Question 1

Excluding household and underground production leads to

Accepted Answer

A) underestimation of real GDP but not nominal GDP. 
B) overestimation of real GDP but not nominal GDP. 
C) overestimation of both real GDP and nominal GDP. 
D) underestimation of both real GDP and nominal GDP. 
E) underestimation of real GDP an an overestimation of nominal GDP. 
A) underestimation of real GDP but not nominal GDP. 
B) overestimation of real GDP but not nominal GDP. 
C) overestimation of both real GDP and nominal GDP. 
D) underestimation of both real GDP and nominal GDP. 
E) underestimation of real GDP an an overestimation of nominal GDP.

Question 2

The U.S. economy is experiencing falling output, falling employment, falling incomes and rising 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

Question 3

Last year U.S. net exports of goods and services was negative. This fact means that last year

Accepted Answer

A) there was an error made when calculating net exports of goods and services for the United States. 
B) the value of U.S. exports was greater than the value of U.S. imports. 
C) the value of U.S. exports was less than the value of U.S. imports. 
D) U.S. consumption expenditure plus investment was less than the value of exports plus the value of imports. 
E) U.S. consumption expenditure plus investment plus government expenditures on goods and services was less than the value of exports plus the value of imports. 
A) there was an error made when calculating net exports of goods and services for the United States. 
B) the value of U.S. exports was greater than the value of U.S. imports. 
C) the value of U.S. exports was less than the value of U.S. imports. 
D) U.S. consumption expenditure plus investment was less than the value of exports plus the value of imports. 
E) U.S. consumption expenditure plus investment plus government expenditures on goods and services was less than the value of exports plus the value of imports.

Question 4

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) Once tax payments are subtracted at each stage, they are equal. 
C) Expenditures on GDP equals the value of production which equals income. 
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 is smaller because households save some of their income and do not spend it. 
A) They have no relationship to each other. 
B) Once tax payments are subtracted at each stage, they are equal. 
C) Expenditures on GDP equals the value of production which equals income. 
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 is smaller because households save some of their income and do not spend it.

Question 5

If you sell your textbook to your friend this year, does the sale count in this year's GDP?

Accepted Answer

No, the sale would not count in this yea

Question 6

Explain how the United Nations uses the Human Development Index (HDI)to better measure the standard of living around the globe.

Accepted Answer

Economists have long realized that the l

Question 7

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 8

The Human Development Index was proposed because

Accepted Answer

A) people confuse nominal GDP and real GDP. 
B) nominal GDP and real GDP are subjective measures. 
C) of the limitations of real GDP as a measure comparing the standard of living in different nations. 
D) the GDP deflator changes if the base year is changed. 
E) different nations have different populations. 
A) people confuse nominal GDP and real GDP. 
B) nominal GDP and real GDP are subjective measures. 
C) of the limitations of real GDP as a measure comparing the standard of living in different nations. 
D) the GDP deflator changes if the base year is changed. 
E) different nations have different populations.

Question 9

Can nominal GDP ever be less than real GDP?

Accepted Answer

Yes, nominal GDP can be less than real G

Question 10

Comparing nominal GDP of 2012 to nominal GDP of twenty years ago

Accepted Answer

A) is an inaccurate measure of the change in total production. 
B) has no economic meaning. 
C) will be an accurate measure of the change in total production. 
D) determines the extent to which the cost of living changed. 
E) cannot be done because the two GDP measures use different prices. 
A) is an inaccurate measure of the change in total production. 
B) has no economic meaning. 
C) will be an accurate measure of the change in total production. 
D) determines the extent to which the cost of living changed. 
E) cannot be done because the two GDP measures use different prices.

Question 11

According to the income approach to measuring GDP, the largest income category is

Accepted Answer

A) wages. 
B) interest. 
C) rent. 
D) profits. 
E) consumption expenditure. 
A) wages. 
B) interest. 
C) rent. 
D) profits. 
E) consumption expenditure.

Question 12

If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach, then

Accepted Answer

A) we also will have to account for spending on financial assets. 
B) it will be very difficult to assign a fair market value to a used good. 
C) we will be counting the value of the used goods both at the time of their production and at the time of their re-sale. 
D) we will have to account for the natural depreciation that a used good experiences. 
E) consumption spending would need to be adjusted for depreciation. 
A) we also will have to account for spending on financial assets. 
B) it will be very difficult to assign a fair market value to a used good. 
C) we will be counting the value of the used goods both at the time of their production and at the time of their re-sale. 
D) we will have to account for the natural depreciation that a used good experiences. 
E) consumption spending would need to be adjusted for depreciation.

Question 13

Because of the circular flows of expenditure and income in the economy, total ________ equals total ________ equals total ________.

Accepted Answer

A) expenditure; investment; income 
B) expenditure; income; value of production 
C) consumption; expenditure; value of production 
D) investment; income; consumption 
E) consumption; investment; expenditure 
A) expenditure; investment; income 
B) expenditure; income; value of production 
C) consumption; expenditure; value of production 
D) investment; income; consumption 
E) consumption; investment; expenditure

Question 14

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 15

GDP is equal to the ________ value of all the final goods and services produced within a country in a given period of time.

Accepted Answer

A) production 
B) market 
C) wholesale 
D) retail 
E) typical 
A) production 
B) market 
C) wholesale 
D) retail 
E) typical

Question 16

Which of the following is NOT directly included in Canadian GDP?

Accepted Answer

A) the purchase of tickets to a Kanye West concert in Montreal 
B) the sale of tickets to the Vancouver Olympics to U.S. citizens 
C) gasoline purchased by a tour bus operator in Quebec 
D) bus tickets sold to tourists for a tour bus ride in Montreal 
E) All of the items would be included in Canadian GDP. 
A) the purchase of tickets to a Kanye West concert in Montreal 
B) the sale of tickets to the Vancouver Olympics to U.S. citizens 
C) gasoline purchased by a tour bus operator in Quebec 
D) bus tickets sold to tourists for a tour bus ride in Montreal 
E) All of the items would be included in Canadian GDP.

Question 17

In 2009 in the United States, consumption expenditure was $9,996 billion, investment was $1,559 billion, government expenditures on goods and services were $2,927 billion, and total exports were $1,492 billion. GDP equaled

Accepted Answer

A) $12,641 billion. 
B) $10,120 billion. 
C) $11,488 billion. 
D) $14, 415 billion. 
E) some amount, but there is not enough information given to calculate GDP. 
A) $12,641 billion. 
B) $10,120 billion. 
C) $11,488 billion. 
D) $14, 415 billion. 
E) some amount, but there is not enough information given to calculate GDP.

Question 18

Define and discuss GDP.

Accepted Answer

GDP is the market value of all final goo

Question 19

Which of the following is NOT part of the business cycle?

Accepted Answer

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

Question 20

The expenditure approach to measuring GDP is done by using data on only

Accepted Answer

A) consumption expenditure. 
B) consumption expenditure and investment. 
C) consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services. 
D) consumption expenditure, investment, and government expenditures. 
E) wages, rent, interest, and profit. 
A) consumption expenditure. 
B) consumption expenditure and investment. 
C) consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services. 
D) consumption expenditure, investment, and government expenditures. 
E) wages, rent, interest, and profit.

Excluding household and underground production leads to

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

Last year U.S. net exports of goods and services was negative. This fact means that last year

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

If you sell your textbook to your friend this year, does the sale count in this year's GDP?

Explain how the United Nations uses the Human Development Index (HDI)to better measure the standard of living around the globe.

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

The Human Development Index was proposed because

Can nominal GDP ever be less than real GDP?

Comparing nominal GDP of 2012 to nominal GDP of twenty years ago

According to the income approach to measuring GDP, the largest income category is

If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach, then

Because of the circular flows of expenditure and income in the economy, total equals total equals total .

If you make dinner for yourself

GDP is equal to the ________ value of all the final goods and services produced within a country in a given period of time.

Which of the following is NOT directly included in Canadian GDP?

In 2009 in the United States, consumption expenditure was $9,996 billion, investment was $1,559 billion, government expenditures on goods and services were $2,927 billion, and total exports were $1,492 billion. GDP equaled

Define and discuss GDP.

Which of the following is NOT part of the business cycle?

The expenditure approach to measuring GDP is done by using data on only

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

Excluding household and underground production leads to

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

Last year U.S. net exports of goods and services was negative. This fact means that last year

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

If you sell your textbook to your friend this year, does the sale count in this year's GDP?

Explain how the United Nations uses the Human Development Index (HDI)to better measure the standard of living around the globe.

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

The Human Development Index was proposed because

Can nominal GDP ever be less than real GDP?

Comparing nominal GDP of 2012 to nominal GDP of twenty years ago

According to the income approach to measuring GDP, the largest income category is

If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach, then

Because of the circular flows of expenditure and income in the economy, total ________ equals total ________ equals total ________.

If you make dinner for yourself

GDP is equal to the ________ value of all the final goods and services produced within a country in a given period of time.

Which of the following is NOT directly included in Canadian GDP?

In 2009 in the United States, consumption expenditure was $9,996 billion, investment was $1,559 billion, government expenditures on goods and services were $2,927 billion, and total exports were $1,492 billion. GDP equaled

Define and discuss GDP.

Which of the following is NOT part of the business cycle?

The expenditure approach to measuring GDP is done by using data on only

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

Because of the circular flows of expenditure and income in the economy, total equals total equals total .