Question 1

Explain the difference between Gross Domestic Product and Gross National Product.Give an example of each.

Accepted Answer

Gross Domestic product is the value of f

Question 2

An example of a final good would be

Accepted Answer

A)  the soy milk sold to Starbucks. 
B)  the whipped cream sold to Starbucks. 
C)  a soy latte sold by Starbucks to a student. 
D)  the coffee beans sold to Starbucks. 
A)  the soy milk sold to Starbucks. 
B)  the whipped cream sold to Starbucks. 
C)  a soy latte sold by Starbucks to a student. 
D)  the coffee beans sold to Starbucks.

Question 3

Which of the following is considered a durable good?

Accepted Answer

A)  medical care 
B)  clothing 
C)  food 
D)  a washing machine 
A)  medical care 
B)  clothing 
C)  food 
D)  a washing machine

Question 4

National income is equal to

Accepted Answer

A)  Personal income minus personal taxes. 
B)  GDP minus depreciation. 
C)  Disposable personal income plus depreciation plus personal taxes. 
D)  GNP plus depreciation. 
A)  Personal income minus personal taxes. 
B)  GDP minus depreciation. 
C)  Disposable personal income plus depreciation plus personal taxes. 
D)  GNP plus depreciation.

Question 5

Which of the following would not be included in the expenditure category called investment expenditures?

Accepted Answer

A)  spending on new houses 
B)  a purchase of shares of preferred stock 
C)  a purchase of a copy machine by FedEx Office 
D)  the cars held in inventory on a local Ford dealer's lot 
A)  spending on new houses 
B)  a purchase of shares of preferred stock 
C)  a purchase of a copy machine by FedEx Office 
D)  the cars held in inventory on a local Ford dealer's lot

Question 6

Consumption expenditures do not include household purchases of

Accepted Answer

A)  medical care. 
B)  education. 
C)  new houses. 
D)  durable goods. 
A)  medical care. 
B)  education. 
C)  new houses. 
D)  durable goods.

Question 7

Table 19-12
  
-Use the formula for the GDP deflator to explain how it is affected by an increase in prices in the economy.If the value of the deflator equals 100,what does that tell you about that year with respect to the base year?

Accepted Answer

The formula for the GDP deflator is give

Question 8

In a small economy,gross investment in 2012 is $1,500,consumption spending is $6,000,net investment is $200,government spending is $1,500,exports are $2,000 and imports are $1,000.What is GDP for this economy in 2012?

Accepted Answer

A)  $10,700 
B)  $10,300 
C)  $10,200 
D)  $10,000 
A)  $10,700 
B)  $10,300 
C)  $10,200 
D)  $10,000

Question 9

Disposable personal income is equal to personal income minus personal tax payments.

Accepted Answer

A) True 
 B)False

Question 10

The change in consumption as a percentage of GDP in the United States from the mid-1980s to the early 2000s was due in part to households

Accepted Answer

A)  increasing both saving and borrowing. 
B)  reducing saving and increasing borrowing. 
C)  reducing both saving and borrowing. 
D)  increasing saving and reducing borrowing. 
A)  increasing both saving and borrowing. 
B)  reducing saving and increasing borrowing. 
C)  reducing both saving and borrowing. 
D)  increasing saving and reducing borrowing.

Question 11

The underground economy can be described as

Accepted Answer

A)  production of intermediate goods and services. 
B)  economic production that includes mining. 
C)  economic activity that is hidden from the government to avoid taxes or because the activity is illegal. 
D)  production of infrastructure that spurs growth in the rest of the economy. 
A)  production of intermediate goods and services. 
B)  economic production that includes mining. 
C)  economic activity that is hidden from the government to avoid taxes or because the activity is illegal. 
D)  production of infrastructure that spurs growth in the rest of the economy.

Question 12

China's current rate of GDP growth is quite rapid.Its current growth rate is probably three times that of the United States.However,the levels of pollution are much higher in China.Would you consider China to be better off than the United States given this information? Why or why not?

Accepted Answer

China is not better off because of highe

Question 13

Total income in an economy is equal to

Accepted Answer

A)  GDP minus net exports. 
B)  income minus taxes. 
C)  the sum of wages, interest, rent, and profit. 
D)  firm revenues. 
A)  GDP minus net exports. 
B)  income minus taxes. 
C)  the sum of wages, interest, rent, and profit. 
D)  firm revenues.

Question 14

The values of real GDP and real GNP are almost the same for the United States.

Accepted Answer

A) True 
 B)False

Explain the difference between Gross Domestic Product and Gross National Product.Give an example of each.

An example of a final good would be

Which of the following is considered a durable good?

National income is equal to

Which of the following would not be included in the expenditure category called investment expenditures?

Consumption expenditures do not include household purchases of

Table 19-12 -Use the formula for the GDP deflator to explain how it is affected by an increase in prices in the economy.If the value of the deflator equals 100,what does that tell you about that year with respect to the base year?

In a small economy,gross investment in 2012 is $1,500,consumption spending is $6,000,net investment is $200,government spending is $1,500,exports are $2,000 and imports are $1,000.What is GDP for this economy in 2012?

Disposable personal income is equal to personal income minus personal tax payments.

The change in consumption as a percentage of GDP in the United States from the mid-1980s to the early 2000s was due in part to households

The underground economy can be described as

China's current rate of GDP growth is quite rapid.Its current growth rate is probably three times that of the United States.However,the levels of pollution are much higher in China.Would you consider China to be better off than the United States given this information? Why or why not?

Total income in an economy is equal to

The values of real GDP and real GNP are almost the same for the United States.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

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Exam 8: Gdp: Measuring Total Production and Income

Explain the difference between Gross Domestic Product and Gross National Product.Give an example of each.

An example of a final good would be

Which of the following is considered a durable good?

National income is equal to

Which of the following would not be included in the expenditure category called investment expenditures?

Consumption expenditures do not include household purchases of

Table 19-12 -Use the formula for the GDP deflator to explain how it is affected by an increase in prices in the economy.If the value of the deflator equals 100,what does that tell you about that year with respect to the base year?

In a small economy,gross investment in 2012 is $1,500,consumption spending is $6,000,net investment is $200,government spending is $1,500,exports are $2,000 and imports are $1,000.What is GDP for this economy in 2012?

Disposable personal income is equal to personal income minus personal tax payments.

The change in consumption as a percentage of GDP in the United States from the mid-1980s to the early 2000s was due in part to households

The underground economy can be described as

China's current rate of GDP growth is quite rapid.Its current growth rate is probably three times that of the United States.However,the levels of pollution are much higher in China.Would you consider China to be better off than the United States given this information? Why or why not?

Total income in an economy is equal to

The values of real GDP and real GNP are almost the same for the United States.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters