Question 1

Flows are measured per period of time,while stocks are measured at a particular point in time.

Accepted Answer

A) True 
 B)False

Question 2

In a closed economy,any differences between desired saving and investment will be equal to:

Accepted Answer

A) the change in inventories. 
B) government spending. 
C) consumption. 
D) public saving. 
A) the change in inventories. 
B) government spending. 
C) consumption. 
D) public saving.

Question 3

Actual measured saving and measured investment are equal

Accepted Answer

A) True 
 B)False

Question 4

GDP is the sum of exports,consumer expenditure,government expenditure and taxes.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following expenditures would not be included in GDP?

Accepted Answer

A) Purchase of a new lawnmower. 
B) Purchase of a second-hand car. 
C) Purchase of a ticket to the latest movie. 
D) All of the above would be counted in GDP. 
A) Purchase of a new lawnmower. 
B) Purchase of a second-hand car. 
C) Purchase of a ticket to the latest movie. 
D) All of the above would be counted in GDP.

Question 6

Which of the following expenditures would be included in GDP for this year?

Accepted Answer

A) The purchase of a new car. 
B) The purchase of a new tyre by Holden for a new car. 
C) The purchase of a used car. 
D) All of these. 
A) The purchase of a new car. 
B) The purchase of a new tyre by Holden for a new car. 
C) The purchase of a used car. 
D) All of these.

Question 7

Which of the following would not be included as part of government spending in GDP calculations?

Accepted Answer

A) Police salaries. 
B) Road construction. 
C) Public service salaries. 
D) Transfer payments. 
E) Stationery for the treasury department. 
A) Police salaries. 
B) Road construction. 
C) Public service salaries. 
D) Transfer payments. 
E) Stationery for the treasury department.

Question 8

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

Accepted Answer

A) $100 billion. 
B) $150 billion. 
C) $250 billion. 
D) -$50 billion. 
E) $60 billion. 
A) $100 billion. 
B) $150 billion. 
C) $250 billion. 
D) -$50 billion. 
E) $60 billion.

Question 9

GDP counts only:

Accepted Answer

A) all goods and services produced within the country. 
B) transfer payments. 
C) second-hand domestic products. 
D) new domestic products. 
A) all goods and services produced within the country. 
B) transfer payments. 
C) second-hand domestic products. 
D) new domestic products.

Question 10

Which one of the following statements is true?

Accepted Answer

A) Prices and quantities in individual markets are determined by the government. 
B) In the factor markets, labour is owned by businesses and supplied to households. 
C) In the factor markets, businesses supply labour in return for money repayments. 
D) Households supply labour to businesses in return for wages and salaries. 
A) Prices and quantities in individual markets are determined by the government. 
B) In the factor markets, labour is owned by businesses and supplied to households. 
C) In the factor markets, businesses supply labour in return for money repayments. 
D) Households supply labour to businesses in return for wages and salaries.

Question 11

Gross domestic product (GDP)is a correct measure of both economic 'goods' and 'bads'.

Accepted Answer

A) True 
 B)False

Question 12

Which one of the following statements is true?

Accepted Answer

A) Resources flow from the government to firms. 
B) Taxes flow from foreign economies to the government. 
C) Goods and services flow from households to foreign economies. 
D) Resources flow from households to firms. 
A) Resources flow from the government to firms. 
B) Taxes flow from foreign economies to the government. 
C) Goods and services flow from households to foreign economies. 
D) Resources flow from households to firms.

Question 13

Suppose a miller sells flour to a baker for $100.The baker then produces bread from the flour and sells it to Coles for $600.Coles in turn then sells it to the public for $850.The increase in GDP as a result of these transactions will be:

Accepted Answer

A) $1550. 
B) $850. 
C) $600. 
D) $100. 
E) indeterminate. 
A) $1550. 
B) $850. 
C) $600. 
D) $100. 
E) indeterminate.

Question 14

Exhibit 11-2 GDP data (billions of dollars)
  
-In Exhibit 11-2,NDP is:

Accepted Answer

A) $6254.5 billion. 
B) $6495.2 billion. 
C) $6805.9 billion. 
D) $7082.9 billion. 
E) $7637.7 billion. 
A) $6254.5 billion. 
B) $6495.2 billion. 
C) $6805.9 billion. 
D) $7082.9 billion. 
E) $7637.7 billion.

Question 15

If a firm finds that it has a larger stock of inventory at the end of the period than it had at the start,the difference would be:

Accepted Answer

A) counted as investment. 
B) subtracted from total GDP. 
C) counted as consumption on the assumption that it will eventually be sold. 
D) counted as net exports. 
E) indeterminate. 
A) counted as investment. 
B) subtracted from total GDP. 
C) counted as consumption on the assumption that it will eventually be sold. 
D) counted as net exports. 
E) indeterminate.

Question 16

Nominal GDP is based on:

Accepted Answer

A) the existing prices during the period of production. 
B) prices of final goods and services adjusted for inflation. 
C) prices at which intermediate goods are sold. 
D) the existing price during a given time period based on the price existing in a selected base year. 
A) the existing prices during the period of production. 
B) prices of final goods and services adjusted for inflation. 
C) prices at which intermediate goods are sold. 
D) the existing price during a given time period based on the price existing in a selected base year.

