Question 1

The sale of American-grown corn to China is included in the ________ category of GDP.

Accepted Answer

A)  consumption 
B)  investment 
C)  government purchases 
D)  export 
E)  import 
A)  consumption 
B)  investment 
C)  government purchases 
D)  export 
E)  import D

Question 2

The expansion phase of a business cycle is best described as:

Accepted Answer

A)  the time elapsed from a trough to a peak. 
B)  the time elapsed from a peak to a trough. 
C)  the time elapsed from a peak to a peak. 
D)  the time elapsed from a trough to a trough. 
E)  the time spent producing above the long-run trend of GDP. 
A)  the time elapsed from a trough to a peak. 
B)  the time elapsed from a peak to a trough. 
C)  the time elapsed from a peak to a peak. 
D)  the time elapsed from a trough to a trough. 
E)  the time spent producing above the long-run trend of GDP. A

Question 3

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the next three questions:
  
-The market value of pizza is:

Accepted Answer

A)  $25 million. 
B)  $10 million. 
C)  $2.5 million. 
D)  $250 million. 
E)  $750 million. 
A)  $25 million. 
B)  $10 million. 
C)  $2.5 million. 
D)  $250 million. 
E)  $750 million. D

Question 4

Real GDP would be a better measure of economic well-being if it included the value of:

Accepted Answer

A)  stocks and bonds purchases. 
B)  intermediate goods. 
C)  used goods. 
D)  leisure time. 
E)  Social Security payments. 
A)  stocks and bonds purchases. 
B)  intermediate goods. 
C)  used goods. 
D)  leisure time. 
E)  Social Security payments.

Question 5

Consider the following data to answer the next five questions:
  
-Which country has the highest level of GDP per capita?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
E)  E 
A)  A 
B)  B 
C)  C 
D)  D 
E)  E

Question 6

Nominal GDP increases if:

Accepted Answer

A)  current prices increase, while current quantities decrease. 
B)  current quantities increase, while current prices decrease. 
C)  current prices or current quantities increase. 
D)  real GDP increases. 
E)  real GDP decreases. 
A)  current prices increase, while current quantities decrease. 
B)  current quantities increase, while current prices decrease. 
C)  current prices or current quantities increase. 
D)  real GDP increases. 
E)  real GDP decreases.

Question 7

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next six questions:
  
-In what quarter did this economy enter a recession?

Accepted Answer

A)  quarter 5 
B)  quarter 6 
C)  quarter 7 
D)  quarter 8 
E)  quarter 9 
A)  quarter 5 
B)  quarter 6 
C)  quarter 7 
D)  quarter 8 
E)  quarter 9

Question 8

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next six questions: Assume that the base year is 2012.
  
-What was the real GDP in 2013?

Accepted Answer

A)  $5,400 
B)  $6,300 
C)  $6,450 
D)  $1,700 
E)  $13,600 
A)  $5,400 
B)  $6,300 
C)  $6,450 
D)  $1,700 
E)  $13,600

Question 9

GDP is best defined as the total market value of all:

Accepted Answer

A)  goods and services produced within a country within a given time. 
B)  final goods and services produced within a country within a given time. 
C)  services produced within a country within a given time. 
D)  goods produced within a country within a given time. 
E)  final goods produced within a country within a given time. 
A)  goods and services produced within a country within a given time. 
B)  final goods and services produced within a country within a given time. 
C)  services produced within a country within a given time. 
D)  goods produced within a country within a given time. 
E)  final goods produced within a country within a given time.

Question 10

Consider the following data to answer the next five questions:
  
-Which country has the lowest average living standard?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
E)  E 
A)  A 
B)  B 
C)  C 
D)  D 
E)  E

Question 11

If real GDP equals nominal GDP,then:

Accepted Answer

A)  output did not grow. 
B)  there was no inflation. 
C)  the current year is the base year. 
D)  the growth in output was equal to the growth in the price level. 
E)  the growth in output was greater than the growth in the price level. 
A)  output did not grow. 
B)  there was no inflation. 
C)  the current year is the base year. 
D)  the growth in output was equal to the growth in the price level. 
E)  the growth in output was greater than the growth in the price level.

Question 12

Consider the following data, where GDP values are measured in millions of dollars, to answer the next seven questions:
  
-What was the inflation rate between 2010 and 2011? Round to the nearest decimal.

Accepted Answer

A)  3.8% 
B)  4.0% 
C)  3.6% 
D)  2.0% 
E)  2.2% 
A)  3.8% 
B)  4.0% 
C)  3.6% 
D)  2.0% 
E)  2.2%

Question 13

Company X sells sugar to company Y for $50,000.Company Y uses the sugar to make chocolate bars,selling them to consumers for $150,000.The total contribution to GDP is:

Accepted Answer

A)  $200,000. 
B)  $100,000. 
C)  $30,000. 
D)  $150,000. 
E)  $50,000. 
A)  $200,000. 
B)  $100,000. 
C)  $30,000. 
D)  $150,000. 
E)  $50,000.

Question 14

GDP is most often measured by:

Accepted Answer

A)  the year. 
B)  the month. 
C)  the week. 
D)  the day. 
E)  the quarter. 
A)  the year. 
B)  the month. 
C)  the week. 
D)  the day. 
E)  the quarter.

Question 15

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012.
  
-What was the real GDP in 2013?

