Question 1

(Consider This)When making a capital stock and reservoir analogy,the:

Accepted Answer

A)  outflow below the dam is the stock of capital. 
B)  inflow from the river is gross investment. 
C)  level of water in the reservoir is depreciation. 
D)  level of water in the reservoir is net investment. 
A)  outflow below the dam is the stock of capital. 
B)  inflow from the river is gross investment. 
C)  level of water in the reservoir is depreciation. 
D)  level of water in the reservoir is net investment.

Question 2

The value added of a firm is the market value of:

Accepted Answer

A)  a firm's output plus the value of the inputs bought from others. 
B)  a firm's output less the value of the inputs bought from others. 
C)  the firm's output. 
D)  the firm's inputs bought from others. 
A)  a firm's output plus the value of the inputs bought from others. 
B)  a firm's output less the value of the inputs bought from others. 
C)  the firm's output. 
D)  the firm's inputs bought from others.

Question 3

Answer the question on the basis of the following data.All figures are in billions of dollars. $\begin{array}{llcc}
  \text {Personal Taxes  } &\$40  \
 \text {  Social Security Contributions} &15\
 \text {Taxes on Production and Imports  } &20\
 \text {Corporate Income Taxes  } &40\
 \text { Transfer Payments } &22\
 \text { U.S. Exports } &24\
  \text {Undistributed Corporate Profits  } &35  \
 \text {Government Purchases  } &90\
 \text { Gross Private Domestic Investment } &75\
 \text { U.S. Imports  } &22\
 \text {Personal Consumption Expenditures  } &250\
 \text {Consumption of Fixed Capital  } &25\
 \text { Net Foreign Factor Income } &10\
 \text {Statistical Discrepancy  } &0\
\end{array}$
 Refer to the data.GDP is:

Accepted Answer

A)  $390. 
B)  $417. 
C)  $422. 
D)  $492. 
A)  $390. 
B)  $417. 
C)  $422. 
D)  $492.

Question 4

If nominal GDP is 150 and the GDP price index is 200,real GDP is 75.

Accepted Answer

A) True 
 B)False

Question 5

GDP can be calculated by summing:

Accepted Answer

A)  consumption,investment,government purchases,exports,and imports. 
B)  consumption,investment,government purchases,and net exports. 
C)  consumption,investment,wages,and rents. 
D)  consumption,investment,government purchases,and imports. 
A)  consumption,investment,government purchases,exports,and imports. 
B)  consumption,investment,government purchases,and net exports. 
C)  consumption,investment,wages,and rents. 
D)  consumption,investment,government purchases,and imports.

Question 6

Suppose that inventories were $40 billion in 2012 and $50 billion in 2013.In 2013,national income accountants would:

Accepted Answer

A)  add $10 billion to other elements of investment in calculating total investment. 
B)  subtract $10 billion from other elements of investment in calculating total investment. 
C)  add $45 billion (= $90/2)to other elements of investment in calculating total investment. 
D)  subtract $45 billion (= $90/2)from other elements of investment in calculating total investment. 
A)  add $10 billion to other elements of investment in calculating total investment. 
B)  subtract $10 billion from other elements of investment in calculating total investment. 
C)  add $45 billion (= $90/2)to other elements of investment in calculating total investment. 
D)  subtract $45 billion (= $90/2)from other elements of investment in calculating total investment.

Question 7

Answer the question on the basis of the following national income data for the economy.All figures are in billions of dollars. $\begin{array} { l r } 
\text { Personal Consumption Expenditures } & \$ 400 \
\text { Government Purchases } & 128 \
\text { Gross Private Domestic Investment } & 88 \
\text { Net Exports } & 7 \
\text { Net Foreign Factor Income } & 0 \
\text { Consumption of Fixed Capital } & 43 \
\text { Taxes on Production and Imports } & 50 \
\text { Compensation of Employees } & 369 \
\text { Rents } & 12 \
\text { Interest } & 15 \
\text { Proprietors' Income } & 52 \
\text { Corporate Income Taxes } & 36 \
\text { Dividends } & 24 \
\text { Undistributed Corporate Profits } & 22 \
\text { Statistical Discrepancy } & 0
\end{array}$ The gross domestic product for the above economy is:

Accepted Answer

A)  $584. 
B)  $592. 
C)  $609. 
D)  $623. 
A)  $584. 
B)  $592. 
C)  $609. 
D)  $623.

Question 8

Answer the question on the basis of the following national income data.All figures are in billions of dollars. $\begin{array} { l r } 
\text { Personal Taxes } & \$ 23 \
\text { Net Private Domestic Investment } & 33 \
\text { Net Exports } & 6 \
\text { National Income } & 278 \
\text { U.S. Exports } & 20 \
\text { Gross Private Domestic Investment } & 56 \
\text { Disposable Income } & 220 \
\text { Taxes on Production and Imports } & 32 \
\text { Undistributed Corporate Profits } & 15 \
\text { Proprietors' Income } & 45 \
\text { Net Foreign Factors Income } & 0 \
\text { Statistical Discrepancy } & 0
\end{array}$ Refer to the data.Consumption of fixed capital (private sector)is:

Accepted Answer

A)  $23. 
B)  $14. 
C)  $32. 
D)  $26. 
A)  $23. 
B)  $14. 
C)  $32. 
D)  $26.

Question 9

Suppose Smith pays $100 to Jones.

Accepted Answer

A)  We can say with certainty that the GDP has increased by $100. 
B)  We can say with certainty that the GDP has increased,but we cannot determine the amount. 
C)  We can say with certainty that the nominal GDP has increased,but we can't say whether real GDP has increased or decreased. 
D)  We need more information to determine whether GDP has changed. 
A)  We can say with certainty that the GDP has increased by $100. 
B)  We can say with certainty that the GDP has increased,but we cannot determine the amount. 
C)  We can say with certainty that the nominal GDP has increased,but we can't say whether real GDP has increased or decreased. 
D)  We need more information to determine whether GDP has changed.

(Consider This)When making a capital stock and reservoir analogy,the:

The value added of a firm is the market value of:

If nominal GDP is 150 and the GDP price index is 200,real GDP is 75.

GDP can be calculated by summing:

Suppose that inventories were $40 billion in 2012 and $50 billion in 2013.In 2013,national income accountants would:

Suppose Smith pays $100 to Jones.

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

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Exam 26: Measuring Domestic Output and National Income

(Consider This)When making a capital stock and reservoir analogy,the:

The value added of a firm is the market value of:

If nominal GDP is 150 and the GDP price index is 200,real GDP is 75.

GDP can be calculated by summing:

Suppose that inventories were $40 billion in 2012 and $50 billion in 2013.In 2013,national income accountants would:

Suppose Smith pays $100 to Jones.

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

Filters