Question 1

If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, which would rise?

Accepted Answer

A) both real GDP and nominal GDP 
B) real GDP but not nominal GDP 
C) nominal GDP but not real GDP 
D) neither nominal GDP nor real GDP 
A) both real GDP and nominal GDP 
B) real GDP but not nominal GDP 
C) nominal GDP but not real GDP 
D) neither nominal GDP nor real GDP

Question 2

GDP does not reflect

Accepted Answer

A) the value of leisure. 
B) the value of goods and services produced at home. 
C) the quality of the environment. 
D) All of the above are correct. 
A) the value of leisure. 
B) the value of goods and services produced at home. 
C) the quality of the environment. 
D) All of the above are correct.

Question 3

We would expect a macroeconomist, as opposed to a microeconomist, to be particularly interested in

Accepted Answer

A) explaining how economic changes affect prices of particular goods. 
B) devising policies to deal with market failures such as externalities and market power. 
C) devising policies to promote low inflation. 
D) identifying those markets that are competitive and those that are not competitive. 
A) explaining how economic changes affect prices of particular goods. 
B) devising policies to deal with market failures such as externalities and market power. 
C) devising policies to promote low inflation. 
D) identifying those markets that are competitive and those that are not competitive.

Question 4

Table 10-1
The table below contains data for Bahkan for the year 2010. $\begin{array}{|l|l|}
\hline \text { GDP } & \$ 110 \
\hline \text { Income earned by citizens abroad } & \$ 5 \
\hline \text { Income foreigners earn here } & \$ 15 \
\hline \text { Losses from depreciation } & \$ 4 \
\hline \text { Indirect business taxes } & \$ 6 \
\hline \text { Statistical discrepancy } & \$ 0 \
\hline \text { Retained earnings } & \$ 5 \
\hline \text { Corporate income taxes } & \$ 6 \
\hline \text { Social insurance contributions } & \$ 10 \
\hline \text { Interest paid to households by government } & \$ 5 \
\hline \text { Transfer payments to households from government } & \$ 15 \
\hline \text { Personal taxes } & \$ 30 \
\hline \text { Nontax payments to government } & \$ 5 \
\hline
\end{array}$

-Refer to Table 10-1. Personal income for Bahkan in 2010 is

Accepted Answer

A) $87. 
B) $89. 
C) $103. 
D) $105. 
A) $87. 
B) $89. 
C) $103. 
D) $105.

Question 5

GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.

Accepted Answer

GDP excludes some products because they

Question 6

An American retailer purchased 100 pairs of shoes from a company in Denmark in the second quarter of 2010 but does not sell them to a consumer until the third quarter of 2010. Which of the following components of U.S. GDP is affected by this transaction in the third quarter of 2010?

Accepted Answer

A) consumption, investment and imports 
B) only consumption and investment 
C) only consumption and imports 
D) only investment and imports 
A) consumption, investment and imports 
B) only consumption and investment 
C) only consumption and imports 
D) only investment and imports

Question 7

Foreign citizens earn more income in Ireland than Irish citizens earn in foreign countries.

Accepted Answer

A) Ireland's net factor payments from abroad are positive, and its GDP is larger than its GNP. 
B) Ireland's net factor payments from abroad are positive, and its GNP is larger than its GDP. 
C) Ireland's net factor payments from abroad are negative, and its GDP is larger than its GNP. 
D) Ireland's net factor payments from abroad are negative, and its GNP is larger than its GDP. 
A) Ireland's net factor payments from abroad are positive, and its GDP is larger than its GNP. 
B) Ireland's net factor payments from abroad are positive, and its GNP is larger than its GDP. 
C) Ireland's net factor payments from abroad are negative, and its GDP is larger than its GNP. 
D) Ireland's net factor payments from abroad are negative, and its GNP is larger than its GDP.

Question 8

Which of the following correctly orders U.S. income measures from largest to smallest?

Accepted Answer

A) disposable personal income, gross national product, national income, net national product, personal income 
B) personal income, net national product, national income, gross national product, disposable personal income 
C) gross national product, net national product, national income, personal income, disposable personal income 
D) disposable personal income, personal income, national income, net national product, gross national product 
A) disposable personal income, gross national product, national income, net national product, personal income 
B) personal income, net national product, national income, gross national product, disposable personal income 
C) gross national product, net national product, national income, personal income, disposable personal income 
D) disposable personal income, personal income, national income, net national product, gross national product

If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, which would rise?

GDP does not reflect

We would expect a macroeconomist, as opposed to a microeconomist, to be particularly interested in

GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.

An American retailer purchased 100 pairs of shoes from a company in Denmark in the second quarter of 2010 but does not sell them to a consumer until the third quarter of 2010. Which of the following components of U.S. GDP is affected by this transaction in the third quarter of 2010?

Foreign citizens earn more income in Ireland than Irish citizens earn in foreign countries.

Which of the following correctly orders U.S. income measures from largest to smallest?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Exam 10: Measuring a Nations Income

If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, which would rise?

GDP does not reflect

We would expect a macroeconomist, as opposed to a microeconomist, to be particularly interested in

GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.

An American retailer purchased 100 pairs of shoes from a company in Denmark in the second quarter of 2010 but does not sell them to a consumer until the third quarter of 2010. Which of the following components of U.S. GDP is affected by this transaction in the third quarter of 2010?

Foreign citizens earn more income in Ireland than Irish citizens earn in foreign countries.

Which of the following correctly orders U.S. income measures from largest to smallest?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters