Question 1

How does the presence of negative externalities affect the calculation of GDP?

Accepted Answer

Negative externalities arise when one pe

Question 2

Which of the following is considered a final good or service?

Accepted Answer

A)  An airline ticket purchased to go on a business trip 
B)  The flour used by a baker to make bread 
C)  The bread purchased by a sub shop to make sandwiches 
D)  The steel used to make a car 
A)  An airline ticket purchased to go on a business trip 
B)  The flour used by a baker to make bread 
C)  The bread purchased by a sub shop to make sandwiches 
D)  The steel used to make a car

Question 3

Which of the following is a reason for the rise in U.S.trade over the past 80 years?

Accepted Answer

A)  Falling consumption expenditure 
B)  Rising government expenditure 
C)  Improved transportation technology 
D)  Improved bureaucracy 
A)  Falling consumption expenditure 
B)  Rising government expenditure 
C)  Improved transportation technology 
D)  Improved bureaucracy

Question 4

The following table contains statistics for the country of Gregorville in 2017, a country in which all must either attend school, be available for work, or be retired.
  
-Refer to the table above.What is the unemployment rate if 5,000 of those actively looking for a job find one?

Accepted Answer

A)  6.9 percent 
B)  13.9 percent 
C)  19.4 percent 
D)  86.1 percent 
A)  6.9 percent 
B)  13.9 percent 
C)  19.4 percent 
D)  86.1 percent

Question 5

Two variables are related by an identity when ________.

Accepted Answer

A)  the two variables have a positive relationship 
B)  the two variables are mathematically identical 
C)  the two variables have a negative relationship 
D)  the values of the variables are always equal but have opposite signs 
A)  the two variables have a positive relationship 
B)  the two variables are mathematically identical 
C)  the two variables have a negative relationship 
D)  the values of the variables are always equal but have opposite signs

Question 6

One bag of flour is sold for $1.00 to a bakery,which uses the flour to bake two loaves of bread that are sold for $3.00 each to consumers.A second bag of flour is sold for $1.00 to a grocery store,which sells it to a consumer for $2.00.Taking these transactions into account,what is the effect on GDP?

Accepted Answer

A)  GDP increases by $5.00. 
B)  GDP increases by $7.00. 
C)  GDP increases by $8.00. 
D)  GDP increases by $9.00. 
A)  GDP increases by $5.00. 
B)  GDP increases by $7.00. 
C)  GDP increases by $8.00. 
D)  GDP increases by $9.00.

Question 7

Several houses built in a country during a certain year were mildly damaged because of an earthquake.Which of the following is likely to happen in this case?

Accepted Answer

A)  The market value of the damage will not be included in the calculation of the country's GDP. 
B)  The market value of the damage will be deducted from the country's GDP. 
C)  The market value of the damage will be included in the calculation of the country's trade deficit. 
D)  The market value of the houses will not be included in the calculation of the country's GDP. 
A)  The market value of the damage will not be included in the calculation of the country's GDP. 
B)  The market value of the damage will be deducted from the country's GDP. 
C)  The market value of the damage will be included in the calculation of the country's trade deficit. 
D)  The market value of the houses will not be included in the calculation of the country's GDP.

Question 8

The table below shows the values of various economic variables of a country during a particular year.
  
-Refer to the table above.The GDP of the country is ________.

Accepted Answer

A)  $452,000 
B)  $402,000 
C)  $554,000 
D)  $352,000 
A)  $452,000 
B)  $402,000 
C)  $554,000 
D)  $352,000

Question 9

An electrician accepts payment only in cash to avoid taxes.If he is paid $100,________.

Accepted Answer

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

Question 10

The GDP deflator is 100 times the ratio of ________.

Accepted Answer

A)  nominal GDP to real GDP 
B)  real GDP to nominal GDP 
C)  GDP to GNP 
D)  GNP to GDP 
A)  nominal GDP to real GDP 
B)  real GDP to nominal GDP 
C)  GDP to GNP 
D)  GNP to GDP

Question 11

Country X produces only one good.It produced 12,500 units of a good during a particular year.If the price of the good during that year was $100 and the price of the good during the base year was $95,the nominal GDP of the country is ________.

