Question 1

Income is an example of a _____,and the money in my bank account is a _____.

Accepted Answer

A) stock; flow 
B) stock; stock 
C) flow; stock 
D) flow; flow 
A) stock; flow 
B) stock; stock 
C) flow; stock 
D) flow; flow

Question 2

Australian gross domestic product is the market value of all final goods and services:

Accepted Answer

A) produced in Australia by Australian citizens during a year. 
B) produced in Australia during a year. 
C) produced outside of Australia during a year. 
D) produced outside Australia by Australian citizens during a year. 
A) produced in Australia by Australian citizens during a year. 
B) produced in Australia during a year. 
C) produced outside of Australia during a year. 
D) produced outside Australia by Australian citizens during a year.

Question 3

A current account surplus cannot be balanced by a capital account deficit of the same size.

Accepted Answer

A) True 
 B)False

Question 4

GDP:

Accepted Answer

A) is the dollar value of all the final goods and services produced within the borders of a nation. 
B) includes intermediate and final goods and services. 
C) minus an allowance for depreciation of fixed capital equals GNP. 
D) is a less-than-perfect measure of social wellbeing because it does not include exports and imports. 
A) is the dollar value of all the final goods and services produced within the borders of a nation. 
B) includes intermediate and final goods and services. 
C) minus an allowance for depreciation of fixed capital equals GNP. 
D) is a less-than-perfect measure of social wellbeing because it does not include exports and imports.

Question 5

The output measure that adjusts for depreciation in plant and equipment is:

Accepted Answer

A) net national product. 
B) gross domestic product. 
C) not possible to estimate. 
D) net domestic product. 
A) net national product. 
B) gross domestic product. 
C) not possible to estimate. 
D) net domestic product.

Question 6

If domestic saving is less than investment in an open economy,the result is most likely to be:

Accepted Answer

A) a current account surplus. 
B) a capital account deficit. 
C) a current account deficit. 
D) a balanced current account. 
A) a current account surplus. 
B) a capital account deficit. 
C) a current account deficit. 
D) a balanced current account.

Question 7

In very simple economies,a community's saving is its:

Accepted Answer

A) capital. 
B) treasure. 
C) burden. 
D) acquisition. 
E) investment. 
A) capital. 
B) treasure. 
C) burden. 
D) acquisition. 
E) investment.

Question 8

Net domestic product is equal to GDP minus:

Accepted Answer

A) indirect business taxes. 
B) depreciation. 
C) personal taxes. 
D) retained earnings. 
E) consumption spending. 
A) indirect business taxes. 
B) depreciation. 
C) personal taxes. 
D) retained earnings. 
E) consumption spending.

Question 9

Exhibit 11-3 GDP data (billions of dollars)
  
-Use the information in Exhibit 11-3 to compute net national product.Which of the following is correct?

Accepted Answer

A) $7110 billion. 
B) $7410 billion. 
C) $7460 billion. 
D) $7760 billion. 
E) $9360 billion. 
A) $7110 billion. 
B) $7410 billion. 
C) $7460 billion. 
D) $7760 billion. 
E) $9360 billion.

Question 10

If the underground economy is sizable,then GDP will:

Accepted Answer

A) understate the economy's performance. 
B) overstate the economy's performance. 
C) fluctuate unpredictably. 
D) accurately reflect this subterranean activity. 
A) understate the economy's performance. 
B) overstate the economy's performance. 
C) fluctuate unpredictably. 
D) accurately reflect this subterranean activity.

Question 11

Which of the following are not included in GDP?

Accepted Answer

A) A car produced and sold this year. 
B) A car produced within a nation's geographic boarders. 
C) A second-hand car bought this year. 
D) A car produced but not sold this year. 
A) A car produced and sold this year. 
B) A car produced within a nation's geographic boarders. 
C) A second-hand car bought this year. 
D) A car produced but not sold this year.

Question 12

Economic values that are measured in units per period of time are referred to as:

Accepted Answer

A) stocks. 
B) insignificant. 
C) unit values. 
D) dollars. 
E) flows. 
A) stocks. 
B) insignificant. 
C) unit values. 
D) dollars. 
E) flows.

Question 13

In an open economy,domestic savings must always equal investment.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would not be included in the government consumption expenditures and gross investment (G)category of GDP?

Accepted Answer

A) The payments made to social security recipients. 
B) Expenditures made to repair a highway. 
C) Spending for professors at universities. 
D) The purchase of new china for parliamentary functions. 
A) The payments made to social security recipients. 
B) Expenditures made to repair a highway. 
C) Spending for professors at universities. 
D) The purchase of new china for parliamentary functions.

