Question 1

An economy with only a domestic sector is called:

Accepted Answer

A) a mixed economy. 
B) an open economy. 
C) a closed economy. 
D) a command economy. 
A) a mixed economy. 
B) an open economy. 
C) a closed economy. 
D) a command economy. C

Question 2

What is the difference between inflation and deflation?

Accepted Answer

A) Inflation is a sustained decrease in the price level whereas deflation is a sustained increase in the price level. 
B) Inflation is a sustained increase in the price level whereas deflation is a sustained decrease in the price level. 
C) Inflation is a measure of relative prices whereas deflation is a sustained increase in the price level. 
D) None of the above. 
A) Inflation is a sustained decrease in the price level whereas deflation is a sustained increase in the price level. 
B) Inflation is a sustained increase in the price level whereas deflation is a sustained decrease in the price level. 
C) Inflation is a measure of relative prices whereas deflation is a sustained increase in the price level. 
D) None of the above. B

Question 3

Proprietor's income is not considered part of national income.

Accepted Answer

A) True 
 B)False  False

Question 4

The purchase of a Boeing airplane by the U.S.government is considered part of government consumption expenditures and gross investment.

Accepted Answer

A) True 
 B)False

Question 5

If GDP falls:

Accepted Answer

A) income and production must both fall. 
B) income and production must both rise. 
C) income must rise, but production may rise or fall. 
D) none of the above. 
A) income and production must both fall. 
B) income and production must both rise. 
C) income must rise, but production may rise or fall. 
D) none of the above.

Question 6

The following data summarize the expenditures for the country of XYZ during 2003 in millions of alphabet,the currency of country XYZ.
   
a.Calculate net exports
b.Calculate GDP
c.Calculate national income
d.Assume that the GDP deflator is 120 and calculate real GDP for 2003.

Accepted Answer

a.F = X - M = $200 - $200 = 0
b.GDP = C

Question 7

Table 11.1
  
-Refer to Table 11.1.What is the value of gross private domestic investment?

Accepted Answer

A) $1,500. 
B) $1,400. 
C) $1,600. 
D) $2,000. 
A) $1,500. 
B) $1,400. 
C) $1,600. 
D) $2,000.

Question 8

Over time Americans have chosen to cook less at home and dine out more.This change in behavior:

Accepted Answer

A) increases GDP. 
B) reduces GDP. 
C) does not affect GDP. 
D) none of the above 
A) increases GDP. 
B) reduces GDP. 
C) does not affect GDP. 
D) none of the above

Question 9

Business cycles are officially dated by:

Accepted Answer

A) National Bureau of Economic Research, NBER. 
B) Bureau of Economic Analysis, BEA. 
C) Bureau of Labor Statistics, BLS. 
D) none of the above. 
A) National Bureau of Economic Research, NBER. 
B) Bureau of Economic Analysis, BEA. 
C) Bureau of Labor Statistics, BLS. 
D) none of the above.

Question 10

Suppose an apartment complex is converted to an owner occupied condominium.Suppose that the estimated value of the condominium owners' housing services is now the same as their former rent.

Accepted Answer

A) GDP increases. 
B) GDP decreases. 
C) GDP is unaffected because neither the rent nor the estimate of the value of housing services is included in GDP. 
D) None of the above. 
A) GDP increases. 
B) GDP decreases. 
C) GDP is unaffected because neither the rent nor the estimate of the value of housing services is included in GDP. 
D) None of the above.

Question 11

The circular-flow diagram illustrates that:

Accepted Answer

A) production generates income so that income and production are the same. 
B) the economy's income is less than its production. 
C) the economy's income is exceeds its production. 
D) none of the above are necessarily correct. 
A) production generates income so that income and production are the same. 
B) the economy's income is less than its production. 
C) the economy's income is exceeds its production. 
D) none of the above are necessarily correct.

Question 12

The actual unemployment rate exceeds the natural rate of unemployment.What are policymakers concerned about in this situation?

Accepted Answer

If the actual unemployment rate exceeds

Question 13

What are some of the issues associated with the consumer price index?

Accepted Answer

The fixed market basket procedure create

Question 14

The legislation passed in 1946 that requires governmental institutions to promote "maximum employment,production,and purchasing power" is called:

Accepted Answer

A) Full Employment and Balanced Growth Act. 
B) Federal Reserve Act. 
C) Employment Act. 
D) Unemployment Act. 
A) Full Employment and Balanced Growth Act. 
B) Federal Reserve Act. 
C) Employment Act. 
D) Unemployment Act.

Question 15

An increase in nominal GDP implies that the country is producing a greater quantity of goods and services.

Accepted Answer

A) True 
 B)False

Question 16

Monetary policy is controlled by the U.S.Congress.

Accepted Answer

A) True 
 B)False

Question 17

The value of currently produced final goods and services measured in constant prices is called:

Accepted Answer

A) real GDP. 
B) nominal GDP. 
C) imputed values. 
D) inflation. 
A) real GDP. 
B) nominal GDP. 
C) imputed values. 
D) inflation.

Question 18

The BLS obtains employment information from a monthly survey of a sample of approximately 60,000 households.

Accepted Answer

A) True 
 B)False

Question 19

A French citizen lives in Detroit,but works in Windsor,Canada; his income is counted in U.S.GDP.

Accepted Answer

A) True 
 B)False

Question 20

Table 11.1
  
-Refer to Table 11.1.What is the value of GDP?

Accepted Answer

A) $7,450. 
B) $7,250. 
C) $7,150. 
D) $7,350. 
A) $7,450. 
B) $7,250. 
C) $7,150. 
D) $7,350.

An economy with only a domestic sector is called:

What is the difference between inflation and deflation?

Proprietor's income is not considered part of national income.

The purchase of a Boeing airplane by the U.S.government is considered part of government consumption expenditures and gross investment.

If GDP falls:

The following data summarize the expenditures for the country of XYZ during 2003 in millions of alphabet,the currency of country XYZ. a.Calculate net exports b.Calculate GDP c.Calculate national income d.Assume that the GDP deflator is 120 and calculate real GDP for 2003.

Table 11.1 -Refer to Table 11.1.What is the value of gross private domestic investment?

Over time Americans have chosen to cook less at home and dine out more.This change in behavior:

Business cycles are officially dated by:

Suppose an apartment complex is converted to an owner occupied condominium.Suppose that the estimated value of the condominium owners' housing services is now the same as their former rent.

The circular-flow diagram illustrates that:

The actual unemployment rate exceeds the natural rate of unemployment.What are policymakers concerned about in this situation?

What are some of the issues associated with the consumer price index?

The legislation passed in 1946 that requires governmental institutions to promote "maximum employment,production,and purchasing power" is called:

An increase in nominal GDP implies that the country is producing a greater quantity of goods and services.

Monetary policy is controlled by the U.S.Congress.

The value of currently produced final goods and services measured in constant prices is called:

The BLS obtains employment information from a monthly survey of a sample of approximately 60,000 households.

A French citizen lives in Detroit,but works in Windsor,Canada; his income is counted in U.S.GDP.

Table 11.1 -Refer to Table 11.1.What is the value of GDP?

Managers and Economics

Demand, supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Spending by Individuals, firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters

Exam 11: Measuring Macroeconomic Activity

An economy with only a domestic sector is called:

What is the difference between inflation and deflation?

Proprietor's income is not considered part of national income.

The purchase of a Boeing airplane by the U.S.government is considered part of government consumption expenditures and gross investment.

If GDP falls:

The following data summarize the expenditures for the country of XYZ during 2003 in millions of alphabet,the currency of country XYZ. a.Calculate net exports b.Calculate GDP c.Calculate national income d.Assume that the GDP deflator is 120 and calculate real GDP for 2003.

Table 11.1 -Refer to Table 11.1.What is the value of gross private domestic investment?

Over time Americans have chosen to cook less at home and dine out more.This change in behavior:

Business cycles are officially dated by:

Suppose an apartment complex is converted to an owner occupied condominium.Suppose that the estimated value of the condominium owners' housing services is now the same as their former rent.

The circular-flow diagram illustrates that:

The actual unemployment rate exceeds the natural rate of unemployment.What are policymakers concerned about in this situation?

What are some of the issues associated with the consumer price index?

The legislation passed in 1946 that requires governmental institutions to promote "maximum employment,production,and purchasing power" is called:

An increase in nominal GDP implies that the country is producing a greater quantity of goods and services.

Monetary policy is controlled by the U.S.Congress.

The value of currently produced final goods and services measured in constant prices is called:

The BLS obtains employment information from a monthly survey of a sample of approximately 60,000 households.

A French citizen lives in Detroit,but works in Windsor,Canada; his income is counted in U.S.GDP.

Table 11.1 -Refer to Table 11.1.What is the value of GDP?

Managers and Economics

Demand, supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Spending by Individuals, firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters