Question 1

Household production,such as baking bread at home,is not included in GDP because it

Accepted Answer

A) has lower quality than the bread in the store. 
B) does not add anything of value to GDP. 
C) has better quality than the bread in the store. 
D) is not really production. 
E) does not involve a market transaction. 
A) has lower quality than the bread in the store. 
B) does not add anything of value to GDP. 
C) has better quality than the bread in the store. 
D) is not really production. 
E) does not involve a market transaction. E

Question 2

The income approach measures GDP by summing

Accepted Answer

A) C + I + G + NX. 
B) the total production of all final goods and services produced in a year within a country's borders. 
C) the wealth of households,business and government. 
D) the incomes paid to households for the resources they own. 
E) Both answers A and D are correct. 
A) C + I + G + NX. 
B) the total production of all final goods and services produced in a year within a country's borders. 
C) the wealth of households,business and government. 
D) the incomes paid to households for the resources they own. 
E) Both answers A and D are correct. D

Question 3

Babysitting services the oldest son provides his parents

Accepted Answer

A) count in both real and nominal GDP only if the son is not paid. 
B) count as nominal GDP but not real GDP. 
C) do not count as real GDP or nominal GDP. 
D) count as real GDP but not nominal GDP. 
E) count as real GDP and nominal GDP. 
A) count in both real and nominal GDP only if the son is not paid. 
B) count as nominal GDP but not real GDP. 
C) do not count as real GDP or nominal GDP. 
D) count as real GDP but not nominal GDP. 
E) count as real GDP and nominal GDP. C

Question 4

A south pacific island produces only coconuts.In 2015,the price of a coconut is $1 and the quantity produced is 200.In 2016,the price of a coconut is $1.50 and the quantity produced is 250.2015 is the base year.Real GDP in 2016 is ________.

Accepted Answer

A) $1.50 
B) $200 
C) $375 
D) $350 
E) $250 
A) $1.50 
B) $200 
C) $375 
D) $350 
E) $250

Question 5

-The table above gives data for a nation.The value of the country's net exports of goods and services shows that the country's

Accepted Answer

A) value of its imports exceeded the value of its exports. 
B) net exports of goods and services are decreasing. 
C) value of its imports is negative. 
D) value of its imports must equal zero. 
E) value of its exports exceeded the value of its imports. 
A) value of its imports exceeded the value of its exports. 
B) net exports of goods and services are decreasing. 
C) value of its imports is negative. 
D) value of its imports must equal zero. 
E) value of its exports exceeded the value of its imports.

Question 6

Recently,the ABS made adjustments to how GDP is calculated that included placing software purchases into the category of

Accepted Answer

A) intermediate goods because software is not a final good. 
B) investment and now directly counts software purchases as part of GDP. 
C) inventory and now software purchases are not directly counted as part of GDP. 
D) net exports of goods and services because most software is written abroad. 
E) net operating surplus. 
A) intermediate goods because software is not a final good. 
B) investment and now directly counts software purchases as part of GDP. 
C) inventory and now software purchases are not directly counted as part of GDP. 
D) net exports of goods and services because most software is written abroad. 
E) net operating surplus.

Question 7

Investment includes

Accepted Answer

A) Harvey Norman's purchase of camera surveillance in all stores. 
B) student purchases of laptops. 
C) your purchases of shares in BHP-Billiton. 
D) wages paid to police officers. 
E) the local Library's purchase of new books. 
A) Harvey Norman's purchase of camera surveillance in all stores. 
B) student purchases of laptops. 
C) your purchases of shares in BHP-Billiton. 
D) wages paid to police officers. 
E) the local Library's purchase of new books.

Question 8

Government expenditures on goods and services include i.the local Library's purchase of new books.
Ii)ACT's road maintenance.
Iii)the State of Victoria's payment of wages to correctional service officers.

Accepted Answer

A) i and iii 
B) i only 
C) i,ii and iii 
D) i and ii 
E) ii and iii 
A) i and iii 
B) i only 
C) i,ii and iii 
D) i and ii 
E) ii and iii

Question 9

Nominal GDP is GDP

Accepted Answer

A) after adjusting for any price changes. 
B) that ignores depreciation. 
C) using current market values. 
D) minus depreciation. 
E) during a recession. 
A) after adjusting for any price changes. 
B) that ignores depreciation. 
C) using current market values. 
D) minus depreciation. 
E) during a recession.

Question 10

The circular flow shows that GDP measures i.total income.
Ii)total expenditures.
Iii)price changes.

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) i and ii 
E) i,ii and iii 
A) i only 
B) ii only 
C) iii only 
D) i and ii 
E) i,ii and iii

Question 11

Which of the following describes the Australian economy at the end of 1990 and the middle of 1991?

Accepted Answer

A) Real GDP per person increased. 
B) The economy was in a recession. 
C) Real GDP reached a peak. 
D) The economy was in an expansion. 
E) None of the above answers is correct. 
A) Real GDP per person increased. 
B) The economy was in a recession. 
C) Real GDP reached a peak. 
D) The economy was in an expansion. 
E) None of the above answers is correct.

Question 12

In order to measure gross domestic product,we can follow

Accepted Answer

A) only one approach: the circular flow approach. 
B) two approaches: the expenditure approach and the income approach. 
C) only one approach: the national accounts approach. 
D) three approaches: the expenditure approach,the income approach,and the production approach. 
E) three approaches: the expenditure approach,the income approach,and the market-based approach. 
A) only one approach: the circular flow approach. 
B) two approaches: the expenditure approach and the income approach. 
C) only one approach: the national accounts approach. 
D) three approaches: the expenditure approach,the income approach,and the production approach. 
E) three approaches: the expenditure approach,the income approach,and the market-based approach.

Question 13

The business cycle is defined as

Accepted Answer

A) persistent growth in potential GDP. 
B) changes in financial markets. 
C) irregular ups and downs in production and jobs. 
D) changes in the stock market. 
E) the period of time during which the unemployment rate is rising. 
A) persistent growth in potential GDP. 
B) changes in financial markets. 
C) irregular ups and downs in production and jobs. 
D) changes in the stock market. 
E) the period of time during which the unemployment rate is rising.

Question 14

In measuring GDP,which of the following is included?

Accepted Answer

A) The value of shares and bonds bought and sold. 
B) The value of preparing meals at home. 
C) The value of increases in business inventories. 
D) The value of used goods when they are sold. 
E) The value of durable consumption goods but not the value of nondurable consumption goods. 
A) The value of shares and bonds bought and sold. 
B) The value of preparing meals at home. 
C) The value of increases in business inventories. 
D) The value of used goods when they are sold. 
E) The value of durable consumption goods but not the value of nondurable consumption goods.

Question 15

A restaurant buys fish to offer as a daily menu special.The purchase of the fish by the restaurant is

Accepted Answer

A) an investment. 
B) a consumption expenditure. 
C) part of net exports if the fish were caught beyond Australia's borders. 
D) an example of government expenditures on goods and services. 
E) an intermediate good. 
A) an investment. 
B) a consumption expenditure. 
C) part of net exports if the fish were caught beyond Australia's borders. 
D) an example of government expenditures on goods and services. 
E) an intermediate good.

Question 16

The base year is 2015.A country only produces MP3 players.The price of an MP3 player in 2013 was $50.The price of an MP3 player was $30 in 2015.The quantity of MP3 players produced in 2013 was 10,000 units and in 2015 was 20,000 units.Nominal GDP in 2015 equals

Accepted Answer

A) $1,000,000. 
B) $600,000. 
C) $500,000. 
D) $200,000. 
E) an amount that cannot be determined without information about real GDP in 2010. 
A) $1,000,000. 
B) $600,000. 
C) $500,000. 
D) $200,000. 
E) an amount that cannot be determined without information about real GDP in 2010.

Question 17

The base year is 2014.A country only produces Blu-ray players.The price of a Blu-ray player in 2014 was $100.The price of a Blu-ray player was $90 in 2015.The quantity of Blu-ray players produced in 2014 was 10,000 units and in 2015 was 10,500 units.Real GDP in 2014 equals

Accepted Answer

A) $1,050,000. 
B) $1,000,000. 
C) $900,000. 
D) $945,000. 
E) an amount that cannot be determined without information about real GDP in 2007 . 
A) $1,050,000. 
B) $1,000,000. 
C) $900,000. 
D) $945,000. 
E) an amount that cannot be determined without information about real GDP in 2007 .

Question 18

Investment is defined as

Accepted Answer

A) what consumers do with their savings. 
B) the purchase of a stock or bond. 
C) spending on capital goods by governments. 
D) financial capital. 
E) the purchase of new capital goods by firms. 
A) what consumers do with their savings. 
B) the purchase of a stock or bond. 
C) spending on capital goods by governments. 
D) financial capital. 
E) the purchase of new capital goods by firms.

Question 19

In order to be classified as a recession,a contraction of general economic activity must last at least

Accepted Answer

A) one year. 
B) six months. 
C) one quarter. 
D) one period. 
E) None of the above because recessions do not have a minimum length. 
A) one year. 
B) six months. 
C) one quarter. 
D) one period. 
E) None of the above because recessions do not have a minimum length.

Question 20

The following are all final goods EXCEPT

Accepted Answer

A) Nike shoes used by a basketball player. 
B) flour used by the baker to make cupcakes. 
C) bread eaten by a family for lunch. 
D) a computer used by Intel to design new computer chips. 
E) pencils used by a 6th grader in class. 
A) Nike shoes used by a basketball player. 
B) flour used by the baker to make cupcakes. 
C) bread eaten by a family for lunch. 
D) a computer used by Intel to design new computer chips. 
E) pencils used by a 6th grader in class.

Household production,such as baking bread at home,is not included in GDP because it

The income approach measures GDP by summing

Babysitting services the oldest son provides his parents

A south pacific island produces only coconuts.In 2015,the price of a coconut is $1 and the quantity produced is 200.In 2016,the price of a coconut is $1.50 and the quantity produced is 250.2015 is the base year.Real GDP in 2016 is ________.

-The table above gives data for a nation.The value of the country's net exports of goods and services shows that the country's

Recently,the ABS made adjustments to how GDP is calculated that included placing software purchases into the category of

Investment includes

Government expenditures on goods and services include i.the local Library's purchase of new books. Ii)ACT's road maintenance. Iii)the State of Victoria's payment of wages to correctional service officers.

Nominal GDP is GDP

The circular flow shows that GDP measures i.total income. Ii)total expenditures. Iii)price changes.

Which of the following describes the Australian economy at the end of 1990 and the middle of 1991?

In order to measure gross domestic product,we can follow

The business cycle is defined as

In measuring GDP,which of the following is included?

A restaurant buys fish to offer as a daily menu special.The purchase of the fish by the restaurant is

The base year is 2015.A country only produces MP3 players.The price of an MP3 player in 2013 was $50.The price of an MP3 player was $30 in 2015.The quantity of MP3 players produced in 2013 was 10,000 units and in 2015 was 20,000 units.Nominal GDP in 2015 equals

The base year is 2014.A country only produces Blu-ray players.The price of a Blu-ray player in 2014 was $100.The price of a Blu-ray player was $90 in 2015.The quantity of Blu-ray players produced in 2014 was 10,000 units and in 2015 was 10,500 units.Real GDP in 2014 equals

Investment is defined as

In order to be classified as a recession,a contraction of general economic activity must last at least

The following are all final goods EXCEPT

Getting Started

The Australian and Global Economies

The Economic Problem

Demand and Supply

Jobs and Unemployment

The Cpi and the Cost of Living

Economic Growth

Finance,saving and Investment

Money,the Price Level and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Trade Off

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 5: Gdp: a Measure of Total Production and Income

Household production,such as baking bread at home,is not included in GDP because it

The income approach measures GDP by summing

Babysitting services the oldest son provides his parents

A south pacific island produces only coconuts.In 2015,the price of a coconut is $1 and the quantity produced is 200.In 2016,the price of a coconut is $1.50 and the quantity produced is 250.2015 is the base year.Real GDP in 2016 is ________.

-The table above gives data for a nation.The value of the country's net exports of goods and services shows that the country's

Recently,the ABS made adjustments to how GDP is calculated that included placing software purchases into the category of

Investment includes

Government expenditures on goods and services include i.the local Library's purchase of new books. Ii)ACT's road maintenance. Iii)the State of Victoria's payment of wages to correctional service officers.

Nominal GDP is GDP

The circular flow shows that GDP measures i.total income. Ii)total expenditures. Iii)price changes.

Which of the following describes the Australian economy at the end of 1990 and the middle of 1991?

In order to measure gross domestic product,we can follow

The business cycle is defined as

In measuring GDP,which of the following is included?

A restaurant buys fish to offer as a daily menu special.The purchase of the fish by the restaurant is

The base year is 2015.A country only produces MP3 players.The price of an MP3 player in 2013 was $50.The price of an MP3 player was $30 in 2015.The quantity of MP3 players produced in 2013 was 10,000 units and in 2015 was 20,000 units.Nominal GDP in 2015 equals

The base year is 2014.A country only produces Blu-ray players.The price of a Blu-ray player in 2014 was $100.The price of a Blu-ray player was $90 in 2015.The quantity of Blu-ray players produced in 2014 was 10,000 units and in 2015 was 10,500 units.Real GDP in 2014 equals

Investment is defined as

In order to be classified as a recession,a contraction of general economic activity must last at least

The following are all final goods EXCEPT

Getting Started

The Australian and Global Economies

The Economic Problem

Demand and Supply

Jobs and Unemployment

The Cpi and the Cost of Living

Economic Growth

Finance,saving and Investment

Money,the Price Level and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Trade Off

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters