Question 1

The national income and product accounts are released quarterly to ensure that accurate economic information is readily available.

Accepted Answer

A) True 
 B)False

Question 2

Which of these is a nondurable good?

Accepted Answer

A)  Toyota sedan 
B)  movie ticket 
C)  six-pack of beer 
D)  hour with a masseuse 
A)  Toyota sedan 
B)  movie ticket 
C)  six-pack of beer 
D)  hour with a masseuse

Question 3

In the formula for GDP (GDP = C + I + G + (X - M)), what does X represent?

Accepted Answer

A)  exports 
B)  imports 
C)  net exports 
D)  government spending 
A)  exports 
B)  imports 
C)  net exports 
D)  government spending

Question 4

Gross domestic product measures the output produced by _____ using resources in the United States, while gross national product measures output produced by resources supplied by _____.

Accepted Answer

A)  foreign citizens only; U.S. citizens 
B)  U.S. citizens only; foreign citizens 
C)  U.S. or foreign citizens; foreign citizens 
D)  U.S. or foreign citizens; U.S. citizens 
A)  foreign citizens only; U.S. citizens 
B)  U.S. citizens only; foreign citizens 
C)  U.S. or foreign citizens; foreign citizens 
D)  U.S. or foreign citizens; U.S. citizens

Question 5

When investors believe an economic slowdown is likely, they buy short-term bonds to lock in interest rates.

Accepted Answer

A) True 
 B)False

Question 6

Services constitute approximately _____ of GDP.

Accepted Answer

A)  70% 
B)  25% 
C)  50% 
D)  10% 
A)  70% 
B)  25% 
C)  50% 
D)  10%

Question 7

When a recession gets under way

Accepted Answer

A)  firms start to lay off workers to reduce costs. 
B)  consumer confidence rises because people expect an eventual recovery. 
C)  inflation always rises because the government prints more money. 
D)  inflation falls because the government reduces its budget deficit. 
A)  firms start to lay off workers to reduce costs. 
B)  consumer confidence rises because people expect an eventual recovery. 
C)  inflation always rises because the government prints more money. 
D)  inflation falls because the government reduces its budget deficit.

Question 8

Which of these is included in personal consumption expenditures?

Accepted Answer

A)  highway construction 
B)  the purchase of a new TV by a household 
C)  construction of residential housing 
D)  purchases of common stock by an investor 
A)  highway construction 
B)  the purchase of a new TV by a household 
C)  construction of residential housing 
D)  purchases of common stock by an investor

Question 9

The value of cars that the Ford Motor Company produces in a German plant is

Accepted Answer

A)  a part of U.S. GDP. 
B)  a part of U.S. GNP. 
C)  a part of German GNP. 
D)  not a part of German GDP. 
A)  a part of U.S. GDP. 
B)  a part of U.S. GNP. 
C)  a part of German GNP. 
D)  not a part of German GDP.

Question 10

Suppose the yield on a 3-month Treasury bill is 0.04% and the 10-year Treasury note yields 2.74%. This yield curve suggests the economy is headed for a recession.

Accepted Answer

A) True 
 B)False

Question 11

A sheep ranch produces $30 worth of wool. A suit manufacturer produces $60 worth of suits. A retail outlet sells a suit to a customer for $180. The change in GDP would be

Accepted Answer

A)  $30. 
B)  $180. 
C)  $270. 
D)  zero because wool suits are worthless. 
A)  $30. 
B)  $180. 
C)  $270. 
D)  zero because wool suits are worthless.

Question 12

Marci is 11 years old. She walks her neighbors' dogs for cash. Her income from this service is probably part of the informal economy.

Accepted Answer

A) True 
 B)False

Question 13

A jobless recovery is an economic expansion accompanied by a decrease in the number of unemployed workers.

Accepted Answer

A) True 
 B)False

Question 14

An advantage of using GDP per capita to measure the standard of living in a country is that it declines if economic growth results in deterioration of the environment.

Accepted Answer

A) True 
 B)False

Question 15

Suppose the National Activity Index of the Federal Reserve Bank of Chicago drops to -0.83 this month after being above +0.36 for the previous three months. This movement in the index indicates that

Accepted Answer

A)  the economy has probably moved into a recession. 
B)  the rate of economic growth has slowed, but not enough to suggest that a recession is imminent. 
C)  the rate of economic growth has dropped below the historical trend rate of growth, and the economy has reached a trough. 
D)  the economy is at its peak this month but will move into the recession stage in the near future. 
A)  the economy has probably moved into a recession. 
B)  the rate of economic growth has slowed, but not enough to suggest that a recession is imminent. 
C)  the rate of economic growth has dropped below the historical trend rate of growth, and the economy has reached a trough. 
D)  the economy is at its peak this month but will move into the recession stage in the near future.

Question 16

The U.S. Congress has taken an interest in the development of "green" GDP accounts.

Accepted Answer

A) True 
 B)False

Question 17

Over the past few decades, net exports in the United States have been a positive percentage of GDP.

Accepted Answer

A) True 
 B)False

Question 18

The U.S. gross domestic product is equal to the total market value of all

Accepted Answer

A)  intermediate goods and services produced by resources in the United States. 
B)  final goods and services produced by resources in the United States. 
C)  final goods and services produced by U.S. citizens in the United States. 
D)  intermediate goods and services produced by citizens in the United States. 
A)  intermediate goods and services produced by resources in the United States. 
B)  final goods and services produced by resources in the United States. 
C)  final goods and services produced by U.S. citizens in the United States. 
D)  intermediate goods and services produced by citizens in the United States.

Question 19

It can be said that macroeconomics was born during the Great Depression.

Accepted Answer

A) True 
 B)False

Question 20

Greenhouse gas emissions are included in the GDP accounts.

Accepted Answer

A) True 
 B)False

The national income and product accounts are released quarterly to ensure that accurate economic information is readily available.

Which of these is a nondurable good?

In the formula for GDP (GDP = C + I + G + (X - M)), what does X represent?

Gross domestic product measures the output produced by _ using resources in the United States, while gross national product measures output produced by resources supplied by _.

When investors believe an economic slowdown is likely, they buy short-term bonds to lock in interest rates.

Services constitute approximately _____ of GDP.

When a recession gets under way

Which of these is included in personal consumption expenditures?

The value of cars that the Ford Motor Company produces in a German plant is

Suppose the yield on a 3-month Treasury bill is 0.04% and the 10-year Treasury note yields 2.74%. This yield curve suggests the economy is headed for a recession.

A sheep ranch produces $30 worth of wool. A suit manufacturer produces $60 worth of suits. A retail outlet sells a suit to a customer for $180. The change in GDP would be

Marci is 11 years old. She walks her neighbors' dogs for cash. Her income from this service is probably part of the informal economy.

A jobless recovery is an economic expansion accompanied by a decrease in the number of unemployed workers.

An advantage of using GDP per capita to measure the standard of living in a country is that it declines if economic growth results in deterioration of the environment.

Suppose the National Activity Index of the Federal Reserve Bank of Chicago drops to -0.83 this month after being above +0.36 for the previous three months. This movement in the index indicates that

The U.S. Congress has taken an interest in the development of "green" GDP accounts.

Over the past few decades, net exports in the United States have been a positive percentage of GDP.

The U.S. gross domestic product is equal to the total market value of all

It can be said that macroeconomics was born during the Great Depression.

Greenhouse gas emissions are included in the GDP accounts.

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters

Exam 5: Introduction to Macroeconomics

The national income and product accounts are released quarterly to ensure that accurate economic information is readily available.

Which of these is a nondurable good?

In the formula for GDP (GDP = C + I + G + (X - M)), what does X represent?

Gross domestic product measures the output produced by _____ using resources in the United States, while gross national product measures output produced by resources supplied by _____.

When investors believe an economic slowdown is likely, they buy short-term bonds to lock in interest rates.

Services constitute approximately _____ of GDP.

When a recession gets under way

Which of these is included in personal consumption expenditures?

The value of cars that the Ford Motor Company produces in a German plant is

Suppose the yield on a 3-month Treasury bill is 0.04% and the 10-year Treasury note yields 2.74%. This yield curve suggests the economy is headed for a recession.

A sheep ranch produces $30 worth of wool. A suit manufacturer produces $60 worth of suits. A retail outlet sells a suit to a customer for $180. The change in GDP would be

Marci is 11 years old. She walks her neighbors' dogs for cash. Her income from this service is probably part of the informal economy.

A jobless recovery is an economic expansion accompanied by a decrease in the number of unemployed workers.

An advantage of using GDP per capita to measure the standard of living in a country is that it declines if economic growth results in deterioration of the environment.

Suppose the National Activity Index of the Federal Reserve Bank of Chicago drops to -0.83 this month after being above +0.36 for the previous three months. This movement in the index indicates that

The U.S. Congress has taken an interest in the development of "green" GDP accounts.

Over the past few decades, net exports in the United States have been a positive percentage of GDP.

The U.S. gross domestic product is equal to the total market value of all

It can be said that macroeconomics was born during the Great Depression.

Greenhouse gas emissions are included in the GDP accounts.

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters

Gross domestic product measures the output produced by _ using resources in the United States, while gross national product measures output produced by resources supplied by _.