Question 1

To calculate GDP it is necessary to add up the market value of all the ________ produced within a country during a year.

Accepted Answer

A) intermediate goods and services produced and all the final goods and services 
B) intermediate goods and services 
C) goods but not services 
D) final goods and services 
E) goods and services 
A) intermediate goods and services produced and all the final goods and services 
B) intermediate goods and services 
C) goods but not services 
D) final goods and services 
E) goods and services

Question 2

If you make dinner for yourself,

Accepted Answer

A) the market value of your dinner is added to GDP. 
B) only the market value of the ingredients you purchased this year is added to GDP. 
C) none of what you bought to prepare for dinner is included in GDP. 
D) the difference between the cost of the ingredients you purchased this year and the market value of the dinner is added to GDP. 
E) your service in preparing the meal is valued at a cook's wage and added to GDP. 
A) the market value of your dinner is added to GDP. 
B) only the market value of the ingredients you purchased this year is added to GDP. 
C) none of what you bought to prepare for dinner is included in GDP. 
D) the difference between the cost of the ingredients you purchased this year and the market value of the dinner is added to GDP. 
E) your service in preparing the meal is valued at a cook's wage and added to GDP.

Question 3

According to the income approach to measuring GDP,the largest income category is

Accepted Answer

A) consumption expenditure. 
B) profits. 
C) interest. 
D) wages. 
E) rent. 
A) consumption expenditure. 
B) profits. 
C) interest. 
D) wages. 
E) rent.

Question 4

Gross domestic product is defined as the market value of all the final goods and services produced during a given time period

Accepted Answer

A) within and outside a country by that country's citizens. 
B) by citizens of the country,regardless of their place of residence. 
C) by only legal residents of the country. 
D) within a country. 
E) within a county minus the market value of all the final goods and services produced by that country's citizens outside the country. 
A) within and outside a country by that country's citizens. 
B) by citizens of the country,regardless of their place of residence. 
C) by only legal residents of the country. 
D) within a country. 
E) within a county minus the market value of all the final goods and services produced by that country's citizens outside the country.

Question 5

The income approach to measuring GDP is based on summing

Accepted Answer

A) the values of final goods,intermediate goods and services,used goods,and financial assets. 
B) wages,interest,rent and profits. 
C) the production of each industry. 
D) consumption expenditure and wages. 
E) consumption expenditure,investment,government expenditures on goods and services,and net exports of goods and services. 
A) the values of final goods,intermediate goods and services,used goods,and financial assets. 
B) wages,interest,rent and profits. 
C) the production of each industry. 
D) consumption expenditure and wages. 
E) consumption expenditure,investment,government expenditures on goods and services,and net exports of goods and services.

Question 6

The measurement of GDP handles underground production by

Accepted Answer

A) including the amount produced in this sector of the economy in exactly the same way that all other production is included. 
B) adding it at fixed prices that change only infrequently. 
C) adding an estimate of it because it is difficult to precisely measure underground production. 
D) omitting it because underground production is unreported to the government by the people involved. 
E) omitting it because,being illegal,it has no effect on the nation's total production. 
A) including the amount produced in this sector of the economy in exactly the same way that all other production is included. 
B) adding it at fixed prices that change only infrequently. 
C) adding an estimate of it because it is difficult to precisely measure underground production. 
D) omitting it because underground production is unreported to the government by the people involved. 
E) omitting it because,being illegal,it has no effect on the nation's total production.

Question 7

If a firm does not sell all of the goods it produces in a given time period,then the goods

Accepted Answer

A) do not count in GDP for that time period but always count next period. 
B) count in GDP in the period they are sold to the final user. 
C) count positively in GDP as inventory investment. 
D) count negatively in GDP as inventory investment. 
E) do not count in GDP ever. 
A) do not count in GDP for that time period but always count next period. 
B) count in GDP in the period they are sold to the final user. 
C) count positively in GDP as inventory investment. 
D) count negatively in GDP as inventory investment. 
E) do not count in GDP ever.

Question 8

Although imperfect,which of the following is used as a measure of the standard of living?

Accepted Answer

A) Real GDP ÷ population 
B) Real GDP × population 
C) Nominal GDP × population 
D) Nominal GNP × population 
E) Nominal GNP ÷ population 
A) Real GDP ÷ population 
B) Real GDP × population 
C) Nominal GDP × population 
D) Nominal GNP × population 
E) Nominal GNP ÷ population

Question 9

The following table reports transactions that occurred in Whoville.Nominal GDP in Whoville is ________.

Accepted Answer

A) $195 
B) $545 
C) $320 
D) $120 
E) $395 
A) $195 
B) $545 
C) $320 
D) $120 
E) $395

Question 10

Gross domestic product measures the

Accepted Answer

A) market value of the final goods and services produced in a given year within a country. 
B) quantity of the goods and services produced in a given year,listed item by item,within a country. 
C) market value of domestic labour in a given year within a country. 
D) income of the business sector within a country. 
E) market value of the final goods and services consumed by households in a given year within a country. 
A) market value of the final goods and services produced in a given year within a country. 
B) quantity of the goods and services produced in a given year,listed item by item,within a country. 
C) market value of domestic labour in a given year within a country. 
D) income of the business sector within a country. 
E) market value of the final goods and services consumed by households in a given year within a country.

Question 11

Which of the following is directly accounted for in the calculation of GDP?

Accepted Answer

A) The value of repairing your own kitchen sink,as measured by the average rates charged by local plumbers. 
B) Improvements in quality of life from the reduction of pollution. 
C) The value of one hour of leisure as measured by the hourly wage one would otherwise earn by working. 
D) Cash earnings from an illegal poker game. 
E) None of the above items is accounted for in GDP. 
A) The value of repairing your own kitchen sink,as measured by the average rates charged by local plumbers. 
B) Improvements in quality of life from the reduction of pollution. 
C) The value of one hour of leisure as measured by the hourly wage one would otherwise earn by working. 
D) Cash earnings from an illegal poker game. 
E) None of the above items is accounted for in GDP.

Question 12

You hire some of your friends to help you move to a new house.You pay them a total of $200 and buy them dinner at Pizza Hut.Which of the following is true?

Accepted Answer

A) If your friends do not report the $200 on their tax forms,it becomes part of the underground economy. 
B) Neither the $200 nor the dinner should be counted in GDP because both are household production. 
C) The dinner at Pizza Hut should be counted as part of GDP,but not the $200. 
D) Hiring your friends is an illegal activity and should not be counted in GDP. 
E) The $200 should be counted as part of GDP but not the dinner at Pizza Hut. 
A) If your friends do not report the $200 on their tax forms,it becomes part of the underground economy. 
B) Neither the $200 nor the dinner should be counted in GDP because both are household production. 
C) The dinner at Pizza Hut should be counted as part of GDP,but not the $200. 
D) Hiring your friends is an illegal activity and should not be counted in GDP. 
E) The $200 should be counted as part of GDP but not the dinner at Pizza Hut.

Question 13

The main influence on consumption expenditure is disposable income,which is

Accepted Answer

A) the income received by households less subsidies paid to the government. 
B) the income received by government minus taxes. 
C) the income received by individuals less company taxes. 
D) the income received by households minus individual income taxes paid. 
E) Answers A and C are correct. 
A) the income received by households less subsidies paid to the government. 
B) the income received by government minus taxes. 
C) the income received by individuals less company taxes. 
D) the income received by households minus individual income taxes paid. 
E) Answers A and C are correct.

Question 14

If nominal GDP increases from one year to the next,then

Accepted Answer

A) prices and production must both have increased. 
B) prices must have increased. 
C) production must have increased. 
D) prices and production must both have decreased. 
E) production could have increased,decreased or stayed the same. 
A) prices and production must both have increased. 
B) prices must have increased. 
C) production must have increased. 
D) prices and production must both have decreased. 
E) production could have increased,decreased or stayed the same.

Question 15

Beijing is notorious for its excessive pollution.China's measure of GDP is

Accepted Answer

A) not affected by the estimated value of the pollution's harm. 
B) changed by the pollution only when comparing its GDP with Australian GDP. 
C) decreased by the estimated value of the pollution's harm. 
D) increased by the estimated value of the pollution's harm. 
E) None of the above answers is correct. 
A) not affected by the estimated value of the pollution's harm. 
B) changed by the pollution only when comparing its GDP with Australian GDP. 
C) decreased by the estimated value of the pollution's harm. 
D) increased by the estimated value of the pollution's harm. 
E) None of the above answers is correct.

Question 16

In calculating GDP,we must

Accepted Answer

A) add the value of the goods produced outside of Australia by local firms. 
B) add the market value of imports and subtract the market value of exports. 
C) add the market value of exports and subtract the market value of imports. 
D) exclude net exports of goods and services (NX). 
E) subtract the market value of imports,because these goods are produced in a country other than Australia,and subtract the market value of exports,because these goods are consumed in a country other than Australia. 
A) add the value of the goods produced outside of Australia by local firms. 
B) add the market value of imports and subtract the market value of exports. 
C) add the market value of exports and subtract the market value of imports. 
D) exclude net exports of goods and services (NX). 
E) subtract the market value of imports,because these goods are produced in a country other than Australia,and subtract the market value of exports,because these goods are consumed in a country other than Australia.

Question 17

The value of used goods ________ counted as part of GDP ________.

Accepted Answer

A) is;as long as used goods are classified as investment goods 
B) is not;because most fall in value and would cause a decrease in the value of GDP 
C) may be;as long as their value has risen 
D) is;as long as used goods are classified as consumption goods 
E) is not;because used goods were counted during the period when they were counted as new goods 
A) is;as long as used goods are classified as investment goods 
B) is not;because most fall in value and would cause a decrease in the value of GDP 
C) may be;as long as their value has risen 
D) is;as long as used goods are classified as consumption goods 
E) is not;because used goods were counted during the period when they were counted as new goods

Question 18

When measuring GDP,

Accepted Answer

A) only the federal government's expenditure on goods and services is included. 
B) the government sector is counted,and the value of the government sector in GDP is equal to its tax revenue. 
C) the expenditure on goods and services by all levels of government are included. 
D) the government sector is not included because it is the public sector not the private sector. 
E) the government sector is not counted because it does not produce goods and services. 
A) only the federal government's expenditure on goods and services is included. 
B) the government sector is counted,and the value of the government sector in GDP is equal to its tax revenue. 
C) the expenditure on goods and services by all levels of government are included. 
D) the government sector is not included because it is the public sector not the private sector. 
E) the government sector is not counted because it does not produce goods and services.

Question 19

Australian real GDP

Accepted Answer

A) measures the change in the price level over time. 
B) precisely measures the improving standard of living in Australia. 
C) includes the value of underground production but excludes the value of leisure time. 
D) excludes the value of underground production and leisure time. 
E) is not as accurate as nominal GDP when measuring standard of living changes over time. 
A) measures the change in the price level over time. 
B) precisely measures the improving standard of living in Australia. 
C) includes the value of underground production but excludes the value of leisure time. 
D) excludes the value of underground production and leisure time. 
E) is not as accurate as nominal GDP when measuring standard of living changes over time.

Question 20

Which of the following goods and services are omitted from GDP?

Accepted Answer

A) Government weather satellites 
B) Services such as hair styling 
C) Household production 
D) Capital goods 
E) Expenditure on resources used to protect the environment 
A) Government weather satellites 
B) Services such as hair styling 
C) Household production 
D) Capital goods 
E) Expenditure on resources used to protect the environment

To calculate GDP it is necessary to add up the market value of all the ________ produced within a country during a year.

If you make dinner for yourself,

According to the income approach to measuring GDP,the largest income category is

Gross domestic product is defined as the market value of all the final goods and services produced during a given time period

The income approach to measuring GDP is based on summing

The measurement of GDP handles underground production by

If a firm does not sell all of the goods it produces in a given time period,then the goods

Although imperfect,which of the following is used as a measure of the standard of living?

The following table reports transactions that occurred in Whoville.Nominal GDP in Whoville is ________.

Gross domestic product measures the

Which of the following is directly accounted for in the calculation of GDP?

You hire some of your friends to help you move to a new house.You pay them a total of $200 and buy them dinner at Pizza Hut.Which of the following is true?

The main influence on consumption expenditure is disposable income,which is

If nominal GDP increases from one year to the next,then

Beijing is notorious for its excessive pollution.China's measure of GDP is

In calculating GDP,we must

The value of used goods counted as part of GDP .

When measuring GDP,

Australian real GDP

Which of the following goods and services are omitted from GDP?

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

To calculate GDP it is necessary to add up the market value of all the ________ produced within a country during a year.

If you make dinner for yourself,

According to the income approach to measuring GDP,the largest income category is

Gross domestic product is defined as the market value of all the final goods and services produced during a given time period

The income approach to measuring GDP is based on summing

The measurement of GDP handles underground production by

If a firm does not sell all of the goods it produces in a given time period,then the goods

Although imperfect,which of the following is used as a measure of the standard of living?

The following table reports transactions that occurred in Whoville.Nominal GDP in Whoville is ________.

Gross domestic product measures the

Which of the following is directly accounted for in the calculation of GDP?

You hire some of your friends to help you move to a new house.You pay them a total of $200 and buy them dinner at Pizza Hut.Which of the following is true?

The main influence on consumption expenditure is disposable income,which is

If nominal GDP increases from one year to the next,then

Beijing is notorious for its excessive pollution.China's measure of GDP is

In calculating GDP,we must

The value of used goods ________ counted as part of GDP ________.

When measuring GDP,

Australian real GDP

Which of the following goods and services are omitted from GDP?

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

The value of used goods counted as part of GDP .