Question 15

The circular flow model represents the establishment of market value for:

Accepted Answer

A) goods and services only. 
B) wages and salaries excluding goods and services. 
C) profits and rents but not for wages and salaries. 
D) profits and rents as well as wages and salaries. 
A) goods and services only. 
B) wages and salaries excluding goods and services. 
C) profits and rents but not for wages and salaries. 
D) profits and rents as well as wages and salaries.

Question 16

National saving can be defined as:

Accepted Answer

A) (T - G) + (Y - C - T). 
B) T + S. 
C)  Y - C - T + G. 
D) S - I. 
E) Y - G - T. 
A) (T - G) + (Y - C - T). 
B) T + S. 
C)  Y - C - T + G. 
D) S - I. 
E) Y - G - T.

Question 17

New residential housing is counted in GDP as a/an:

Accepted Answer

A) durable consumption good. 
B) household durable good. 
C) investment good. 
D) inventory expansion. 
E) long-term durable good. 
A) durable consumption good. 
B) household durable good. 
C) investment good. 
D) inventory expansion. 
E) long-term durable good.

Question 18

The current account balance is equal to:

Accepted Answer

A) national saving plus national investment. 
B) national investment minus national saving. 
C) national saving minus national investment. 
D) national leisure time minus national investment. 
E) export of goods and services. 
A) national saving plus national investment. 
B) national investment minus national saving. 
C) national saving minus national investment. 
D) national leisure time minus national investment. 
E) export of goods and services.

Question 19

Assume that household consumption is $500 billion,gross private domestic investment is $300 billion,government investment is $40 billion,and net exports are -$10 billion.The GDP is:

Accepted Answer

A) $850 billion. 
B) $830 billion. 
C) $890 billion. 
D) $800 billion. 
E) indeterminate as not enough information is provided. 
A) $850 billion. 
B) $830 billion. 
C) $890 billion. 
D) $800 billion. 
E) indeterminate as not enough information is provided.

Question 20

If a firm buys a dozen new cars for its sales team,this would be included in:

Accepted Answer

A) consumption expenditure. 
B) investment inventories. 
C) gross private fixed investment. 
D) gross private fixed consumption. 
A) consumption expenditure. 
B) investment inventories. 
C) gross private fixed investment. 
D) gross private fixed consumption.

Income is an example of a _,and the money in my bank account is a _.

Australian gross domestic product is the market value of all final goods and services:

A current account surplus cannot be balanced by a capital account deficit of the same size.

GDP:

The output measure that adjusts for depreciation in plant and equipment is:

If domestic saving is less than investment in an open economy,the result is most likely to be:

In very simple economies,a community's saving is its:

Net domestic product is equal to GDP minus:

Exhibit 11-3 GDP data (billions of dollars) -Use the information in Exhibit 11-3 to compute net national product.Which of the following is correct?

If the underground economy is sizable,then GDP will:

Which of the following are not included in GDP?

Economic values that are measured in units per period of time are referred to as:

In an open economy,domestic savings must always equal investment.

Which of the following would not be included in the government consumption expenditures and gross investment (G)category of GDP?

The circular flow model represents the establishment of market value for:

National saving can be defined as:

New residential housing is counted in GDP as a/an:

The current account balance is equal to:

Assume that household consumption is $500 billion,gross private domestic investment is $300 billion,government investment is $40 billion,and net exports are -$10 billion.The GDP is:

If a firm buys a dozen new cars for its sales team,this would be included in:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Exam 11: Measuring the size of the economy

Income is an example of a _____,and the money in my bank account is a _____.

Australian gross domestic product is the market value of all final goods and services:

A current account surplus cannot be balanced by a capital account deficit of the same size.

GDP:

The output measure that adjusts for depreciation in plant and equipment is:

If domestic saving is less than investment in an open economy,the result is most likely to be:

In very simple economies,a community's saving is its:

Net domestic product is equal to GDP minus:

Exhibit 11-3 GDP data (billions of dollars) -Use the information in Exhibit 11-3 to compute net national product.Which of the following is correct?

If the underground economy is sizable,then GDP will:

Which of the following are not included in GDP?

Economic values that are measured in units per period of time are referred to as:

In an open economy,domestic savings must always equal investment.

Which of the following would not be included in the government consumption expenditures and gross investment (G)category of GDP?

The circular flow model represents the establishment of market value for:

National saving can be defined as:

New residential housing is counted in GDP as a/an:

The current account balance is equal to:

Assume that household consumption is $500 billion,gross private domestic investment is $300 billion,government investment is $40 billion,and net exports are -$10 billion.The GDP is:

If a firm buys a dozen new cars for its sales team,this would be included in:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Income is an example of a _,and the money in my bank account is a _.