Question 1

The abbreviation "GDP" stands for

Accepted Answer

A) General Domestic Prices. 
B) Great Domestic Prices. 
C) Gross Domestic Prices. 
D) Government's Domestic Politics. 
E) Gross Domestic Product. 
A) General Domestic Prices. 
B) Great Domestic Prices. 
C) Gross Domestic Prices. 
D) Government's Domestic Politics. 
E) Gross Domestic Product.

Question 2

Adding wages,interest,rent and profits yields

Accepted Answer

A) net domestic product at factor cost. 
B) total expenditure. 
C) gross domestic product. 
D) gross domestic product at factor cost. 
E) GNP. 
A) net domestic product at factor cost. 
B) total expenditure. 
C) gross domestic product. 
D) gross domestic product at factor cost. 
E) GNP.

Question 3

As more women decide to work outside the home and therefore hire others to work around their home,GDP will increase by

Accepted Answer

A) only the value of the output produced by the newly working women. 
B) the value of the household work they were previously performing minus the value of the output produced by the newly working women. 
C) the value of the output produced by the newly working women minus the value of the household work they were previously performing. 
D) only the value of the household work they are now hiring someone to perform. 
E) the value of the output produced by the newly working women plus the value of any household work they are now hiring someone to perform. 
A) only the value of the output produced by the newly working women. 
B) the value of the household work they were previously performing minus the value of the output produced by the newly working women. 
C) the value of the output produced by the newly working women minus the value of the household work they were previously performing. 
D) only the value of the household work they are now hiring someone to perform. 
E) the value of the output produced by the newly working women plus the value of any household work they are now hiring someone to perform.

Question 4

If consumption was 70 per cent of GDP and investment and government expenditure were both 18 Pre cent each, then we see that

Accepted Answer

A) GDP can be over 100 per cent because it is "gross" rather than "net." 
B) exports must be more than imports. 
C) we must subtract depreciation from investment so that the components of GDP do not exceed . 
D) exports must be less than imports. 
E) the error is due to rounding. 
A) GDP can be over 100 per cent because it is "gross" rather than "net." 
B) exports must be more than imports. 
C) we must subtract depreciation from investment so that the components of GDP do not exceed . 
D) exports must be less than imports. 
E) the error is due to rounding.

Question 5

Investment is the expenditure done by

Accepted Answer

A) the rest of the world. 
B) firms. 
C) governments. 
D) savers. 
E) Both answers A and B are correct. 
A) the rest of the world. 
B) firms. 
C) governments. 
D) savers. 
E) Both answers A and B are correct.

Question 6

In comparing the magnitudes of the components of GDP according to the expenditure approach,we see that in Australia,

Accepted Answer

A) investment is less than government expenditure on goods and services. 
B) investment is larger than government expenditure on goods and services. 
C) government expenditure on goods and services is the largest category. 
D) investment is the largest category. 
E) investment,government expenditure on goods and services,and consumption expenditure are all about the same size. 
A) investment is less than government expenditure on goods and services. 
B) investment is larger than government expenditure on goods and services. 
C) government expenditure on goods and services is the largest category. 
D) investment is the largest category. 
E) investment,government expenditure on goods and services,and consumption expenditure are all about the same size.

Question 7

Which of the following is/are included in mixed income?
i.Payments made for the use of land.
ii.Wages,interest,rent and profit earned by people who run their own business.
iii.Payments made by households for their borrowing.

Accepted Answer

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

Question 8

Even though it is not a perfect measure,economists can use real GDP to i.compare how standards of living in China have changed over the past 10 years.
Ii)look at the length of recessions and expansions in Australia.
Iii)compare the standard of living in China versus the standard of living in Vietnam.

Accepted Answer

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

Question 9

The expenditure approach values ________ and the income approach values ________.

Accepted Answer

A) goods and services at market prices;goods and services at factor prices 
B) only goods at market prices;only services at factor prices 
C) goods and services at market prices;services at factor prices 
D) goods and services at factor prices;goods and services at market prices 
E) services only at factor prices;goods only at market prices 
A) goods and services at market prices;goods and services at factor prices 
B) only goods at market prices;only services at factor prices 
C) goods and services at market prices;services at factor prices 
D) goods and services at factor prices;goods and services at market prices 
E) services only at factor prices;goods only at market prices

Question 10

Which of the following is included in Australia's GDP?
i.The rental value of homes owned by Australian citizens
ii.The production of Cotton On t-shirts by their suppliers in India
iii.Tickets sold by Usher for concerts held in Sydney

Accepted Answer

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

Question 11

In the circular flow,how are the "value of production","income",and "expenditures" related?

Accepted Answer

A) They have no relationship to each other. 
B) Expenditures on GDP equal the value of production which equals income. 
C) Once tax payments are subtracted at each stage,they are equal. 
D) Once net exports of goods and services are subtracted from GDP,all three are equal. 
E) Value of production always equals income but expenditures are smaller because households save some of their income and do not spend it. 
A) They have no relationship to each other. 
B) Expenditures on GDP equal the value of production which equals income. 
C) Once tax payments are subtracted at each stage,they are equal. 
D) Once net exports of goods and services are subtracted from GDP,all three are equal. 
E) Value of production always equals income but expenditures are smaller because households save some of their income and do not spend it.

Question 12

The business cycle has two phases,

Accepted Answer

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

Question 13

Leisure time is ignored when calculating GDP because leisure time

Accepted Answer

A) is not bought in a market. 
B) is not an economic good. 
C) is not productive. 
D) has been declining over time. 
E) does not affect our standard of living. 
A) is not bought in a market. 
B) is not an economic good. 
C) is not productive. 
D) has been declining over time. 
E) does not affect our standard of living.

Question 14

Which of the following expenditure components of GDP can be negative or positive?

Accepted Answer

A) Investment 
B) Government expenditure on goods and services 
C) Consumption expenditure 
D) Net exports of goods and services 
E) None of the above because expenditure can never be negative. 
A) Investment 
B) Government expenditure on goods and services 
C) Consumption expenditure 
D) Net exports of goods and services 
E) None of the above because expenditure can never be negative.

Question 15

Total expenditure equals total income

Accepted Answer

A) because firms pay out everything they receive as income to the factors of production. 
B) only if firms sell all the goods they produce in a given time period. 
C) if firms do not save for future investment. 
D) only if net taxes equals government expenditures on goods and services. 
E) if firms earn zero profit. 
A) because firms pay out everything they receive as income to the factors of production. 
B) only if firms sell all the goods they produce in a given time period. 
C) if firms do not save for future investment. 
D) only if net taxes equals government expenditures on goods and services. 
E) if firms earn zero profit.

The abbreviation "GDP" stands for

Adding wages,interest,rent and profits yields

As more women decide to work outside the home and therefore hire others to work around their home,GDP will increase by

If consumption was 70 per cent of GDP and investment and government expenditure were both 18 Pre cent each, then we see that

Investment is the expenditure done by

In comparing the magnitudes of the components of GDP according to the expenditure approach,we see that in Australia,

Which of the following is/are included in mixed income? i.Payments made for the use of land. ii.Wages,interest,rent and profit earned by people who run their own business. iii.Payments made by households for their borrowing.

The expenditure approach values and the income approach values .

Which of the following is included in Australia's GDP? i.The rental value of homes owned by Australian citizens ii.The production of Cotton On t-shirts by their suppliers in India iii.Tickets sold by Usher for concerts held in Sydney

In the circular flow,how are the "value of production","income",and "expenditures" related?

The business cycle has two phases,

Leisure time is ignored when calculating GDP because leisure time

Which of the following expenditure components of GDP can be negative or positive?

Total expenditure equals total income

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

The abbreviation "GDP" stands for

Adding wages,interest,rent and profits yields

As more women decide to work outside the home and therefore hire others to work around their home,GDP will increase by

If consumption was 70 per cent of GDP and investment and government expenditure were both 18 Pre cent each, then we see that

Investment is the expenditure done by

In comparing the magnitudes of the components of GDP according to the expenditure approach,we see that in Australia,

Which of the following is/are included in mixed income? i.Payments made for the use of land. ii.Wages,interest,rent and profit earned by people who run their own business. iii.Payments made by households for their borrowing.

The expenditure approach values ________ and the income approach values ________.

Which of the following is included in Australia's GDP? i.The rental value of homes owned by Australian citizens ii.The production of Cotton On t-shirts by their suppliers in India iii.Tickets sold by Usher for concerts held in Sydney

In the circular flow,how are the "value of production","income",and "expenditures" related?

The business cycle has two phases,

Leisure time is ignored when calculating GDP because leisure time

Which of the following expenditure components of GDP can be negative or positive?

Total expenditure equals total income

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 expenditure approach values and the income approach values .