Question 1

Real GDP will increase

Accepted Answer

A) only if the price level rises. 
B) only if the price level falls. 
C) only if the quantity of final goods and services produced rises. 
D) if either the price level rises or the quantity of final goods and services produced rises. 
A) only if the price level rises. 
B) only if the price level falls. 
C) only if the quantity of final goods and services produced rises. 
D) if either the price level rises or the quantity of final goods and services produced rises.

Question 2

Table 8-28
  
-Refer to Table 8-28.Based on the table above,what is national income for this economy?

Accepted Answer

A) $4,700 billion 
B) $4,000 billion 
C) $3,150 billion 
D) $2,450 billion 
A) $4,700 billion 
B) $4,000 billion 
C) $3,150 billion 
D) $2,450 billion

Question 3

Presently,GDP is ________ to compensate for the costs of environmental damage.

Accepted Answer

A) fully adjusted 
B) partially adjusted 
C) adjusted on a chain-weight basis 
D) not adjusted 
A) fully adjusted 
B) partially adjusted 
C) adjusted on a chain-weight basis 
D) not adjusted

Question 4

Table 8-17
   A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.
-Refer to Table 8-17.What is nominal GDP in 2018?

Accepted Answer

A) $3,320 
B) $3,690 
C) $6,360 
D) $7,035 
A) $3,320 
B) $3,690 
C) $6,360 
D) $7,035

Question 5

In a small economy,consumption spending is $6,000,government purchases are $1,200,gross investment is $1,500,exports are $2,000,and imports are $1,000.What is gross domestic product?

Accepted Answer

A) $9,700 
B) $9,800 
C) $10,800 
D) $11,700 
A) $9,700 
B) $9,800 
C) $10,800 
D) $11,700

Question 6

Nominal GDP is GDP in a given year

Accepted Answer

A) adjusted for inflation. 
B) adjusted for anticipated inflation. 
C) valued in the prices of that year. 
D) valued in the prices of the base year. 
A) adjusted for inflation. 
B) adjusted for anticipated inflation. 
C) valued in the prices of that year. 
D) valued in the prices of the base year.

Question 7

Consumption spending is $4.5 billion,gross private domestic investment is $3 billion,and government purchases are $2 billion.If GDP is $14 billion,which of the following could be true regarding exports and imports in the economy?

Accepted Answer

A) Exports are $4.5 billion,and imports are $2 billion. 
B) Exports are $6 billion,and imports are $8.5 billion. 
C) Exports are $9 billion,and imports are $6 billion. 
D) Exports are $15 billion,and imports are $10.5 billion. 
A) Exports are $4.5 billion,and imports are $2 billion. 
B) Exports are $6 billion,and imports are $8.5 billion. 
C) Exports are $9 billion,and imports are $6 billion. 
D) Exports are $15 billion,and imports are $10.5 billion.

Question 8

The values of real GDP and real GNP are almost the same for the United States.

Accepted Answer

A) True 
 B)False

Question 9

The GDP deflator in year 2 is 105,using year 1 as the base year.This means that,on average,the cost of goods and services is

Accepted Answer

A) 5% higher in year 2 than in year 1. 
B) 105% higher in year 2 than in year 1. 
C) 5% higher in year 1 than in year 2. 
D) 105% higher in year 1 than in year 2. 
A) 5% higher in year 2 than in year 1. 
B) 105% higher in year 2 than in year 1. 
C) 5% higher in year 1 than in year 2. 
D) 105% higher in year 1 than in year 2.

Question 10

In periods when prices are falling,on average,

Accepted Answer

A) real GDP will grow slower than nominal GDP. 
B) real GDP will grow faster than nominal GDP. 
C) real GDP will grow as fast as nominal GDP. 
D) one cannot calculate real GDP. 
A) real GDP will grow slower than nominal GDP. 
B) real GDP will grow faster than nominal GDP. 
C) real GDP will grow as fast as nominal GDP. 
D) one cannot calculate real GDP.

Question 11

Which of the following would not be included in the expenditure category called investment expenditures?

Accepted Answer

A) spending on new houses 
B) a purchase of shares of preferred stock 
C) a purchase of a copy machine by FedEx Office 
D) the cars held in inventory on a local Ford dealer's lot 
A) spending on new houses 
B) a purchase of shares of preferred stock 
C) a purchase of a copy machine by FedEx Office 
D) the cars held in inventory on a local Ford dealer's lot

Question 12

The U.S.work week has declined from 60 hours in 1890 to fewer than 40 hours today.The impact of the decline in working hours

Accepted Answer

A) increases U.S.GDP and increases the well-being of a typical working person in the U.S. 
B) increases U.S.GDP and decreases the well-being of a typical working person in the U.S. 
C) decreases U.S.GDP and increases the well-being of a typical working person in the U.S. 
D) decreases U.S.GDP and decreases the well-being of a typical working person in the U.S. 
A) increases U.S.GDP and increases the well-being of a typical working person in the U.S. 
B) increases U.S.GDP and decreases the well-being of a typical working person in the U.S. 
C) decreases U.S.GDP and increases the well-being of a typical working person in the U.S. 
D) decreases U.S.GDP and decreases the well-being of a typical working person in the U.S.

Question 13

The purchase of a new automobile is included in

Accepted Answer

A) consumption expenditures on services. 
B) consumption expenditures on nondurable goods. 
C) consumption expenditures on durable goods. 
D) investment expenditures. 
A) consumption expenditures on services. 
B) consumption expenditures on nondurable goods. 
C) consumption expenditures on durable goods. 
D) investment expenditures.

Question 14

An increase in national income could by caused by which of the following?

Accepted Answer

A) an increase in depreciation 
B) an increase in personal taxes 
C) a decrease in personal income 
D) an increase in gross domestic product 
A) an increase in depreciation 
B) an increase in personal taxes 
C) a decrease in personal income 
D) an increase in gross domestic product

Question 15

The output of U.S.citizens who work in Canada would be included in the

Accepted Answer

A) gross domestic product of Canada. 
B) gross national product of Canada. 
C) gross domestic product of the United States. 
D) gross national product of Canada and the gross national product of the United States. 
A) gross domestic product of Canada. 
B) gross national product of Canada. 
C) gross domestic product of the United States. 
D) gross national product of Canada and the gross national product of the United States.

Question 16

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

Accepted Answer

A) True 
 B)False

Question 17

In the circular flow model,the value of total income for an economy ________ the value of total production.

Accepted Answer

A) equals 
B) is greater than 
C) is less than 
D) may be greater than or less than 
A) equals 
B) is greater than 
C) is less than 
D) may be greater than or less than

Question 18

If the GDP deflator is less than 100,then for that year,nominal GDP ________ real GDP.

Accepted Answer

A) equals 
B) is greater than 
C) is less than 
D) may be greater than or less than 
A) equals 
B) is greater than 
C) is less than 
D) may be greater than or less than

Question 19

Which of the following would increase GNP in the United States?

Accepted Answer

A) an increase in the production of U.S.-owned General Motors cars made in Mexico 
B) an increase in the production of Japanese-owned Toyota cars in Mexico 
C) an increase in the production of Japanese-owned Toyota cars in the U.S. 
D) an increase in the production of Mexican-owned Grupo Minsa corn in the U.S. 
A) an increase in the production of U.S.-owned General Motors cars made in Mexico 
B) an increase in the production of Japanese-owned Toyota cars in Mexico 
C) an increase in the production of Japanese-owned Toyota cars in the U.S. 
D) an increase in the production of Mexican-owned Grupo Minsa corn in the U.S.

Question 20

Under what circumstances would the GDP deflator be less than 100 after the base year?

Accepted Answer

A) The GDP deflator will be less than 100 if there has been inflation relative to the base year. 
B) The GDP deflator will be less than 100 if there has been inflation of less than 2% per year relative to the base year. 
C) The GDP deflator will be less than 100 if there has been deflation relative to the base year. 
D) There are no circumstances under which the GDP deflator could be less than 100. 
A) The GDP deflator will be less than 100 if there has been inflation relative to the base year. 
B) The GDP deflator will be less than 100 if there has been inflation of less than 2% per year relative to the base year. 
C) The GDP deflator will be less than 100 if there has been deflation relative to the base year. 
D) There are no circumstances under which the GDP deflator could be less than 100.

Real GDP will increase

Table 8-28 -Refer to Table 8-28.Based on the table above,what is national income for this economy?

Presently,GDP is ________ to compensate for the costs of environmental damage.

Table 8-17 A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above. -Refer to Table 8-17.What is nominal GDP in 2018?

In a small economy,consumption spending is $6,000,government purchases are $1,200,gross investment is $1,500,exports are $2,000,and imports are $1,000.What is gross domestic product?

Nominal GDP is GDP in a given year

Consumption spending is $4.5 billion,gross private domestic investment is $3 billion,and government purchases are $2 billion.If GDP is $14 billion,which of the following could be true regarding exports and imports in the economy?

The values of real GDP and real GNP are almost the same for the United States.

The GDP deflator in year 2 is 105,using year 1 as the base year.This means that,on average,the cost of goods and services is

In periods when prices are falling,on average,

Which of the following would not be included in the expenditure category called investment expenditures?

The U.S.work week has declined from 60 hours in 1890 to fewer than 40 hours today.The impact of the decline in working hours

The purchase of a new automobile is included in

An increase in national income could by caused by which of the following?

The output of U.S.citizens who work in Canada would be included in the

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

In the circular flow model,the value of total income for an economy ________ the value of total production.

If the GDP deflator is less than 100,then for that year,nominal GDP ________ real GDP.

Which of the following would increase GNP in the United States?

Under what circumstances would the GDP deflator be less than 100 after the base year?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

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Exam 8: GDP: Measuring Total Production and Income

Real GDP will increase

Table 8-28 -Refer to Table 8-28.Based on the table above,what is national income for this economy?

Presently,GDP is ________ to compensate for the costs of environmental damage.

Table 8-17 A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above. -Refer to Table 8-17.What is nominal GDP in 2018?

In a small economy,consumption spending is $6,000,government purchases are $1,200,gross investment is $1,500,exports are $2,000,and imports are $1,000.What is gross domestic product?

Nominal GDP is GDP in a given year

Consumption spending is $4.5 billion,gross private domestic investment is $3 billion,and government purchases are $2 billion.If GDP is $14 billion,which of the following could be true regarding exports and imports in the economy?

The values of real GDP and real GNP are almost the same for the United States.

The GDP deflator in year 2 is 105,using year 1 as the base year.This means that,on average,the cost of goods and services is

In periods when prices are falling,on average,

Which of the following would not be included in the expenditure category called investment expenditures?

The U.S.work week has declined from 60 hours in 1890 to fewer than 40 hours today.The impact of the decline in working hours

The purchase of a new automobile is included in

An increase in national income could by caused by which of the following?

The output of U.S.citizens who work in Canada would be included in the

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

In the circular flow model,the value of total income for an economy ________ the value of total production.

If the GDP deflator is less than 100,then for that year,nominal GDP ________ real GDP.

Which of the following would increase GNP in the United States?

Under what circumstances would the GDP deflator be less than 100 after the base year?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters