Question 1

When was the only time in the past 100 years that consumption failed to make up more than 50 percent of U.S.GDP?

Accepted Answer

A)  World War I 
B)  World War II 
C)  Vietnam War 
D)  The Great Recession in 2008 
A)  World War I 
B)  World War II 
C)  Vietnam War 
D)  The Great Recession in 2008

Question 2

The difference between ________ is known as the trade balance.

Accepted Answer

A)  exports and imports 
B)  production and exports 
C)  consumption and imports 
D)  investment and consumption 
A)  exports and imports 
B)  production and exports 
C)  consumption and imports 
D)  investment and consumption

Question 3

________ is the market value of production generated by the factors of production possessed or owned by the residents of a particular nation.

Accepted Answer

A)  GDP 
B)  GNP 
C)  Net domestic product 
D)  Total market value 
A)  GDP 
B)  GNP 
C)  Net domestic product 
D)  Total market value

Question 4

What does a circular flow diagram show?

Accepted Answer

Economists have designed a system of nat

Question 5

Scenario: Mike's housekeeper charges $30 for mowing his lawn.
-Refer to the scenario above.Suppose Edwin consumes the total output produced instead of selling part of it.What is likely to happen in this case?

Accepted Answer

A)  GDP will increase. 
B)  GDP will decrease. 
C)  GDP will remain unchanged. 
D)  Trade surplus will increase by $200. 
A)  GDP will increase. 
B)  GDP will decrease. 
C)  GDP will remain unchanged. 
D)  Trade surplus will increase by $200.

Question 6

National income accounts measure the ________.

Accepted Answer

A)  level of aggregate economic activity in a country 
B)  labor force participation rate in a country 
C)  total amount of capital goods available in a country 
D)  total money supply in a country 
A)  level of aggregate economic activity in a country 
B)  labor force participation rate in a country 
C)  total amount of capital goods available in a country 
D)  total money supply in a country

Question 7

How is income per capita calculated?

Accepted Answer

A)  Dividing a nation's aggregate income by the number of people in the country 
B)  Averaging the individual incomes of all working people 
C)  Dividing GDP by the number of households 
D)  None of the above 
A)  Dividing a nation's aggregate income by the number of people in the country 
B)  Averaging the individual incomes of all working people 
C)  Dividing GDP by the number of households 
D)  None of the above

Question 8

The following table contains prices and quantities for the three goods produced in the country of Linfieldia.
  
-Refer to the table above.Assuming 2015 is the base year,what is real GDP for 2014?

Accepted Answer

A)  $5,280 
B)  $5,340 
C)  $5,790 
D)  $6,430 
A)  $5,280 
B)  $5,340 
C)  $5,790 
D)  $6,430

Question 9

A factory in Techland could not sell 20 percent of its output during a certain year due to a decrease in the demand for its product.Which of the following would be true if it produced 20 percent less?

Accepted Answer

A)  Techland's GDP for that year would have been higher. 
B)  Techland's GDP would have remained the same. 
C)  Techland's GDP for that year would have been lower. 
D)  Techland's income per capita for that year would have been higher. 
A)  Techland's GDP for that year would have been higher. 
B)  Techland's GDP would have remained the same. 
C)  Techland's GDP for that year would have been lower. 
D)  Techland's income per capita for that year would have been higher.

Question 10

Part of a bridge built by the government of Ritzland collapsed in the same year it was constructed.If the total cost of building the bridge was $4 million,which of the following will happen in this scenario,everything else remaining unchanged?

Accepted Answer

A)  Ritzland's GDP will decrease by $4 million. 
B)  Ritzland's GDP will increase by $4 million. 
C)  Ritzland's trade deficit will increase by less than $4 million. 
D)  Ritzland's trade surplus will increase by more than $4 million. 
A)  Ritzland's GDP will decrease by $4 million. 
B)  Ritzland's GDP will increase by $4 million. 
C)  Ritzland's trade deficit will increase by less than $4 million. 
D)  Ritzland's trade surplus will increase by more than $4 million.

Question 11

The table below contains data for the country of Wandalian for the year 2017.
  
-Refer to the above table.What was Wandalian's GDP in 2017?

Accepted Answer

A)  $3,623 
B)  $4,721 
C)  $5,037 
D)  $5,839 
A)  $3,623 
B)  $4,721 
C)  $5,037 
D)  $5,839

Question 12

John is a U.S.citizen who bought a house in Canada.This purchase led to a(n)________.

Accepted Answer

A)  increase in the GDP of Canada 
B)  decrease in Canada's trade deficit 
C)  increase in the U.S. GDP 
D)  decrease in the U.S. GDP 
A)  increase in the GDP of Canada 
B)  decrease in Canada's trade deficit 
C)  increase in the U.S. GDP 
D)  decrease in the U.S. GDP

Question 13

Scenario: Jane sewed a prom dress, which she could have bought for $180 from a store.
-Refer to the scenario above.Which of the following will happen if she sells it for $200 and the total cost incurred by her in making the dress was $150?

Accepted Answer

A)  GDP will increase by $180. 
B)  GDP will increase by $50. 
C)  GDP will remain unchanged. 
D)  Trade surplus will increase by $200. 
A)  GDP will increase by $180. 
B)  GDP will increase by $50. 
C)  GDP will remain unchanged. 
D)  Trade surplus will increase by $200.

Question 14

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.How much non-market based economic production occurs in the United States?

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 15

A shoe retailer does not give a bill for shoes purchased from her store and does not report her income correctly to evade taxes.If she is paid $50,________.

Accepted Answer

A)  the GDP of her country will increase 
B)  the GDP of her country will fall 
C)  the trade surplus of her country will increase 
D)  the GDP of her country will remain unchanged 
A)  the GDP of her country will increase 
B)  the GDP of her country will fall 
C)  the trade surplus of her country will increase 
D)  the GDP of her country will remain unchanged

Question 16

The table below shows the values of various economic variables of a country during a particular year.
  
-Refer to the table above.If consumption expenditure increases to $200,000 in the next year,GDP will ________,all other variables remaining unchanged.

Accepted Answer

A)  increase to $367,000 
B)  increase to $400,000 
C)  fall to $367,000 
D)  fall to $400,000 
A)  increase to $367,000 
B)  increase to $400,000 
C)  fall to $367,000 
D)  fall to $400,000

Question 17

The circular flow diagram implies that if accounting is done correctly,the market value of ________ the market value of ________.

Accepted Answer

A)  production must exceed; expenditure 
B)  income must exceed; production 
C)  expenditure must equal; income 
D)  expenditure must exceed; income 
A)  production must exceed; expenditure 
B)  income must exceed; production 
C)  expenditure must equal; income 
D)  expenditure must exceed; income

Question 18

What is the relationship between the GDP of a country and the level of life satisfaction in the country?

Accepted Answer

GDP turns out to be an excellent predict

Question 19

How much did the U.S.stock market drop from September 1929 to July 1932?

Accepted Answer

A)  30 percent 
B)  52 percent 
C)  73 percent 
D)  87 percent 
A)  30 percent 
B)  52 percent 
C)  73 percent 
D)  87 percent

Question 20

Why is home ownership a source of capital income?

Accepted Answer

Home ownership is one important source o

When was the only time in the past 100 years that consumption failed to make up more than 50 percent of U.S.GDP?

The difference between ________ is known as the trade balance.

________ is the market value of production generated by the factors of production possessed or owned by the residents of a particular nation.

What does a circular flow diagram show?

Scenario: Mike's housekeeper charges $30 for mowing his lawn. -Refer to the scenario above.Suppose Edwin consumes the total output produced instead of selling part of it.What is likely to happen in this case?

National income accounts measure the ________.

How is income per capita calculated?

The following table contains prices and quantities for the three goods produced in the country of Linfieldia. -Refer to the table above.Assuming 2015 is the base year,what is real GDP for 2014?

A factory in Techland could not sell 20 percent of its output during a certain year due to a decrease in the demand for its product.Which of the following would be true if it produced 20 percent less?

Part of a bridge built by the government of Ritzland collapsed in the same year it was constructed.If the total cost of building the bridge was $4 million,which of the following will happen in this scenario,everything else remaining unchanged?

The table below contains data for the country of Wandalian for the year 2017. -Refer to the above table.What was Wandalian's GDP in 2017?

John is a U.S.citizen who bought a house in Canada.This purchase led to a(n)________.

Scenario: Jane sewed a prom dress, which she could have bought for $180 from a store. -Refer to the scenario above.Which of the following will happen if she sells it for $200 and the total cost incurred by her in making the dress was $150?

A shoe retailer does not give a bill for shoes purchased from her store and does not report her income correctly to evade taxes.If she is paid $50,________.

The table below shows the values of various economic variables of a country during a particular year. -Refer to the table above.If consumption expenditure increases to $200,000 in the next year,GDP will ________,all other variables remaining unchanged.

The circular flow diagram implies that if accounting is done correctly,the market value of the market value of .

What is the relationship between the GDP of a country and the level of life satisfaction in the country?

How much did the U.S.stock market drop from September 1929 to July 1932?

Why is home ownership a source of capital income?

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

When was the only time in the past 100 years that consumption failed to make up more than 50 percent of U.S.GDP?

The difference between ________ is known as the trade balance.

________ is the market value of production generated by the factors of production possessed or owned by the residents of a particular nation.

What does a circular flow diagram show?

Scenario: Mike's housekeeper charges $30 for mowing his lawn. -Refer to the scenario above.Suppose Edwin consumes the total output produced instead of selling part of it.What is likely to happen in this case?

National income accounts measure the ________.

How is income per capita calculated?

The following table contains prices and quantities for the three goods produced in the country of Linfieldia. -Refer to the table above.Assuming 2015 is the base year,what is real GDP for 2014?

A factory in Techland could not sell 20 percent of its output during a certain year due to a decrease in the demand for its product.Which of the following would be true if it produced 20 percent less?

Part of a bridge built by the government of Ritzland collapsed in the same year it was constructed.If the total cost of building the bridge was $4 million,which of the following will happen in this scenario,everything else remaining unchanged?

The table below contains data for the country of Wandalian for the year 2017. -Refer to the above table.What was Wandalian's GDP in 2017?

John is a U.S.citizen who bought a house in Canada.This purchase led to a(n)________.

Scenario: Jane sewed a prom dress, which she could have bought for $180 from a store. -Refer to the scenario above.Which of the following will happen if she sells it for $200 and the total cost incurred by her in making the dress was $150?

A shoe retailer does not give a bill for shoes purchased from her store and does not report her income correctly to evade taxes.If she is paid $50,________.

The table below shows the values of various economic variables of a country during a particular year. -Refer to the table above.If consumption expenditure increases to $200,000 in the next year,GDP will ________,all other variables remaining unchanged.

The circular flow diagram implies that if accounting is done correctly,the market value of ________ the market value of ________.

What is the relationship between the GDP of a country and the level of life satisfaction in the country?

How much did the U.S.stock market drop from September 1929 to July 1932?

Why is home ownership a source of capital income?

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

The circular flow diagram implies that if accounting is done correctly,the market value of the market value of .