Question 1

Which statement is a criticism of the national income and product accounts?

Accepted Answer

A)  They do not capture most nonmarket economic activity. 
B)  They are too cumbersome to use for policymaking. 
C)  They overstate the "green" impact of economic activity. 
D)  They are poorly correlated with the business cycle. 
A)  They do not capture most nonmarket economic activity. 
B)  They are too cumbersome to use for policymaking. 
C)  They overstate the "green" impact of economic activity. 
D)  They are poorly correlated with the business cycle.

Question 2

A trough in the business cycle usually means that the economy is operating at its capacity.

Accepted Answer

A) True 
 B)False

Question 3

The economy is LEAST likely to be heading into a recession when the National Activity Index equals

Accepted Answer

A)  -0.33. 
B)  0.55. 
C)  -0.98. 
D)  0.81. 
A)  -0.33. 
B)  0.55. 
C)  -0.98. 
D)  0.81.

Question 4

One of the key concepts involved in the circular flow diagram is that

Accepted Answer

A)  households and businesses are in conflict with each other. 
B)  the national economy is similar to a zero-sum game. 
C)  one person's spending is another person's income. 
D)  the sum of the resource and product markets must equal household income. 
A)  households and businesses are in conflict with each other. 
B)  the national economy is similar to a zero-sum game. 
C)  one person's spending is another person's income. 
D)  the sum of the resource and product markets must equal household income.

Question 5

The circular flow diagram shows that the sum of the resource market and the product market must equal the total payments going to the business market.

Accepted Answer

A) True 
 B)False

Question 6

If you hire a lawn service to mow your grass, the money you pay for the service is included in the GDP, whereas if you mow your own lawn, the value of this service is not included in the GDP. This fact represents a criticism of the GDP's focus on

Accepted Answer

A)  avoidance of double counting. 
B)  market-produced goods and services. 
C)  domestic versus national product. 
D)  final values of goods and services. 
A)  avoidance of double counting. 
B)  market-produced goods and services. 
C)  domestic versus national product. 
D)  final values of goods and services.

Which statement is a criticism of the national income and product accounts?

A trough in the business cycle usually means that the economy is operating at its capacity.

The economy is LEAST likely to be heading into a recession when the National Activity Index equals

One of the key concepts involved in the circular flow diagram is that

The circular flow diagram shows that the sum of the resource market and the product market must equal the total payments going to the business market.

If you hire a lawn service to mow your grass, the money you pay for the service is included in the GDP, whereas if you mow your own lawn, the value of this service is not included in the GDP. This fact represents a criticism of the GDP's focus on

Exploring Economics

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Supply and Demand

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Measuring Inflation and Unemployment

Economic Growth

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Aggregate Demand and Supply

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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

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Exam 5: Introduction to Macroeconomics

Which statement is a criticism of the national income and product accounts?

A trough in the business cycle usually means that the economy is operating at its capacity.

The economy is LEAST likely to be heading into a recession when the National Activity Index equals

One of the key concepts involved in the circular flow diagram is that

The circular flow diagram shows that the sum of the resource market and the product market must equal the total payments going to the business market.

If you hire a lawn service to mow your grass, the money you pay for the service is included in the GDP, whereas if you mow your own lawn, the value of this service is not included in the GDP. This fact represents a criticism of the GDP's focus on

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