Accepted Answer

A)  $1,187,500 
B)  $1,250,000 
C)  $875,000 
D)  $2,450,000 
A)  $1,187,500 
B)  $1,250,000 
C)  $875,000 
D)  $2,450,000

Question 12

What is the income per capita of Genovia if its GDP is $4,000,000 and its total population is 20,000?

Accepted Answer

A)  $100 
B)  $200 
C)  $400 
D)  $120 
A)  $100 
B)  $200 
C)  $400 
D)  $120

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 keeps the dress for herself?

Accepted Answer

A)  The GDP of her country will increase by $180. 
B)  The GDP of her country will remain unchanged. 
C)  The trade deficit of her country will decrease. 
D)  The trade surplus of her country will decrease. 
A)  The GDP of her country will increase by $180. 
B)  The GDP of her country will remain unchanged. 
C)  The trade deficit of her country will decrease. 
D)  The trade surplus of her country will decrease.

Question 14

The table below shows the values of various economic variables of a country during a particular year.
  
-Refer to the table above.The trade balance of the country during that particular year was ________.

Accepted Answer

A)  −$104,000 
B)  $50,000 
C)  −$6,000 
D)  $4,000 
A)  −$104,000 
B)  $50,000 
C)  −$6,000 
D)  $4,000

Question 15

Which of the following is likely to be included in a country's GDP for a particular year?

Accepted Answer

A)  The total amount of steel used in the production of automobiles in that year 
B)  An unsold inventory of automobiles produced in that year 
C)  An unused stock of goods produced in the previous year 
D)  The total amount of flour used by bakeries to make bread in that year 
A)  The total amount of steel used in the production of automobiles in that year 
B)  An unsold inventory of automobiles produced in that year 
C)  An unused stock of goods produced in the previous year 
D)  The total amount of flour used by bakeries to make bread in that year

Question 16

The following table contains statistics for the country of Gregorville in 2017, a country in which all must either attend school, be available for work, or be retired.
  
-Refer to the table above.What is the unemployment rate?

Accepted Answer

A)  13.9 percent 
B)  19.4 percent 
C)  33.3 percent 
D)  108.3 percent 
A)  13.9 percent 
B)  19.4 percent 
C)  33.3 percent 
D)  108.3 percent

Question 17

The expenditure on consumption in Berylia during a particular year was $310,000,the expenditure on investment was $180,000,the expenditure incurred by the government was $75,000,the expenditure of foreign economic agents on domestic products was $80,000,and the domestic expenditure on foreign produced goods was $103,000.What was the GDP of Berylia during that year?

Accepted Answer

A)  $530,000 
B)  $479,000 
C)  $542,000 
D)  $645,000 
A)  $530,000 
B)  $479,000 
C)  $542,000 
D)  $645,000

Question 18

10 percent of the total food grains produced in a country during a year gets damaged due to poor storage.Which of the following will happen in this case?

Accepted Answer

A)  The market value of the damaged food grains will be deducted from the country's GDP for that year. 
B)  The market value of the damaged food grains will not be considered while calculating the country's GDP for that year. 
C)  The country's trade surplus will increase. 
D)  The country's imports will fall. 
A)  The market value of the damaged food grains will be deducted from the country's GDP for that year. 
B)  The market value of the damaged food grains will not be considered while calculating the country's GDP for that year. 
C)  The country's trade surplus will increase. 
D)  The country's imports will fall.

Question 19

Which of the following will be included in the calculation of GDP using the expenditure method?

