Question 1

Which of the following will lead to an increase in the GDP of a country?

Accepted Answer

A)  An increase in imports 
B)  An increase in expenditure on investment goods 
C)  A fall in the expenditure on consumption 
D)  A fall in the expenditure incurred by the government 
A)  An increase in imports 
B)  An increase in expenditure on investment goods 
C)  A fall in the expenditure on consumption 
D)  A fall in the expenditure incurred by the government B

Question 2

The following table contains statistics for the country of Caddyville in 2013.
  
-Refer to the table above.What is the unemployment rate in 2014 for Caddyville if 3,000 people turn 65,2,000 students graduate college,4,000 children turn 18 and don't go to college,and the number of unemployed changes to 4,950? All else remains unchanged.

Accepted Answer

A)  5.8 percent 
B)  6.7 percent 
C)  6.9 percent 
D)  7.1 percent 
A)  5.8 percent 
B)  6.7 percent 
C)  6.9 percent 
D)  7.1 percent D

Question 3

The production-based method of national accounting sums up the ________.

Accepted Answer

A)  expenditure incurred by domestic and foreign economic agents on domestic products 
B)  value that is added by each domestic firm in the production process 
C)  income earned by each factor of production by participating in the production process 
D)  total revenue earned by all the firms in the economy 
A)  expenditure incurred by domestic and foreign economic agents on domestic products 
B)  value that is added by each domestic firm in the production process 
C)  income earned by each factor of production by participating in the production process 
D)  total revenue earned by all the firms in the economy B

Question 4

The total value of inputs used in the production of 100,000 units of a good manufactured in a country is $150,000.Assume that the country produces only this good and each unit of the good sells for $10.What is the GDP of the country?

Accepted Answer

A)  $1,000,000 
B)  $1,150,000 
C)  $150,000 
D)  $250,000 
A)  $1,000,000 
B)  $1,150,000 
C)  $150,000 
D)  $250,000

Question 5

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided.
  
-Refer to the above table.Assuming that 2017 is the base year,by what percentage did real GDP grow between 2016 and 2017?

Accepted Answer

A)  1.3 percent 
B)  1.6 percent 
C)  1.9 percent 
D)  2.2 percent 
A)  1.3 percent 
B)  1.6 percent 
C)  1.9 percent 
D)  2.2 percent

Question 6

What percentage of U.S.GDP is typically made up by government expenditures?

Accepted Answer

A)  10 percent 
B)  20 percent 
C)  30 percent 
D)  50 percent 
A)  10 percent 
B)  20 percent 
C)  30 percent 
D)  50 percent

Question 7

________ will lead to a decrease in the GDP of a country,all other variables remaining unchanged.

Accepted Answer

A)  An increase in exports 
B)  A decrease in imports 
C)  A decrease in the expenditure on investment 
D)  An increase in the expenditure on investment 
A)  An increase in exports 
B)  A decrease in imports 
C)  A decrease in the expenditure on investment 
D)  An increase in the expenditure on investment

Question 8

Machinery used in a factory is a(n)________ good.

Accepted Answer

A)  inferior 
B)  public 
C)  club 
D)  capital 
A)  inferior 
B)  public 
C)  club 
D)  capital

Question 9

What is necessary for an economic downturn to be classified as a recession?

Accepted Answer

A)  The unemployment rate reaches 10 percent 
B)  Negative inflation for one year 
C)  Negative economic growth for one year 
D)  Aggregate economic output falls for two consecutive quarters 
A)  The unemployment rate reaches 10 percent 
B)  Negative inflation for one year 
C)  Negative economic growth for one year 
D)  Aggregate economic output falls for two consecutive quarters

Question 10

Scenario: John and Sue are married and live in the United States. John is a Canadian citizen and stays home with their two children, Micah and Madison; his caretaking is valued at $20,000 per child. He also programs video games from home in the evenings for a Japanese-based online poker site for $50,000 per year. Sue works as a high-powered lawyer for Berkshire Hathaway at their London branch for the U.S. dollar equivalent of $1,00,000 per year.
-Refer to the above scenario.Accounting for non-market based economic production,how much does John contribute to U.S.GDP?

Accepted Answer

A)  $0 
B)  $40,000 
C)  $1,000,000 
D)  $1,040,000 
A)  $0 
B)  $40,000 
C)  $1,000,000 
D)  $1,040,000

Question 11

The table below contains data for a country. The base year is 2006.
  
-Refer to the above table.Which of the following statements is true?

Accepted Answer

A)  Output grew more from 2017 to 2018 than from 2018 to 2019. 
B)  Inflation from 2016 to 2019 was higher than the growth rate over that time. 
C)  Output grew more from 2016 to 2017 than from 2017 to 2019. 
D)  Real GDP is higher in 2017 than in 2018. 
A)  Output grew more from 2017 to 2018 than from 2018 to 2019. 
B)  Inflation from 2016 to 2019 was higher than the growth rate over that time. 
C)  Output grew more from 2016 to 2017 than from 2017 to 2019. 
D)  Real GDP is higher in 2017 than in 2018.

Question 12

________ is the total value of final goods and services produced within the borders of a country,using market prices from a specific base year to determine the value of each unit that is produced.

Accepted Answer

A)  Nominal GDP 
B)  Real GDP 
C)  GNP 
D)  Total product 
A)  Nominal GDP 
B)  Real GDP 
C)  GNP 
D)  Total product

Question 13

The prices of final goods and services in Eduland have increased by 23 percent between Year 1 and Year 2.If Eduland's GDP deflator for Year 1 was 100,its GDP deflator for Year 2 would be ________.

Accepted Answer

A)  103 
B)  50 
C)  123 
D)  112 
A)  103 
B)  50 
C)  123 
D)  112

Question 14

The following table provides data for the small country of Nabou.
  
-Refer to the above table.Which categories are not used for calculating GDP or GNP?

Accepted Answer

A)  Social Security payments 
B)  Depreciation 
C)  Purchases of raw materials and capital income 
D)  All of the above 
A)  Social Security payments 
B)  Depreciation 
C)  Purchases of raw materials and capital income 
D)  All of the above

Question 15

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided.
  
-Refer to the above table.Assuming that 2017 is the base year,what is real GDP for 2016?

Accepted Answer

A)  $7,800 
B)  $7,900 
C)  $8,100 
D)  $8,500 
A)  $7,800 
B)  $7,900 
C)  $8,100 
D)  $8,500

Question 16

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided.
  
-Refer to the above table.What is nominal GDP for 2017?

Accepted Answer

A)  $6,900 
B)  $7,400 
C)  $7,700 
D)  $7,900 
A)  $6,900 
B)  $7,400 
C)  $7,700 
D)  $7,900

Question 17

A country's Consumer Price Index was 129 for Year 1 and 133 for Year 2.The inflation rate of the country between the two years was approximately ________.

Accepted Answer

A)  3.1 percent 
B)  4 percent 
C)  2.2 percent 
D)  6 percent 
A)  3.1 percent 
B)  4 percent 
C)  2.2 percent 
D)  6 percent

Question 18

Which of the following is an example of financial capital?

Accepted Answer

A)  A factory 
B)  A check book 
C)  A bond 
D)  A currency bill 
A)  A factory 
B)  A check book 
C)  A bond 
D)  A currency bill

Question 19

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided.
  
-Refer to the above table.Assuming that 2016 is the base year,what is real GDP for 2017?

Accepted Answer

A)  $6,785 
B)  $7,115 
C)  $7,400 
D)  $7,950 
A)  $6,785 
B)  $7,115 
C)  $7,400 
D)  $7,950

Question 20

A Chinese worker started working in the United States and earned an income of $10,000 during a certain year.This is likely to have led to a(n)________ in the same year.

Accepted Answer

A)  increase in the U.S. GDP 
B)  increase in the U.S. GNP 
C)  increase in China's GDP 
D)  decrease in China's GDP 
A)  increase in the U.S. GDP 
B)  increase in the U.S. GNP 
C)  increase in China's GDP 
D)  decrease in China's GDP

Which of the following will lead to an increase in the GDP of a country?

The production-based method of national accounting sums up the ________.

The total value of inputs used in the production of 100,000 units of a good manufactured in a country is $150,000.Assume that the country produces only this good and each unit of the good sells for $10.What is the GDP of the country?

What percentage of U.S.GDP is typically made up by government expenditures?

________ will lead to a decrease in the GDP of a country,all other variables remaining unchanged.

Machinery used in a factory is a(n)________ good.

What is necessary for an economic downturn to be classified as a recession?

The table below contains data for a country. The base year is 2006. -Refer to the above table.Which of the following statements is true?

________ is the total value of final goods and services produced within the borders of a country,using market prices from a specific base year to determine the value of each unit that is produced.

The prices of final goods and services in Eduland have increased by 23 percent between Year 1 and Year 2.If Eduland's GDP deflator for Year 1 was 100,its GDP deflator for Year 2 would be ________.

The following table provides data for the small country of Nabou. -Refer to the above table.Which categories are not used for calculating GDP or GNP?

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided. -Refer to the above table.Assuming that 2017 is the base year,what is real GDP for 2016?

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided. -Refer to the above table.What is nominal GDP for 2017?

A country's Consumer Price Index was 129 for Year 1 and 133 for Year 2.The inflation rate of the country between the two years was approximately ________.

Which of the following is an example of financial capital?

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided. -Refer to the above table.Assuming that 2016 is the base year,what is real GDP for 2017?

A Chinese worker started working in the United States and earned an income of $10,000 during a certain year.This is likely to have led to a(n)________ in the same year.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters

Exam 5: The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Which of the following will lead to an increase in the GDP of a country?

The production-based method of national accounting sums up the ________.

The total value of inputs used in the production of 100,000 units of a good manufactured in a country is $150,000.Assume that the country produces only this good and each unit of the good sells for $10.What is the GDP of the country?

What percentage of U.S.GDP is typically made up by government expenditures?

________ will lead to a decrease in the GDP of a country,all other variables remaining unchanged.

Machinery used in a factory is a(n)________ good.

What is necessary for an economic downturn to be classified as a recession?

The table below contains data for a country. The base year is 2006. -Refer to the above table.Which of the following statements is true?

________ is the total value of final goods and services produced within the borders of a country,using market prices from a specific base year to determine the value of each unit that is produced.

The prices of final goods and services in Eduland have increased by 23 percent between Year 1 and Year 2.If Eduland's GDP deflator for Year 1 was 100,its GDP deflator for Year 2 would be ________.

The following table provides data for the small country of Nabou. -Refer to the above table.Which categories are not used for calculating GDP or GNP?

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided. -Refer to the above table.Assuming that 2017 is the base year,what is real GDP for 2016?

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided. -Refer to the above table.What is nominal GDP for 2017?

A country's Consumer Price Index was 129 for Year 1 and 133 for Year 2.The inflation rate of the country between the two years was approximately ________.

Which of the following is an example of financial capital?

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided. -Refer to the above table.Assuming that 2016 is the base year,what is real GDP for 2017?

A Chinese worker started working in the United States and earned an income of $10,000 during a certain year.This is likely to have led to a(n)________ in the same year.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters