Question 1

Henry sells brownies to his classmates at college for cash. His income from this product is probably NOT part of the informal economy.

Accepted Answer

A) True 
 B)False

Question 2

The expenditures approach to calculating GDP sums consumer spending, gross private domestic investment, government spending, and

Accepted Answer

A)  exports. 
B)  imports. 
C)  exports minus imports. 
D)  imports minus exports. 
A)  exports. 
B)  imports. 
C)  exports minus imports. 
D)  imports minus exports.

Question 3

In the circular flow diagram, the counterclockwise direction shows the flow of _____, where households supply _____ and businesses supply _____.

Accepted Answer

A)  money; purchases of goods and services; income to households 
B)  money; labor; goods and services 
C)  goods and services; labor; goods and services 
D)  goods and services; purchases of goods and services; income to households 
A)  money; purchases of goods and services; income to households 
B)  money; labor; goods and services 
C)  goods and services; labor; goods and services 
D)  goods and services; purchases of goods and services; income to households

Question 4

What are some of the important economic variables affected by the business cycle?

Accepted Answer

Changes in economic growth (as most ofte

Question 5

Marco is an undocumented worker who follows the harvest, picking vegetables. His income from this work is probably part of the informal economy.

Accepted Answer

A) True 
 B)False

Question 6

The event that stimulated the U.S. government's commitment to tracking the economy's health through a national income accounting system was the

Accepted Answer

A)  Civil War and Reconstruction Era. 
B)  panic of 1907. 
C)  Great Depression. 
D)  oil embargo of 1973. 
A)  Civil War and Reconstruction Era. 
B)  panic of 1907. 
C)  Great Depression. 
D)  oil embargo of 1973.

Question 7

What are the four major expenditure components of GDP? Provide examples to describe each component.

Accepted Answer

Gross domestic product can be measured u

Question 8

The yield curve shows the interest rates for bonds with different maturities.

Accepted Answer

A) True 
 B)False

Question 9

The main purpose of the national income and product accounts is to provide information on the economy's overall performance.

Accepted Answer

A) True 
 B)False

Question 10

Karl's Keychain Company produces keychains that sell in its stores for $1 each. On January 1, 2015, the company had inventory of 10,000 keychains. During 2015, the company produced 900,000 keychains. At the end of the business year on December 31, 2015, the company's inventory of keychains was 8,000. What was the value of Karl's inventory investment in 2015?

Accepted Answer

A)  $8,000 
B)  -$2,000 
C)  $18,000 
D)  $898,000 
A)  $8,000 
B)  -$2,000 
C)  $18,000 
D)  $898,000

Question 11

A criticism of GDP per capita is that it

Accepted Answer

A)  is hard to calculate. 
B)  might not fully reflect the standard of living of a typical citizen. 
C)  reduces the effect of outliers skewing averages. 
D)  is only a hypothetical concept that cannot be measured. 
A)  is hard to calculate. 
B)  might not fully reflect the standard of living of a typical citizen. 
C)  reduces the effect of outliers skewing averages. 
D)  is only a hypothetical concept that cannot be measured.

Question 12

In the national income and product accounts system, the two main approaches to measuring the size of the economy are

Accepted Answer

A)  income and expenditures. 
B)  imports and exports. 
C)  production and consumption. 
D)  government and private. 
A)  income and expenditures. 
B)  imports and exports. 
C)  production and consumption. 
D)  government and private.

Question 13

(Table) According to the table, net exports of goods and services are equal to GDP Expenditures for 2010

Accepted Answer

A)  $505.4 billion. 
B)  -$505.4 billion. 
C)  -$738.9 billion. 
D)  $738.9 billion. 
A)  $505.4 billion. 
B)  -$505.4 billion. 
C)  -$738.9 billion. 
D)  $738.9 billion.

Question 14

In a country with income concentrated in the hands of a small group of people, median household income would be a better measure of the standard of living of a typical citizen than GDP per capita would be.

Accepted Answer

A) True 
 B)False

Question 15

The brand of car you buy is a topic of interest for macroeconomics.

Accepted Answer

A) True 
 B)False

Question 16

The largest component of GDP is

Accepted Answer

A)  consumption expenditure. 
B)  gross private domestic investment. 
C)  government spending. 
D)  net exports. 
A)  consumption expenditure. 
B)  gross private domestic investment. 
C)  government spending. 
D)  net exports.

Question 17

Which event has significantly influenced the development of macroeconomic ideas?

Accepted Answer

A)  World War II 
B)  the development of the modern corporation 
C)  the Industrial Revolution 
D)  the Great Depression 
A)  World War II 
B)  the development of the modern corporation 
C)  the Industrial Revolution 
D)  the Great Depression

Question 18

Gross private domestic investment is a key factor behind economic growth in the United States.

Accepted Answer

A) True 
 B)False

Question 19

What is an example of a final good?

Accepted Answer

A)  tartar sauce purchased by a fish restaurant 
B)  corn purchased by a hog farmer 
C)  bacon purchased at a grocery store 
D)  rubber purchased by a bicycle company 
A)  tartar sauce purchased by a fish restaurant 
B)  corn purchased by a hog farmer 
C)  bacon purchased at a grocery store 
D)  rubber purchased by a bicycle company

Question 20

GDP includes output produced _____, but it does NOT include output produced _____.

Accepted Answer

A)  outside the United States by U.S. citizens; inside the United States by foreign citizens 
B)  outside the United States by U.S. citizens; inside the United States by U.S. citizens 
C)  inside the United States by foreign citizens; outside the United States by U.S. citizens 
D)  The GDP includes only goods and services produced by U.S. citizens within the United States. 
A)  outside the United States by U.S. citizens; inside the United States by foreign citizens 
B)  outside the United States by U.S. citizens; inside the United States by U.S. citizens 
C)  inside the United States by foreign citizens; outside the United States by U.S. citizens 
D)  The GDP includes only goods and services produced by U.S. citizens within the United States.

Henry sells brownies to his classmates at college for cash. His income from this product is probably NOT part of the informal economy.

The expenditures approach to calculating GDP sums consumer spending, gross private domestic investment, government spending, and

In the circular flow diagram, the counterclockwise direction shows the flow of ___, where households supply _ and businesses supply ___.

What are some of the important economic variables affected by the business cycle?

Marco is an undocumented worker who follows the harvest, picking vegetables. His income from this work is probably part of the informal economy.

The event that stimulated the U.S. government's commitment to tracking the economy's health through a national income accounting system was the

What are the four major expenditure components of GDP? Provide examples to describe each component.

The yield curve shows the interest rates for bonds with different maturities.

The main purpose of the national income and product accounts is to provide information on the economy's overall performance.

A criticism of GDP per capita is that it

In the national income and product accounts system, the two main approaches to measuring the size of the economy are

(Table) According to the table, net exports of goods and services are equal to GDP Expenditures for 2010

In a country with income concentrated in the hands of a small group of people, median household income would be a better measure of the standard of living of a typical citizen than GDP per capita would be.

The brand of car you buy is a topic of interest for macroeconomics.

The largest component of GDP is

Which event has significantly influenced the development of macroeconomic ideas?

Gross private domestic investment is a key factor behind economic growth in the United States.

What is an example of a final good?

GDP includes output produced _, but it does NOT include output produced _.

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

Henry sells brownies to his classmates at college for cash. His income from this product is probably NOT part of the informal economy.

The expenditures approach to calculating GDP sums consumer spending, gross private domestic investment, government spending, and

In the circular flow diagram, the counterclockwise direction shows the flow of _____, where households supply _____ and businesses supply _____.

What are some of the important economic variables affected by the business cycle?

Marco is an undocumented worker who follows the harvest, picking vegetables. His income from this work is probably part of the informal economy.

The event that stimulated the U.S. government's commitment to tracking the economy's health through a national income accounting system was the

What are the four major expenditure components of GDP? Provide examples to describe each component.

The yield curve shows the interest rates for bonds with different maturities.

The main purpose of the national income and product accounts is to provide information on the economy's overall performance.

A criticism of GDP per capita is that it

In the national income and product accounts system, the two main approaches to measuring the size of the economy are

(Table) According to the table, net exports of goods and services are equal to GDP Expenditures for 2010

In a country with income concentrated in the hands of a small group of people, median household income would be a better measure of the standard of living of a typical citizen than GDP per capita would be.

The brand of car you buy is a topic of interest for macroeconomics.

The largest component of GDP is

Which event has significantly influenced the development of macroeconomic ideas?

Gross private domestic investment is a key factor behind economic growth in the United States.

What is an example of a final good?

GDP includes output produced _____, but it does NOT include output produced _____.

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

In the circular flow diagram, the counterclockwise direction shows the flow of ___, where households supply _ and businesses supply ___.

GDP includes output produced _, but it does NOT include output produced _.