Question 1

Inventories help manufacturers cope with unexpected changes in the supply of their resources or in the demand for their products.

Accepted Answer

A) True 
 B)False

Question 2

The immediate effect of a purchase of a government bond on the gross domestic product (GDP) is _____

Accepted Answer

A)  a decrease in consumption. 
B)  an increase in government spending. 
C)  an increase in investment. 
D)  a decrease in investment. 
E)  nonexistent, since no real goods and services have been produced. 
A)  a decrease in consumption. 
B)  an increase in government spending. 
C)  an increase in investment. 
D)  a decrease in investment. 
E)  nonexistent, since no real goods and services have been produced.

Question 3

Gross domestic product (GDP) will increase if illegal drugs are made legal.

Accepted Answer

A) True 
 B)False

Question 4

Table 6.2
 $$\begin{array}{l}
\text { Table } 6.2\
\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Price of apples } & \text { Price of oranges } \
\hline 2016 & \$ 3.00 & \$ 1.00 \
\hline 2017 & \$ 4.00 & \$ 2.00 \
\hline
\end{array}
\end{array}$$
-Refer to Table 6.2 of a consumer's basket that consists of apples and oranges. What is the consumer price index for 2017 if the base year is 2016?

Accepted Answer

A)  10 
B)  20 
C)  50 
D)  100 
E)  150 
A)  10 
B)  20 
C)  50 
D)  100 
E)  150

Question 5

Which of the following is true of leakages and injections in the circular-flow model?

Accepted Answer

A)  Leakages minus injections equals gross domestic product (GDP). 
B)  Injections minus leakages equals gross domestic product (GDP. 
C)  Leakages minus injections equals zero in equilibrium. 
D)  Leakages must be less than injections for an economy to be in equilibrium. 
E)  Leakages must be greater than injections for an economy to be growing. 
A)  Leakages minus injections equals gross domestic product (GDP). 
B)  Injections minus leakages equals gross domestic product (GDP. 
C)  Leakages minus injections equals zero in equilibrium. 
D)  Leakages must be less than injections for an economy to be in equilibrium. 
E)  Leakages must be greater than injections for an economy to be growing.

Question 6

The largest component of aggregate expenditure is _____

Accepted Answer

A)  government purchases. 
B)  transfer payments. 
C)  imports. 
D)  consumption. 
E)  investment. 
A)  government purchases. 
B)  transfer payments. 
C)  imports. 
D)  consumption. 
E)  investment.

Question 7

If a firm's inventory decreases, the gross domestic product (GDP) also decreases.

Accepted Answer

A) True 
 B)False

Question 8

Gross domestic product (GDP) understates total economic activity because it ignores household production of goods and services.

Accepted Answer

A) True 
 B)False

Question 9

Disposable income equals personal income minus net taxes.

Accepted Answer

A) True 
 B)False

Question 10

If real gross domestic product (GDP) in a particular year is $5,000 trillion and nominal gross domestic product (GDP) in that same year is $4,000 trillion, then the:

Accepted Answer

A)  consumer price index (CPI) is 125. 
B)  economic activity has decreased by 20 percent. 
C)  GDP price index is 125. 
D)  GDP price index is 80. 
E)  economy has grown by 20 percent. 
A)  consumer price index (CPI) is 125. 
B)  economic activity has decreased by 20 percent. 
C)  GDP price index is 125. 
D)  GDP price index is 80. 
E)  economy has grown by 20 percent.

Question 11

A decrease in gross domestic product (GDP) necessarily means that consumer welfare has decreased.

Accepted Answer

A) True 
 B)False

Inventories help manufacturers cope with unexpected changes in the supply of their resources or in the demand for their products.

The immediate effect of a purchase of a government bond on the gross domestic product (GDP) is _____

Gross domestic product (GDP) will increase if illegal drugs are made legal.

Table 6.2 Table 6.2 Year Price of apples Price of oranges 2016 \ 3.00 \ 1.00 2017 \ 4.00 \ 2.00 -Refer to Table 6.2 of a consumer's basket that consists of apples and oranges. What is the consumer price index for 2017 if the base year is 2016?

Which of the following is true of leakages and injections in the circular-flow model?

The largest component of aggregate expenditure is _____

If a firm's inventory decreases, the gross domestic product (GDP) also decreases.

Gross domestic product (GDP) understates total economic activity because it ignores household production of goods and services.

Disposable income equals personal income minus net taxes.

If real gross domestic product (GDP) in a particular year is $5,000 trillion and nominal gross domestic product (GDP) in that same year is $4,000 trillion, then the:

A decrease in gross domestic product (GDP) necessarily means that consumer welfare has decreased.

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters

Exam 6: Tracking the U. S. Economy.

Inventories help manufacturers cope with unexpected changes in the supply of their resources or in the demand for their products.

The immediate effect of a purchase of a government bond on the gross domestic product (GDP) is _____

Gross domestic product (GDP) will increase if illegal drugs are made legal.

Table 6.2 Table 6.2 Year Price of apples Price of oranges 2016 \ 3.00 \ 1.00 2017 \ 4.00 \ 2.00 -Refer to Table 6.2 of a consumer's basket that consists of apples and oranges. What is the consumer price index for 2017 if the base year is 2016?

Which of the following is true of leakages and injections in the circular-flow model?

The largest component of aggregate expenditure is _____

If a firm's inventory decreases, the gross domestic product (GDP) also decreases.

Gross domestic product (GDP) understates total economic activity because it ignores household production of goods and services.

Disposable income equals personal income minus net taxes.

If real gross domestic product (GDP) in a particular year is $5,000 trillion and nominal gross domestic product (GDP) in that same year is $4,000 trillion, then the:

A decrease in gross domestic product (GDP) necessarily means that consumer welfare has decreased.

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters