Question 1

The output of Mexican citizens who work in Texas would be included in the

Accepted Answer

A) gross domestic product of Mexico. 
B) gross national product of Mexico. 
C) gross national product of the United States. 
D) net national product of the United States. 
A) gross domestic product of Mexico. 
B) gross national product of Mexico. 
C) gross national product of the United States. 
D) net national product of the United States.

Question 2

Table 8-17
   A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2006 and 2013 are shown in the table above.
-Refer to Table 8-17.What is nominal GDP in 2013?

Accepted Answer

A) $3,320 
B) $3,690 
C) $6,360 
D) $7,035 
A) $3,320 
B) $3,690 
C) $6,360 
D) $7,035

Question 3

The GDP deflator is the

Accepted Answer

A) difference between real GDP and nominal GDP multiplied by 100. 
B) difference between nominal GDP and real GDP divided by 100. 
C) ratio of real GDP to nominal GDP multiplied by 100. 
D) ratio of nominal GDP to real GDP multiplied by 100. 
A) difference between real GDP and nominal GDP multiplied by 100. 
B) difference between nominal GDP and real GDP divided by 100. 
C) ratio of real GDP to nominal GDP multiplied by 100. 
D) ratio of nominal GDP to real GDP multiplied by 100.

Question 4

Nominal GDP is another term for

Accepted Answer

A) inflation-adjusted GDP. 
B) real GDP. 
C) constant-dollar GDP. 
D) current-dollar GDP. 
A) inflation-adjusted GDP. 
B) real GDP. 
C) constant-dollar GDP. 
D) current-dollar GDP.

Question 5

Which of the following transactions represents the purchase of a final good?

Accepted Answer

A) Starbucks purchases coffee beans. 
B) Delta buys a new European-made jetliner. 
C) Apple computer buys computer processors from Intel. 
D) Your father buys a new John Deere riding lawn mower. 
A) Starbucks purchases coffee beans. 
B) Delta buys a new European-made jetliner. 
C) Apple computer buys computer processors from Intel. 
D) Your father buys a new John Deere riding lawn mower.

Question 6

Table 8-6
  
-Refer to Table 8-6.Consider the table of production and price statistics for a small economy in 2013.If the economy only produces the four goods listed below,what is GDP for 2013?

Accepted Answer

A) $428,000 
B) $267,000 
C) $24,000 
D) $1,424 
A) $428,000 
B) $267,000 
C) $24,000 
D) $1,424

Question 7

An example of a final good would be

Accepted Answer

A) the soy milk sold to Starbucks. 
B) the whipped cream sold to Starbucks. 
C) a soy latte sold by Starbucks to a student. 
D) the coffee beans sold to Starbucks. 
A) the soy milk sold to Starbucks. 
B) the whipped cream sold to Starbucks. 
C) a soy latte sold by Starbucks to a student. 
D) the coffee beans sold to Starbucks.

Question 8

In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?

Accepted Answer

GDP stands for gross domestic product an

Question 9

Is nominal GDP measured in terms of quantity or in terms of dollars? If dollars,the value of the dollar from what period? Is real GDP measured in terms of quantity or in terms of dollars? If dollars,the value of the dollar from what period?

Accepted Answer

Both nominal GDP and real GDP are measur

Question 10

If nominal GDP exceeds real GDP for a specific year,then the GDP deflator must be

Accepted Answer

A) equal to 100. 
B) greater than 100. 
C) less than 100. 
D) less than 0. 
A) equal to 100. 
B) greater than 100. 
C) less than 100. 
D) less than 0.

Question 11

Which of the following transactions would be included in the official calculation of GDP?

Accepted Answer

A) A student buys a used textbook at the bookstore. 
B) Firestone sells $2 million worth of tires to General Motors. 
C) You wash and wax your father's car as a favor to him. 
D) You buy a new iPod. 
E) You illegally download music off the Internet to put on your new iPod. 
A) A student buys a used textbook at the bookstore. 
B) Firestone sells $2 million worth of tires to General Motors. 
C) You wash and wax your father's car as a favor to him. 
D) You buy a new iPod. 
E) You illegally download music off the Internet to put on your new iPod.

Question 12

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

Accepted Answer

A) employment in a specific industry. 
B) employment in the economy. 
C) output of a specific firm. 
D) output of a specific industry. 
A) employment in a specific industry. 
B) employment in the economy. 
C) output of a specific firm. 
D) output of a specific industry.

Question 13

In the circular flow diagram,the value of all the income in the economy is greater than the value of goods and services produced in the economy.

Accepted Answer

A) True 
 B)False

Question 14

GDP is not a complete measure of well-being.

Accepted Answer

A) True 
 B)False

Question 15

If the value added of a firm is positive,will the firm necessarily have positive profits?

Accepted Answer

No.Value added equals the price of the f

Question 16

The "underground economy" refers to

Accepted Answer

A) the buying and selling of goods that is concealed from the government. 
B) the production of goods and services used by the government for covert spy operations. 
C) the sector of the economy that earns profits that are higher than average. 
D) the formal sector of the economy in developing countries. 
A) the buying and selling of goods that is concealed from the government. 
B) the production of goods and services used by the government for covert spy operations. 
C) the sector of the economy that earns profits that are higher than average. 
D) the formal sector of the economy in developing countries.

Question 17

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is considered a durable good?

Accepted Answer

A) medical care 
B) clothing 
C) food 
D) a washing machine 
A) medical care 
B) clothing 
C) food 
D) a washing machine

Question 19

If nominal GDP is less than real GDP,then the GDP deflator will be greater than 100.

Accepted Answer

A) True 
 B)False

Question 20

Table 8-32
  
-Refer to Table 8-32.The table above represents hypothetical data from the National Income Accounts for 2013.Use the data to calculate personal income and disposable income.

Accepted Answer

Personal income = National income - Reta

The output of Mexican citizens who work in Texas would be included in the

Table 8-17 A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2006 and 2013 are shown in the table above. -Refer to Table 8-17.What is nominal GDP in 2013?

The GDP deflator is the

Nominal GDP is another term for

Which of the following transactions represents the purchase of a final good?

Table 8-6 -Refer to Table 8-6.Consider the table of production and price statistics for a small economy in 2013.If the economy only produces the four goods listed below,what is GDP for 2013?

An example of a final good would be

In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?

Is nominal GDP measured in terms of quantity or in terms of dollars? If dollars,the value of the dollar from what period? Is real GDP measured in terms of quantity or in terms of dollars? If dollars,the value of the dollar from what period?

If nominal GDP exceeds real GDP for a specific year,then the GDP deflator must be

Which of the following transactions would be included in the official calculation of GDP?

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

In the circular flow diagram,the value of all the income in the economy is greater than the value of goods and services produced in the economy.

GDP is not a complete measure of well-being.

If the value added of a firm is positive,will the firm necessarily have positive profits?

The "underground economy" refers to

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

Which of the following is considered a durable good?

If nominal GDP is less than real GDP,then the GDP deflator will be greater than 100.

Table 8-32 -Refer to Table 8-32.The table above represents hypothetical data from the National Income Accounts for 2013.Use the data to calculate personal income and disposable income.

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

The output of Mexican citizens who work in Texas would be included in the

Table 8-17 A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2006 and 2013 are shown in the table above. -Refer to Table 8-17.What is nominal GDP in 2013?

The GDP deflator is the

Nominal GDP is another term for

Which of the following transactions represents the purchase of a final good?

Table 8-6 -Refer to Table 8-6.Consider the table of production and price statistics for a small economy in 2013.If the economy only produces the four goods listed below,what is GDP for 2013?

An example of a final good would be

In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?

Is nominal GDP measured in terms of quantity or in terms of dollars? If dollars,the value of the dollar from what period? Is real GDP measured in terms of quantity or in terms of dollars? If dollars,the value of the dollar from what period?

If nominal GDP exceeds real GDP for a specific year,then the GDP deflator must be

Which of the following transactions would be included in the official calculation of GDP?

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

In the circular flow diagram,the value of all the income in the economy is greater than the value of goods and services produced in the economy.

GDP is not a complete measure of well-being.

If the value added of a firm is positive,will the firm necessarily have positive profits?

The "underground economy" refers to

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

Which of the following is considered a durable good?

If nominal GDP is less than real GDP,then the GDP deflator will be greater than 100.

Table 8-32 -Refer to Table 8-32.The table above represents hypothetical data from the National Income Accounts for 2013.Use the data to calculate personal income and disposable income.

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