Question 1

Payment by firms to landlords for commercial space 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 2

Net exports are defined as:

Accepted Answer

A) GDP minus exports. 
B) exports less imports. 
C) imports less exports. 
D) exports plus imports. 
A) GDP minus exports. 
B) exports less imports. 
C) imports less exports. 
D) exports plus imports.

Question 3

Refer to the following table.   The sum of investment and consumption in this economy is:

Accepted Answer

A) $3.6 trillion. 
B) $3.9 trillion. 
C) $4.1 trillion. 
D) $6.0 trillion. 
A) $3.6 trillion. 
B) $3.9 trillion. 
C) $4.1 trillion. 
D) $6.0 trillion.

Question 4

The reason economists include only the value of final goods and services when they calculate GDP is that intermediate goods:

Accepted Answer

A) do not create value added. 
B) do not add to economic welfare. 
C) have no social value. 
D) would be double counted otherwise. 
A) do not create value added. 
B) do not add to economic welfare. 
C) have no social value. 
D) would be double counted otherwise.

Question 5

Aggregate accounting:

Accepted Answer

A) is used primarily by microeconomists. 
B) provides a way of measuring total or aggregate production. 
C) was first developed in the 1970s. 
D) cannot be used to measure national consumption. 
A) is used primarily by microeconomists. 
B) provides a way of measuring total or aggregate production. 
C) was first developed in the 1970s. 
D) cannot be used to measure national consumption.

Question 6

Per capita gross domestic product (GDP) in the United States is roughly:

Accepted Answer

A) $15,000. 
B) $45,000. 
C) $60,000. 
D) $75,000. 
A) $15,000. 
B) $45,000. 
C) $60,000. 
D) $75,000.

Question 7

If the market prices of publicly traded stocks and bonds rise, while the productive capacity of those assets has not increased, which of the following has occurred?

Accepted Answer

A) Nominal wealth has increased 
B) Real wealth has increased 
C) Nominal wealth has increased, but real wealth has decreased 
D) Tangible wealth must have declined in value 
A) Nominal wealth has increased 
B) Real wealth has increased 
C) Nominal wealth has increased, but real wealth has decreased 
D) Tangible wealth must have declined in value

Question 8

The income approach to measuring GDP:

Accepted Answer

A) focuses on how income is spent. 
B) uses the factors payments made by businesses to households to estimate GDP. 
C) adds up all household expenditures to calculate aggregate income and GDP. 
D) ignores how income is earned and focuses instead on how it is used. 
A) focuses on how income is spent. 
B) uses the factors payments made by businesses to households to estimate GDP. 
C) adds up all household expenditures to calculate aggregate income and GDP. 
D) ignores how income is earned and focuses instead on how it is used.

Question 9

If measurement errors did not exist, real per capita GDP would be an undeniably accurate measure of human welfare.

Accepted Answer

A) True 
 B)False

Question 10

In what category is the purchase of a computer by a business in national income accounting?

Accepted Answer

A) It is ignored because computers are considered intermediate goods-an input in the production of other goods and services 
B) It is considered consumption 
C) It is a form of investment spending 
D) It is a form of savings 
A) It is ignored because computers are considered intermediate goods-an input in the production of other goods and services 
B) It is considered consumption 
C) It is a form of investment spending 
D) It is a form of savings

Question 11

Comparisons of GDP levels across countries are least accurate when:

Accepted Answer

A) non-market activities are a small part of total economic activity. 
B) prices differ across countries. 
C) prices differ across countries and non-market activities are a large part of total economic activity. 
D) purchasing power parity prevails. 
A) non-market activities are a small part of total economic activity. 
B) prices differ across countries. 
C) prices differ across countries and non-market activities are a large part of total economic activity. 
D) purchasing power parity prevails.

Question 12

Refer to the table shown.   What is the economy's GDP?

Accepted Answer

A) $6.5 trillion 
B) $7.1 trillion 
C) $6.7 trillion 
D) $6.1 trillion 
A) $6.5 trillion 
B) $7.1 trillion 
C) $6.7 trillion 
D) $6.1 trillion

Question 13

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 flow measurement is:

Accepted Answer

A) staff positions in the park. 
B) acres in the park. 
C) cave tours given. 
D) caves in the park. 
A) staff positions in the park. 
B) acres in the park. 
C) cave tours given. 
D) caves in the park.

Question 14

Which of the following is not included in GDP but is included in GNP?

Accepted Answer

A) A foreign company's production in the United States 
B) Income of a citizen of Germany working in the United States 
C) Economic activity of U.S.citizens working abroad 
D) Sales of a good by one firm to another firm 
A) A foreign company's production in the United States 
B) Income of a citizen of Germany working in the United States 
C) Economic activity of U.S.citizens working abroad 
D) Sales of a good by one firm to another firm

Question 15

Which of the following would not be included in personal consumption expenditure?

Accepted Answer

A) College tuition 
B) Medical expenses 
C) Federal police protection 
D) A movie ticket 
A) College tuition 
B) Medical expenses 
C) Federal police protection 
D) A movie ticket

Question 16

The $400 dividend check a stockholder receives is included in aggregate accounting as:

Accepted Answer

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

Payment by firms to landlords for commercial space is counted in aggregate accounting as:

Net exports are defined as:

Refer to the following table. The sum of investment and consumption in this economy is:

The reason economists include only the value of final goods and services when they calculate GDP is that intermediate goods:

Aggregate accounting:

Per capita gross domestic product (GDP) in the United States is roughly:

If the market prices of publicly traded stocks and bonds rise, while the productive capacity of those assets has not increased, which of the following has occurred?

The income approach to measuring GDP:

If measurement errors did not exist, real per capita GDP would be an undeniably accurate measure of human welfare.

In what category is the purchase of a computer by a business in national income accounting?

Comparisons of GDP levels across countries are least accurate when:

Refer to the table shown. What is the economy's GDP?

Which of the following is not included in GDP but is included in GNP?

Which of the following would not be included in personal consumption expenditure?

The $400 dividend check a stockholder receives is included in aggregate accounting as:

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

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Exam 25: Measuring and Describing the Aggregate Economy

Payment by firms to landlords for commercial space is counted in aggregate accounting as:

Net exports are defined as:

Refer to the following table. The sum of investment and consumption in this economy is:

The reason economists include only the value of final goods and services when they calculate GDP is that intermediate goods:

Aggregate accounting:

Per capita gross domestic product (GDP) in the United States is roughly:

If the market prices of publicly traded stocks and bonds rise, while the productive capacity of those assets has not increased, which of the following has occurred?

The income approach to measuring GDP:

If measurement errors did not exist, real per capita GDP would be an undeniably accurate measure of human welfare.

In what category is the purchase of a computer by a business in national income accounting?

Comparisons of GDP levels across countries are least accurate when:

Refer to the table shown. What is the economy's GDP?

Which of the following is not included in GDP but is included in GNP?

Which of the following would not be included in personal consumption expenditure?

The $400 dividend check a stockholder receives is included in aggregate accounting as:

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