Question 1

If real GDP and the GDP deflator both rise, then it must be that nominal GDP rose.

Accepted Answer

A) True 
 B)False

Question 2

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

Accepted Answer

A) True 
 B)False

Question 3

Expenditures on a nation's domestic production

Accepted Answer

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

Question 4

Which component of GDP includes spending on new structures and equipment?

Accepted Answer

The answer of Which component of GDP includes spending on...

Question 5

U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing services.

Accepted Answer

A) True 
 B)False

Question 6

A newspaper article informs you that most businesses increased production in the last quarter but also sold from their inventories during the last quarter. Based on this information GDP likely

Accepted Answer

A) decreased. 
B) increased. 
C) stayed the same. 
D) may have increased, decreased, or stayed the same. 
A) decreased. 
B) increased. 
C) stayed the same. 
D) may have increased, decreased, or stayed the same.

Question 7

Figure 23-2
​  
-Refer to Figure 23-2. Identify the location for markets for factors of production and markets for goods and services.

Accepted Answer

X is markets for fac

Question 8

Nominal GDP is $15 trillion and real GDP is $10 trillion. What is the GDP deflator? Show your work.

Accepted Answer

The GDP Deflator = N

Question 9

Recessions are associated with lower incomes, rising unemployment, and falling profits.

Accepted Answer

A) True 
 B)False

Question 10

Table 23-5
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2017.
​
​
  
-Refer to Table 23-5. What was this country's nominal GDP in 2016?

Accepted Answer

A) $9,500 
B) $10,000 
C) $10,200 
D) $10,500 
A) $9,500 
B) $10,000 
C) $10,200 
D) $10,500

Question 11

Consumption expenditures were previously the largest component of GDP, but with the growth of government and government expenditures, this is no longer true.
​

Accepted Answer

A) True 
 B)False

Question 12

​When the U.S. government purchases capital equipment, such as a computer, these expenditures are part of investment in GDP.

Accepted Answer

A) True 
 B)False

Question 13

Microeconomics and macroeconomics are closely linked.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Explain how real GDP differs from nominal GDP.

Accepted Answer

Real GDP reflects on

Question 16

If net exports is a negative number for a particular year, then

Accepted Answer

A) the value of firms' inventories declined over the course of the year. 
B) consumption exceeded the sum of investment and government purchases during the year. 
C) the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year. 
D) the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year. 
A) the value of firms' inventories declined over the course of the year. 
B) consumption exceeded the sum of investment and government purchases during the year. 
C) the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year. 
D) the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.

Question 17

An economy's income is the same as its expenditure because every transaction has a buyer and a seller.

Accepted Answer

A) True 
 B)False

Question 18

In the circular flow diagram what are the three types of payments from firms to factors of production? Is the sum of these payments greater than, less than, or equal to GDP?

Accepted Answer

Wages, rents, and pr

Question 19

Changes in real GDP reflect only changes in the amounts being produced.

Accepted Answer

A) True 
 B)False

Question 20

A statistical discrepancy

Accepted Answer

A) exists because data sources are not perfect, so measures of expenditures and income are not equal. 
B) insures that GDP will approximately equal GNP. 
C) explains the close association between GDP and quality of life measures such as literacy and life expectancy. 
D) explains the inadequacy of GDP in capturing the value of leisure and the value of a clean environment. 
A) exists because data sources are not perfect, so measures of expenditures and income are not equal. 
B) insures that GDP will approximately equal GNP. 
C) explains the close association between GDP and quality of life measures such as literacy and life expectancy. 
D) explains the inadequacy of GDP in capturing the value of leisure and the value of a clean environment.

Exam 23: Measuring a Nations Income

If real GDP and the GDP deflator both rise, then it must be that nominal GDP rose.

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

Expenditures on a nation's domestic production

Which component of GDP includes spending on new structures and equipment?

U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing services.

A newspaper article informs you that most businesses increased production in the last quarter but also sold from their inventories during the last quarter. Based on this information GDP likely

Figure 23-2 ​ -Refer to Figure 23-2. Identify the location for markets for factors of production and markets for goods and services.

Nominal GDP is $15 trillion and real GDP is $10 trillion. What is the GDP deflator? Show your work.

Recessions are associated with lower incomes, rising unemployment, and falling profits.

Table 23-5 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2017. ​ ​ -Refer to Table 23-5. What was this country's nominal GDP in 2016?

Consumption expenditures were previously the largest component of GDP, but with the growth of government and government expenditures, this is no longer true. ​

​When the U.S. government purchases capital equipment, such as a computer, these expenditures are part of investment in GDP.

Microeconomics and macroeconomics are closely linked.

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

Explain how real GDP differs from nominal GDP.

If net exports is a negative number for a particular year, then

An economy's income is the same as its expenditure because every transaction has a buyer and a seller.

In the circular flow diagram what are the three types of payments from firms to factors of production? Is the sum of these payments greater than, less than, or equal to GDP?

Changes in real GDP reflect only changes in the amounts being produced.

A statistical discrepancy

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 23-2 -Refer to Figure 23-2. Identify the location for markets for factors of production and markets for goods and services.

Table 23-5 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2017. -Refer to Table 23-5. What was this country's nominal GDP in 2016?

Consumption expenditures were previously the largest component of GDP, but with the growth of government and government expenditures, this is no longer true.

When the U.S. government purchases capital equipment, such as a computer, these expenditures are part of investment in GDP.