Accepted Answer

A)  $3,000 
B)  $3,600 
C)  $3,900 
D)  $3,350 
E)  $8,550 
A)  $3,000 
B)  $3,600 
C)  $3,900 
D)  $3,350 
E)  $8,550

Question 16

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012.
  
-What was the GDP deflator in 2013?

Accepted Answer

A)  108.3 
B)  103 
C)  120 
D)  130 
E)  110 
A)  108.3 
B)  103 
C)  120 
D)  130 
E)  110

Question 17

If nominal GDP is declining,then it must be the case that:

Accepted Answer

A)  fewer goods and services are being produced. 
B)  prices must be lower on average. 
C)  prices must be increasing more rapidly than production. 
D)  prices are falling at a greater rate than production is rising. 
E)  production is rising at a greater rate than prices are falling. 
A)  fewer goods and services are being produced. 
B)  prices must be lower on average. 
C)  prices must be increasing more rapidly than production. 
D)  prices are falling at a greater rate than production is rising. 
E)  production is rising at a greater rate than prices are falling.

Question 18

Hollister Co.stocks up on T-shirts for the holiday season.This inventory is included in the _______ category of GDP.

Accepted Answer

A)  consumption 
B)  investment 
C)  government purchases 
D)  net exports 
E)  services 
A)  consumption 
B)  investment 
C)  government purchases 
D)  net exports 
E)  services

Question 19

Government salaries paid to soldiers in the military are included in the ________ category of GDP.

Accepted Answer

A)  consumption 
B)  investment 
C)  government purchases 
D)  net export 
E)  durable goods 
A)  consumption 
B)  investment 
C)  government purchases 
D)  net export 
E)  durable goods

Question 20

An example of an intermediate good would be:

Accepted Answer

A)  lumber used by a consumer to build a fence in their yard. 
B)  pencils purchased by a restaurant to be used to take orders. 
C)  a new stove purchased by a restaurant. 
D)  an airplane purchased by the government. 
E)  Social Security payments made by the government. 
A)  lumber used by a consumer to build a fence in their yard. 
B)  pencils purchased by a restaurant to be used to take orders. 
C)  a new stove purchased by a restaurant. 
D)  an airplane purchased by the government. 
E)  Social Security payments made by the government.

The sale of American-grown corn to China is included in the ________ category of GDP.

The expansion phase of a business cycle is best described as:

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the next three questions: -The market value of pizza is:

Real GDP would be a better measure of economic well-being if it included the value of:

Consider the following data to answer the next five questions: -Which country has the highest level of GDP per capita?

Nominal GDP increases if:

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next six questions: -In what quarter did this economy enter a recession?

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next six questions: Assume that the base year is 2012. -What was the real GDP in 2013?

GDP is best defined as the total market value of all:

Consider the following data to answer the next five questions: -Which country has the lowest average living standard?

If real GDP equals nominal GDP,then:

Consider the following data, where GDP values are measured in millions of dollars, to answer the next seven questions: -What was the inflation rate between 2010 and 2011? Round to the nearest decimal.

Company X sells sugar to company Y for $50,000.Company Y uses the sugar to make chocolate bars,selling them to consumers for $150,000.The total contribution to GDP is:

GDP is most often measured by:

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012. -What was the real GDP in 2013?

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012. -What was the GDP deflator in 2013?

If nominal GDP is declining,then it must be the case that:

Hollister Co.stocks up on T-shirts for the holiday season.This inventory is included in the _______ category of GDP.

Government salaries paid to soldiers in the military are included in the ________ category of GDP.

An example of an intermediate good would be:

The Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Price Controls

The Efficiency of Markets and the Costs of Taxation

Unemployment

The Price Level and Inflation

Savings, interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy

International Trade

International Finance

Filters

Exam 6: Introduction to Macroeconomics and Gross Domestic Product

The sale of American-grown corn to China is included in the ________ category of GDP.

The expansion phase of a business cycle is best described as:

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the next three questions: -The market value of pizza is:

Real GDP would be a better measure of economic well-being if it included the value of:

Consider the following data to answer the next five questions: -Which country has the highest level of GDP per capita?

Nominal GDP increases if:

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next six questions: -In what quarter did this economy enter a recession?

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next six questions: Assume that the base year is 2012. -What was the real GDP in 2013?

GDP is best defined as the total market value of all:

Consider the following data to answer the next five questions: -Which country has the lowest average living standard?

If real GDP equals nominal GDP,then:

Consider the following data, where GDP values are measured in millions of dollars, to answer the next seven questions: -What was the inflation rate between 2010 and 2011? Round to the nearest decimal.

Company X sells sugar to company Y for $50,000.Company Y uses the sugar to make chocolate bars,selling them to consumers for $150,000.The total contribution to GDP is:

GDP is most often measured by:

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012. -What was the real GDP in 2013?

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012. -What was the GDP deflator in 2013?

If nominal GDP is declining,then it must be the case that:

Hollister Co.stocks up on T-shirts for the holiday season.This inventory is included in the _______ category of GDP.

Government salaries paid to soldiers in the military are included in the ________ category of GDP.

An example of an intermediate good would be:

The Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Price Controls

The Efficiency of Markets and the Costs of Taxation

Unemployment

The Price Level and Inflation

Savings, interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy

International Trade

International Finance

Filters