Question 1

In 2009 Kuwait's nominal GDP declined by 30 percent, while the economy registered growth of more than 4 percent. Which of the following is true?

Accepted Answer

A)  Both Nominal and Real GDP Growth are not good indicators of production growth. 
B)  The growth in Real GDP is a good indicator of how production increased from one year to another. 
C)  The growth in Nominal GDP is a good indicator of how production increased from one year to another. 
D)  Both Nominal GDP and Real GDP growth are good indicators of production growth. 
A)  Both Nominal and Real GDP Growth are not good indicators of production growth. 
B)  The growth in Real GDP is a good indicator of how production increased from one year to another. 
C)  The growth in Nominal GDP is a good indicator of how production increased from one year to another. 
D)  Both Nominal GDP and Real GDP growth are good indicators of production growth. B

Question 2

-Refer to Table 15 -12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 1998 equals

Accepted Answer

A)  96.9. 
B)  104.2. 
C)  103.2. 
D)  105.7. 
A)  96.9. 
B)  104.2. 
C)  103.2. 
D)  105.7. C

Question 3

If real GDP in 2007 (using 2002 prices) is lower than nominal GDP of 2006, then

Accepted Answer

A)  prices in 2007 are lower than prices in 2006. 
B)  prices in 2007 are higher than prices in 2006. 
C)  nominal GDP in 2007 equals nominal GDP in 2006. 
D)  real GDP in 2007 is larger than real GDP in 2006. 
A)  prices in 2007 are lower than prices in 2006. 
B)  prices in 2007 are higher than prices in 2006. 
C)  nominal GDP in 2007 equals nominal GDP in 2006. 
D)  real GDP in 2007 is larger than real GDP in 2006. A

Question 4

In 2009, Emirates Airlines experienced a decrease in the demand for its services and this led to declining profits. These events were caused by

Accepted Answer

A)  lower quality of service. 
B)  an economic recession due to the financial crisis. 
C)  unsuccessful marketing campaign. 
D)  an economic expansion that led to higher ticket prices. 
A)  lower quality of service. 
B)  an economic recession due to the financial crisis. 
C)  unsuccessful marketing campaign. 
D)  an economic expansion that led to higher ticket prices.

Question 5

In 2010, Al-Rashed an automobile dealership, spends $20,000 on a new car lift for its repair shop, $2,000 on a new copy machine for its sales division, and $500,000 on imported Nissan company stock. Unsold cars and trucks were valued at $600,000 on January 1, 2010 and unsold cars and trucks were valued at $900,000 on December 31, 2010. What is Al-Rashed's total investment spending in 2010?

Accepted Answer

A)  $922,000 
B)  $522,000 
C)  $322,000 
D)  $22,000 
A)  $922,000 
B)  $522,000 
C)  $322,000 
D)  $22,000

Question 6

Consider the data shown above for a fictional economy that produces only two products: oranges and shirts.
-Refer to Table 15 -10. Nominal GDP for this fictional economy for 1998 equals

Accepted Answer

A)  $5,300. 
B)  $5,100. 
C)  $4,620. 
D)  $5,850. 
A)  $5,300. 
B)  $5,100. 
C)  $4,620. 
D)  $5,850.

Question 7

Consider the data shown above for a fictional economy that produces only two products: oranges and shirts.
-Refer to Table 15 -10. Real GDP for this fictional economy for 1998 using 2000 as the base year equals

Accepted Answer

A)  $4,620. 
B)  $5,300. 
C)  $5,850. 
D)  $5,100. 
A)  $4,620. 
B)  $5,300. 
C)  $5,850. 
D)  $5,100.

Question 8

Consider the table above showing three stages of production of an automobile.
-Refer to Table 15 -5. The value of each automobile in gross domestic product equals

Accepted Answer

A)  $15,000. 
B)  $25,000. 
C)  $7,000. 
D)  $18,000. 
A)  $15,000. 
B)  $25,000. 
C)  $7,000. 
D)  $18,000.

Question 9

-Refer to Table 15 -11. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 1999 equals

Accepted Answer

A)  104.1. 
B)  95.5. 
C)  105.6. 
D)  104.7. 
A)  104.1. 
B)  95.5. 
C)  105.6. 
D)  104.7.

Question 10

Which of the following is a key economic policy measure that the head of the IMF' Middle East and Central Asia recommended in May 2009?

Accepted Answer

A)  Maintain or increase public spending where possible 
B)  Reduce oil prices 
C)  Relax control on financial systems 
D)  Increase exports 
A)  Maintain or increase public spending where possible 
B)  Reduce oil prices 
C)  Relax control on financial systems 
D)  Increase exports

Question 11

Consider the table above showing three stages of production of an automobile.
-Refer to Table 15 -5. The value added by the automobile dealer equals

Accepted Answer

A)  $25,000. 
B)  $15,000. 
C)  $18,000. 
D)  $7,000. 
A)  $25,000. 
B)  $15,000. 
C)  $18,000. 
D)  $7,000.

