Question 1

If a country passes a labor law limiting the number of hours of work per week,GDP would ________ and leisure would ________.

Accepted Answer

A) decrease; increase 
B) increase; increase 
C) decrease; decrease 
D) increase; decrease 
A) decrease; increase 
B) increase; increase 
C) decrease; decrease 
D) increase; decrease

Question 2

In an "underground economy," the production of goods and services

Accepted Answer

A) is not measured or included in GDP. 
B) is not measured but is included in GDP. 
C) is measured and included in GDP. 
D) is usually too insignificant to be included in GDP. 
A) is not measured or included in GDP. 
B) is not measured but is included in GDP. 
C) is measured and included in GDP. 
D) is usually too insignificant to be included in GDP.

Question 3

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Accepted Answer

Nominal GDP can change because

Question 4

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

Accepted Answer

A) average price levels of goods and services in the economy. 
B) price charged for laptop computers by Dell. 
C) wages paid to employees by Dell. 
D) quantity of Dell employees. 
A) average price levels of goods and services in the economy. 
B) price charged for laptop computers by Dell. 
C) wages paid to employees by Dell. 
D) quantity of Dell employees.

Question 5

The GDP deflator is a measure of the

Accepted Answer

A) total production of the economy adjusted for inflation. 
B) total production of the economy unadjusted for inflation. 
C) average level of prices of final goods and services in the economy. 
D) average level of prices of intermediate goods and services in the economy. 
A) total production of the economy adjusted for inflation. 
B) total production of the economy unadjusted for inflation. 
C) average level of prices of final goods and services in the economy. 
D) average level of prices of intermediate goods and services in the economy.

Question 6

________ is/are the payment for the factor of production ________.

Accepted Answer

A) Wages; capital 
B) Interest; labor 
C) Profit; entrepreneurship 
D) Rent; capital 
A) Wages; capital 
B) Interest; labor 
C) Profit; entrepreneurship 
D) Rent; capital

Question 7

The purchase of a new automobile is included in

Accepted Answer

A) consumption expenditures on services. 
B) consumption expenditures on nondurable goods. 
C) consumption expenditures on durable goods. 
D) investment expenditures. 
A) consumption expenditures on services. 
B) consumption expenditures on nondurable goods. 
C) consumption expenditures on durable goods. 
D) investment expenditures.

Question 8

Describe briefly how the final value of an iPhone must be equal to the sum of incomes generated by the production of the iPhone.

Accepted Answer

Consider the value of an iPhone which co

Question 9

In a small economy,gross investment in 2013 is $1,500,consumption spending is $6,000,net investment is $200,government spending is $1,500,exports are $2,000 and imports are $1,000.What is GDP for this economy in 2013?

Accepted Answer

A) $10,700 
B) $10,300 
C) $10,200 
D) $10,000 
A) $10,700 
B) $10,300 
C) $10,200 
D) $10,000

Question 10

If prices in the economy rise,then

Accepted Answer

A) the purchasing power of a dollar rises. 
B) the purchasing power of a dollar stays constant. 
C) the purchasing power of a dollar declines. 
D) the purchasing power of a dollar cannot be determined. 
A) the purchasing power of a dollar rises. 
B) the purchasing power of a dollar stays constant. 
C) the purchasing power of a dollar declines. 
D) the purchasing power of a dollar cannot be determined.

Question 11

What are the differences between national income,personal income,and disposable personal income?

Accepted Answer

National income is the total income rece

Question 12

Macroeconomics seeks to understand

Accepted Answer

A) economic growth,business cycles,and inflation. 
B) industry sales,marketing strategies and corporate growth. 
C) product demand,product cost,and profit maximization. 
D) public choices,private choices,and consumer maximization. 
A) economic growth,business cycles,and inflation. 
B) industry sales,marketing strategies and corporate growth. 
C) product demand,product cost,and profit maximization. 
D) public choices,private choices,and consumer maximization.

Question 13

Table 8-30
  
-Refer to Table 8-30.Based on the table above,what is personal income for this economy?

Accepted Answer

A) $1,950 billion 
B) $2,250 billion 
C) $2,450 billion 
D) $5,130 billion 
A) $1,950 billion 
B) $2,250 billion 
C) $2,450 billion 
D) $5,130 billion

Question 14

Suppose in 2014,you purchase a house built in 2003.Which of the following would be included in the gross domestic product for 2014?

Accepted Answer

A) the value of the house in 2014 
B) the value of the house in 2003 
C) the value of the house in 2014 minus depreciation 
D) the value of the services of the real estate agent 
A) the value of the house in 2014 
B) the value of the house in 2003 
C) the value of the house in 2014 minus depreciation 
D) the value of the services of the real estate agent

Question 15

Which of the following accurately describes an effect of hurricane Katrina on GDP?

Accepted Answer

A) GDP would decrease reflecting the costs of cleanup. 
B) GDP would increase reflecting the costs of cleanup. 
C) GDP would increase reflecting the decrease in production that occurred during the storm and the productive capacity lost in the storm. 
D) GDP would increase well-being. 
A) GDP would decrease reflecting the costs of cleanup. 
B) GDP would increase reflecting the costs of cleanup. 
C) GDP would increase reflecting the decrease in production that occurred during the storm and the productive capacity lost in the storm. 
D) GDP would increase well-being.

Question 16

Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.

Accepted Answer

A) True 
 B)False

Question 17

Economist Robert Higgs showed that World War II brought great increase in the number of consumer goods available to the typical person.

Accepted Answer

A) True 
 B)False

Question 18

When Ford increases the production of cars in Australia,which of the following occurs?

Accepted Answer

A) GDP in the United States rises. 
B) GNP in the United States rises. 
C) GNP in Australia rises. 
D) Both A and C occur. 
A) GDP in the United States rises. 
B) GNP in the United States rises. 
C) GNP in Australia rises. 
D) Both A and C occur.

Question 19

Residential investment includes spending by firms on office buildings.

Accepted Answer

A) True 
 B)False

Question 20

In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

Accepted Answer

A) equals 
B) is greater than 
C) is less than 
D) may be greater than or less than 
A) equals 
B) is greater than 
C) is less than 
D) may be greater than or less than

If a country passes a labor law limiting the number of hours of work per week,GDP would and leisure would .

In an "underground economy," the production of goods and services

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

The GDP deflator is a measure of the

is/are the payment for the factor of production .

The purchase of a new automobile is included in

Describe briefly how the final value of an iPhone must be equal to the sum of incomes generated by the production of the iPhone.

In a small economy,gross investment in 2013 is $1,500,consumption spending is $6,000,net investment is $200,government spending is $1,500,exports are $2,000 and imports are $1,000.What is GDP for this economy in 2013?

If prices in the economy rise,then

What are the differences between national income,personal income,and disposable personal income?

Macroeconomics seeks to understand

Table 8-30 -Refer to Table 8-30.Based on the table above,what is personal income for this economy?

Suppose in 2014,you purchase a house built in 2003.Which of the following would be included in the gross domestic product for 2014?

Which of the following accurately describes an effect of hurricane Katrina on GDP?

Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.

Economist Robert Higgs showed that World War II brought great increase in the number of consumer goods available to the typical person.

When Ford increases the production of cars in Australia,which of the following occurs?

Residential investment includes spending by firms on office buildings.

In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

Economics: Foundations and Models

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 8: GDP: Measuring Total Production and Income

If a country passes a labor law limiting the number of hours of work per week,GDP would ________ and leisure would ________.

In an "underground economy," the production of goods and services

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

The GDP deflator is a measure of the

________ is/are the payment for the factor of production ________.

The purchase of a new automobile is included in

Describe briefly how the final value of an iPhone must be equal to the sum of incomes generated by the production of the iPhone.

In a small economy,gross investment in 2013 is $1,500,consumption spending is $6,000,net investment is $200,government spending is $1,500,exports are $2,000 and imports are $1,000.What is GDP for this economy in 2013?

If prices in the economy rise,then

What are the differences between national income,personal income,and disposable personal income?

Macroeconomics seeks to understand

Table 8-30 -Refer to Table 8-30.Based on the table above,what is personal income for this economy?

Suppose in 2014,you purchase a house built in 2003.Which of the following would be included in the gross domestic product for 2014?

Which of the following accurately describes an effect of hurricane Katrina on GDP?

Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.

Economist Robert Higgs showed that World War II brought great increase in the number of consumer goods available to the typical person.

When Ford increases the production of cars in Australia,which of the following occurs?

Residential investment includes spending by firms on office buildings.

In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

Economics: Foundations and Models

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

If a country passes a labor law limiting the number of hours of work per week,GDP would and leisure would .

is/are the payment for the factor of production .