Question 1

If we use GDP to measure our standard of living, then our procedure is

Accepted Answer

A) inaccurate because our standard of living does not depend only on goods and services. 
B) accurate because our standard of living depends solely on goods and services. 
C) inaccurate because our standard of living has nothing to do with goods and services. 
D) inaccurate because our standard of living only depends on used goods and services. 
E) accurate only if we use nominal GDP rather than real GDP. 
A) inaccurate because our standard of living does not depend only on goods and services. 
B) accurate because our standard of living depends solely on goods and services. 
C) inaccurate because our standard of living has nothing to do with goods and services. 
D) inaccurate because our standard of living only depends on used goods and services. 
E) accurate only if we use nominal GDP rather than real GDP.

Question 2

-Based on the figure above, in which quarter or quarters did an expansion 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 expansions 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 expansions illustrated in the figure.

Question 3

Government expenditures on goods and services include i) the New York City 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

According to the expenditure approach to measuring GDP, in the United States, the largest component of GDP is

Accepted Answer

A) consumption expenditure. 
B) investment. 
C) government expenditure on goods and services. 
D) net exports of goods and services. 
E) wages. 
A) consumption expenditure. 
B) investment. 
C) government expenditure on goods and services. 
D) net exports of goods and services. 
E) wages.

Question 5

If real GDP is greater than nominal GDP for a particular year, then

Accepted Answer

A) production must have fallen between the current year and the base year. 
B) production must have increased between the current year and the base year. 
C) prices must have fallen between the current year and the base year. 
D) prices must have risen between the current year and the base year. 
E) prices must have fallen between the current year and the immediate past year. 
A) production must have fallen between the current year and the base year. 
B) production must have increased between the current year and the base year. 
C) prices must have fallen between the current year and the base year. 
D) prices must have risen between the current year and the base year. 
E) prices must have fallen between the current year and the immediate past year.

Question 6

Which of the following would NOT be directly included in the U.S. GDP in 2010?

Accepted Answer

A) the market value of restaurant meals sold in 2010 
B) the market value of the jet fuel bought by Delta to use for its flights in 2010 
C) the value of the automobiles produced in 2010 at the Toyota plant located in Georgetown, KY 
D) legal services provided to first time home buyers during 2010 
E) the purchase of a new home in Atlanta, Georgia in 2010 
A) the market value of restaurant meals sold in 2010 
B) the market value of the jet fuel bought by Delta to use for its flights in 2010 
C) the value of the automobiles produced in 2010 at the Toyota plant located in Georgetown, KY 
D) legal services provided to first time home buyers during 2010 
E) the purchase of a new home in Atlanta, Georgia in 2010

Question 7

The total production within an economy is measured as

Accepted Answer

A) gross home product. 
B) total domestic output. 
C) annual production value. 
D) gross domestic product. 
E) total annual output. 
A) gross home product. 
B) total domestic output. 
C) annual production value. 
D) gross domestic product. 
E) total annual output.

Question 8

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

Accepted Answer

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

Question 9

Define and distinguish between final goods and intermediate goods.

Accepted Answer

Final goods are those goods that are pur

Question 10

The category of "rent" in the income approach to GDP

Accepted Answer

A) includes the money paid to rent apartments only. 
B) includes the money paid to rent machinery only. 
C) includes the money paid to use land and other rented inputs. 
D) does not have any connection to owner-occupied housing. 
E) includes only the imputed rent for owner-occupied housing. 
A) includes the money paid to rent apartments only. 
B) includes the money paid to rent machinery only. 
C) includes the money paid to use land and other rented inputs. 
D) does not have any connection to owner-occupied housing. 
E) includes only the imputed rent for owner-occupied housing.

Question 11

What is a business cycle?
 What are its phases and turning points?

Accepted Answer

A business cycle is the periodic but irr

Question 12

In calculating GDP, economists

Accepted Answer

A) measure total expenditure as the only true measure. 
B) can measure either total expenditure or total income. 
C) measure total income as the only true measure. 
D) measure total income minus total expenditure. 
E) measure total income plus total expenditure. 
A) measure total expenditure as the only true measure. 
B) can measure either total expenditure or total income. 
C) measure total income as the only true measure. 
D) measure total income minus total expenditure. 
E) measure total income plus total expenditure.

Question 13

What would happen to measured GDP if more people started hiring workers to do house chores such as cooking and cleaning?

Accepted Answer

GDP is the value of the final goods and

If we use GDP to measure our standard of living, then our procedure is

-Based on the figure above, in which quarter or quarters did an expansion occur?

Government expenditures on goods and services include i) the New York City 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.

According to the expenditure approach to measuring GDP, in the United States, the largest component of GDP is

If real GDP is greater than nominal GDP for a particular year, then

Which of the following would NOT be directly included in the U.S. GDP in 2010?

The total production within an economy is measured as

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

Define and distinguish between final goods and intermediate goods.

The category of "rent" in the income approach to GDP

What is a business cycle? What are its phases and turning points?

In calculating GDP, economists

What would happen to measured GDP if more people started hiring workers to do house chores such as cooking and cleaning?

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

If we use GDP to measure our standard of living, then our procedure is

-Based on the figure above, in which quarter or quarters did an expansion occur?

Government expenditures on goods and services include i) the New York City 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.

According to the expenditure approach to measuring GDP, in the United States, the largest component of GDP is

If real GDP is greater than nominal GDP for a particular year, then

Which of the following would NOT be directly included in the U.S. GDP in 2010?

The total production within an economy is measured as

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

Define and distinguish between final goods and intermediate goods.

The category of "rent" in the income approach to GDP

What is a business cycle? What are its phases and turning points?

In calculating GDP, economists

What would happen to measured GDP if more people started hiring workers to do house chores such as cooking and cleaning?

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