Question 1

Transfer payments are:

Accepted Answer

A) included in GDP. 
B) not included in GDP. 
C) included in both GDP and GNP. 
D) none of the above. 
A) included in GDP. 
B) not included in GDP. 
C) included in both GDP and GNP. 
D) none of the above.

Question 2

Policies adopted by a country's central bank that influence interest rates and credit conditions, which in turn influence consumer and business spending are called:

Accepted Answer

A) monetary policy. 
B) fiscal policy. 
C) foreign policy. 
D) exchange rate policy. 
A) monetary policy. 
B) fiscal policy. 
C) foreign policy. 
D) exchange rate policy.

Question 3

The natural rate of unemployment is also called:

Accepted Answer

A) non-accelerating inflation rate of unemployment. 
B) accelerating inflation rate of unemployment. 
C) accelerating deflation rate of unemployment. 
D) none of the above. 
A) non-accelerating inflation rate of unemployment. 
B) accelerating inflation rate of unemployment. 
C) accelerating deflation rate of unemployment. 
D) none of the above.

Question 4

Jim, a U.S.citizen, works only in Croatia.The value added to production from his employment is:

Accepted Answer

A) included in only Croatian GNP. 
B) included only in U.S. GDP. 
C) included only in U.S. GNP. 
D) not included in either U.S. GDP or U.S. GNP. 
A) included in only Croatian GNP. 
B) included only in U.S. GDP. 
C) included only in U.S. GNP. 
D) not included in either U.S. GDP or U.S. GNP.

Question 5

An economy with both a private and public sector is called:

Accepted Answer

A) a mixed economy. 
B) a private economy. 
C) a command economy. 
D) none of the above. 
A) a mixed economy. 
B) a private economy. 
C) a command economy. 
D) none of the above.

Question 6

Balance of payments issues are related to the relative value of different countries' currencies and the flow of goods, services, and financial assets among countries.The rate at which one country's currency can be traded for another is called:

Accepted Answer

A) the trade balance. 
B) capital inflows. 
C) capital outflows. 
D) the exchange rate. 
A) the trade balance. 
B) capital inflows. 
C) capital outflows. 
D) the exchange rate.

Question 7

GDP may be computed using the expenditure or value-added approaches.

Accepted Answer

A) True 
 B)False

Question 8

Changes in the natural rate of unemployment are related to changes in the composition of the labor force and to the changes in the productivity of the economy over time.

Accepted Answer

A) True 
 B)False

Question 9

In recent years, U.S.exports have exceeded U.S.imports.

Accepted Answer

A) True 
 B)False

Question 10

The expenditure approach to calculating GDP for an open economy entails adding consumption, investment, and government purchases.

Accepted Answer

A) True 
 B)False

Question 11

Changes in business inventories are not considered part of gross private domestic investment spending.

Accepted Answer

A) True 
 B)False

Question 12

Once households pay taxes, they have two options with their disposable income: consume or save.

Accepted Answer

A) True 
 B)False

Question 13

Given the following information, calculate personal consumption expenditures.

Accepted Answer

GDP = C + I + G + F
$5,000 = C

Question 14

Inflation was a problem during the Great Depression.

Accepted Answer

A) True 
 B)False

Question 15

Personal income less personal taxes is called:

Accepted Answer

A) personal disposable income. 
B) national income. 
C) compensation of employees. 
D) savings. 
A) personal disposable income. 
B) national income. 
C) compensation of employees. 
D) savings.

Question 16

A problem with the CPI is the presence of a substitution bias on the behalf of consumers.

Accepted Answer

A) True 
 B)False

Question 17

Changes in taxes and spending by the executive and legislative branches of a country's government that can be used to either stimulate or restrain the economy are called:

Accepted Answer

A) monetary policy. 
B) fiscal policy. 
C) foreign policy. 
D) exchange rate policy. 
A) monetary policy. 
B) fiscal policy. 
C) foreign policy. 
D) exchange rate policy.

Question 18

Macroeconomics studies the following topics:

Accepted Answer

A) national output, the inflation rate, and the trade deficit. 
B) the price of Cisco stock and wage differences. 
C) differences in market structure. 
D) all of the above. 
A) national output, the inflation rate, and the trade deficit. 
B) the price of Cisco stock and wage differences. 
C) differences in market structure. 
D) all of the above.

Question 19

The level toward which the economy is moving and where it will stay unless spending patterns of the economy will change is called the equilibrium level of output and income.

Accepted Answer

A) True 
 B)False

Question 20

A measure of absolute price changes that excludes changes in energy and food prices is called:

Accepted Answer

A) fringe rate of inflation. 
B) core rate of inflation. 
C) overall inflation. 
D) none of the above. 
A) fringe rate of inflation. 
B) core rate of inflation. 
C) overall inflation. 
D) none of the above.

Transfer payments are:

Policies adopted by a country's central bank that influence interest rates and credit conditions, which in turn influence consumer and business spending are called:

The natural rate of unemployment is also called:

Jim, a U.S.citizen, works only in Croatia.The value added to production from his employment is:

An economy with both a private and public sector is called:

Balance of payments issues are related to the relative value of different countries' currencies and the flow of goods, services, and financial assets among countries.The rate at which one country's currency can be traded for another is called:

GDP may be computed using the expenditure or value-added approaches.

Changes in the natural rate of unemployment are related to changes in the composition of the labor force and to the changes in the productivity of the economy over time.

In recent years, U.S.exports have exceeded U.S.imports.

The expenditure approach to calculating GDP for an open economy entails adding consumption, investment, and government purchases.

Changes in business inventories are not considered part of gross private domestic investment spending.

Once households pay taxes, they have two options with their disposable income: consume or save.

Given the following information, calculate personal consumption expenditures.

Inflation was a problem during the Great Depression.

Personal income less personal taxes is called:

A problem with the CPI is the presence of a substitution bias on the behalf of consumers.

Changes in taxes and spending by the executive and legislative branches of a country's government that can be used to either stimulate or restrain the economy are called:

Macroeconomics studies the following topics:

The level toward which the economy is moving and where it will stay unless spending patterns of the economy will change is called the equilibrium level of output and income.

A measure of absolute price changes that excludes changes in energy and food prices is called:

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

Transfer payments are:

Policies adopted by a country's central bank that influence interest rates and credit conditions, which in turn influence consumer and business spending are called:

The natural rate of unemployment is also called:

Jim, a U.S.citizen, works only in Croatia.The value added to production from his employment is:

An economy with both a private and public sector is called:

Balance of payments issues are related to the relative value of different countries' currencies and the flow of goods, services, and financial assets among countries.The rate at which one country's currency can be traded for another is called:

GDP may be computed using the expenditure or value-added approaches.

Changes in the natural rate of unemployment are related to changes in the composition of the labor force and to the changes in the productivity of the economy over time.

In recent years, U.S.exports have exceeded U.S.imports.

The expenditure approach to calculating GDP for an open economy entails adding consumption, investment, and government purchases.

Changes in business inventories are not considered part of gross private domestic investment spending.

Once households pay taxes, they have two options with their disposable income: consume or save.

Given the following information, calculate personal consumption expenditures.

Inflation was a problem during the Great Depression.

Personal income less personal taxes is called:

A problem with the CPI is the presence of a substitution bias on the behalf of consumers.

Changes in taxes and spending by the executive and legislative branches of a country's government that can be used to either stimulate or restrain the economy are called:

Macroeconomics studies the following topics:

The level toward which the economy is moving and where it will stay unless spending patterns of the economy will change is called the equilibrium level of output and income.

A measure of absolute price changes that excludes changes in energy and food prices is called:

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