Assume an economy produces only footballs and baseballs and the base year is 2005. $\begin{array}{llcll} & {\text { Quantities Produced }} & &{\text { Prices }} \\ \text { Footballs } & 200 & 300 & \$ 20 & \$ \$ 25 \\ \text { Baseballs } & 500 & 600 & \$ 10 & \$ 15 \end{array}$ Given the data in the table above, what is the value of nominal GDP in 2006?

A) $10,000 B) $12,000 C) $12,500 D) $16,500 A) $10,000 B) $12,000 C) $12,500 D) $16,500

The table below gives the quantities and prices for 2000 and 2010 for an economy that produces just two goods: sailboats and coconuts. \[\begin{array} { | l | c | c | c | c | } \hline & &{ \text { Quantity produced } } & & { \text { Price } } \\ \hline & \mathbf { 2 0 0 0 } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 0 0 } & \mathbf { 2 0 1 0 } \\ \hline \text { Sailboats } & 10 & 20 & \$ 500 & \$ 525 \\ \hline \text { Coconuts } & 2,000 & 2,400 & \$ 1 & \$ 2 \\ \hline \end{array}\] For this economy that produces just sailboats and coconuts, and with 2000 is the base year, nominal GDP was approximately ______ times larger in 2010 than it was in 2000.

A) 1.34 B) 1.65 C) 1.77 D) 2.19 A) 1.34 B) 1.65 C) 1.77 D) 2.19

Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: \[\begin{array} { l c c } { \text { Name of Company } } & \text { Revenues } & \text { Cost of Purchased Inputs } \\ \text { Citrus Growers Inc. } & \$ 0.75 & 0 \\ \text { Florida Jam Company } & \$ 2.00 & \$ .75 \\ \text { The Corner Store } & \$ 2.50 & \$ 2.00 \end{array}\] If the oranges were grown and the jam produced in the year 2009, but the marmalade was sold at The Corner Store in the year 2010, what is the contribution of these transactions to GDP in the year 2010?

A) $0.00 B) $0.50 C) $2.00 D) $2.50 A) $0.00 B) $0.50 C) $2.00 D) $2.50

The following table provides data for an economy in a certain year. \[\begin{array} { l r } \text { Consumption expenditures } & 1,000 \\ \text { Imports } & 600 \\ \text { Government purchases of goods and services } & 700 \\ \text { Construction of new homes and apartments } & 500 \\ \text { Sales of existing homes and apartments } & 600 \\ \text { Exports } & 500 \\ \text { Government payments to retirees } & 200 \\ \text { Household purchases of durable goods } & 300 \\ \text { Beginning-of-year inventory } & 500 \\ \text { End-of-year inventory } & 600 \\ \text { Business fixed investment } & 300 \end{array}\] Given the data in the table, compute the value of GDP.

A) 2,400 B) 2,500 C) 2,600 D) 2,700 A) 2,400 B) 2,500 C) 2,600 D) 2,700

Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: \[\begin{array} { l c c } \text { Name of Company } & \text { Revenues } & \text { Cost of Purchased Inputs } \\ \text { Fulton Family Farm } & \$ 0.50 & 0 \\ \text { DeLux Popcorn Co. } & \$ 2.50 & \$ .50 \\ \text { Friendly Groceries } & \$ 4.00 & \$ 2.50 \end{array}\] What is the value added of DeLux Popcorn Co.?

A) $0.50 B) $1.50 C) $2.00 D) $2.50 A) $0.50 B) $1.50 C) $2.00 D) $2.50

Exam 4: Macroeconomics: the Birds-Eye View of the Economy

In 2009, Pete Rich purchases a painting done by Rembrandt in 1642 for $20 million. He also pays a one percent commission to the auction house that sold the painting. What is the contribution of these transactions to GDP in the year 2009?

(Multiple Choice)

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Question 21

Comparisons of economic activity over time should be made using:

(Multiple Choice)

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Question 22

Which of the following would be classified as a final good?

(Multiple Choice)

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Question 23

Using real GDP to compare the level of economic well being in two countries may be misleading because the value of ______ contributes to economic well being, but is excluded from real GDP.

(Multiple Choice)

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Question 24

Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. What is the market value of production in this economy?

(Multiple Choice)

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Question 25

Assume an economy produces only footballs and baseballs and the base year is 2005. Quantities Produced Prices Footballs 200 300 \ 20 \ \ 25 Baseballs 500 600 \ 10 \ 15 Given the data in the table above, what is the value of nominal GDP in 2006?

(Multiple Choice)

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Question 26

The market value of final goods and services produced within a country during a period of time is called:

(Multiple Choice)

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Question 27

The table below gives the quantities and prices for 2000 and 2010 for an economy that produces just two goods: sailboats and coconuts. Quantity produced Price Sailboats 10 20 \ 500 \ 525 Coconuts 2,000 2,400 \ 1 \ 2 For this economy that produces just sailboats and coconuts, and with 2000 is the base year, nominal GDP was approximately ______ times larger in 2010 than it was in 2000.

(Multiple Choice)

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Question 28

Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of Company Revenues Cost of Purchased Inputs Citrus Growers Inc. \ 0.75 0 Florida Jam Company \ 2.00 \ .75 The Corner Store \ 2.50 \ 2.00 If the oranges were grown and the jam produced in the year 2009, but the marmalade was sold at The Corner Store in the year 2010, what is the contribution of these transactions to GDP in the year 2010?

(Multiple Choice)

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Question 29

Which of the following expenditures would increase the consumption component of U.S. GDP?

(Multiple Choice)

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Question 30

Which of the following would increase the net export component of U.S. GDP?

(Multiple Choice)

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Question 31

Real GDP measures the ______ of production.

(Multiple Choice)

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Question 32

The following table provides data for an economy in a certain year. Consumption expenditures 1,000 Imports 600 Government purchases of goods and services 700 Construction of new homes and apartments 500 Sales of existing homes and apartments 600 Exports 500 Government payments to retirees 200 Household purchases of durable goods 300 Beginning-of-year inventory 500 End-of-year inventory 600 Business fixed investment 300 Given the data in the table, compute the value of GDP.

(Multiple Choice)

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Question 33

Which of the following is NOT a capital good?

(Multiple Choice)

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Question 34

One shortcoming of GDP as an indicator of society's social well-being is that it fails to take into account the:

(Multiple Choice)

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Question 35

Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of Company Revenues Cost of Purchased Inputs Fulton Family Farm \ 0.50 0 DeLux Popcorn Co. \ 2.50 \ .50 Friendly Groceries \ 4.00 \ 2.50 What is the value added of DeLux Popcorn Co.?

(Multiple Choice)

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Question 36

Consumption spending includes spending on:

(Multiple Choice)

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Question 37

Goods and services that are used up in the production of other goods and services are called ______ goods and services.

(Multiple Choice)

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Question 38

Long-lived, produced goods used for producing other goods and services are called:

(Multiple Choice)

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Question 39

Labor income in the U.S. equals approximately ______ of GDP.

(Multiple Choice)

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Question 40

In 2009, Pete Rich purchases a painting done by Rembrandt in 1642 for $20 million. He also pays a one percent commission to the auction house that sold the painting. What is the contribution of these transactions to GDP in the year 2009?

Comparisons of economic activity over time should be made using:

Which of the following would be classified as a final good?

Using real GDP to compare the level of economic well being in two countries may be misleading because the value of ______ contributes to economic well being, but is excluded from real GDP.

Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. What is the market value of production in this economy?

Assume an economy produces only footballs and baseballs and the base year is 2005. Quantities Produced Prices Footballs 200 300 \ 20 \ \ 25 Baseballs 500 600 \ 10 \ 15 Given the data in the table above, what is the value of nominal GDP in 2006?

The market value of final goods and services produced within a country during a period of time is called:

Which of the following expenditures would increase the consumption component of U.S. GDP?

Which of the following would increase the net export component of U.S. GDP?

Real GDP measures the ______ of production.

Which of the following is NOT a capital good?

One shortcoming of GDP as an indicator of society's social well-being is that it fails to take into account the:

Consumption spending includes spending on:

Goods and services that are used up in the production of other goods and services are called ______ goods and services.

Long-lived, produced goods used for producing other goods and services are called:

Labor income in the U.S. equals approximately ______ of GDP.

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Measuring Economic Activity: Gdp and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

Workers, Wages, and Unemployment

Saving and Capital Formation

Money, Prices, and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economics Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: the Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

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