Question 1

The Great Moderation describes the period

Accepted Answer

A) of relatively steady growth in real GDP between 1991 and 2008. 
B) of relatively steady growth in real GDP after the year 2000. 
C) between 2000 and 2008 when potential GDP did not increase. 
D) between 1990 and 2005 when real GDP grew significantly more slowly than did potential GDP. 
E) of very slow growth in real GDP after 1990. 
A) of relatively steady growth in real GDP between 1991 and 2008. 
B) of relatively steady growth in real GDP after the year 2000. 
C) between 2000 and 2008 when potential GDP did not increase. 
D) between 1990 and 2005 when real GDP grew significantly more slowly than did potential GDP. 
E) of very slow growth in real GDP after 1990.

Question 2

The expenditure approach to measuring GDP is based on summing

Accepted Answer

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

Question 3

In the United States, between 1961 and 2011, there has been i) a consistent , non-changing growth rate of potential GDP per person.
Ii) an increase in the standard of living based on real GDP per person.
Iii) fluctuations in real GDP per person around potential GDP per person.

Accepted Answer

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

Question 4

Measuring total production by valuing items at their market value allows us to

Accepted Answer

A) separate the value of different goods with identical prices. 
B) separate the value of different goods with different prices. 
C) add together the value of different goods that have different prices. 
D) add together the value of identical goods that have identical prices. 
E) ignore the problem that goods and services differ in how long they last. 
A) separate the value of different goods with identical prices. 
B) separate the value of different goods with different prices. 
C) add together the value of different goods that have different prices. 
D) add together the value of identical goods that have identical prices. 
E) ignore the problem that goods and services differ in how long they last.

Question 5

The base year is 2012. A country only produces Blu-ray players. The price of a Blu-ray player in 2012 was $100. The price of a Blu-ray player was $90 in 2013. The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units. Real GDP in 2012 equals

Accepted Answer

A) $900,000. 
B) $945,000. 
C) $1,000,000. 
D) $1,050,000. 
E) an amount that cannot be determined without information about real GDP in 2007. 
A) $900,000. 
B) $945,000. 
C) $1,000,000. 
D) $1,050,000. 
E) an amount that cannot be determined without information about real GDP in 2007.

Question 6

Is it possible for nominal GDP to increase while real GDP does not change?

Accepted Answer

Yes, it is possible for nominal GDP to i

Question 7

Which of the following statement is correct?

Accepted Answer

A) If nominal GDP increases, then real GDP must increase. 
B) If nominal GDP decreases, then real GDP must increase. 
C) If real GDP decreases, then nominal GDP must decrease. 
D) Nominal and real GDP can change either in the same direction or the opposite direction. 
E) If nominal GDP does not change, then real GDP cannot change. 
A) If nominal GDP increases, then real GDP must increase. 
B) If nominal GDP decreases, then real GDP must increase. 
C) If real GDP decreases, then nominal GDP must decrease. 
D) Nominal and real GDP can change either in the same direction or the opposite direction. 
E) If nominal GDP does not change, then real GDP cannot change.

Question 8

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

Accepted Answer

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

Question 9

-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 10

Total expenditure equals

Accepted Answer

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

Question 11

Nominal GDP can change

Accepted Answer

A) only if prices change. 
B) only if the quantities of goods and services change. 
C) only if prices increase. 
D) if either prices or the quantities of goods and services change. 
E) only if prices and the quantities of the goods and services change. 
A) only if prices change. 
B) only if the quantities of goods and services change. 
C) only if prices increase. 
D) if either prices or the quantities of goods and services change. 
E) only if prices and the quantities of the goods and services change.

Question 12

Mexico City is notorious for its excessive pollution. Mexico's measure of GDP is

Accepted Answer

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

Question 13

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

Accepted Answer

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

Question 14

Explain how our standard of living depends upon our level of real GDP per person but there might not be a one-to-one relationship between the standard of living and real GDP per person. Give examples of things that can affect one, but not the other.

Accepted Answer

Although GDP has a significant impact on

Question 15

Expenditures in GDP do not include ________.

Accepted Answer

A) used goods or financial assets 
B) financial assets or investment 
C) used goods or investment 
D) investment, stocks, or bonds 
E) government expenditures on goods and services 
A) used goods or financial assets 
B) financial assets or investment 
C) used goods or investment 
D) investment, stocks, or bonds 
E) government expenditures on goods and services

Question 16

Are stocks and bonds considered part of the investment component of GDP?

Accepted Answer

No, stocks and bonds are not part of the

Question 17

To calculate GDP it is necessary to

Accepted Answer

A) add the total amounts of all the goods produced. 
B) use the market price to place a dollar value on each good produced. 
C) use production cost to place a dollar value on all goods produced. 
D) use the average market price over the last five years to place a dollar value on all goods produced. 
E) average the cost of producing a good with the price of the good to place a dollar value on all goods produced. 
A) add the total amounts of all the goods produced. 
B) use the market price to place a dollar value on each good produced. 
C) use production cost to place a dollar value on all goods produced. 
D) use the average market price over the last five years to place a dollar value on all goods produced. 
E) average the cost of producing a good with the price of the good to place a dollar value on all goods produced.

Question 18

How are final goods and services valued when measuring nominal GDP?

Accepted Answer

A) at current market prices 
B) at base year prices 
C) at foreign exchange parity 
D) at factor market prices 
E) at producer cost 
A) at current market prices 
B) at base year prices 
C) at foreign exchange parity 
D) at factor market prices 
E) at producer cost

Question 19

Real GDP measures the value of goods and services produced in a given year using

Accepted Answer

A) base year prices. 
B) prices of that same year. 
C) no prices. 
D) future prices. 
E) government approved prices. 
A) base year prices. 
B) prices of that same year. 
C) no prices. 
D) future prices. 
E) government approved prices.

Question 20

The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle ________.

Accepted Answer

A) expansion 
B) peak 
C) trend 
D) recession 
E) trough 
A) expansion 
B) peak 
C) trend 
D) recession 
E) trough

The Great Moderation describes the period

The expenditure approach to measuring GDP is based on summing

In the United States, between 1961 and 2011, there has been i) a consistent , non-changing growth rate of potential GDP per person. Ii) an increase in the standard of living based on real GDP per person. Iii) fluctuations in real GDP per person around potential GDP per person.

Measuring total production by valuing items at their market value allows us to

The base year is 2012. A country only produces Blu-ray players. The price of a Blu-ray player in 2012 was $100. The price of a Blu-ray player was $90 in 2013. The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units. Real GDP in 2012 equals

Is it possible for nominal GDP to increase while real GDP does not change?

Which of the following statement is correct?

The expenditure approach values and the income approach values .

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

Total expenditure equals

Nominal GDP can change

Mexico City is notorious for its excessive pollution. Mexico's measure of GDP is

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

Explain how our standard of living depends upon our level of real GDP per person but there might not be a one-to-one relationship between the standard of living and real GDP per person. Give examples of things that can affect one, but not the other.

Expenditures in GDP do not include ________.

Are stocks and bonds considered part of the investment component of GDP?

To calculate GDP it is necessary to

How are final goods and services valued when measuring nominal GDP?

Real GDP measures the value of goods and services produced in a given year using

The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle ________.

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 14: Gdp: a Measure of Total Production and Income

The Great Moderation describes the period

The expenditure approach to measuring GDP is based on summing

In the United States, between 1961 and 2011, there has been i) a consistent , non-changing growth rate of potential GDP per person. Ii) an increase in the standard of living based on real GDP per person. Iii) fluctuations in real GDP per person around potential GDP per person.

Measuring total production by valuing items at their market value allows us to

The base year is 2012. A country only produces Blu-ray players. The price of a Blu-ray player in 2012 was $100. The price of a Blu-ray player was $90 in 2013. The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units. Real GDP in 2012 equals

Is it possible for nominal GDP to increase while real GDP does not change?

Which of the following statement is correct?

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

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

Total expenditure equals

Nominal GDP can change

Mexico City is notorious for its excessive pollution. Mexico's measure of GDP is

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

Explain how our standard of living depends upon our level of real GDP per person but there might not be a one-to-one relationship between the standard of living and real GDP per person. Give examples of things that can affect one, but not the other.

Expenditures in GDP do not include ________.

Are stocks and bonds considered part of the investment component of GDP?

To calculate GDP it is necessary to

How are final goods and services valued when measuring nominal GDP?

Real GDP measures the value of goods and services produced in a given year using

The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle ________.

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

The expenditure approach values and the income approach values .