Question 1

Problems with interpreting the unemployment rate as a measure of labor market tightness include

Accepted Answer

A)  those not in the labor force. 
B)  dissatisfied workers. 
C)  marginally attached workers. 
D)  biases in the CPI. 
A)  those not in the labor force. 
B)  dissatisfied workers. 
C)  marginally attached workers. 
D)  biases in the CPI.

Question 2

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below.

-Suppose that Year 2 is the base year. What is the growth rate of GDP?

Accepted Answer

A)  44.4% 
B)  58% 
C)  67.5% 
D)  120% 
A)  44.4% 
B)  58% 
C)  67.5% 
D)  120%

Question 3

What issue is there regarding housing and the measurement of GDP?

Accepted Answer

A)  residential investment is measured using current house prices, not construction prices. 
B)  houses are a capital and a consumption good. 
C)  one does not know whether a house will be owned or rented when it is built. 
D)  mobile homes are not counted. 
A)  residential investment is measured using current house prices, not construction prices. 
B)  houses are a capital and a consumption good. 
C)  one does not know whether a house will be owned or rented when it is built. 
D)  mobile homes are not counted.

Question 4

Here is what we know about a household: wages $25,000,unemployment insurance benefits $3,000,dividend income $4,000,income tax $5,000. What is the contribution to GDP of this household following the expenditure approach?

Accepted Answer

A)  $24,000 
B)  $25,000 
C)  $28,000 
D)  $29,000 
A)  $24,000 
B)  $25,000 
C)  $28,000 
D)  $29,000

Question 5

Additions to the nation's capital stock are brought about through

Accepted Answer

A)  the current account surplus. 
B)  investment. 
C)  investment and the current account surplus. 
D)  investment and the government budget surplus. 
A)  the current account surplus. 
B)  investment. 
C)  investment and the current account surplus. 
D)  investment and the government budget surplus.

Question 6

An example of a flow would be the

Accepted Answer

A)  rate at which water goes down the drain. 
B)  amount of water in a bathtub. 
C)  percentage of pollutants in tap water. 
D)  pressure of water in a pipe. 
A)  rate at which water goes down the drain. 
B)  amount of water in a bathtub. 
C)  percentage of pollutants in tap water. 
D)  pressure of water in a pipe.

Question 7

For the following question(s), suppose an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below.

-If Year 1 is the base year,the CPI for Year 2 is approximately

Accepted Answer

A)  100.0. 
B)  126.3. 
C)  131.3. 
D)  181.0. 
A)  100.0. 
B)  126.3. 
C)  131.3. 
D)  181.0.

Question 8

The income components of GDP include all of the following except

Accepted Answer

A)  wage income. 
B)  foreign income. 
C)  net interest income. 
D)  after-tax profits. 
A)  wage income. 
B)  foreign income. 
C)  net interest income. 
D)  after-tax profits.

Question 9

The calculation of real GDP allows us to

Accepted Answer

A)  separate consumption and investment spending. 
B)  adjust for underground economic activity. 
C)  adjust for the change in the quality of output over time. 
D)  compare national output across periods of time. 
A)  separate consumption and investment spending. 
B)  adjust for underground economic activity. 
C)  adjust for the change in the quality of output over time. 
D)  compare national output across periods of time.

Question 10

The value of a producer's output minus the value of all intermediate goods used in the production of that output is called the producer's

Accepted Answer

A)  net output. 
B)  accounting profit. 
C)  value added. 
D)  profit margin. 
A)  net output. 
B)  accounting profit. 
C)  value added. 
D)  profit margin.

Question 11

Recently,consumption has comprised approximately

Accepted Answer

A)  one-half of GDP. 
B)  two-thirds of GDP. 
C)  three-fourths of GDP. 
D)  four-fifths of GDP. 
A)  one-half of GDP. 
B)  two-thirds of GDP. 
C)  three-fourths of GDP. 
D)  four-fifths of GDP.

Question 12

Gelato ice cream maker shows the following on its balance sheet: revenue $200M,wages $100M,milk expenses $50M,strawberry purchases $5M,and taxes $25M. What is Gelato's contribution to GDP using the income approach?

Accepted Answer

A)  $100M 
B)  $125M 
C)  $145M 
D)  $200M 
A)  $100M 
B)  $125M 
C)  $145M 
D)  $200M

Question 13

We know the following about a tie manufacturer: tie sales $1,300,cotton purchases $750,wages $400,interest on business loans $100,and profits $50. What is the contribution to GDP of this producer using the income approach?

Accepted Answer

A)  $550 
B)  $500 
C)  $450 
D)  $400 
A)  $550 
B)  $500 
C)  $450 
D)  $400

Question 14

In the period 1950-2011,the inflation rate in the U.S. CPI has

Accepted Answer

A)  varied very little. 
B)  been less variable than the inflation rate in the GDP price deflator. 
C)  been more variable than the inflation rate in the GDP price deflator. 
D)  been substantially equal to the inflation rate in the GDP price deflator every year. 
A)  varied very little. 
B)  been less variable than the inflation rate in the GDP price deflator. 
C)  been more variable than the inflation rate in the GDP price deflator. 
D)  been substantially equal to the inflation rate in the GDP price deflator every year.

Question 15

The participation rate equals

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 16

Private disposable income is equal to

Accepted Answer

A)  Y + TR + INT - T. 
B)  Y + NFP + TR + INT - T. 
C)  Y - TR - INT + T. 
D)  Y + CA - G. 
A)  Y + TR + INT - T. 
B)  Y + NFP + TR + INT - T. 
C)  Y - TR - INT + T. 
D)  Y + CA - G.

Question 17

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below.

-What is the real GDP in year 1 using base year 1?

Accepted Answer

A)  $418. 
B)  $300. 
C)  $360. 
D)  $338. 
A)  $418. 
B)  $300. 
C)  $360. 
D)  $338.

Question 18

A price index can be computed by

Accepted Answer

A)  dividing a nominal variable by its real counterpart. 
B)  dividing a real variable by its real counterpart. 
C)  subtracting the nominal variable from its real counterpart. 
D)  subtracting the real variable from its nominal counterpart. 
A)  dividing a nominal variable by its real counterpart. 
B)  dividing a real variable by its real counterpart. 
C)  subtracting the nominal variable from its real counterpart. 
D)  subtracting the real variable from its nominal counterpart.

Question 19

Assume that in an economy with 200M inhabitants,90M work,4M are looking for a job,3M receive unemployment insurance compensation,and 6M receive unemployment insurance compensation and are looking for a job. What is the unemployment rate?

Accepted Answer

A)  13% 
B)  10% 
C)  6.5% 
D)  5% 
A)  13% 
B)  10% 
C)  6.5% 
D)  5%

Question 20

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below.

-Suppose that Year 2 is the base year. Year 1 real GDP is

Accepted Answer

A)  $200. 
B)  $270. 
C)  $310. 
D)  $390. 
A)  $200. 
B)  $270. 
C)  $310. 
D)  $390.

Problems with interpreting the unemployment rate as a measure of labor market tightness include

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below. -Suppose that Year 2 is the base year. What is the growth rate of GDP?

What issue is there regarding housing and the measurement of GDP?

Here is what we know about a household: wages $25,000,unemployment insurance benefits $3,000,dividend income $4,000,income tax $5,000. What is the contribution to GDP of this household following the expenditure approach?

Additions to the nation's capital stock are brought about through

An example of a flow would be the

For the following question(s), suppose an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below. -If Year 1 is the base year,the CPI for Year 2 is approximately

The income components of GDP include all of the following except

The calculation of real GDP allows us to

The value of a producer's output minus the value of all intermediate goods used in the production of that output is called the producer's

Recently,consumption has comprised approximately

Gelato ice cream maker shows the following on its balance sheet: revenue $200M,wages $100M,milk expenses $50M,strawberry purchases $5M,and taxes $25M. What is Gelato's contribution to GDP using the income approach?

We know the following about a tie manufacturer: tie sales $1,300,cotton purchases $750,wages $400,interest on business loans $100,and profits $50. What is the contribution to GDP of this producer using the income approach?

In the period 1950-2011,the inflation rate in the U.S. CPI has

The participation rate equals

Private disposable income is equal to

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below. -What is the real GDP in year 1 using base year 1?

A price index can be computed by

Assume that in an economy with 200M inhabitants,90M work,4M are looking for a job,3M receive unemployment insurance compensation,and 6M receive unemployment insurance compensation and are looking for a job. What is the unemployment rate?

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below. -Suppose that Year 2 is the base year. Year 1 real GDP is

Introduction

Business Cycle Measurement

Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption-Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters

Exam 2: Measurement

Problems with interpreting the unemployment rate as a measure of labor market tightness include

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below. -Suppose that Year 2 is the base year. What is the growth rate of GDP?

What issue is there regarding housing and the measurement of GDP?

Here is what we know about a household: wages $25,000,unemployment insurance benefits $3,000,dividend income $4,000,income tax $5,000. What is the contribution to GDP of this household following the expenditure approach?

Additions to the nation's capital stock are brought about through

An example of a flow would be the

For the following question(s), suppose an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below. -If Year 1 is the base year,the CPI for Year 2 is approximately

The income components of GDP include all of the following except

The calculation of real GDP allows us to

The value of a producer's output minus the value of all intermediate goods used in the production of that output is called the producer's

Recently,consumption has comprised approximately

Gelato ice cream maker shows the following on its balance sheet: revenue $200M,wages $100M,milk expenses $50M,strawberry purchases $5M,and taxes $25M. What is Gelato's contribution to GDP using the income approach?

We know the following about a tie manufacturer: tie sales $1,300,cotton purchases $750,wages $400,interest on business loans $100,and profits $50. What is the contribution to GDP of this producer using the income approach?

In the period 1950-2011,the inflation rate in the U.S. CPI has

The participation rate equals

Private disposable income is equal to

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below. -What is the real GDP in year 1 using base year 1?

A price index can be computed by

Assume that in an economy with 200M inhabitants,90M work,4M are looking for a job,3M receive unemployment insurance compensation,and 6M receive unemployment insurance compensation and are looking for a job. What is the unemployment rate?

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below. -Suppose that Year 2 is the base year. Year 1 real GDP is

Introduction

Business Cycle Measurement

Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption-Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters