Question 1

Macroeconomics is the study of individual economic markets.

Accepted Answer

A) True 
 B)False  False

Question 2

For the purposes of GDP accounting, government purchases

Accepted Answer

A)  are considered part of investment. 
B)  are considered part of consumption. 
C)  include transfer payments. 
D)  include wages and benefits paid to government workers. 
A)  are considered part of investment. 
B)  are considered part of consumption. 
C)  include transfer payments. 
D)  include wages and benefits paid to government workers. D

Question 3

How does real gross domestic product (GDP) differ from nominal GDP?

Accepted Answer

A)  Nominal GDP controls for price changes, while real GDP does not. 
B)  Real GDP controls for price changes, while nominal GDP does not. 
C)  Nominal GDP can be used to directly compare the amount of output produced from year to year, while real GDP cannot be used for such comparison. 
D)  There is no difference between nominal GDP and real GDP. 
A)  Nominal GDP controls for price changes, while real GDP does not. 
B)  Real GDP controls for price changes, while nominal GDP does not. 
C)  Nominal GDP can be used to directly compare the amount of output produced from year to year, while real GDP cannot be used for such comparison. 
D)  There is no difference between nominal GDP and real GDP. B

Question 4

What is the best measure of the value of output of an economy?

Accepted Answer

A)  GDP 
B)  GNP 
C)  NNP 
D)  the GDP deflator 
A)  GDP 
B)  GNP 
C)  NNP 
D)  the GDP deflator

Question 5

National income is the income that individuals and firms earn from their production.

Accepted Answer

A) True 
 B)False

Question 6

The "expansion" of an economy occurs after

Accepted Answer

A)  firms produce more goods. 
B)  people spend more money. 
C)  a trough. 
D)  an inflationary period. 
A)  firms produce more goods. 
B)  people spend more money. 
C)  a trough. 
D)  an inflationary period.

Question 7

Recall the Application about the time it took to recover from the most recent recession to answer the following question(s).
-According to this Application, some economists believe that recessions which are caused by ________ normally have ________ recoveries.

Accepted Answer

A)  high oil prices; faster 
B)  high oil prices; slower 
C)  financial crises; faster 
D)  financial crises; slower 
A)  high oil prices; faster 
B)  high oil prices; slower 
C)  financial crises; faster 
D)  financial crises; slower

Question 8

Nominal GDP uses current year prices to measure GDP.

Accepted Answer

A) True 
 B)False

Question 9

What is the fastest growing component of consumption in the United States?

Accepted Answer

A)  new home construction 
B)  nondurable goods 
C)  durable goods 
D)  services 
A)  new home construction 
B)  nondurable goods 
C)  durable goods 
D)  services

Question 10

When there are sustained increases in real GDP over time, we say that the economy is undergoing

Accepted Answer

A)  economic stagnation. 
B)  a recession. 
C)  economic growth. 
D)  massive changes in productive capacity. 
A)  economic stagnation. 
B)  a recession. 
C)  economic growth. 
D)  massive changes in productive capacity.

Question 11

Which of the following is a macroeconomic statement?

Accepted Answer

A)  Motorcycle manufacturer productivity decreased by three percent in 2016. 
B)  The price of cell phones decreased by 18 percent last year. 
C)  Real domestic output of seafood increased 12 percent from 2015 to 2016. 
D)  The U.S. inflation rate was two percent in 2016. 
A)  Motorcycle manufacturer productivity decreased by three percent in 2016. 
B)  The price of cell phones decreased by 18 percent last year. 
C)  Real domestic output of seafood increased 12 percent from 2015 to 2016. 
D)  The U.S. inflation rate was two percent in 2016.

Question 12

Blu-ray disc players, iPhones, and hybrid cars are generally considered to be ________ goods.

Accepted Answer

A)  durable 
B)  nondurable 
C)  intermediate 
D)  service 
A)  durable 
B)  nondurable 
C)  intermediate 
D)  service

Question 13

Depreciation is subtracted from GNP to determine

Accepted Answer

A)  net income. 
B)  net national product (NNP). 
C)  net GDP. 
D)  net imbalance on exports. 
A)  net income. 
B)  net national product (NNP). 
C)  net GDP. 
D)  net imbalance on exports.

Question 14

The GDP deflator measures how prices change over time.

Accepted Answer

A) True 
 B)False

Question 15

If Cassie's Coffee House purchases 33 cents worth of ingredients and spends 36 cents on wages per cup of coffee to produce an 89 cent cup of coffee, then Cassie's Coffee House's contribution to GDP is ________ per cup of coffee.

Accepted Answer

A)  20 cents 
B)  33 cents 
C)  36 cents 
D)  56 cents 
A)  20 cents 
B)  33 cents 
C)  36 cents 
D)  56 cents

Question 16

Which of the following is NOT an example of private investment expenditure?

Accepted Answer

A)  new plants and equipment added during the year 
B)  new houses built during the year 
C)  using credit cards to purchase durable and nondurable goods 
D)  increases in inventories on goods produced during the year 
A)  new plants and equipment added during the year 
B)  new houses built during the year 
C)  using credit cards to purchase durable and nondurable goods 
D)  increases in inventories on goods produced during the year

Question 17

Which of the following is NOT an example of a consumption expenditure?

Accepted Answer

A)  a digital camera you purchase to take on vacation 
B)  a new county jail 
C)  a motorcycle you purchase to ride on the weekends 
D)  a restaurant meal 
A)  a digital camera you purchase to take on vacation 
B)  a new county jail 
C)  a motorcycle you purchase to ride on the weekends 
D)  a restaurant meal

Question 18

The value of goods produced in a previous year but sold in the current year is added to the GDP for the current year.

Accepted Answer

A) True 
 B)False

Question 19

Bananas, chocolate bars, chewing gum, orange juice and yogurt are considered to be ________ goods.

Accepted Answer

A)  durable 
B)  nondurable 
C)  essential 
D)  service 
A)  durable 
B)  nondurable 
C)  essential 
D)  service

Question 20

Net exports are total imports minus total exports.

Accepted Answer

A) True 
 B)False

Macroeconomics is the study of individual economic markets.

For the purposes of GDP accounting, government purchases

How does real gross domestic product (GDP) differ from nominal GDP?

What is the best measure of the value of output of an economy?

National income is the income that individuals and firms earn from their production.

The "expansion" of an economy occurs after

Recall the Application about the time it took to recover from the most recent recession to answer the following question(s). -According to this Application, some economists believe that recessions which are caused by normally have recoveries.

Nominal GDP uses current year prices to measure GDP.

What is the fastest growing component of consumption in the United States?

When there are sustained increases in real GDP over time, we say that the economy is undergoing

Which of the following is a macroeconomic statement?

Blu-ray disc players, iPhones, and hybrid cars are generally considered to be ________ goods.

Depreciation is subtracted from GNP to determine

The GDP deflator measures how prices change over time.

If Cassie's Coffee House purchases 33 cents worth of ingredients and spends 36 cents on wages per cup of coffee to produce an 89 cent cup of coffee, then Cassie's Coffee House's contribution to GDP is ________ per cup of coffee.

Which of the following is NOT an example of private investment expenditure?

Which of the following is NOT an example of a consumption expenditure?

The value of goods produced in a previous year but sold in the current year is added to the GDP for the current year.

Bananas, chocolate bars, chewing gum, orange juice and yogurt are considered to be ________ goods.

Net exports are total imports minus total exports.

Introduction: What Is Economics

The Key Principles of Economics

Demand, Supply, and Market Equilibrium

Elasticity: A Measure of Responsiveness

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry, Monopolistic Competition, and Oligopoly

Imperfect Information, External Benefits, and External Costs

The Labor Market and the Distribution of Income

Unemployment and Inflation

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and the Banking System

Monetary Policy and Inflation

International Trade and Finance

Filters

Exam 11: Measuring a Nations Production and Income

Macroeconomics is the study of individual economic markets.

For the purposes of GDP accounting, government purchases

How does real gross domestic product (GDP) differ from nominal GDP?

What is the best measure of the value of output of an economy?

National income is the income that individuals and firms earn from their production.

The "expansion" of an economy occurs after

Recall the Application about the time it took to recover from the most recent recession to answer the following question(s). -According to this Application, some economists believe that recessions which are caused by ________ normally have ________ recoveries.

Nominal GDP uses current year prices to measure GDP.

What is the fastest growing component of consumption in the United States?

When there are sustained increases in real GDP over time, we say that the economy is undergoing

Which of the following is a macroeconomic statement?

Blu-ray disc players, iPhones, and hybrid cars are generally considered to be ________ goods.

Depreciation is subtracted from GNP to determine

The GDP deflator measures how prices change over time.

If Cassie's Coffee House purchases 33 cents worth of ingredients and spends 36 cents on wages per cup of coffee to produce an 89 cent cup of coffee, then Cassie's Coffee House's contribution to GDP is ________ per cup of coffee.

Which of the following is NOT an example of private investment expenditure?

Which of the following is NOT an example of a consumption expenditure?

The value of goods produced in a previous year but sold in the current year is added to the GDP for the current year.

Bananas, chocolate bars, chewing gum, orange juice and yogurt are considered to be ________ goods.

Net exports are total imports minus total exports.

Introduction: What Is Economics

The Key Principles of Economics

Demand, Supply, and Market Equilibrium

Elasticity: A Measure of Responsiveness

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry, Monopolistic Competition, and Oligopoly

Imperfect Information, External Benefits, and External Costs

The Labor Market and the Distribution of Income

Unemployment and Inflation

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and the Banking System

Monetary Policy and Inflation

International Trade and Finance

Filters

Recall the Application about the time it took to recover from the most recent recession to answer the following question(s). -According to this Application, some economists believe that recessions which are caused by normally have recoveries.