Question 1

In 2008, the value of the stocks listed on the New York Stock Exchange decreased tremendously.As a direct result:

Accepted Answer

A) both U.S.GDP and U.S.GNP declined by the same amount. 
B) U.S.GDP declined by the amount of the stock market decline but U.S.GNP was unaffected. 
C) U.S.GNP declined by the amount of the stock market decline but U.S.GDP was unaffected. 
D) neither U.S.GDP nor U.S.GNP were affected. 
A) both U.S.GDP and U.S.GNP declined by the same amount. 
B) U.S.GDP declined by the amount of the stock market decline but U.S.GNP was unaffected. 
C) U.S.GNP declined by the amount of the stock market decline but U.S.GDP was unaffected. 
D) neither U.S.GDP nor U.S.GNP were affected.

Question 2

If an economy produces 100 pencils and 100 pens, and pencils sell for twice as much as pens:

Accepted Answer

A) pencils are weighted as twice as important in the economy compared to pens. 
B) pens are weighted as twice as important in the economy compared to pencils. 
C) pencils are weighted as equally important in the economy as pens. 
D) nothing can be said about the relative importance of pens and pencils in the economy. 
A) pencils are weighted as twice as important in the economy compared to pens. 
B) pens are weighted as twice as important in the economy compared to pencils. 
C) pencils are weighted as equally important in the economy as pens. 
D) nothing can be said about the relative importance of pens and pencils in the economy.

Question 3

The relationship between real GDP and nominal GDP can be expressed by:

Accepted Answer

A) real GDP = nominal GDP + inflation. 
B) percent change in real GDP = percent change in nominal GDP - inflation. 
C) real GDP = nominal GDP - inflation. 
D) Real GDP = nominal GDP + inflation. 
A) real GDP = nominal GDP + inflation. 
B) percent change in real GDP = percent change in nominal GDP - inflation. 
C) real GDP = nominal GDP - inflation. 
D) Real GDP = nominal GDP + inflation.

Question 4

Which of the following would increase this year's GDP?

Accepted Answer

A) A mother quits her job to take care of her newborn child 
B) A commission charged by your broker when you sold 100 shares of Borden stock 
C) A $10,000 inheritance from Aunt Mary 
D) Receipts from a yard sale 
A) A mother quits her job to take care of her newborn child 
B) A commission charged by your broker when you sold 100 shares of Borden stock 
C) A $10,000 inheritance from Aunt Mary 
D) Receipts from a yard sale

Question 5

If real GDP has increased by 3% and nominal GDP has increased by 5%, then:

Accepted Answer

A) depreciation is 2%. 
B) net factor income is 2%. 
C) inflation is 2%. 
D) net exports are 2%. 
A) depreciation is 2%. 
B) net factor income is 2%. 
C) inflation is 2%. 
D) net exports are 2%.

Question 6

The largest expenditure component of GDP is:

Accepted Answer

A) consumption. 
B) investment. 
C) net exports. 
D) government spending. 
A) consumption. 
B) investment. 
C) net exports. 
D) government spending.

Question 7

Robert Summers and Alan Heston published data for 130 countries that used purchasing power parity, rather than market exchange rates, to compare GDP across countries.As a result, measured per capita incomes of developing countries rose relative to per capita incomes in developed countries.This is most likely because:

Accepted Answer

A) prices of standard goods in developing countries are generally higher than those in developed countries. 
B) prices of standard goods in developing countries are generally lower than those in developed countries. 
C) non-market activity is more extensive in developing countries than in developed countries. 
D) non-market activity is less extensive in developing countries than in developed countries. 
A) prices of standard goods in developing countries are generally higher than those in developed countries. 
B) prices of standard goods in developing countries are generally lower than those in developed countries. 
C) non-market activity is more extensive in developing countries than in developed countries. 
D) non-market activity is less extensive in developing countries than in developed countries.

Question 8

GNP is the:

Accepted Answer

A) aggregate output of the citizens and businesses of an economy in a one year period. 
B) aggregate final output of the citizens and businesses of an economy in a one year period. 
C) total market value of all goods and services produced in an economy in a one year period . 
D) total market value of all final goods and services produced in an economy in a one year period. 
A) aggregate output of the citizens and businesses of an economy in a one year period. 
B) aggregate final output of the citizens and businesses of an economy in a one year period. 
C) total market value of all goods and services produced in an economy in a one year period . 
D) total market value of all final goods and services produced in an economy in a one year period.

Question 9

If the United States CPI was 37 in 1973 and in 2016 it was 215 .3.By what percent did prices increase in the United States between 1973 and 2016? (Not the annual rate of change, but total.)

Accepted Answer

A) 5 
B) 48 
C) 482 
D) 545 
A) 5 
B) 48 
C) 482 
D) 545

Question 10

Which of the following equations is the correct equation for GDP?

Accepted Answer

A) GDP = C + I + G 
B) GDP = C + I + G + X + M 
C) GDP = C + I + G - X - M 
D) GDP = C + I + G + X - M 
A) GDP = C + I + G 
B) GDP = C + I + G + X + M 
C) GDP = C + I + G - X - M 
D) GDP = C + I + G + X - M

Question 11

Great Basin National Park, the only national park wholly within the borders of Nevada, occupies 77,180 acres and contains 42 known caves.About 90,000 people visit the park each year.It has 25 permanent staff who, with the seasonal staff, collect $280,00 in fees a year, mostly for the 2,400 cave tours.The park also has about 80 volunteers who contribute 9,400 hours of work a year.Because the park suverys for springs in the 25 watersheds, the park service does not burning any acreage, which is part of standard maintenance in some parks. Some of the data in this paragraph are flow measurements and some are stock measurements.An example of a stock measurement is:

Accepted Answer

A) fees collected. 
B) number of visitors. 
C) number of watersheds. 
D) number of acres burned. 
A) fees collected. 
B) number of visitors. 
C) number of watersheds. 
D) number of acres burned.

Question 12

Which of the following is a stock concept?

Accepted Answer

A) Income 
B) Wealth 
C) Rent 
D) Expenditures 
A) Income 
B) Wealth 
C) Rent 
D) Expenditures

Question 13

To move from gross domestic product (GDP) to gross national product (GNP), one must:

Accepted Answer

A) add depreciation to GDP. 
B) subtract depreciation from GDP. 
C) subtract net foreign factor income from GDP. 
D) add net foreign factor income to GDP. 
A) add depreciation to GDP. 
B) subtract depreciation from GDP. 
C) subtract net foreign factor income from GDP. 
D) add net foreign factor income to GDP.

Question 14

Why are economists so often skeptical of replacing GDP as a measure of well-being?

Accepted Answer

A) Economists see little wrong, other than measurement errors, in the way GDP is computed. 
B) The alternatives involve value judgments about social goals that some or many economists find controversial. 
C) Economists think that the alternatives cannot take changes in price level into account in an acceptable manner. 
D) Economists believe that only market activity can be and should be measured. 
A) Economists see little wrong, other than measurement errors, in the way GDP is computed. 
B) The alternatives involve value judgments about social goals that some or many economists find controversial. 
C) Economists think that the alternatives cannot take changes in price level into account in an acceptable manner. 
D) Economists believe that only market activity can be and should be measured.

Question 15

To calculate GDP:

Accepted Answer

A) add the quantity of all final goods and services produced in an economy in a year. 
B) add the quantity of all goods and services sold in an economy in a year. 
C) weight the output of each final good and service produced in an economy in a year by its price in that year and then total the result. 
D) weight the output of each good and service produced in an economy in a year by its price in that year and then total the result. 
A) add the quantity of all final goods and services produced in an economy in a year. 
B) add the quantity of all goods and services sold in an economy in a year. 
C) weight the output of each final good and service produced in an economy in a year by its price in that year and then total the result. 
D) weight the output of each good and service produced in an economy in a year by its price in that year and then total the result.

Question 16

If a firm sells bonds on the capital market, the amount the firm must pay for the use of those funds is counted in aggregate accounting as:

Accepted Answer

A) interest. 
B) rents. 
C) employee compensation. 
D) profits. 
A) interest. 
B) rents. 
C) employee compensation. 
D) profits.

Question 17

A genuine progress indicator (GPI) attempts to:

Accepted Answer

A) adjust GDP so that it more accurately measures changes in economic activity. 
B) develop a new measure that focuses entirely on non-economic activity. 
C) not incorporate any measure of economic activity. 
D) adjust GDP so that it reflects more than just the level of economic activity. 
A) adjust GDP so that it more accurately measures changes in economic activity. 
B) develop a new measure that focuses entirely on non-economic activity. 
C) not incorporate any measure of economic activity. 
D) adjust GDP so that it reflects more than just the level of economic activity.

Question 18

Given the following information that includes all costs of the firm, we know that:

Accepted Answer

A) profit is -00. 
B) profit is00. 
C) there is a loss that must be subtracted from final sales so that income equals output. 
D) income does not equal the value of final output. 
A) profit is -00. 
B) profit is00. 
C) there is a loss that must be subtracted from final sales so that income equals output. 
D) income does not equal the value of final output.

Question 19

The difference between nominal GDP and real GDP is that:

Accepted Answer

A) real GDP adjusts the value of goods for changes in the price level and nominal GDP does not. 
B) nominal GDP adjusts the value of goods for changes in the price level and real GDP does not. 
C) real GDP accounts for foreign production in the a country and nominal GDP does not. 
D) nominal GDP accounts for foreign production in the a country and real GDP does not. 
A) real GDP adjusts the value of goods for changes in the price level and nominal GDP does not. 
B) nominal GDP adjusts the value of goods for changes in the price level and real GDP does not. 
C) real GDP accounts for foreign production in the a country and nominal GDP does not. 
D) nominal GDP accounts for foreign production in the a country and real GDP does not.

Question 20

Assuming food and beverages make up about 15% of total expenditures and food and beverage prices rise by 10% while the other components of the price index remain constant, approximately by how much will the price index rise?

Accepted Answer

A) 1%. 
B) 1.5%. 
C) 15%. 
D) 25%. 
A) 1%. 
B) 1.5%. 
C) 15%. 
D) 25%.

In 2008, the value of the stocks listed on the New York Stock Exchange decreased tremendously.As a direct result:

If an economy produces 100 pencils and 100 pens, and pencils sell for twice as much as pens:

The relationship between real GDP and nominal GDP can be expressed by:

Which of the following would increase this year's GDP?

If real GDP has increased by 3% and nominal GDP has increased by 5%, then:

The largest expenditure component of GDP is:

GNP is the:

If the United States CPI was 37 in 1973 and in 2016 it was 215 .3.By what percent did prices increase in the United States between 1973 and 2016? (Not the annual rate of change, but total.)

Which of the following equations is the correct equation for GDP?

Which of the following is a stock concept?

To move from gross domestic product (GDP) to gross national product (GNP), one must:

Why are economists so often skeptical of replacing GDP as a measure of well-being?

To calculate GDP:

If a firm sells bonds on the capital market, the amount the firm must pay for the use of those funds is counted in aggregate accounting as:

A genuine progress indicator (GPI) attempts to:

Given the following information that includes all costs of the firm, we know that:

The difference between nominal GDP and real GDP is that:

Assuming food and beverages make up about 15% of total expenditures and food and beverage prices rise by 10% while the other components of the price index remain constant, approximately by how much will the price index rise?

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Economic Growth, Business Cycles, and Unemployment

The Keynesian Short-Run Policy Model: Demand-Side Policies

The Classical Long-Run Policy Model: Growth and Supply-Side Policies

The Financial Sector and the Economy

Monetary Policy

Financial Crises, Panics, and Unconventional Monetary Policy

Deficits and Debt: the Austerity Debate

The Fiscal Policy Dilemma

Jobs and Unemployment

Inflation, Deflation, and Macro Policy

International Financial Policy

Macro Policy in a Global Setting

Structural Stagnation and Globalization

Macro Policy in Developing Countries

Filters

Exam 25: Measuring and Describing the Aggregate Economy

In 2008, the value of the stocks listed on the New York Stock Exchange decreased tremendously.As a direct result:

If an economy produces 100 pencils and 100 pens, and pencils sell for twice as much as pens:

The relationship between real GDP and nominal GDP can be expressed by:

Which of the following would increase this year's GDP?

If real GDP has increased by 3% and nominal GDP has increased by 5%, then:

The largest expenditure component of GDP is:

GNP is the:

If the United States CPI was 37 in 1973 and in 2016 it was 215 .3.By what percent did prices increase in the United States between 1973 and 2016? (Not the annual rate of change, but total.)

Which of the following equations is the correct equation for GDP?

Which of the following is a stock concept?

To move from gross domestic product (GDP) to gross national product (GNP), one must:

Why are economists so often skeptical of replacing GDP as a measure of well-being?

To calculate GDP:

If a firm sells bonds on the capital market, the amount the firm must pay for the use of those funds is counted in aggregate accounting as:

A genuine progress indicator (GPI) attempts to:

Given the following information that includes all costs of the firm, we know that:

The difference between nominal GDP and real GDP is that:

Assuming food and beverages make up about 15% of total expenditures and food and beverage prices rise by 10% while the other components of the price index remain constant, approximately by how much will the price index rise?

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Economic Growth, Business Cycles, and Unemployment

The Keynesian Short-Run Policy Model: Demand-Side Policies

The Classical Long-Run Policy Model: Growth and Supply-Side Policies

The Financial Sector and the Economy

Monetary Policy

Financial Crises, Panics, and Unconventional Monetary Policy

Deficits and Debt: the Austerity Debate

The Fiscal Policy Dilemma

Jobs and Unemployment

Inflation, Deflation, and Macro Policy

International Financial Policy

Macro Policy in a Global Setting

Structural Stagnation and Globalization

Macro Policy in Developing Countries

Filters