Question 1

Which of the following statistics is the best single measure of overall economic activity?

Accepted Answer

A) The labor force participation rate. 
B) The inflation rate. 
C) GDP. 
D) The trade surplus. 
A) The labor force participation rate. 
B) The inflation rate. 
C) GDP. 
D) The trade surplus.

Question 2

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

Accepted Answer

The fixed market basket procedure create

Question 3

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 4

Commodities that typically last three years or more are called:

Accepted Answer

A) durable goods. 
B) nondurable goods. 
C) services. 
D) none of the above. 
A) durable goods. 
B) nondurable goods. 
C) services. 
D) none of the above.

Question 5

The Full Employment and Balanced Growth Act of 1978 is also called the Humphrey-Hawkins Act and requires the President to appear before Congress twice a year to present his forecast for the economy.

Accepted Answer

A) True 
 B)False

Question 6

The producer price index measures:

Accepted Answer

A) the prices consumers pay for final goods and services. 
B) the prices firms pay for crude and intermediate materials as well as finished goods. 
C) the prices the government pays for final goods and services. 
D) none of the above. 
A) the prices consumers pay for final goods and services. 
B) the prices firms pay for crude and intermediate materials as well as finished goods. 
C) the prices the government pays for final goods and services. 
D) none of the above.

Question 7

An economy that has a domestic and a foreign 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.

Question 8

The difference between personal income and disposable income is:

Accepted Answer

A) corporate taxes 
B) personal taxes 
C) savings 
D) none of the above 
A) corporate taxes 
B) personal taxes 
C) savings 
D) none of the above

Question 9

The largest component of national income is:

Accepted Answer

A) compensation of employees 
B) proprietor's income 
C) rental income 
D) corporate profits 
A) compensation of employees 
B) proprietor's income 
C) rental income 
D) corporate profits

Question 10

Compared to the GDP deflator, the consumer price index measures:

Accepted Answer

A) the price of all the goods and services produced in the economy. 
B) the price of a fixed market basket of goods and services. 
C) the price of exported goods and services. 
D) the price of wholesale goods and services. 
A) the price of all the goods and services produced in the economy. 
B) the price of a fixed market basket of goods and services. 
C) the price of exported goods and services. 
D) the price of wholesale goods and services.

Question 11

A German tourist visits Disney World in Orlando; the expenditures made by the German tourist are included in U.S.GDP.

Accepted Answer

A) True 
 B)False

Question 12

In an open economy firms sell goods and services to:

Accepted Answer

A) households, government, and foreigners. 
B) just households. 
C) just the government. 
D) none of the above. 
A) households, government, and foreigners. 
B) just households. 
C) just the government. 
D) none of the above.

Question 13

The level of aggregate output and income where there is a balance between spending and production decisions and where the economy moves toward is called:

Accepted Answer

A) disequilibrium level of output and income. 
B) equilibrium level of output and income. 
C) disequilibrium level of employment. 
D) none of the above. 
A) disequilibrium level of output and income. 
B) equilibrium level of output and income. 
C) disequilibrium level of employment. 
D) none of the above.

Question 14

The producer price index focuses on price changes of domestically produced goods and includes services, construction, and imported goods.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Table 11.1
  
-Refer to Table 11.1.What is the value of personal consumption expenditures?

Accepted Answer

A) $3,000. 
B) $1,000. 
C) $4,350. 
D) $2,350. 
A) $3,000. 
B) $1,000. 
C) $4,350. 
D) $2,350.

Question 17

Prostitution is made legal in the United States, what is the impact on GDP?

Accepted Answer

A) GDP increases. 
B) GDP decreases. 
C) GDP is unchanged. 
D) None of the above. 
A) GDP increases. 
B) GDP decreases. 
C) GDP is unchanged. 
D) None of the above.

Question 18

The price of one good in relation to the price of another good is called:

Accepted Answer

A) absolute prices 
B) exchange rate 
C) relative prices 
D) none of the above 
A) absolute prices 
B) exchange rate 
C) relative prices 
D) none of the above

Question 19

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 20

Fiscal policy is determined by the Federal Reserve System.

Accepted Answer

A) True 
 B)False

Which of the following statistics is the best single measure of overall economic activity?

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

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

Commodities that typically last three years or more are called:

The Full Employment and Balanced Growth Act of 1978 is also called the Humphrey-Hawkins Act and requires the President to appear before Congress twice a year to present his forecast for the economy.

The producer price index measures:

An economy that has a domestic and a foreign sector is called:

The difference between personal income and disposable income is:

The largest component of national income is:

Compared to the GDP deflator, the consumer price index measures:

A German tourist visits Disney World in Orlando; the expenditures made by the German tourist are included in U.S.GDP.

In an open economy firms sell goods and services to:

The level of aggregate output and income where there is a balance between spending and production decisions and where the economy moves toward is called:

The producer price index focuses on price changes of domestically produced goods and includes services, construction, and imported goods.

If GDP falls:

Table 11.1 -Refer to Table 11.1.What is the value of personal consumption expenditures?

Prostitution is made legal in the United States, what is the impact on GDP?

The price of one good in relation to the price of another good is called:

The circular-flow diagram illustrates that:

Fiscal policy is determined by the Federal Reserve System.

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

Which of the following statistics is the best single measure of overall economic activity?

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

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

Commodities that typically last three years or more are called:

The Full Employment and Balanced Growth Act of 1978 is also called the Humphrey-Hawkins Act and requires the President to appear before Congress twice a year to present his forecast for the economy.

The producer price index measures:

An economy that has a domestic and a foreign sector is called:

The difference between personal income and disposable income is:

The largest component of national income is:

Compared to the GDP deflator, the consumer price index measures:

A German tourist visits Disney World in Orlando; the expenditures made by the German tourist are included in U.S.GDP.

In an open economy firms sell goods and services to:

The level of aggregate output and income where there is a balance between spending and production decisions and where the economy moves toward is called:

The producer price index focuses on price changes of domestically produced goods and includes services, construction, and imported goods.

If GDP falls:

Table 11.1 -Refer to Table 11.1.What is the value of personal consumption expenditures?

Prostitution is made legal in the United States, what is the impact on GDP?

The price of one good in relation to the price of another good is called:

The circular-flow diagram illustrates that:

Fiscal policy is determined by the Federal Reserve System.

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