Question 1

U.S. GDP includes estimates of the value of items that are produced and consumed at home, such as housework and car maintenance.

Accepted Answer

A) True 
 B)False  False

Question 2

When an American doctor opens a practice in Bermuda, his production there is part of U.S. GDP.

Accepted Answer

A) True 
 B)False  False

Question 3

In 2015, the level of U.S. real GDP was more than four times its 1965 level.

Accepted Answer

A) True 
 B)False  True

Question 4

If consumption is $7000, exports are $600, government purchases are $2000, government transfers are $900, imports are $800, and investment is $1000, then GDP is $9,800.

Accepted Answer

A) True 
 B)False

Question 5

Table 23-4
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2015.
​
​
   ​
-Refer to Table 23-4. This country's inflation rate from 2016 to 2017 was

Accepted Answer

A) 25.0%. 
B) 23.1%. 
C) 26.1%. 
D) 18.8%. 
A) 25.0%. 
B) 23.1%. 
C) 26.1%. 
D) 18.8%.

Question 6

Which headline is more closely related to a microeconomics study than to a macroeconomics one?

Accepted Answer

A) Unemployment rate falls from 7.5% to 7.3%. 
B) Real GDP falls by 0.4 percent in the third quarter. 
C) Inflation was 2.4 percent last year. 
D) The price of gasoline rises due to rising oil prices. 
A) Unemployment rate falls from 7.5% to 7.3%. 
B) Real GDP falls by 0.4 percent in the third quarter. 
C) Inflation was 2.4 percent last year. 
D) The price of gasoline rises due to rising oil prices.

Question 7

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 8

For the economy as a whole, how does income compare to expenditures? Explain.

Accepted Answer

For the economy as a whole inc

Question 9

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 10

What measure of GDP shows the value of goods and services produced if we valued these good and services at the prices that prevailed in some specific year in the past?

Accepted Answer

The answer of What measure of GDP shows the value...

Question 11

When real GDP increases, this implies that the production of goods and services has risen.
​

Accepted Answer

A) True 
 B)False

Question 12

GDP per person tells us the income and expenditure of the

Accepted Answer

A) richest person in the economy. 
B) poorest person in the economy. 
C) average person in the economy. 
D) entire economy. 
A) richest person in the economy. 
B) poorest person in the economy. 
C) average person in the economy. 
D) entire economy.

Question 13

Macroeconomics is the study of the economy as a whole.

Accepted Answer

A) True 
 B)False

Question 14

​Since transfer payments by government are not associated with the production of goods and services, they are not included in GDP.

Accepted Answer

A) True 
 B)False

Question 15

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 16

If Brazil buys $100 million of tractors from the U.S., then U.S. net exports will decrease.

Accepted Answer

A) True 
 B)False

Question 17

A company sells titanium to a bicycle company for $300. The bicycle company uses the titanium to produce a bicycle, which it sells for $400. Taken together, these two transactions contribute

Accepted Answer

A) $300 to GDP. 
B) $400 to GDP. 
C) between $400 and $700 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle. 
D) $100 to GDP. 
A) $300 to GDP. 
B) $400 to GDP. 
C) between $400 and $700 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle. 
D) $100 to GDP.

Question 18

Real GDP per person tells us the income and expenditure of the average person in the economy.

Accepted Answer

A) True 
 B)False

Question 19

Define GDP. Remember to be specific about what it includes.

Accepted Answer

GDP is the market value of all

Question 20

Identify which of the following are included in the government purchases component of GDP.
the salary paid to a state court judge
unemployment insurance benefits
the payment made by the federal government for a jet fighter
social security payments
a county builds a jail building

Accepted Answer

The following are included in

Exam 23: Measuring a Nations Income

U.S. GDP includes estimates of the value of items that are produced and consumed at home, such as housework and car maintenance.

When an American doctor opens a practice in Bermuda, his production there is part of U.S. GDP.

In 2015, the level of U.S. real GDP was more than four times its 1965 level.

If consumption is $7000, exports are $600, government purchases are $2000, government transfers are $900, imports are $800, and investment is $1000, then GDP is $9,800.

Table 23-4 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2015. ​ ​ ​ -Refer to Table 23-4. This country's inflation rate from 2016 to 2017 was

Which headline is more closely related to a microeconomics study than to a macroeconomics one?

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

For the economy as a whole, how does income compare to expenditures? Explain.

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

What measure of GDP shows the value of goods and services produced if we valued these good and services at the prices that prevailed in some specific year in the past?

When real GDP increases, this implies that the production of goods and services has risen. ​

GDP per person tells us the income and expenditure of the

Macroeconomics is the study of the economy as a whole.

​Since transfer payments by government are not associated with the production of goods and services, they are not included in GDP.

International data on GDP and socioeconomic variables

If Brazil buys $100 million of tractors from the U.S., then U.S. net exports will decrease.

A company sells titanium to a bicycle company for $300. The bicycle company uses the titanium to produce a bicycle, which it sells for $400. Taken together, these two transactions contribute

Real GDP per person tells us the income and expenditure of the average person in the economy.

Define GDP. Remember to be specific about what it includes.

Identify which of the following are included in the government purchases component of GDP. the salary paid to a state court judge unemployment insurance benefits the payment made by the federal government for a jet fighter social security payments a county builds a jail building

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

Table 23-4 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2015. -Refer to Table 23-4. This country's inflation rate from 2016 to 2017 was

When real GDP increases, this implies that the production of goods and services has risen.

Since transfer payments by government are not associated with the production of goods and services, they are not included in GDP.