Question 17

Which one of the following is an example of a circular flow model and shows the interdependence of households and firms?

Accepted Answer

A) Households demand their resources from firms in the factor markets and, in turn, supply in the product market, the goods and services produced by the firms. 
B) Firms go to the resource market to supply resources that households demand and, in turn, provide households with the goods and services produced for the product markets. 
C) Households supply their resources to firms in the factor markets and, in turn, demand in the product market, the goods and services produced by the firms. 
D) Firms in the factor markets pay households, in the form of wages, interest, rent and profit, for resources demanded. 
E) The circuit is completed when payments flow from households, through the product markets, to firms for the goods and services they demand. 
A) Households demand their resources from firms in the factor markets and, in turn, supply in the product market, the goods and services produced by the firms. 
B) Firms go to the resource market to supply resources that households demand and, in turn, provide households with the goods and services produced for the product markets. 
C) Households supply their resources to firms in the factor markets and, in turn, demand in the product market, the goods and services produced by the firms. 
D) Firms in the factor markets pay households, in the form of wages, interest, rent and profit, for resources demanded. 
E) The circuit is completed when payments flow from households, through the product markets, to firms for the goods and services they demand.

Question 18

The expenditure approach to GDP accounting includes:

Accepted Answer

A) wages and salaries. 
B) net exports. 
C) net interest. 
D) corporate profit. 
E) proprietors' income. 
A) wages and salaries. 
B) net exports. 
C) net interest. 
D) corporate profit. 
E) proprietors' income.

Question 19

Net disposable income (NDI)is equal to:

Accepted Answer

A) GDP minus transfer payments overseas. 
B) NNP minus depreciation. 
C) NNP minus transfer payments overseas. 
D) GNE minus imports. 
E) GNE minus depreciation. 
A) GDP minus transfer payments overseas. 
B) NNP minus depreciation. 
C) NNP minus transfer payments overseas. 
D) GNE minus imports. 
E) GNE minus depreciation.

Question 20

Which one of the following statements is true?

Accepted Answer

A) Resources flow from the government to households. 
B) Resources flow from firms to households. 
C) Taxes flow from firms to the government. 
D) Resource payments flow from firms to households. 
E) Imports flow from firms to foreign economies. 
A) Resources flow from the government to households. 
B) Resources flow from firms to households. 
C) Taxes flow from firms to the government. 
D) Resource payments flow from firms to households. 
E) Imports flow from firms to foreign economies.

Flows are measured per period of time,while stocks are measured at a particular point in time.

In a closed economy,any differences between desired saving and investment will be equal to:

Actual measured saving and measured investment are equal

GDP is the sum of exports,consumer expenditure,government expenditure and taxes.

Which of the following expenditures would not be included in GDP?

Which of the following expenditures would be included in GDP for this year?

Which of the following would not be included as part of government spending in GDP calculations?

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

GDP counts only:

Which one of the following statements is true?

Gross domestic product (GDP)is a correct measure of both economic 'goods' and 'bads'.

Which one of the following statements is true?

Suppose a miller sells flour to a baker for $100.The baker then produces bread from the flour and sells it to Coles for $600.Coles in turn then sells it to the public for $850.The increase in GDP as a result of these transactions will be:

Exhibit 11-2 GDP data (billions of dollars) -In Exhibit 11-2,NDP is:

If a firm finds that it has a larger stock of inventory at the end of the period than it had at the start,the difference would be:

Nominal GDP is based on:

Which one of the following is an example of a circular flow model and shows the interdependence of households and firms?

The expenditure approach to GDP accounting includes:

Net disposable income (NDI)is equal to:

Which one of the following statements is true?

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

Flows are measured per period of time,while stocks are measured at a particular point in time.

In a closed economy,any differences between desired saving and investment will be equal to:

Actual measured saving and measured investment are equal

GDP is the sum of exports,consumer expenditure,government expenditure and taxes.

Which of the following expenditures would not be included in GDP?

Which of the following expenditures would be included in GDP for this year?

Which of the following would not be included as part of government spending in GDP calculations?

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

GDP counts only:

Which one of the following statements is true?

Gross domestic product (GDP)is a correct measure of both economic 'goods' and 'bads'.

Which one of the following statements is true?

Suppose a miller sells flour to a baker for $100.The baker then produces bread from the flour and sells it to Coles for $600.Coles in turn then sells it to the public for $850.The increase in GDP as a result of these transactions will be:

Exhibit 11-2 GDP data (billions of dollars) -In Exhibit 11-2,NDP is:

If a firm finds that it has a larger stock of inventory at the end of the period than it had at the start,the difference would be:

Nominal GDP is based on:

Which one of the following is an example of a circular flow model and shows the interdependence of households and firms?

The expenditure approach to GDP accounting includes:

Net disposable income (NDI)is equal to:

Which one of the following statements is true?

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