Question 1

In the simple circular flow model

Accepted Answer

A)  income is equal to spending. 
B)  saving is equal to consumer spending. 
C)  factor payments are equal to goods and services. 
D)  goods and services are equal to consumer spending. 
A)  income is equal to spending. 
B)  saving is equal to consumer spending. 
C)  factor payments are equal to goods and services. 
D)  goods and services are equal to consumer spending.

Question 2

Alternating periods of macroeconomic expansion and contraction are known as

Accepted Answer

A)  hyperinflations. 
B)  business cycles. 
C)  budget surpluses and deficits. 
D)  trade surpluses and deficits. 
A)  hyperinflations. 
B)  business cycles. 
C)  budget surpluses and deficits. 
D)  trade surpluses and deficits.

Question 3

Income payments to the rest of the world are

Accepted Answer

A)  zero. 
B)  added to the GDP. 
C)  subtracted from the GDP. 
D)  not included in the GDP. 
A)  zero. 
B)  added to the GDP. 
C)  subtracted from the GDP. 
D)  not included in the GDP.

Question 4

(Table) Use the information in this table to sketch a business cycle and to label a downturn and a recovery.

Accepted Answer

This economy is in a recession, as real

Question 5

What is the purpose of the national income and product accounts? Why and how were they established?

Accepted Answer

The national income and product accounts

Question 6

The largest category when using the income approach to calculate GDP is

Accepted Answer

A)  corporate profits. 
B)  compensation of employees. 
C)  rental income. 
D)  proprietors' income. 
A)  corporate profits. 
B)  compensation of employees. 
C)  rental income. 
D)  proprietors' income.

Question 7

Macroeconomics was developed to explain

Accepted Answer

A)  the Great Depression. 
B)  jobless recoveries. 
C)  the Industrial Revolution. 
D)  the Internet boom. 
A)  the Great Depression. 
B)  jobless recoveries. 
C)  the Industrial Revolution. 
D)  the Internet boom.

Question 8

Which item would be considered a durable good?

Accepted Answer

A)  college education 
B)  horseradish 
C)  refrigerator 
D)  Mohawk haircut 
A)  college education 
B)  horseradish 
C)  refrigerator 
D)  Mohawk haircut

Question 9

Government spending is generally a very unstable component of GDP.

Accepted Answer

A) True 
 B)False

Question 10

The Leading Economic Index is produced by the

Accepted Answer

A)  National Bureau of Economic Research. 
B)  Federal Reserve Bank of Chicago. 
C)  U.S. Treasury. 
D)  Conference Board. 
A)  National Bureau of Economic Research. 
B)  Federal Reserve Bank of Chicago. 
C)  U.S. Treasury. 
D)  Conference Board.

Question 11

A disadvantage of using per capita GDP to measure the standard of living in a country is that it does not accurately reflect the differences in wealth between rich citizens and poor citizens in the same country.

Accepted Answer

A) True 
 B)False

Question 12

The main reason the national income and product accounts were created was to

Accepted Answer

A)  provide businesses with data on the economy. 
B)  help governments manage the business cycle. 
C)  provide employment for statisticians during the Great Depression. 
D)  test out accounting theory developed during the early 20th century. 
A)  provide businesses with data on the economy. 
B)  help governments manage the business cycle. 
C)  provide employment for statisticians during the Great Depression. 
D)  test out accounting theory developed during the early 20th century.

Question 13

If a car is produced in Detroit in 2013 but not sold until 2014, it should be included in _____ GDP, and its value should be counted in _____.

Accepted Answer

A)  2013's; inventory changes 
B)  2013's; durable goods 
C)  2014's; durable goods 
D)  2014's; personal consumption expenditures 
A)  2013's; inventory changes 
B)  2013's; durable goods 
C)  2014's; durable goods 
D)  2014's; personal consumption expenditures

Question 14

Which of these is NOT an example of gross private domestic investment?

Accepted Answer

A)  the construction of new residential housing 
B)  the construction of a new hotel 
C)  a change in business inventories 
D)  a household's purchase of shares of Google stock 
A)  the construction of new residential housing 
B)  the construction of a new hotel 
C)  a change in business inventories 
D)  a household's purchase of shares of Google stock

Question 15

The two approaches used by the government in estimating GDP are

Accepted Answer

A)  statistical and nonstatistical. 
B)  survey and nonsurvey. 
C)  income and earnings. 
D)  expenditure and income. 
A)  statistical and nonstatistical. 
B)  survey and nonsurvey. 
C)  income and earnings. 
D)  expenditure and income.

Question 16

Which of these is NOT an investment in human capital?

Accepted Answer

A)  researching automated production techniques 
B)  putting more money into the education system 
C)  starting a job-training program 
D)  launching an employee physical fitness campaign 
A)  researching automated production techniques 
B)  putting more money into the education system 
C)  starting a job-training program 
D)  launching an employee physical fitness campaign

Question 17

During a recession, firms hire more workers to take advantage of lower wages.

Accepted Answer

A) True 
 B)False

Question 18

The National Bureau of Economic Research

Accepted Answer

A)  is a government agency that dates business cycles in the United States. 
B)  is a nonprofit research organization that dates business cycles in the United States. 
C)  consists of elected officials from the U.S. Senate. 
D)  is a nonprofit research organization that only determines when recessions begin. 
A)  is a government agency that dates business cycles in the United States. 
B)  is a nonprofit research organization that dates business cycles in the United States. 
C)  consists of elected officials from the U.S. Senate. 
D)  is a nonprofit research organization that only determines when recessions begin.

Question 19

Macroeconomics focuses on issues such as job growth, economic growth, and inflation rates.

Accepted Answer

A) True 
 B)False

Question 20

Soybeans produced in Brazil, but eaten by cows in a Kansas feedlot, will be included in U.S. GDP.

Accepted Answer

A) True 
 B)False

In the simple circular flow model

Alternating periods of macroeconomic expansion and contraction are known as

Income payments to the rest of the world are

(Table) Use the information in this table to sketch a business cycle and to label a downturn and a recovery.

What is the purpose of the national income and product accounts? Why and how were they established?

The largest category when using the income approach to calculate GDP is

Macroeconomics was developed to explain

Which item would be considered a durable good?

Government spending is generally a very unstable component of GDP.

The Leading Economic Index is produced by the

A disadvantage of using per capita GDP to measure the standard of living in a country is that it does not accurately reflect the differences in wealth between rich citizens and poor citizens in the same country.

The main reason the national income and product accounts were created was to

If a car is produced in Detroit in 2013 but not sold until 2014, it should be included in _ GDP, and its value should be counted in _.

Which of these is NOT an example of gross private domestic investment?

The two approaches used by the government in estimating GDP are

Which of these is NOT an investment in human capital?

During a recession, firms hire more workers to take advantage of lower wages.

The National Bureau of Economic Research

Macroeconomics focuses on issues such as job growth, economic growth, and inflation rates.

Soybeans produced in Brazil, but eaten by cows in a Kansas feedlot, will be included in U.S. GDP.

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

In the simple circular flow model

Alternating periods of macroeconomic expansion and contraction are known as

Income payments to the rest of the world are

(Table) Use the information in this table to sketch a business cycle and to label a downturn and a recovery.

What is the purpose of the national income and product accounts? Why and how were they established?

The largest category when using the income approach to calculate GDP is

Macroeconomics was developed to explain

Which item would be considered a durable good?

Government spending is generally a very unstable component of GDP.

The Leading Economic Index is produced by the

A disadvantage of using per capita GDP to measure the standard of living in a country is that it does not accurately reflect the differences in wealth between rich citizens and poor citizens in the same country.

The main reason the national income and product accounts were created was to

If a car is produced in Detroit in 2013 but not sold until 2014, it should be included in _____ GDP, and its value should be counted in _____.

Which of these is NOT an example of gross private domestic investment?

The two approaches used by the government in estimating GDP are

Which of these is NOT an investment in human capital?

During a recession, firms hire more workers to take advantage of lower wages.

The National Bureau of Economic Research

Macroeconomics focuses on issues such as job growth, economic growth, and inflation rates.

Soybeans produced in Brazil, but eaten by cows in a Kansas feedlot, will be included in U.S. GDP.

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

If a car is produced in Detroit in 2013 but not sold until 2014, it should be included in _ GDP, and its value should be counted in _.