Question 12

The Philippines and Vietnam have roughly the same size population. Suppose the GDP of the Philippines is $1,000 billion and the GDP of Vietnam is $10,000 billion. You should conclude

Accepted Answer

A)  a typical person in Vietnam is less than 10 times as well off as the typical person in the Philippines. 
B)  a typical person in Vietnam is more than 10 times as well off as the typical person in the Philippines. 
C)  a typical person in Vietnam is 10 times as well off as the typical person in the Philippines. 
D)  it is not possible to make a good comparison of the economic well being of a typical individual in the 2 countries without additional information. 
A)  a typical person in Vietnam is less than 10 times as well off as the typical person in the Philippines. 
B)  a typical person in Vietnam is more than 10 times as well off as the typical person in the Philippines. 
C)  a typical person in Vietnam is 10 times as well off as the typical person in the Philippines. 
D)  it is not possible to make a good comparison of the economic well being of a typical individual in the 2 countries without additional information.

Question 13

The output of Bahraini citizens who work in Saudi Arabia would be included in the

Accepted Answer

A)  gross domestic product of the Bahrain. 
B)  gross national product of Saudi Arabia. 
C)  gross domestic product of Saudi Arabia. 
D)  gross national product of Saudi Arabia and the gross national product of Bahrain. 
A)  gross domestic product of the Bahrain. 
B)  gross national product of Saudi Arabia. 
C)  gross domestic product of Saudi Arabia. 
D)  gross national product of Saudi Arabia and the gross national product of Bahrain.

Question 14

Many Arab countries have a larger informal sector of the economy relative to developed countries. What effect would this have on the GDP of Arab countries?

Accepted Answer

A)  Understate the GDP of Arab countries. 
B)  It has no effect on the GDP of Arab countries. 
C)  Overstate the GDP of Arab countries. 
D)  None of the above. 
A)  Understate the GDP of Arab countries. 
B)  It has no effect on the GDP of Arab countries. 
C)  Overstate the GDP of Arab countries. 
D)  None of the above.

In 2009 Kuwait's nominal GDP declined by 30 percent, while the economy registered growth of more than 4 percent. Which of the following is true?

-Refer to Table 15 -12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 1998 equals

If real GDP in 2007 (using 2002 prices) is lower than nominal GDP of 2006, then

In 2009, Emirates Airlines experienced a decrease in the demand for its services and this led to declining profits. These events were caused by

Consider the data shown above for a fictional economy that produces only two products: oranges and shirts. -Refer to Table 15 -10. Nominal GDP for this fictional economy for 1998 equals

Consider the data shown above for a fictional economy that produces only two products: oranges and shirts. -Refer to Table 15 -10. Real GDP for this fictional economy for 1998 using 2000 as the base year equals

Consider the table above showing three stages of production of an automobile. -Refer to Table 15 -5. The value of each automobile in gross domestic product equals

-Refer to Table 15 -11. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 1999 equals

Which of the following is a key economic policy measure that the head of the IMF' Middle East and Central Asia recommended in May 2009?

Consider the table above showing three stages of production of an automobile. -Refer to Table 15 -5. The value added by the automobile dealer equals

The Philippines and Vietnam have roughly the same size population. Suppose the GDP of the Philippines is $1,000 billion and the GDP of Vietnam is $10,000 billion. You should conclude

The output of Bahraini citizens who work in Saudi Arabia would be included in the

Many Arab countries have a larger informal sector of the economy relative to developed countries. What effect would this have on the GDP of Arab countries?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Elasticity: The Responsiveness of Demand and Supply

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

Externalities, Environmental Policy, and Public Goods

Comparative Advantage and the Gains From International Trade Macro

Economic Growth, the Financial System, and Business Cycles

Unemployment and Inflation

The Markets for Labor and Other Factors of Production

Output and Expenditure in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Central Bank

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Central Bank Policy

Macroeconomics in an Open Economy

Filters

Exam 15: GDP: Measuring Total Production and Income

In 2009 Kuwait's nominal GDP declined by 30 percent, while the economy registered growth of more than 4 percent. Which of the following is true?

-Refer to Table 15 -12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 1998 equals

If real GDP in 2007 (using 2002 prices) is lower than nominal GDP of 2006, then

In 2009, Emirates Airlines experienced a decrease in the demand for its services and this led to declining profits. These events were caused by

Consider the data shown above for a fictional economy that produces only two products: oranges and shirts. -Refer to Table 15 -10. Nominal GDP for this fictional economy for 1998 equals

Consider the data shown above for a fictional economy that produces only two products: oranges and shirts. -Refer to Table 15 -10. Real GDP for this fictional economy for 1998 using 2000 as the base year equals

Consider the table above showing three stages of production of an automobile. -Refer to Table 15 -5. The value of each automobile in gross domestic product equals

-Refer to Table 15 -11. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 1999 equals

Which of the following is a key economic policy measure that the head of the IMF' Middle East and Central Asia recommended in May 2009?

Consider the table above showing three stages of production of an automobile. -Refer to Table 15 -5. The value added by the automobile dealer equals

The Philippines and Vietnam have roughly the same size population. Suppose the GDP of the Philippines is $1,000 billion and the GDP of Vietnam is $10,000 billion. You should conclude

The output of Bahraini citizens who work in Saudi Arabia would be included in the

Many Arab countries have a larger informal sector of the economy relative to developed countries. What effect would this have on the GDP of Arab countries?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Elasticity: The Responsiveness of Demand and Supply

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

Externalities, Environmental Policy, and Public Goods

Comparative Advantage and the Gains From International Trade Macro

Economic Growth, the Financial System, and Business Cycles

Unemployment and Inflation

The Markets for Labor and Other Factors of Production

Output and Expenditure in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Central Bank

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Central Bank Policy

Macroeconomics in an Open Economy

Filters