Question 1

Which of the following is an example of a final good or service?​

Accepted Answer

A) Bricks purchased by a company for constructing houses 
B) Wheat purchased by a bakery​ 
C) Steel purchased by a company for manufacturing cars​ 
D) A cup of coffee bought at a restaurant​ 
E) A used car bought by a person​ 
A) Bricks purchased by a company for constructing houses 
B) Wheat purchased by a bakery​ 
C) Steel purchased by a company for manufacturing cars​ 
D) A cup of coffee bought at a restaurant​ 
E) A used car bought by a person​

Question 2

Suppose the respective prices of yogurt,candy bars,and popcorn in Year 1 are $1,$2,and $3.In Year 2,the unit prices of each are $2,$3,and $4 respectively.Which of the following statements is true of the price level between Year 1 and Year 2?​

Accepted Answer

A) It decreased by 20 percent. 
B) It increased by 33 percent. 
C) It increased from $6 to $9. 
D) It decreased at a rate between 20 percent and 50 percent. 
E) It increased at a rate between 33 percent and 100 percent. 
A) It decreased by 20 percent. 
B) It increased by 33 percent. 
C) It increased from $6 to $9. 
D) It decreased at a rate between 20 percent and 50 percent. 
E) It increased at a rate between 33 percent and 100 percent.

Question 3

If the consumer price index (CPI)rises over a year from 220 to 230,then the inflation rate is 10 percent.​

Accepted Answer

A) True 
 B)False

Question 4

The nominal gross domestic product (GDP)for a country was $1,000 in 2003 and $1,500 in 2004.The GDP price index was 100 in 2003 and 150 in 2004.Between 2003 and 2004,real GDP _____.​

Accepted Answer

A) increased by $500 
B) increased by $333​ 
C) increased by $50​ 
D) remained the same​ 
E) decreased by $50​ 
A) increased by $500 
B) increased by $333​ 
C) increased by $50​ 
D) remained the same​ 
E) decreased by $50​

Question 5

A chain-weighted index recognizes the fact that the composition of output changes over time.​

Accepted Answer

A) True 
 B)False

Question 6

The value of the films starring Charlie Chaplin produced in the United States that still exist will not be included in this year's U.S.gross domestic product (GDP)because:​

Accepted Answer

A) Charlie Chaplin was not an American citizen. 
B) Charlie Chaplin did not make the films this year. 
C) the films earn less revenue. 
D) the films no longer have any value except to collectors. 
E) films are intermediate goods. 
A) Charlie Chaplin was not an American citizen. 
B) Charlie Chaplin did not make the films this year. 
C) the films earn less revenue. 
D) the films no longer have any value except to collectors. 
E) films are intermediate goods.

Question 7

If consumption = $2,000,investment = $600,government purchases = $500,net exports = −$40,transfer payments = $340,then _____.​

Accepted Answer

A) GDP = $2,720 
B) GDP = $3,060​ 
C) GDP = $3,140​ 
D) GDP = $3,400​ 
E) GDP = $3,340​ 
A) GDP = $2,720 
B) GDP = $3,060​ 
C) GDP = $3,140​ 
D) GDP = $3,400​ 
E) GDP = $3,340​

Question 8

The existence of the underground economy causes gross domestic product (GDP)statistics to _____.​

Accepted Answer

A) understate the true volume of economic activity 
B) overstate the aggregate price level in the economy​ 
C) overstate the standard of living​ 
D) overstate the profit of firms​ 
E) understate government spending in an economy​ 
A) understate the true volume of economic activity 
B) overstate the aggregate price level in the economy​ 
C) overstate the standard of living​ 
D) overstate the profit of firms​ 
E) understate government spending in an economy​

Question 9

Which of the following is true of leakages and injections in the circular flow model?​

Accepted Answer

A) Leakages minus injections equal gross domestic product (GDP). 
B) Injections minus leakages equal gross domestic product (GDP. 
C) Leakages minus injections equal zero in equilibrium. 
D) Leakages must be less than injections for an economy to be in equilibrium. 
E) Leakages must be greater than injections for an economy to be growing. 
A) Leakages minus injections equal gross domestic product (GDP). 
B) Injections minus leakages equal gross domestic product (GDP. 
C) Leakages minus injections equal zero in equilibrium. 
D) Leakages must be less than injections for an economy to be in equilibrium. 
E) Leakages must be greater than injections for an economy to be growing.

Question 10

The value of tires purchased by a company to use on its cars is not included when calculating the gross domestic product (GDP).​

Accepted Answer

A) True 
 B)False

Question 11

Whenever there is inflation,increase in nominal gross domestic product (GDP)overstates the growth rate of the economy.​

Accepted Answer

A) True 
 B)False

Question 12

If the consumer price index (CPI)is 220 one year and 210 the next,the annual rate of inflation as measured by the CPI is approximately _____.​

Accepted Answer

A) −2.3 percent 
B) −4.6 percent​ 
C) 10 percent​ 
D) 4.8 percent​ 
E) 220 percent​ 
A) −2.3 percent 
B) −4.6 percent​ 
C) 10 percent​ 
D) 4.8 percent​ 
E) 220 percent​

Question 13

Rhonda sells a house she has owned for 15 years and starts living in a rented apartment.To make it more marketable,she buys carpeting that she has professionally installed and buys wallpaper that her daughter hangs.Which items would be included in this year's gross domestic product (GDP)?​

Accepted Answer

A) The sale price of the house 
B) The cost of transporting all her furnitures to the new apartment​ 
C) The opportunity cost of Rhonda's daughter's time​ 
D) The opportunity cost of Rhonda's time​ 
E) The purchase price for carpet and wallpaper,and the installation fee for the carpet​ 
A) The sale price of the house 
B) The cost of transporting all her furnitures to the new apartment​ 
C) The opportunity cost of Rhonda's daughter's time​ 
D) The opportunity cost of Rhonda's time​ 
E) The purchase price for carpet and wallpaper,and the installation fee for the carpet​

Question 14

One of the limitations of the national income accounting system is:​

Accepted Answer

A) valuing all output at its market price regardless of its contribution to society's economic welfare. 
B) placing a market value on all negative externalities. 
C) accurately measuring the value of leisure time. 
D) double counting food produced on a farm for family consumption. 
E) ignoring government production of goods and services. 
A) valuing all output at its market price regardless of its contribution to society's economic welfare. 
B) placing a market value on all negative externalities. 
C) accurately measuring the value of leisure time. 
D) double counting food produced on a farm for family consumption. 
E) ignoring government production of goods and services.

Question 15

In order to convert nominal gross domestic product (GDP)to real gross domestic product (GDP),we must divide:​

Accepted Answer

A) real GDP by the price index. 
B) nominal GDP by the price index. 
C) the price index by nominal GDP. 
D) the price index by real GDP. 
E) nominal GDP by 100. 
A) real GDP by the price index. 
B) nominal GDP by the price index. 
C) the price index by nominal GDP. 
D) the price index by real GDP. 
E) nominal GDP by 100.

Question 16

Which of the following would be excluded from the gross domestic product (GDP)?​

Accepted Answer

A) The mayor of a city hiring more workers to improve the sanitation of the city 
B) The sale of mobiles decreasing significantly​ 
C) The government reducing welfare benefits​ 
D) A homemaker spending $20 taking the family out to lunch instead of cooking food​ 
E) A consumer having his pickup truck tuned up at the local garage​ 
A) The mayor of a city hiring more workers to improve the sanitation of the city 
B) The sale of mobiles decreasing significantly​ 
C) The government reducing welfare benefits​ 
D) A homemaker spending $20 taking the family out to lunch instead of cooking food​ 
E) A consumer having his pickup truck tuned up at the local garage​

Question 17

Which of the following would be included in the gross domestic product (GDP)?​

Accepted Answer

A) The monthly telephone bill paid by Mr.Jones 
B) The corporate stock purchased by Steven​ 
C) The used limousine purchased by Harold​ 
D) The bricks purchased by a construction company to build a house​ 
E) The $300 George saved because he painted his own garage​ 
A) The monthly telephone bill paid by Mr.Jones 
B) The corporate stock purchased by Steven​ 
C) The used limousine purchased by Harold​ 
D) The bricks purchased by a construction company to build a house​ 
E) The $300 George saved because he painted his own garage​

Question 18

The table below shows the price indexes and the nominal gross domestic product (GDP)for an economy from 2001 to 2005.The real GDP _____ between 2002 and 2003.​ ​
Table 6.3
​

Accepted Answer

A) decreased by slightly more than $5 billion 
B) increased by slightly more than $4 billion​ 
C) remained constant​ 
D) increased by only about $1 billion​ 
E) decreased by $6 billion​ 
A) decreased by slightly more than $5 billion 
B) increased by slightly more than $4 billion​ 
C) remained constant​ 
D) increased by only about $1 billion​ 
E) decreased by $6 billion​

Question 19

The Consumer Price Index (CPI)is a measure of the:​

Accepted Answer

A) cost of a market basket of consumer goods and services relative to its cost in a base year. 
B) change in the average price of a market basket of necessary goods and services. 
C) cost of a market basket of consumer goods relative to the previous year. 
D) change in the average price of all intermediate goods and services. 
E) average price of all final goods and services relative to the average price in the previous year. 
A) cost of a market basket of consumer goods and services relative to its cost in a base year. 
B) change in the average price of a market basket of necessary goods and services. 
C) cost of a market basket of consumer goods relative to the previous year. 
D) change in the average price of all intermediate goods and services. 
E) average price of all final goods and services relative to the average price in the previous year.

Question 20

Real gross domestic product (GDP)shows:​

Accepted Answer

A) total spending on intermediate goods and services. 
B) constant dollar GDP. 
C) net domestic product. 
D) nominal GDP adjusted for taxes. 
E) domestic income. 
A) total spending on intermediate goods and services. 
B) constant dollar GDP. 
C) net domestic product. 
D) nominal GDP adjusted for taxes. 
E) domestic income.

Which of the following is an example of a final good or service?

Suppose the respective prices of yogurt,candy bars,and popcorn in Year 1 are $1,$2,and $3.In Year 2,the unit prices of each are $2,$3,and $4 respectively.Which of the following statements is true of the price level between Year 1 and Year 2?

If the consumer price index (CPI)rises over a year from 220 to 230,then the inflation rate is 10 percent.

The nominal gross domestic product (GDP)for a country was $1,000 in 2003 and $1,500 in 2004.The GDP price index was 100 in 2003 and 150 in 2004.Between 2003 and 2004,real GDP _____.

A chain-weighted index recognizes the fact that the composition of output changes over time.

The value of the films starring Charlie Chaplin produced in the United States that still exist will not be included in this year's U.S.gross domestic product (GDP)because:

If consumption = $2,000,investment = $600,government purchases = $500,net exports = −$40,transfer payments = $340,then _____.

The existence of the underground economy causes gross domestic product (GDP)statistics to _____.

Which of the following is true of leakages and injections in the circular flow model?

The value of tires purchased by a company to use on its cars is not included when calculating the gross domestic product (GDP).

Whenever there is inflation,increase in nominal gross domestic product (GDP)overstates the growth rate of the economy.

If the consumer price index (CPI)is 220 one year and 210 the next,the annual rate of inflation as measured by the CPI is approximately _____.

Rhonda sells a house she has owned for 15 years and starts living in a rented apartment.To make it more marketable,she buys carpeting that she has professionally installed and buys wallpaper that her daughter hangs.Which items would be included in this year's gross domestic product (GDP)?

One of the limitations of the national income accounting system is:

In order to convert nominal gross domestic product (GDP)to real gross domestic product (GDP),we must divide:

Which of the following would be excluded from the gross domestic product (GDP)?

Which of the following would be included in the gross domestic product (GDP)?

The table below shows the price indexes and the nominal gross domestic product (GDP)for an economy from 2001 to 2005.The real GDP _____ between 2002 and 2003. Table 6.3

The Consumer Price Index (CPI)is a measure of the:

Real gross domestic product (GDP)shows:

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 6: Tracking the Useconomy

Which of the following is an example of a final good or service?​

Suppose the respective prices of yogurt,candy bars,and popcorn in Year 1 are $1,$2,and $3.In Year 2,the unit prices of each are $2,$3,and $4 respectively.Which of the following statements is true of the price level between Year 1 and Year 2?​

If the consumer price index (CPI)rises over a year from 220 to 230,then the inflation rate is 10 percent.​

The nominal gross domestic product (GDP)for a country was $1,000 in 2003 and $1,500 in 2004.The GDP price index was 100 in 2003 and 150 in 2004.Between 2003 and 2004,real GDP _____.​

A chain-weighted index recognizes the fact that the composition of output changes over time.​

The value of the films starring Charlie Chaplin produced in the United States that still exist will not be included in this year's U.S.gross domestic product (GDP)because:​

If consumption = $2,000,investment = $600,government purchases = $500,net exports = −$40,transfer payments = $340,then _____.​

The existence of the underground economy causes gross domestic product (GDP)statistics to _____.​

Which of the following is true of leakages and injections in the circular flow model?​

The value of tires purchased by a company to use on its cars is not included when calculating the gross domestic product (GDP).​

Whenever there is inflation,increase in nominal gross domestic product (GDP)overstates the growth rate of the economy.​

If the consumer price index (CPI)is 220 one year and 210 the next,the annual rate of inflation as measured by the CPI is approximately _____.​

Rhonda sells a house she has owned for 15 years and starts living in a rented apartment.To make it more marketable,she buys carpeting that she has professionally installed and buys wallpaper that her daughter hangs.Which items would be included in this year's gross domestic product (GDP)?​

One of the limitations of the national income accounting system is:​

In order to convert nominal gross domestic product (GDP)to real gross domestic product (GDP),we must divide:​

Which of the following would be excluded from the gross domestic product (GDP)?​

Which of the following would be included in the gross domestic product (GDP)?​

The table below shows the price indexes and the nominal gross domestic product (GDP)for an economy from 2001 to 2005.The real GDP _____ between 2002 and 2003.​ ​ Table 6.3 ​

The Consumer Price Index (CPI)is a measure of the:​

Real gross domestic product (GDP)shows:​

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Which of the following is an example of a final good or service?

Suppose the respective prices of yogurt,candy bars,and popcorn in Year 1 are $1,$2,and $3.In Year 2,the unit prices of each are $2,$3,and $4 respectively.Which of the following statements is true of the price level between Year 1 and Year 2?

If the consumer price index (CPI)rises over a year from 220 to 230,then the inflation rate is 10 percent.

The nominal gross domestic product (GDP)for a country was $1,000 in 2003 and $1,500 in 2004.The GDP price index was 100 in 2003 and 150 in 2004.Between 2003 and 2004,real GDP _____.

A chain-weighted index recognizes the fact that the composition of output changes over time.

The value of the films starring Charlie Chaplin produced in the United States that still exist will not be included in this year's U.S.gross domestic product (GDP)because:

If consumption = $2,000,investment = $600,government purchases = $500,net exports = −$40,transfer payments = $340,then _____.

The existence of the underground economy causes gross domestic product (GDP)statistics to _____.

Which of the following is true of leakages and injections in the circular flow model?

The value of tires purchased by a company to use on its cars is not included when calculating the gross domestic product (GDP).

Whenever there is inflation,increase in nominal gross domestic product (GDP)overstates the growth rate of the economy.

If the consumer price index (CPI)is 220 one year and 210 the next,the annual rate of inflation as measured by the CPI is approximately _____.

Rhonda sells a house she has owned for 15 years and starts living in a rented apartment.To make it more marketable,she buys carpeting that she has professionally installed and buys wallpaper that her daughter hangs.Which items would be included in this year's gross domestic product (GDP)?

One of the limitations of the national income accounting system is:

In order to convert nominal gross domestic product (GDP)to real gross domestic product (GDP),we must divide:

Which of the following would be excluded from the gross domestic product (GDP)?

Which of the following would be included in the gross domestic product (GDP)?

The table below shows the price indexes and the nominal gross domestic product (GDP)for an economy from 2001 to 2005.The real GDP _____ between 2002 and 2003. Table 6.3

The Consumer Price Index (CPI)is a measure of the:

Real gross domestic product (GDP)shows: