Question 1

Real GDP is the value of final goods and services produced in a year

Accepted Answer

A) expressed in the prices of a base year. 
B) minus depreciation. 
C) during a recession. 
D) minus the value of all the intermediate goods produced. 
E) expressed in the prices of that same year. 
A) expressed in the prices of a base year. 
B) minus depreciation. 
C) during a recession. 
D) minus the value of all the intermediate goods produced. 
E) expressed in the prices of that same year.

Question 2

Consumption expenditure includes spending

Accepted Answer

A) on office supplies by firms. 
B) on intermediate goods and services by firms. 
C) by households and spending on office supplies by firms. 
D) by households. 
E) by governments when they are buying goods and services that consumers also buy. 
A) on office supplies by firms. 
B) on intermediate goods and services by firms. 
C) by households and spending on office supplies by firms. 
D) by households. 
E) by governments when they are buying goods and services that consumers also buy.

Question 3

When calculating GDP,purchases of used goods are

Accepted Answer

A) not included. 
B) included at the original price. 
C) included at the (current)used price. 
D) included by taking the original price and subtracting the (current)used price. 
E) included at the original price minus any depreciation. 
A) not included. 
B) included at the original price. 
C) included at the (current)used price. 
D) included by taking the original price and subtracting the (current)used price. 
E) included at the original price minus any depreciation.

Question 4

Net exports of goods and services increase when

Accepted Answer

A) imports of goods and services increase and exports of goods and services do not change. 
B) exports of goods and services decrease and imports of goods and services do not change. 
C) consumption expenditure increases. 
D) consumption expenditure decreases. 
E) exports of goods and services increase and imports of goods and services do not change. 
A) imports of goods and services increase and exports of goods and services do not change. 
B) exports of goods and services decrease and imports of goods and services do not change. 
C) consumption expenditure increases. 
D) consumption expenditure decreases. 
E) exports of goods and services increase and imports of goods and services do not change.

Question 5

Net exports of goods and services are equal to the value of

Accepted Answer

A) domestic consumption minus the value of exports. 
B) domestic consumption minus the value of imports. 
C) exports plus the value of imports. 
D) imports minus the value of exports. 
E) exports minus the value of imports. 
A) domestic consumption minus the value of exports. 
B) domestic consumption minus the value of imports. 
C) exports plus the value of imports. 
D) imports minus the value of exports. 
E) exports minus the value of imports.

Question 6

If you mow the lawn yourself,the lawn mowing is considered household production.If you pay Larry's Lawn Service to mow your lawn,the lawn mowing is considered

Accepted Answer

A) a leisure time activity. 
B) a service,but it is not counted as part of GDP because it simply replaces a service you used to perform. 
C) a service that will be counted as part of GDP. 
D) rent and is therefore counted as part of GDP. 
E) underground production because it replaces the underground production of you mowing your lawn. 
A) a leisure time activity. 
B) a service,but it is not counted as part of GDP because it simply replaces a service you used to perform. 
C) a service that will be counted as part of GDP. 
D) rent and is therefore counted as part of GDP. 
E) underground production because it replaces the underground production of you mowing your lawn.

Question 7

The purchase of 500 Westpac shares by a Super fund

Accepted Answer

A) is not counted as part of GDP. 
B) is counted as consumption expenditure. 
C) is counted as investment in the GDP accounts. 
D) is counted as part of import expenditure in the GDP accounts because Westpac is a foreign firm. 
E) is counted as part of export expenditure in the GDP accounts because Westpac is a foreign firm. 
A) is not counted as part of GDP. 
B) is counted as consumption expenditure. 
C) is counted as investment in the GDP accounts. 
D) is counted as part of import expenditure in the GDP accounts because Westpac is a foreign firm. 
E) is counted as part of export expenditure in the GDP accounts because Westpac is a foreign firm.

Question 8

Gross domestic product equals

Accepted Answer

A) Y = C + I + G - NX. 
B) Y = C + I + G + NX. 
C) Y = C - I + G + NX. 
D) Y = C - I - G - NX. 
E) Y = C + I - G + NX. 
A) Y = C + I + G - NX. 
B) Y = C + I + G + NX. 
C) Y = C - I + G + NX. 
D) Y = C - I - G - NX. 
E) Y = C + I - G + NX.

Question 9

Nominal GDP increases

Accepted Answer

A) only if the productivity of resources increases. 
B) only if prices increase. 
C) if either prices and/or total production increase. 
D) only if total production increases. 
E) only if depreciation decreases. 
A) only if the productivity of resources increases. 
B) only if prices increase. 
C) if either prices and/or total production increase. 
D) only if total production increases. 
E) only if depreciation decreases.

Question 10

-The table above gives the production and prices for a small nation that produces only bread and soda.The base year is 2015.What is nominal GDP in 2015?

Accepted Answer

A) $410 
B) $550 
C) $450 
D) $900 
E) $460 
A) $410 
B) $550 
C) $450 
D) $900 
E) $460

Question 11

A standard definition of recession is

Accepted Answer

A) a period of time when the unemployment rate exceeds 6.5 per cent. 
B) an increase in unemployment from one month to the next. 
C) a period of expansion in many sectors of the economy. 
D) an increase in GDP that lasts for at least 2 consecutive quarters. 
E) a decrease in GDP that lasts for at least 2 consecutive quarters. 
A) a period of time when the unemployment rate exceeds 6.5 per cent. 
B) an increase in unemployment from one month to the next. 
C) a period of expansion in many sectors of the economy. 
D) an increase in GDP that lasts for at least 2 consecutive quarters. 
E) a decrease in GDP that lasts for at least 2 consecutive quarters.

Question 12

Consumption goods and services include

Accepted Answer

A) pensions provided by the government. 
B) new homes and existing homes (as long as improvements have been made to the existing home). 
C) new and used textbooks as long as they are sold via stores or online. 
D) washing machines and tickets to NRL games. 
E) None of the above. 
A) pensions provided by the government. 
B) new homes and existing homes (as long as improvements have been made to the existing home). 
C) new and used textbooks as long as they are sold via stores or online. 
D) washing machines and tickets to NRL games. 
E) None of the above.

Question 13

Which of the following is classified as an intermediate good?
i.Your purchase of a Big Mac.
ii.McDonald's purchase of pickles.
iii.A McDonald's restaurant owner's interest payment for the loan on her building.

Accepted Answer

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

Question 14

A business cycle has two turning points,which are the

Accepted Answer

A) trough and peak. 
B) recession and trough. 
C) expansion and recession. 
D) peak and expansion. 
E) peak and recession. 
A) trough and peak. 
B) recession and trough. 
C) expansion and recession. 
D) peak and expansion. 
E) peak and recession.

Question 15

Gross domestic product is the market value of all ________ produced within a country in a given period of time.

Accepted Answer

A) final goods 
B) final goods and services 
C) final services 
D) intermediate goods 
E) intermediate services 
A) final goods 
B) final goods and services 
C) final services 
D) intermediate goods 
E) intermediate services

Question 16

GDP is

Accepted Answer

A) an imperfect measure of the standard of living. 
B) a measure which includes the value of all newly produced goods and services. 
C) a perfect measure of the standard of living. 
D) the only factor that affects our standard of living. 
E) a perfect measure of the value of production. 
A) an imperfect measure of the standard of living. 
B) a measure which includes the value of all newly produced goods and services. 
C) a perfect measure of the standard of living. 
D) the only factor that affects our standard of living. 
E) a perfect measure of the value of production.

Question 17

To calculate net national product we must

Accepted Answer

A) subtract depreciation. 
B) subtract indirect taxes less subsidies. 
C) add consumption expenditure. 
D) add investment. 
E) subtract investment. 
A) subtract depreciation. 
B) subtract indirect taxes less subsidies. 
C) add consumption expenditure. 
D) add investment. 
E) subtract investment.

Question 18

Net exports of goods and services are defined as the

Accepted Answer

A) value of exports minus the income we receive from foreigners. 
B) income we receive from selling goods to foreigners. 
C) value of exports plus the income we receive from foreigners. 
D) value of the goods we sell to foreigners. 
E) value of exports minus the value of imports. 
A) value of exports minus the income we receive from foreigners. 
B) income we receive from selling goods to foreigners. 
C) value of exports plus the income we receive from foreigners. 
D) value of the goods we sell to foreigners. 
E) value of exports minus the value of imports.

Question 19

If last year net exports of goods and services was negative.This means that

Accepted Answer

A) there was an error made when calculating net exports of goods and services. 
B) consumption expenditure plus investment was less than the value of exports plus the value of imports. 
C) consumption expenditure plus investment plus government expenditures on goods and services was less than the value of exports plus the value of imports. 
D) the value of exports was less than the value of imports. 
E) the value of exports was greater than the value of imports. 
A) there was an error made when calculating net exports of goods and services. 
B) consumption expenditure plus investment was less than the value of exports plus the value of imports. 
C) consumption expenditure plus investment plus government expenditures on goods and services was less than the value of exports plus the value of imports. 
D) the value of exports was less than the value of imports. 
E) the value of exports was greater than the value of imports.

Question 20

Which of the following is included as investment in GDP?
i.Cars produced during the year but unsold at the end of the year.
Ii New capital equipment produced and purchased during the year.
iii.Purchases of a company's shares and bonds.

Accepted Answer

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

Real GDP is the value of final goods and services produced in a year

Consumption expenditure includes spending

When calculating GDP,purchases of used goods are

Net exports of goods and services increase when

Net exports of goods and services are equal to the value of

If you mow the lawn yourself,the lawn mowing is considered household production.If you pay Larry's Lawn Service to mow your lawn,the lawn mowing is considered

The purchase of 500 Westpac shares by a Super fund

Gross domestic product equals

Nominal GDP increases

-The table above gives the production and prices for a small nation that produces only bread and soda.The base year is 2015.What is nominal GDP in 2015?

A standard definition of recession is

Consumption goods and services include

Which of the following is classified as an intermediate good? i.Your purchase of a Big Mac. ii.McDonald's purchase of pickles. iii.A McDonald's restaurant owner's interest payment for the loan on her building.

A business cycle has two turning points,which are the

Gross domestic product is the market value of all ________ produced within a country in a given period of time.

GDP is

To calculate net national product we must

Net exports of goods and services are defined as the

If last year net exports of goods and services was negative.This means that

Which of the following is included as investment in GDP? i.Cars produced during the year but unsold at the end of the year. Ii New capital equipment produced and purchased during the year. iii.Purchases of a company's shares and bonds.

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

Real GDP is the value of final goods and services produced in a year

Consumption expenditure includes spending

When calculating GDP,purchases of used goods are

Net exports of goods and services increase when

Net exports of goods and services are equal to the value of

If you mow the lawn yourself,the lawn mowing is considered household production.If you pay Larry's Lawn Service to mow your lawn,the lawn mowing is considered

The purchase of 500 Westpac shares by a Super fund

Gross domestic product equals

Nominal GDP increases

-The table above gives the production and prices for a small nation that produces only bread and soda.The base year is 2015.What is nominal GDP in 2015?

A standard definition of recession is

Consumption goods and services include

Which of the following is classified as an intermediate good? i.Your purchase of a Big Mac. ii.McDonald's purchase of pickles. iii.A McDonald's restaurant owner's interest payment for the loan on her building.

A business cycle has two turning points,which are the

Gross domestic product is the market value of all ________ produced within a country in a given period of time.

GDP is

To calculate net national product we must

Net exports of goods and services are defined as the

If last year net exports of goods and services was negative.This means that

Which of the following is included as investment in GDP? i.Cars produced during the year but unsold at the end of the year. Ii New capital equipment produced and purchased during the year. iii.Purchases of a company's shares and bonds.

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