Question 1

According to most estimates,the size of the "underground" economy in the United States could be as large as

Accepted Answer

A)  The "above-ground" economy. 
B)  The economy of China. 
C)  10% of GDP. 
D)  The state of Rhode Island. 
A)  The "above-ground" economy. 
B)  The economy of China. 
C)  10% of GDP. 
D)  The state of Rhode Island.

Question 2

Nondefense government spending peaked in the

Accepted Answer

A)  1990s. 
B)  1980s. 
C)  1940s. 
D)  1970s. 
A)  1990s. 
B)  1980s. 
C)  1940s. 
D)  1970s.

Question 3

What is macroeconomics?

Accepted Answer

Macroeconomics is the study of

Question 4

Which of the following does not count as personal consumption?

Accepted Answer

A)  Gambling losses. 
B)  Spending on education. 
C)  Bequests to a hospital. 
D)  Tax payments. 
A)  Gambling losses. 
B)  Spending on education. 
C)  Bequests to a hospital. 
D)  Tax payments.

Question 5

GDP stands for

Accepted Answer

A)  gross domestic price. 
B)  general domestic product. 
C)  gross detailed product. 
D)  gross domestic product. 
A)  gross domestic price. 
B)  general domestic product. 
C)  gross detailed product. 
D)  gross domestic product.

Question 6

Which of the following is NOT an element of the underground economy?

Accepted Answer

A)  Off-the-books babysitting. 
B)  Illegal drug deals. 
C)  Commissioned salespeople. 
D)  Cash-only under-the-table businesses. 
A)  Off-the-books babysitting. 
B)  Illegal drug deals. 
C)  Commissioned salespeople. 
D)  Cash-only under-the-table businesses.

Question 7

The production by American companies in foreign countries counts in U.S.GDP.

Accepted Answer

A) True 
 B)False

Question 8

If a foreign car manufacturer builds a plant in the United States,the new plant will

Accepted Answer

A)  Increase the GDP by the amount produced. 
B)  Have no effect on the GDP because it is a foreign company. 
C)  Decrease the GDP by the amount produced because of foreign ownership. 
D)  Increase the GDP by the net exports of the company. 
A)  Increase the GDP by the amount produced. 
B)  Have no effect on the GDP because it is a foreign company. 
C)  Decrease the GDP by the amount produced because of foreign ownership. 
D)  Increase the GDP by the net exports of the company.

Question 9

Net exports are calculated as exports minus imports.

Accepted Answer

A) True 
 B)False

Question 10

If goods are produced domestically but sold overseas,

Accepted Answer

A)  they are not counted in our GDP. 
B)  they are still counted in our GDP. 
C)  they are counted in our GDP and in the GDP of the country in which they were sold. 
D)  they are considered intermediate inputs. 
A)  they are not counted in our GDP. 
B)  they are still counted in our GDP. 
C)  they are counted in our GDP and in the GDP of the country in which they were sold. 
D)  they are considered intermediate inputs.

Question 11

Imports enter the GDP

Accepted Answer

A)  with a positive sign. 
B)  with a negative sign. 
C)  as an addition to changes in private inventories. 
D)  as a subtraction from consumption. 
A)  with a positive sign. 
B)  with a negative sign. 
C)  as an addition to changes in private inventories. 
D)  as a subtraction from consumption.

Question 12

GDP per capita means

Accepted Answer

A)  gross domestic product per business. 
B)  gross domestic product per employee. 
C)  gross domestic product per person. 
D)  gross domestic product per dollar in revenue. 
A)  gross domestic product per business. 
B)  gross domestic product per employee. 
C)  gross domestic product per person. 
D)  gross domestic product per dollar in revenue.

Question 13

The underground economy includes

Accepted Answer

A)  self-employed workers. 
B)  babysitters paid in cash. 
C)  babysitters on a payroll. 
D)  landscapers. 
A)  self-employed workers. 
B)  babysitters paid in cash. 
C)  babysitters on a payroll. 
D)  landscapers.

Question 14

Volunteers in the workforce have what effect on the GDP?

Accepted Answer

A)  None because they are not counted. 
B)  Only hours actually volunteered are counted. 
C)  Hours are counted at 50%. 
D)  Hours are counted as intermediate inputs. 
A)  None because they are not counted. 
B)  Only hours actually volunteered are counted. 
C)  Hours are counted at 50%. 
D)  Hours are counted as intermediate inputs.

Question 15

The main statistical agencies in Washington are

Accepted Answer

A)  the Federal Bureau of Investigation, the Central Intelligence Agency, the Bureau of Economic Analysis, and the National Labor Relations Board. 
B)  the Bureau of Economic Analysis, the Bureau of Labor Statistics, the Census Bureau, and the Federal Reserve Board. 
C)  the National Labor Relations Board, the Drug Enforcement Agency, and the Internal Revenue Service. 
D)  the U.S. Department of Agriculture, the Federal Trade Commission, the Food and Drug Administration, and the Census Bureau. 
A)  the Federal Bureau of Investigation, the Central Intelligence Agency, the Bureau of Economic Analysis, and the National Labor Relations Board. 
B)  the Bureau of Economic Analysis, the Bureau of Labor Statistics, the Census Bureau, and the Federal Reserve Board. 
C)  the National Labor Relations Board, the Drug Enforcement Agency, and the Internal Revenue Service. 
D)  the U.S. Department of Agriculture, the Federal Trade Commission, the Food and Drug Administration, and the Census Bureau.

Question 16

In GDP calculations,the work of stay-at-home parents is

Accepted Answer

A)  counted only for equivalent hours. 
B)  not counted. 
C)  counted as intermediate inputs. 
D)  counted at 50%. 
A)  counted only for equivalent hours. 
B)  not counted. 
C)  counted as intermediate inputs. 
D)  counted at 50%.

Question 17

How are net exports calculated?

Accepted Answer

To calculate the net exports component o

Question 18

Gross domestic product does NOT include

Accepted Answer

A)  personal consumption. 
B)  intermediate inputs. 
C)  residential investment. 
D)  net exports. 
A)  personal consumption. 
B)  intermediate inputs. 
C)  residential investment. 
D)  net exports.

Question 19

Only final goods and services count in calculating the GDP.

Accepted Answer

A) True 
 B)False

Question 20

What is included in government consumption and investment when calculating the GDP?

Accepted Answer

Government consumption and inv

According to most estimates,the size of the "underground" economy in the United States could be as large as

Nondefense government spending peaked in the

What is macroeconomics?

Which of the following does not count as personal consumption?

GDP stands for

Which of the following is NOT an element of the underground economy?

The production by American companies in foreign countries counts in U.S.GDP.

If a foreign car manufacturer builds a plant in the United States,the new plant will

Net exports are calculated as exports minus imports.

If goods are produced domestically but sold overseas,

Imports enter the GDP

GDP per capita means

The underground economy includes

Volunteers in the workforce have what effect on the GDP?

The main statistical agencies in Washington are

In GDP calculations,the work of stay-at-home parents is

How are net exports calculated?

Gross domestic product does NOT include

Only final goods and services count in calculating the GDP.

What is included in government consumption and investment when calculating the GDP?

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

Government and the Economy

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters

Exam 7: The First Step Into Macroeconomics

According to most estimates,the size of the "underground" economy in the United States could be as large as

Nondefense government spending peaked in the

What is macroeconomics?

Which of the following does not count as personal consumption?

GDP stands for

Which of the following is NOT an element of the underground economy?

The production by American companies in foreign countries counts in U.S.GDP.

If a foreign car manufacturer builds a plant in the United States,the new plant will

Net exports are calculated as exports minus imports.

If goods are produced domestically but sold overseas,

Imports enter the GDP

GDP per capita means

The underground economy includes

Volunteers in the workforce have what effect on the GDP?

The main statistical agencies in Washington are

In GDP calculations,the work of stay-at-home parents is

How are net exports calculated?

Gross domestic product does NOT include

Only final goods and services count in calculating the GDP.

What is included in government consumption and investment when calculating the GDP?

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

Government and the Economy

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters