $255,000. Which of the following statements is correct regarding the sale of the house?

Accepted Answer

A) The 2015 sale increased 2015 GDP by $255,000 and had no effect on 2007 GDP. 
B) The 2015 sale reduced 2015 GDP by $20,000 and had no effect on 2007 GDP. 
C) The 2015 sale increased 2015 GDP by $255,000; and caused 2007 GDP to be revised downward by $20,000. 
D) The 2015 sale affected neither 2007 GDP nor 2015 GDP. 
A) The 2015 sale increased 2015 GDP by $255,000 and had no effect on 2007 GDP. 
B) The 2015 sale reduced 2015 GDP by $20,000 and had no effect on 2007 GDP. 
C) The 2015 sale increased 2015 GDP by $255,000; and caused 2007 GDP to be revised downward by $20,000. 
D) The 2015 sale affected neither 2007 GDP nor 2015 GDP.

Question 7

Apple releases a new iPhone. Which of the following components of U.S. GDP will not be affected, given that the iPhone is manufactured in China?

Accepted Answer

A) ​It will increase U.S. net exports, since a U.S. corporation makes the iPhone. 
B) ​It will increase consumptions expenditures when U.S. consumers purchase new iPhones. 
C) ​It will increase investment, since Apple places some of the iPhones in to its inventory. 
D) ​It will increase government expenditures, since some iPhones are purchased by the federal government. 
A) ​It will increase U.S. net exports, since a U.S. corporation makes the iPhone. 
B) ​It will increase consumptions expenditures when U.S. consumers purchase new iPhones. 
C) ​It will increase investment, since Apple places some of the iPhones in to its inventory. 
D) ​It will increase government expenditures, since some iPhones are purchased by the federal government.

Question 8

A U.S. citizen buys a tea kettle manufactured in China by a company that is owned and operated by U.S citizens. In which of the following components of U.S. GDP is this transaction accounted for?

Accepted Answer

A) consumption and imports 
B) consumption but not imports 
C) imports but not consumption 
D) neither consumption nor imports 
A) consumption and imports 
B) consumption but not imports 
C) imports but not consumption 
D) neither consumption nor imports

Question 9

A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarter(s) does(do) these transactions raise investment?

Accepted Answer

A) the first and the second 
B) the first but not the second 
C) the second but not the first 
D) neither the first nor the second 
A) the first and the second 
B) the first but not the second 
C) the second but not the first 
D) neither the first nor the second

Question 10

If nominal GDP is $10 trillion and real GDP is $8 trillion, then the GDP deflator is

Accepted Answer

A) 80, and this indicates that the price level has decreased by 20 percent since the base year. 
B) 80, and this indicates that the price level has increased by 80 percent since the base year. 
C) 125, and this indicates that the price level has increased by 25 percent since the base year. 
D) 125, and this indicates that the price level has increased by 125 percent since the base year. 
A) 80, and this indicates that the price level has decreased by 20 percent since the base year. 
B) 80, and this indicates that the price level has increased by 80 percent since the base year. 
C) 125, and this indicates that the price level has increased by 25 percent since the base year. 
D) 125, and this indicates that the price level has increased by 125 percent since the base year.

Question 11

Which government entity computes U.S. GDP every three months?

Accepted Answer

A) the Council of Economic Advisers 
B) the Department of Commerce 
C) the Department of Treasury 
D) the Federal Reserve 
A) the Council of Economic Advisers 
B) the Department of Commerce 
C) the Department of Treasury 
D) the Federal Reserve

Question 12

Table 23-9
LEARNING OBJECTIVES:
ECON.MANK.15.114.28f - LO: Given data on a country's real and nominal GDP, calculate the GDP deflator.
NATIONAL STANDARDS:
United States - BUSPROG: Analytic
TOPICS:
DISC:Measuring Output
GDP Deflator
KEYWORDS:
BLOOM'S: Application
DATE CREATED:
9/19/2016 1:11 PM
DATE MODIFIED:
9/21/2016 1:44 PM
CUSTOM ID:
085.23.4 - MC - MANK08
QUESTION ID:
JFND-GO3A-ERHD-YCTI
QUESTION GLOBAL ID:
GCID-E7BW-1TBP-GH5S-EQDD-GBUG-KAUD-GITN-4CJT-CRH1-43MF-CO4N-4P3I-GPUN-43TO-GTTG-RCTW-GJDI-GWN8-EPRW-EMJI-CA4D-YCDG-G7TG-GC3S-CASU-NPTS-CRSU-EPT3-GOSS-N3J3-CWSU-E3MD-CC4U-RCBA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
PREFACE GLOBAL ID:
GCID-7dd53adfb828-6928-5e54-2202-4a2a25b7
-Refer to Table 23-9. This country's inflation rate from 2009 to 2010 to the nearest tenth was

Accepted Answer

A) 2.9% 
B) 8.8% 
C) 13.3% 
D) None of the above is correct. 
A) 2.9% 
B) 8.8% 
C) 13.3% 
D) None of the above is correct.

Question 13

National income is defined as

Accepted Answer

A) the total income of a nation's permanent residents minus losses from depreciation. 
B) the income that households and noncorporate businesses receive. 
C) the total income earned by a nation's permanent residents in the production of goods and services. 
D) the income that households and noncorporate businesses have left after satisfying all their obligations to the government. 
A) the total income of a nation's permanent residents minus losses from depreciation. 
B) the income that households and noncorporate businesses receive. 
C) the total income earned by a nation's permanent residents in the production of goods and services. 
D) the income that households and noncorporate businesses have left after satisfying all their obligations to the government.

Question 14

A U.S.-owned car factory in Mexico produces $5 million of cars. $2.5 million of these cars are sold in Mexico and the other $2.5 million are sold in the U.S. In both cases $1 million of the value of the cars was due to U.S-owned equipment located in Mexico and U.S. managers working in Mexico. How much did this production contribute to U.S. GDP?

Accepted Answer

A) $0 
B) $1 million 
C) $2 million 
D) None of the above are correct 
A) $0 
B) $1 million 
C) $2 million 
D) None of the above are correct

Question 15

The consumption component of GDP includes spending on

Accepted Answer

A) durable goods and nondurable goods, but not spending on services. 
B) durable goods and services, but not spending on nondurable goods. 
C) nondurable goods and services, but not spending on durable goods. 
D) durable goods, nondurable goods, and services. 
A) durable goods and nondurable goods, but not spending on services. 
B) durable goods and services, but not spending on nondurable goods. 
C) nondurable goods and services, but not spending on durable goods. 
D) durable goods, nondurable goods, and services.

Question 16

How frequently is U.S. GDP reported? Is GDP adjusted for seasonality?

Accepted Answer

GDP is reported ever

Question 17

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. In 2011, this country's GDP deflator was

Accepted Answer

A) 57.9. 
B) 100.0. 
C) 137.5. 
D) 169.2. 
A) 57.9. 
B) 100.0. 
C) 137.5. 
D) 169.2.

Question 18

In 2012 a country had a real GDP $15.4 trillion and GDP deflator of 125. If that country's GDP deflator equals 115 in 2013, what is the rate of inflation in 2013?

Accepted Answer

The answer of In 2012 a country had a real...

Question 19

GDP is the market value of all final goods and services produced within a country in a given period of time.

Accepted Answer

A) True 
 B)False

Question 20

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. In 2010, this country's real GDP was

Accepted Answer

A) $620. 
B) $260. 
C) $400. 
D) $630. 
A) $620. 
B) $260. 
C) $400. 
D) $630.

Exam 23: Measuring a Nation S Income

Gina, a U.S. citizen, works only in Bermuda. The value of Gina's production is included in

Which of the following is included in GDP?

In the economy of Talikastan in 2015, exports were $200, GDP was $2000, government purchases were $200, imports were $270, and investment was $500. What was Talikastan's consumption in 2015?

The GDP deflator is the ratio of

Table 23-11 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-11. What was nominal GDP, real GDP, and the GDP deflator for 2009? Show your work.

The Patersons bought a home that was newly constructed in 2007 for $275,000. They sold the home in 2015 for $255,000. Which of the following statements is correct regarding the sale of the house?

Apple releases a new iPhone. Which of the following components of U.S. GDP will not be affected, given that the iPhone is manufactured in China?

A U.S. citizen buys a tea kettle manufactured in China by a company that is owned and operated by U.S citizens. In which of the following components of U.S. GDP is this transaction accounted for?

A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarter(s) does(do) these transactions raise investment?

If nominal GDP is $10 trillion and real GDP is $8 trillion, then the GDP deflator is

Which government entity computes U.S. GDP every three months?

National income is defined as

The consumption component of GDP includes spending on

How frequently is U.S. GDP reported? Is GDP adjusted for seasonality?

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. In 2011, this country's GDP deflator was

In 2012 a country had a real GDP $15.4 trillion and GDP deflator of 125. If that country's GDP deflator equals 115 in 2013, what is the rate of inflation in 2013?

GDP is the market value of all final goods and services produced within a country in a given period of time.

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. In 2010, this country's real GDP was

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

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