Accepted Answer

A)  A worker's wage 
B)  A foreign consumer's purchase of domestic goods 
C)  A firm's payment of employee bonuses 
D)  A bank's payment of interest to its customers 
A)  A worker's wage 
B)  A foreign consumer's purchase of domestic goods 
C)  A firm's payment of employee bonuses 
D)  A bank's payment of interest to its customers

Question 20

The value of production generated by a country's factors of production in foreign countries during a particular year was $51,000,and the value of production generated by foreign factors of production in the country during that year was worth $80,000.Which of the following is likely to be true in this case?

Accepted Answer

A)  The GDP of the country is higher than its GNP. 
B)  The GDP of the country is lower than its GNP. 
C)  The GDP of the country equals its GNP. 
D)  The GDP of the country equals its trade balance. 
A)  The GDP of the country is higher than its GNP. 
B)  The GDP of the country is lower than its GNP. 
C)  The GDP of the country equals its GNP. 
D)  The GDP of the country equals its trade balance.

How does the presence of negative externalities affect the calculation of GDP?

Which of the following is considered a final good or service?

Which of the following is a reason for the rise in U.S.trade over the past 80 years?

The following table contains statistics for the country of Gregorville in 2017, a country in which all must either attend school, be available for work, or be retired. -Refer to the table above.What is the unemployment rate if 5,000 of those actively looking for a job find one?

Two variables are related by an identity when ________.

Several houses built in a country during a certain year were mildly damaged because of an earthquake.Which of the following is likely to happen in this case?

The table below shows the values of various economic variables of a country during a particular year. -Refer to the table above.The GDP of the country is ________.

An electrician accepts payment only in cash to avoid taxes.If he is paid $100,________.

The GDP deflator is 100 times the ratio of ________.

Country X produces only one good.It produced 12,500 units of a good during a particular year.If the price of the good during that year was $100 and the price of the good during the base year was $95,the nominal GDP of the country is ________.

What is the income per capita of Genovia if its GDP is $4,000,000 and its total population is 20,000?

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 keeps the dress for herself?

The table below shows the values of various economic variables of a country during a particular year. -Refer to the table above.The trade balance of the country during that particular year was ________.

Which of the following is likely to be included in a country's GDP for a particular year?

The following table contains statistics for the country of Gregorville in 2017, a country in which all must either attend school, be available for work, or be retired. -Refer to the table above.What is the unemployment rate?

10 percent of the total food grains produced in a country during a year gets damaged due to poor storage.Which of the following will happen in this case?

Which of the following will be included in the calculation of GDP using the expenditure method?

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

How does the presence of negative externalities affect the calculation of GDP?

Which of the following is considered a final good or service?

Which of the following is a reason for the rise in U.S.trade over the past 80 years?

The following table contains statistics for the country of Gregorville in 2017, a country in which all must either attend school, be available for work, or be retired. -Refer to the table above.What is the unemployment rate if 5,000 of those actively looking for a job find one?

Two variables are related by an identity when ________.

Several houses built in a country during a certain year were mildly damaged because of an earthquake.Which of the following is likely to happen in this case?

The table below shows the values of various economic variables of a country during a particular year. -Refer to the table above.The GDP of the country is ________.

An electrician accepts payment only in cash to avoid taxes.If he is paid $100,________.

The GDP deflator is 100 times the ratio of ________.

Country X produces only one good.It produced 12,500 units of a good during a particular year.If the price of the good during that year was $100 and the price of the good during the base year was $95,the nominal GDP of the country is ________.

What is the income per capita of Genovia if its GDP is $4,000,000 and its total population is 20,000?

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 keeps the dress for herself?

The table below shows the values of various economic variables of a country during a particular year. -Refer to the table above.The trade balance of the country during that particular year was ________.

Which of the following is likely to be included in a country's GDP for a particular year?

The following table contains statistics for the country of Gregorville in 2017, a country in which all must either attend school, be available for work, or be retired. -Refer to the table above.What is the unemployment rate?

10 percent of the total food grains produced in a country during a year gets damaged due to poor storage.Which of the following will happen in this case?

Which of the following will be included in the calculation of GDP using the expenditure method?

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