Question 1

Which does NOT belong in GDP?

Accepted Answer

A)  Salaries for government employees. 
B)  New trays purchased by a company for use in the cafeteria. 
C)  Tractors purchased by a farmer. 
D)  Police salaries in Toledo, Ohio. 
A)  Salaries for government employees. 
B)  New trays purchased by a company for use in the cafeteria. 
C)  Tractors purchased by a farmer. 
D)  Police salaries in Toledo, Ohio.

Question 2

In 2010,the country with the highest GDP per capita in the world was

Accepted Answer

A)  India. 
B)  China. 
C)  The United States. 
D)  Norway. 
A)  India. 
B)  China. 
C)  The United States. 
D)  Norway.

Question 3

Exports are

Accepted Answer

A)  goods and services produced in foreign countries by U.S. companies. 
B)  goods and services produced in the United States and sold outside the United States. 
C)  goods and services produced in foreign countries by foreign companies. 
D)  goods and services produced in foreign countries and sold in the United States. 
A)  goods and services produced in foreign countries by U.S. companies. 
B)  goods and services produced in the United States and sold outside the United States. 
C)  goods and services produced in foreign countries by foreign companies. 
D)  goods and services produced in foreign countries and sold in the United States.

Question 4

The biggest category of business investment spending today is

Accepted Answer

A)  trucks. 
B)  software. 
C)  computers. 
D)  residential structures. 
A)  trucks. 
B)  software. 
C)  computers. 
D)  residential structures.

Question 5

When companies add to their inventories,

Accepted Answer

A)  the amount of the change gets added to the GDP. 
B)  the amount of the change gets subtracted from the GDP. 
C)  the amount of the change has no effect on the GDP. 
D)  net exports go up. 
A)  the amount of the change gets added to the GDP. 
B)  the amount of the change gets subtracted from the GDP. 
C)  the amount of the change has no effect on the GDP. 
D)  net exports go up.

Question 6

The production of an Intel factory in Ireland

Accepted Answer

A)  counts in the U.S. GDP. 
B)  counts in the Irish GDP. 
C)  counts in both GDPs. 
D)  is subtracted from Intel's U.S. production for U.S.GDP calculations. 
A)  counts in the U.S. GDP. 
B)  counts in the Irish GDP. 
C)  counts in both GDPs. 
D)  is subtracted from Intel's U.S. production for U.S.GDP calculations.

Question 7

Simon Kuznets was

Accepted Answer

A)  a contemporary of Albert Einstein's who is responsible for the theory of economic relativity. 
B)  the Secretary of the Treasury that helped pull the country out of the Great Depression. 
C)  an award-winning hip-hop artist. 
D)  the first economist to construct an overall measurement of the U.S. economy. 
A)  a contemporary of Albert Einstein's who is responsible for the theory of economic relativity. 
B)  the Secretary of the Treasury that helped pull the country out of the Great Depression. 
C)  an award-winning hip-hop artist. 
D)  the first economist to construct an overall measurement of the U.S. economy.

Question 8

The gross domestic product is the dollar value of the output of the national economy.

Accepted Answer

A) True 
 B)False

Question 9

The GDP per capita tells us

Accepted Answer

A)  the amount of output each person would get if the economic pie were sliced evenly. 
B)  the amount of output each worker would get if the economic pie were sliced evenly. 
C)  the ratio of the maximum amount of output any person gets to the minimum amount of output each person gets. 
D)  the average amount of output each person gets, adjusted for inequality. 
A)  the amount of output each person would get if the economic pie were sliced evenly. 
B)  the amount of output each worker would get if the economic pie were sliced evenly. 
C)  the ratio of the maximum amount of output any person gets to the minimum amount of output each person gets. 
D)  the average amount of output each person gets, adjusted for inequality.

Question 10

The BEA is the

Accepted Answer

A)  Bureau of Educational Administration. 
B)  Bureau of Economic Alliances. 
C)  Bureau of Economic Analysis. 
D)  Bureau of Educational Analysis. 
A)  Bureau of Educational Administration. 
B)  Bureau of Economic Alliances. 
C)  Bureau of Economic Analysis. 
D)  Bureau of Educational Analysis.

Question 11

Which component of GDP captures goods that are produced but not sold in a given year?

Accepted Answer

A)  Personal consumption. 
B)  Nonresidential investment. 
C)  Changes in private inventories. 
D)  Net exports. 
A)  Personal consumption. 
B)  Nonresidential investment. 
C)  Changes in private inventories. 
D)  Net exports.

Question 12

The economy of the United States is roughly __________ the economy of China.

Accepted Answer

A)  twice as large as 
B)  half as large as 
C)  equal in size to 
D)  halfway interconnected to 
A)  twice as large as 
B)  half as large as 
C)  equal in size to 
D)  halfway interconnected to

Question 13

In 2010,the United States imported about __________ of goods and services.

Accepted Answer

A)  $2.3 trillion 
B)  $1.8 trillion 
C)  $2.3 billion 
D)  $14.7 trillion 
A)  $2.3 trillion 
B)  $1.8 trillion 
C)  $2.3 billion 
D)  $14.7 trillion

Question 14

One of the only purchases a business can make that counts directly in the GDP is

Accepted Answer

A)  Software. 
B)  Copy paper. 
C)  Pencils. 
D)  Pens. 
A)  Software. 
B)  Copy paper. 
C)  Pencils. 
D)  Pens.

Question 15

The GDP includes government consumption such as

Accepted Answer

A)  Social Security. 
B)  Medicare. 
C)  Medicaid. 
D)  Office products. 
A)  Social Security. 
B)  Medicare. 
C)  Medicaid. 
D)  Office products.

Question 16

Personal consumption accounted for $10.3 billion in 2010 in the United States.

Accepted Answer

A) True 
 B)False

Question 17

Net exports are

Accepted Answer

A)  exports divided by population. 
B)  exports minus marginal product. 
C)  exports minus imports. 
D)  exports minus debt. 
A)  exports divided by population. 
B)  exports minus marginal product. 
C)  exports minus imports. 
D)  exports minus debt.

Question 18

What six items make up the gross domestic product figure?

Accepted Answer

Personal consumption,nonresidential inve

Question 19

Which of the following is the correct formula for net exports?

Accepted Answer

A)  Net exports = Imports - Exports. 
B)  Net exports = Exports - Imports. 
C)  Net exports = Imports + Exports. 
D)  Net exports = (- Imports) + (- Exports). 
A)  Net exports = Imports - Exports. 
B)  Net exports = Exports - Imports. 
C)  Net exports = Imports + Exports. 
D)  Net exports = (- Imports) + (- Exports).

Question 20

The GDP does not include the nonmarket economy.What is this,and why isn't it included?

Accepted Answer

The nonmarket economy includes the work

Which does NOT belong in GDP?

In 2010,the country with the highest GDP per capita in the world was

Exports are

The biggest category of business investment spending today is

When companies add to their inventories,

The production of an Intel factory in Ireland

Simon Kuznets was

The gross domestic product is the dollar value of the output of the national economy.

The GDP per capita tells us

The BEA is the

Which component of GDP captures goods that are produced but not sold in a given year?

The economy of the United States is roughly __________ the economy of China.

In 2010,the United States imported about __________ of goods and services.

One of the only purchases a business can make that counts directly in the GDP is

The GDP includes government consumption such as

Personal consumption accounted for $10.3 billion in 2010 in the United States.

Net exports are

What six items make up the gross domestic product figure?

Which of the following is the correct formula for net exports?

The GDP does not include the nonmarket economy.What is this,and why isn't it included?

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

Which does NOT belong in GDP?

In 2010,the country with the highest GDP per capita in the world was

Exports are

The biggest category of business investment spending today is

When companies add to their inventories,

The production of an Intel factory in Ireland

Simon Kuznets was

The gross domestic product is the dollar value of the output of the national economy.

The GDP per capita tells us

The BEA is the

Which component of GDP captures goods that are produced but not sold in a given year?

The economy of the United States is roughly __________ the economy of China.

In 2010,the United States imported about __________ of goods and services.

One of the only purchases a business can make that counts directly in the GDP is

The GDP includes government consumption such as

Personal consumption accounted for $10.3 billion in 2010 in the United States.

Net exports are

What six items make up the gross domestic product figure?

Which of the following is the correct formula for net exports?

The GDP does not include the nonmarket economy.What is this,and why isn't it included?

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