Question 1

The best measure of the average living standards of people in the country is:

Accepted Answer

A)  the dollar value of final goods and services produced. 
B)  the dollar value of final goods and services produced per person. 
C)  the amount of final goods and services produced. 
D)  the amount of final goods and services produced per person. 
E)  the average price of final goods and services produced. 
A)  the dollar value of final goods and services produced. 
B)  the dollar value of final goods and services produced per person. 
C)  the amount of final goods and services produced. 
D)  the amount of final goods and services produced per person. 
E)  the average price of final goods and services produced.

Question 2

Ford produces 100,000 cars this year and only sells 95,000.The 5,000 cars that are not sold _______ listed in ________ category of GDP.

Accepted Answer

A)  are not; any 
B)  are; the consumption 
C)  are; the investment 
D)  are; the unsold good 
E)  are; the excess production 
A)  are not; any 
B)  are; the consumption 
C)  are; the investment 
D)  are; the unsold good 
E)  are; the excess production

Question 3

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next six questions:
  
-On average,what percentage does real GDP grow over the long run?

Accepted Answer

A)  1% 
B)  2% 
C)  3% 
D)  4% 
E)  5% 
A)  1% 
B)  2% 
C)  3% 
D)  4% 
E)  5%

Question 4

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 GDP deflator in 2012?

Accepted Answer

A)  100 
B)  108 
C)  103 
D)  109 
E)  106 
A)  100 
B)  108 
C)  103 
D)  109 
E)  106

Question 5

Which of the following is a topic of macroeconomics?

Accepted Answer

A)  the income earned by a person 
B)  the profit earned by a firm 
C)  production in the computer industry 
D)  the price of ice cream 
E)  the number of people in the economy with no jobs 
A)  the income earned by a person 
B)  the profit earned by a firm 
C)  production in the computer industry 
D)  the price of ice cream 
E)  the number of people in the economy with no jobs

Question 6

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 growth rate of real GDP between the two years?

Accepted Answer

A)  1.67% 
B)  0% 
C)  3.2% 
D)  2.4% 
E)  4.4% 
A)  1.67% 
B)  0% 
C)  3.2% 
D)  2.4% 
E)  4.4%

Question 7

Consider the following figure to answer the next five questions:
  
-During which period was the economy in a contraction?

Accepted Answer

A)  2001-2005 
B)  2008-2009 
C)  2004-2008 
D)  2005-2008 
E)  2000-2004 
A)  2001-2005 
B)  2008-2009 
C)  2004-2008 
D)  2005-2008 
E)  2000-2004

Question 8

When you buy a new car built by Ford,it 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

Question 9

Between two given years,if real GDP and nominal GDP grow at the same rate,then:

Accepted Answer

A)  the price level increased. 
B)  prices must have remained constant between the two years. 
C)  quantities must have remained constant between the two years. 
D)  prices and quantities must have remained constant between the two years. 
E)  prices and quantities must have grown at the same rate between the two years. 
A)  the price level increased. 
B)  prices must have remained constant between the two years. 
C)  quantities must have remained constant between the two years. 
D)  prices and quantities must have remained constant between the two years. 
E)  prices and quantities must have grown at the same rate between the two years.

Question 10

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next six questions:
  
-How many quarters did this economy spend in a recession?

Accepted Answer

A)  8 quarters 
B)  4 quarters 
C)  2 quarters 
D)  6 quarters 
E)  7 quarters 
A)  8 quarters 
B)  4 quarters 
C)  2 quarters 
D)  6 quarters 
E)  7 quarters

Question 11

The phase of the business cycle where the economy is growing faster than usual is called:

Accepted Answer

A)  an economic trough. 
B)  the long-run trend of GDP. 
C)  an economic expansion. 
D)  an economic contraction. 
E)  an economic peak. 
A)  an economic trough. 
B)  the long-run trend of GDP. 
C)  an economic expansion. 
D)  an economic contraction. 
E)  an economic peak.

Question 12

Consumption is approximately ________ of GDP.

Accepted Answer

A)  50% 
B)  90% 
C)  70% 
D)  80% 
E)  40% 
A)  50% 
B)  90% 
C)  70% 
D)  80% 
E)  40%

Question 13

Which is the largest component of U.S.GDP?

Accepted Answer

A)  consumption 
B)  investment 
C)  government purchases 
D)  exports 
E)  imports 
A)  consumption 
B)  investment 
C)  government purchases 
D)  exports 
E)  imports

Question 14

Consider the following data, where GDP values are measured in millions of dollars, to answer the next seven questions:
  
-What was the growth rate of real GDP from 2011 to 2012?

Accepted Answer

A)  2% 
B)  1% 
C)  10% 
D)  20% 
E)  5% 
A)  2% 
B)  1% 
C)  10% 
D)  20% 
E)  5%

Question 15

Country A has a GDP of $200,000 and a population of 1,000.Country B has a GDP of $400,000 and a population of 4,000.Which of the following is true?

Accepted Answer

A)  The value of output is higher in country A. 
B)  The value of income is higher in country A. 
C)  The value of GDP per capita is higher in country A. 
D)  The value of GDP per capita is higher in country B. 
E)  The average living standard is higher in country B. 
A)  The value of output is higher in country A. 
B)  The value of income is higher in country A. 
C)  The value of GDP per capita is higher in country A. 
D)  The value of GDP per capita is higher in country B. 
E)  The average living standard is higher in country B.

Question 16

Farmer Bill grows wheat and sells it to the miller for $50,000.The miller turns it into flour and sells it to the bakery for $75,000.The bakery uses the flour in the bread that it sells to people for $90,000.The total contribution to GDP is:

Accepted Answer

A)  $90,000. 
B)  $75,000. 
C)  $50,000. 
D)  $25,000. 
E)  $215,000. 
A)  $90,000. 
B)  $75,000. 
C)  $50,000. 
D)  $25,000. 
E)  $215,000.

Question 17

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.
  
-GDP increases if prices decrease by ________ and quantities produced increase by ________.

Accepted Answer

A)  2%; 4% 
B)  2%; 2% 
C)  4%; 2% 
D)  3%; 1% 
E)  3%; 3% 
A)  2%; 4% 
B)  2%; 2% 
C)  4%; 2% 
D)  3%; 1% 
E)  3%; 3%

Question 18

If nominal GDP is increasing,which of the following is true?

Accepted Answer

A)  More final goods and services are being produced. 
B)  Prices on average are rising at a slower rate than the decline in the quantity of final goods and services produced. 
C)  Less is being produced, and prices on average are falling. 
D)  Production of final goods and services is increasing at a faster rate than prices are falling. 
E)  Prices and the amount of final goods and services produced on average are constant. 
A)  More final goods and services are being produced. 
B)  Prices on average are rising at a slower rate than the decline in the quantity of final goods and services produced. 
C)  Less is being produced, and prices on average are falling. 
D)  Production of final goods and services is increasing at a faster rate than prices are falling. 
E)  Prices and the amount of final goods and services produced on average are constant.

Question 19

Bob wins the lottery.This ________ included in ________ category of GDP.

Accepted Answer

A)  is; the consumption 
B)  is; the investment 
C)  is; the government purchases 
D)  is; the net export 
E)  is not; any 
A)  is; the consumption 
B)  is; the investment 
C)  is; the government purchases 
D)  is; the net export 
E)  is not; any

Question 20

Nominal GDP increased from $15.62 trillion to $16.09 trillion,and the price level increased from 120.0 to 122.4.The rate of inflation was: (Round to the nearest first decimal.)

Accepted Answer

A)  3.0%. 
B)  1.0%. 
C)  2.4%. 
D)  20.0%. 
E)  2.0%. 
A)  3.0%. 
B)  1.0%. 
C)  2.4%. 
D)  20.0%. 
E)  2.0%.

The best measure of the average living standards of people in the country is:

Ford produces 100,000 cars this year and only sells 95,000.The 5,000 cars that are not sold _ listed in __ category of GDP.

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next six questions: -On average,what percentage does real GDP grow over the long run?

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 GDP deflator in 2012?

Which of the following is a topic of macroeconomics?

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 growth rate of real GDP between the two years?

Consider the following figure to answer the next five questions: -During which period was the economy in a contraction?

When you buy a new car built by Ford,it is included in the ________ category of GDP.

Between two given years,if real GDP and nominal GDP grow at the same rate,then:

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next six questions: -How many quarters did this economy spend in a recession?

The phase of the business cycle where the economy is growing faster than usual is called:

Consumption is approximately ________ of GDP.

Which is the largest component of U.S.GDP?

Consider the following data, where GDP values are measured in millions of dollars, to answer the next seven questions: -What was the growth rate of real GDP from 2011 to 2012?

Country A has a GDP of $200,000 and a population of 1,000.Country B has a GDP of $400,000 and a population of 4,000.Which of the following is true?

Farmer Bill grows wheat and sells it to the miller for $50,000.The miller turns it into flour and sells it to the bakery for $75,000.The bakery uses the flour in the bread that it sells to people for $90,000.The total contribution to GDP is:

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. -GDP increases if prices decrease by and quantities produced increase by .

If nominal GDP is increasing,which of the following is true?

Bob wins the lottery.This included in category of GDP.

Nominal GDP increased from $15.62 trillion to $16.09 trillion,and the price level increased from 120.0 to 122.4.The rate of inflation was: (Round to the nearest first decimal.)

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 best measure of the average living standards of people in the country is:

Ford produces 100,000 cars this year and only sells 95,000.The 5,000 cars that are not sold _______ listed in ________ category of GDP.

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next six questions: -On average,what percentage does real GDP grow over the long run?

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 GDP deflator in 2012?

Which of the following is a topic of macroeconomics?

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 growth rate of real GDP between the two years?

Consider the following figure to answer the next five questions: -During which period was the economy in a contraction?

When you buy a new car built by Ford,it is included in the ________ category of GDP.

Between two given years,if real GDP and nominal GDP grow at the same rate,then:

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next six questions: -How many quarters did this economy spend in a recession?

The phase of the business cycle where the economy is growing faster than usual is called:

Consumption is approximately ________ of GDP.

Which is the largest component of U.S.GDP?

Consider the following data, where GDP values are measured in millions of dollars, to answer the next seven questions: -What was the growth rate of real GDP from 2011 to 2012?

Country A has a GDP of $200,000 and a population of 1,000.Country B has a GDP of $400,000 and a population of 4,000.Which of the following is true?

Farmer Bill grows wheat and sells it to the miller for $50,000.The miller turns it into flour and sells it to the bakery for $75,000.The bakery uses the flour in the bread that it sells to people for $90,000.The total contribution to GDP is:

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. -GDP increases if prices decrease by ________ and quantities produced increase by ________.

If nominal GDP is increasing,which of the following is true?

Bob wins the lottery.This ________ included in ________ category of GDP.

Nominal GDP increased from $15.62 trillion to $16.09 trillion,and the price level increased from 120.0 to 122.4.The rate of inflation was: (Round to the nearest first decimal.)

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

Ford produces 100,000 cars this year and only sells 95,000.The 5,000 cars that are not sold _ listed in __ category of GDP.

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. -GDP increases if prices decrease by and quantities produced increase by .

Bob wins the lottery.This included in category of GDP.