Question 1

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

Accepted Answer

A)  real GDP ÷ person 
B)  real GDP × population 
C)  nominal GDP × population 
D)  nominal GNP ÷ person 
E)  nominal GNP × population 
A)  real GDP ÷ person 
B)  real GDP × population 
C)  nominal GDP × population 
D)  nominal GNP ÷ person 
E)  nominal GNP × population

Question 2

If you make dinner for yourself

Accepted Answer

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

Question 3

Government expenditure on goods and services include i) the New York City's library's purchase of new books
Ii) Washington D.C.'s purchase of gas for its city buses
Iii) California's payment of wages to prison guards.

Accepted Answer

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

Question 4

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

Question 5

Bobby was researching the economic growth of a country between 2006 and 2011.Using 2006 as the base year, he calculated a twelve percent increase for real GDP and a ten percent increase for nominal GDP.His results indicate that

Accepted Answer

A)  he made an error when calculating nominal GDP. 
B)  the quantity of goods and services produced decreased over the period. 
C)  the quantity of goods and services produced increased and prices decreased over the period. 
D)  the quantity of goods and services produced and prices both decreased over the period. 
E)  the quantity of goods and services produced did not change and prices decreased over the period. 
A)  he made an error when calculating nominal GDP. 
B)  the quantity of goods and services produced decreased over the period. 
C)  the quantity of goods and services produced increased and prices decreased over the period. 
D)  the quantity of goods and services produced and prices both decreased over the period. 
E)  the quantity of goods and services produced did not change and prices decreased over the period.

Question 6

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

Accepted Answer

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

Question 7

Leisure time is ignored when calculating GDP because leisure time

Accepted Answer

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

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

Which of the following is included in the of U.S.GDP for 2011?
i. a 2011 Cadillac Escalade produced and sold as a new car in the United States in 2011
ii. tires produced in the United States, purchased by GM, and installed on a new Cadillac Escalade sold in 2011
iii. GM cars produced in Canada

Accepted Answer

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

Question 10

Investment is defined as the purchase of

Accepted Answer

A)  any financial asset only. 
B)  additions to inventories only. 
C)  financial assets and inventories only. 
D)  the purchase of new capital goods and additions to inventories. 
E)  the purchase of new capital goods but not additions to inventories. 
A)  any financial asset only. 
B)  additions to inventories only. 
C)  financial assets and inventories only. 
D)  the purchase of new capital goods and additions to inventories. 
E)  the purchase of new capital goods but not additions to inventories.

Question 11

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

Accepted Answer

A)  household production 
B)  capital goods 
C)  expenditure on resources used to protect the environment 
D)  government weather satellites 
E)  services such as hair styling 
A)  household production 
B)  capital goods 
C)  expenditure on resources used to protect the environment 
D)  government weather satellites 
E)  services such as hair styling

Question 12

The business cycle is defined as

Accepted Answer

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

Question 13

"The amount of new stocks and bonds issued in a year adds to the country's GDP." Is this assertion correct or incorrect?
 Explain your answer.

Accepted Answer

The assertion is incorrect.Stocks and bo

Question 14

-Based on the figure above, in which quarter or quarters did a peak occur?

Accepted Answer

A)  between 2004, 2nd quarter to 2005, 2nd quarter and also between 2006, 2nd quarter to the end of the figure 
B)  in 2005, 2nd quarter 
C)  between 2005, 2nd quarter to 2006, 2nd quarter 
D)  in 2006, 2nd quarter 
E)  there are no peaks illustrated in the figure 
A)  between 2004, 2nd quarter to 2005, 2nd quarter and also between 2006, 2nd quarter to the end of the figure 
B)  in 2005, 2nd quarter 
C)  between 2005, 2nd quarter to 2006, 2nd quarter 
D)  in 2006, 2nd quarter 
E)  there are no peaks illustrated in the figure

Question 15

In a small country, using prices of 2010, GDP in 2010 was $100 and GDP in 2011 was $110.Using prices of 2011, GDP in 2010 was $200 and GDP in 2011 was $210.The country's BEA will calculate ________ percent as the growth in real GDP between those years.

Accepted Answer

A)  10 
B)  5 
C)  15 
D)  7.5 
E)  None of the above answers is correct. 
A)  10 
B)  5 
C)  15 
D)  7.5 
E)  None of the above answers is correct.

Question 16

Which of the following correctly describes a final good?
I.A final good is bought by its final consumer.
Ii. A final good can be used by a firm as a component of another good or service.
Iii. Investment goods cannot be a final good.

Accepted Answer

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

Question 17

The business cycle has two phases,

Accepted Answer

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

Question 18

Gross Domestic Product is defined to be the market value of all the final goods and services produced during a given time period

Accepted Answer

A)  within a country. 
B)  within and outside a country by that country's citizens. 
C)  by citizens of the country, regardless of their place of residence. 
D)  by only legal residents of the 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 a country. 
B)  within and outside a country by that country's citizens. 
C)  by citizens of the country, regardless of their place of residence. 
D)  by only legal residents of the 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 19

Depreciation is

Accepted Answer

A)  fall in the value of an exchange rate. 
B)  the decrease in the value of capital resulting from its use and obsolescence. 
C)  the decrease in the purchasing power of a dollar because of inflation. 
D)  part of consumption expenditure. 
E)  part of net domestic product at factor cost. 
A)  fall in the value of an exchange rate. 
B)  the decrease in the value of capital resulting from its use and obsolescence. 
C)  the decrease in the purchasing power of a dollar because of inflation. 
D)  part of consumption expenditure. 
E)  part of net domestic product at factor cost.

Question 20

GDP is best defined as the ________ in a given time period.

Accepted Answer

A)  number of goods and services produced within a country 
B)  number of final goods and services produced within a country 
C)  market value of the final goods and services produced within a country 
D)  market value of the final goods and services consumed by a nation's citizens 
E)  market value of all the goods and services produced within a country 
A)  number of goods and services produced within a country 
B)  number of final goods and services produced within a country 
C)  market value of the final goods and services produced within a country 
D)  market value of the final goods and services consumed by a nation's citizens 
E)  market value of all the goods and services produced within a country

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

If you make dinner for yourself

Government expenditure on goods and services include i) the New York City's library's purchase of new books Ii) Washington D.C.'s purchase of gas for its city buses Iii) California's payment of wages to prison guards.

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

Bobby was researching the economic growth of a country between 2006 and 2011.Using 2006 as the base year, he calculated a twelve percent increase for real GDP and a ten percent increase for nominal GDP.His results indicate that

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

Leisure time is ignored when calculating GDP because leisure time

Gross Domestic Product equals

Which of the following is included in the of U.S.GDP for 2011? i. a 2011 Cadillac Escalade produced and sold as a new car in the United States in 2011 ii. tires produced in the United States, purchased by GM, and installed on a new Cadillac Escalade sold in 2011 iii. GM cars produced in Canada

Investment is defined as the purchase of

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

The business cycle is defined as

"The amount of new stocks and bonds issued in a year adds to the country's GDP." Is this assertion correct or incorrect? Explain your answer.

-Based on the figure above, in which quarter or quarters did a peak occur?

In a small country, using prices of 2010, GDP in 2010 was $100 and GDP in 2011 was $110.Using prices of 2011, GDP in 2010 was $200 and GDP in 2011 was $210.The country's BEA will calculate ________ percent as the growth in real GDP between those years.

Which of the following correctly describes a final good? I.A final good is bought by its final consumer. Ii. A final good can be used by a firm as a component of another good or service. Iii. Investment goods cannot be a final good.

The business cycle has two phases,

Gross Domestic Product is defined to be the market value of all the final goods and services produced during a given time period

Depreciation is

GDP is best defined as the ________ in a given time period.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

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

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

If you make dinner for yourself

Government expenditure on goods and services include i) the New York City's library's purchase of new books Ii) Washington D.C.'s purchase of gas for its city buses Iii) California's payment of wages to prison guards.

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

Bobby was researching the economic growth of a country between 2006 and 2011.Using 2006 as the base year, he calculated a twelve percent increase for real GDP and a ten percent increase for nominal GDP.His results indicate that

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

Leisure time is ignored when calculating GDP because leisure time

Gross Domestic Product equals

Which of the following is included in the of U.S.GDP for 2011? i. a 2011 Cadillac Escalade produced and sold as a new car in the United States in 2011 ii. tires produced in the United States, purchased by GM, and installed on a new Cadillac Escalade sold in 2011 iii. GM cars produced in Canada

Investment is defined as the purchase of

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

The business cycle is defined as

"The amount of new stocks and bonds issued in a year adds to the country's GDP." Is this assertion correct or incorrect? Explain your answer.

-Based on the figure above, in which quarter or quarters did a peak occur?

In a small country, using prices of 2010, GDP in 2010 was $100 and GDP in 2011 was $110.Using prices of 2011, GDP in 2010 was $200 and GDP in 2011 was $210.The country's BEA will calculate ________ percent as the growth in real GDP between those years.

Which of the following correctly describes a final good? I.A final good is bought by its final consumer. Ii. A final good can be used by a firm as a component of another good or service. Iii. Investment goods cannot be a final good.

The business cycle has two phases,

Gross Domestic Product is defined to be the market value of all the final goods and services produced during a given time period

Depreciation is

GDP is best defined as the ________ in a given time period.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters