Question 1

Which of the following actions will decrease the gross domestic product (GDP)?​

Accepted Answer

A) Tom's alarm clock breaks,so he buys a new one. 
B) Tom buys a new alarm clock because he tends to sleep through the first alarm. 
C) Tom's alarm clock breaks.He now oversleeps and has to buy a cup of coffee on the way to work instead of making it at home. 
D) Tom gets fired for being late often after his alarm clock breaks. 
E) Tom sells his broken alarm clock and uses the money to buy some French fries. 
A) Tom's alarm clock breaks,so he buys a new one. 
B) Tom buys a new alarm clock because he tends to sleep through the first alarm. 
C) Tom's alarm clock breaks.He now oversleeps and has to buy a cup of coffee on the way to work instead of making it at home. 
D) Tom gets fired for being late often after his alarm clock breaks. 
E) Tom sells his broken alarm clock and uses the money to buy some French fries.

Question 2

The national income accounting system measures economic activity based on the concept of _____.​

Accepted Answer

A) absolute advantage of different industries in an economy 
B) the circular flow of precious metal and money through the different sectors of an economy​ 
C) comparative advantage of different industries in an economy​ 
D) the circular flow of output and income through the different sectors of an economy​ 
E) the circular flow of labor and other resources through the different sectors of an economy​ 
A) absolute advantage of different industries in an economy 
B) the circular flow of precious metal and money through the different sectors of an economy​ 
C) comparative advantage of different industries in an economy​ 
D) the circular flow of output and income through the different sectors of an economy​ 
E) the circular flow of labor and other resources through the different sectors of an economy​

Question 3

Suppose a loaf of bread sold for $3.00 in 2008.The price of bread then increases to $3.60 in 2009.The price index for bread considering 2008 as the base year is _____.​

Accepted Answer

A) 1.20 
B) 83.33​ 
C) 120​ 
D) 100​ 
E) 20​ 
A) 1.20 
B) 83.33​ 
C) 120​ 
D) 100​ 
E) 20​

Question 4

If the nominal gross domestic product (GDP)for a year is $5.4 trillion,and the real gross domestic product (GDP)for the same year is $3.6 trillion,the GDP price index is _____.​

Accepted Answer

A) 0.667 
B) 150​ 
C) 66.67​ 
D) 50​ 
E) 33.33​ 
A) 0.667 
B) 150​ 
C) 66.67​ 
D) 50​ 
E) 33.33​

Question 5

If a firm's inventory decreases,the gross domestic product (GDP)also decreases.​

Accepted Answer

A) True 
 B)False

Question 6

​Given the following hypothetical data where C = $3,000; I = $1,200; G = $2,000; X − M = −$500; depreciation = $200; transfer payments = $800,net domestic product is _____.

Accepted Answer

A) $5,500 
B) $5,700​ 
C) $6,200​ 
D) $6,400​ 
E) $6,900​ 
A) $5,500 
B) $5,700​ 
C) $6,200​ 
D) $6,400​ 
E) $6,900​

Question 7

Depreciation refers to:​

Accepted Answer

A) the value of leisure goods. 
B) changes in exchange rates. 
C) income that we earn but do not receive. 
D) investment undertaken merely to replace worn-out capital. 
E) the effects of government subsidy programs. 
A) the value of leisure goods. 
B) changes in exchange rates. 
C) income that we earn but do not receive. 
D) investment undertaken merely to replace worn-out capital. 
E) the effects of government subsidy programs.

Question 8

Gross domestic product (GDP)will increase if illegal drugs are made legal.​

Accepted Answer

A) True 
 B)False

Question 9

If real gross domestic product (GDP)in a particular year is $5,000 trillion and nominal gross domestic product (GDP)in that same year is $4,000 trillion,then the:​

Accepted Answer

A) consumer price index (CPI)is 125. 
B) economic activity has decreased by 20 percent. 
C) GDP price index is 125. 
D) GDP price index is 80. 
E) economy has grown by 20 percent. 
A) consumer price index (CPI)is 125. 
B) economic activity has decreased by 20 percent. 
C) GDP price index is 125. 
D) GDP price index is 80. 
E) economy has grown by 20 percent.

Question 10

The table below shows the real gross domestic product (GDP),consumption,planned investment,and government purchases for an economy.The aggregate expenditure in equilibrium is _____.​ ​
Table 6.1
​

Accepted Answer

A) $1,800 
B) $1,900​ 
C) $2,000​ 
D) $2,200​ 
E) $2,300​ 
A) $1,800 
B) $1,900​ 
C) $2,000​ 
D) $2,200​ 
E) $2,300​

Question 11

Gross domestic product (GDP)is not a perfect measure of welfare because it:​

Accepted Answer

A) treats a dollar spent on guns the same as a dollar spent on education. 
B) treats a dollar spent on exports the same as a dollar spent on imports. 
C) double counts the value of leisure time. 
D) double counts depreciation. 
E) counts illegal activities in the underground economy. 
A) treats a dollar spent on guns the same as a dollar spent on education. 
B) treats a dollar spent on exports the same as a dollar spent on imports. 
C) double counts the value of leisure time. 
D) double counts depreciation. 
E) counts illegal activities in the underground economy.

Question 12

An increase in household production will increase gross domestic product (GDP).​

Accepted Answer

A) True 
 B)False

Question 13

If the consumer price index (CPI)is 200 one year and 206 the next year,the annual rate of inflation as measured by the CPI is approximately _____.​

Accepted Answer

A) 103 percent 
B) 1 percent​ 
C) 6 percent​ 
D) 3 percent​ 
E) 206 percent​ 
A) 103 percent 
B) 1 percent​ 
C) 6 percent​ 
D) 3 percent​ 
E) 206 percent​

Question 14

If an economy produces final output worth $5 trillion,then the aggregate income generated by that production:​

Accepted Answer

A) will be $5 trillion. 
B) will be more than $5 trillion. 
C) will be $5 trillion minus taxes. 
D) will be less than $5 trillion. 
E) will be $5 trillion plus transaction costs. 
A) will be $5 trillion. 
B) will be more than $5 trillion. 
C) will be $5 trillion minus taxes. 
D) will be less than $5 trillion. 
E) will be $5 trillion plus transaction costs.

Question 15

Which of the following is reflected in the gross domestic product (GDP)?​

Accepted Answer

A) The value of leisure time 
B) The value of illegal goods and services​ 
C) The value of final goods produced by firms​ 
D) The cost of depletion of natural resources​ 
E) The value of house maintenance performed by homeowners​ 
A) The value of leisure time 
B) The value of illegal goods and services​ 
C) The value of final goods produced by firms​ 
D) The cost of depletion of natural resources​ 
E) The value of house maintenance performed by homeowners​

Question 16

The gross domestic product (GDP)of a country measures the _____.​

Accepted Answer

A) market value of all intermediate goods and services produced by resources located within the country 
B) market value of all goods and services produced by resources located outside the country​ 
C) market value of all final goods and services produced by resources located within the country​ 
D) value added to the economy by intermediate goods and services minus original cost​ 
E) value of the total sales of financial assets​ 
A) market value of all intermediate goods and services produced by resources located within the country 
B) market value of all goods and services produced by resources located outside the country​ 
C) market value of all final goods and services produced by resources located within the country​ 
D) value added to the economy by intermediate goods and services minus original cost​ 
E) value of the total sales of financial assets​

Question 17

The U.S.Department of Commerce has been developing so-called "green accounting" to:​

Accepted Answer

A) include the value of leisure in the gross domestic product (GDP)of the country. 
B) register the impact of pollution and natural resource depletion. 
C) value the output of new firms. 
D) illustrate the difference between nominal GDP and real GDP. 
E) measure the value of the output produced by inexperienced workers. 
A) include the value of leisure in the gross domestic product (GDP)of the country. 
B) register the impact of pollution and natural resource depletion. 
C) value the output of new firms. 
D) illustrate the difference between nominal GDP and real GDP. 
E) measure the value of the output produced by inexperienced workers.

Question 18

Suppose the real gross domestic product (GDP)equals $200 billion this year and the nominal gross domestic product (GDP)equals $300 billion.This implies that the price level has increased by _____.​

Accepted Answer

A) $100 billion 
B) $200 billion​ 
C) 50 percent​ 
D) 100 percent​ 
E) 33 percent​ 
A) $100 billion 
B) $200 billion​ 
C) 50 percent​ 
D) 100 percent​ 
E) 33 percent​

Question 19

Which of the following is an example of an intermediate good?​

Accepted Answer

A) The flowers that Mr.Grover buys at a local nursery 
B) The flowers that Timmy picks from a neighbor's garden and brings to Mrs.Grover​ 
C) The flour that Grandma buys to bake a birthday cake​ 
D) The flour that Joe buys so that he can eat pizza three nights a week​ 
E) The flour that Amy orders each month for the bakery she manages​ 
A) The flowers that Mr.Grover buys at a local nursery 
B) The flowers that Timmy picks from a neighbor's garden and brings to Mrs.Grover​ 
C) The flour that Grandma buys to bake a birthday cake​ 
D) The flour that Joe buys so that he can eat pizza three nights a week​ 
E) The flour that Amy orders each month for the bakery she manages​

Question 20

Which of the following is an example of a leakage from the circular flow of income and expenditure?​

Accepted Answer

A) Investment 
B) Imports​ 
C) Government purchases​ 
D) Exports​ 
E) Transfer payments​ 
A) Investment 
B) Imports​ 
C) Government purchases​ 
D) Exports​ 
E) Transfer payments​

Which of the following actions will decrease the gross domestic product (GDP)?

The national income accounting system measures economic activity based on the concept of _____.

Suppose a loaf of bread sold for $3.00 in 2008.The price of bread then increases to $3.60 in 2009.The price index for bread considering 2008 as the base year is _____.

If the nominal gross domestic product (GDP)for a year is $5.4 trillion,and the real gross domestic product (GDP)for the same year is $3.6 trillion,the GDP price index is _____.

If a firm's inventory decreases,the gross domestic product (GDP)also decreases.

Given the following hypothetical data where C = $3,000; I = $1,200; G = $2,000; X − M = −$500; depreciation = $200; transfer payments = $800,net domestic product is _____.

Depreciation refers to:

Gross domestic product (GDP)will increase if illegal drugs are made legal.

If real gross domestic product (GDP)in a particular year is $5,000 trillion and nominal gross domestic product (GDP)in that same year is $4,000 trillion,then the:

The table below shows the real gross domestic product (GDP),consumption,planned investment,and government purchases for an economy.The aggregate expenditure in equilibrium is _____. Table 6.1

Gross domestic product (GDP)is not a perfect measure of welfare because it:

An increase in household production will increase gross domestic product (GDP).

If the consumer price index (CPI)is 200 one year and 206 the next year,the annual rate of inflation as measured by the CPI is approximately _____.

If an economy produces final output worth $5 trillion,then the aggregate income generated by that production:

Which of the following is reflected in the gross domestic product (GDP)?

The gross domestic product (GDP)of a country measures the _____.

The U.S.Department of Commerce has been developing so-called "green accounting" to:

Suppose the real gross domestic product (GDP)equals $200 billion this year and the nominal gross domestic product (GDP)equals $300 billion.This implies that the price level has increased by _____.

Which of the following is an example of an intermediate good?

Which of the following is an example of a leakage from the circular flow of income and expenditure?

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 actions will decrease the gross domestic product (GDP)?​

The national income accounting system measures economic activity based on the concept of _____.​

Suppose a loaf of bread sold for $3.00 in 2008.The price of bread then increases to $3.60 in 2009.The price index for bread considering 2008 as the base year is _____.​

If the nominal gross domestic product (GDP)for a year is $5.4 trillion,and the real gross domestic product (GDP)for the same year is $3.6 trillion,the GDP price index is _____.​

If a firm's inventory decreases,the gross domestic product (GDP)also decreases.​

​Given the following hypothetical data where C = $3,000; I = $1,200; G = $2,000; X − M = −$500; depreciation = $200; transfer payments = $800,net domestic product is _____.

Depreciation refers to:​

Gross domestic product (GDP)will increase if illegal drugs are made legal.​

If real gross domestic product (GDP)in a particular year is $5,000 trillion and nominal gross domestic product (GDP)in that same year is $4,000 trillion,then the:​

The table below shows the real gross domestic product (GDP),consumption,planned investment,and government purchases for an economy.The aggregate expenditure in equilibrium is _____.​ ​ Table 6.1 ​

Gross domestic product (GDP)is not a perfect measure of welfare because it:​

An increase in household production will increase gross domestic product (GDP).​

If the consumer price index (CPI)is 200 one year and 206 the next year,the annual rate of inflation as measured by the CPI is approximately _____.​

If an economy produces final output worth $5 trillion,then the aggregate income generated by that production:​

Which of the following is reflected in the gross domestic product (GDP)?​

The gross domestic product (GDP)of a country measures the _____.​

The U.S.Department of Commerce has been developing so-called "green accounting" to:​

Suppose the real gross domestic product (GDP)equals $200 billion this year and the nominal gross domestic product (GDP)equals $300 billion.This implies that the price level has increased by _____.​

Which of the following is an example of an intermediate good?​

Which of the following is an example of a leakage from the circular flow of income and expenditure?​

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 actions will decrease the gross domestic product (GDP)?

The national income accounting system measures economic activity based on the concept of _____.

Suppose a loaf of bread sold for $3.00 in 2008.The price of bread then increases to $3.60 in 2009.The price index for bread considering 2008 as the base year is _____.

If the nominal gross domestic product (GDP)for a year is $5.4 trillion,and the real gross domestic product (GDP)for the same year is $3.6 trillion,the GDP price index is _____.

If a firm's inventory decreases,the gross domestic product (GDP)also decreases.

Given the following hypothetical data where C = $3,000; I = $1,200; G = $2,000; X − M = −$500; depreciation = $200; transfer payments = $800,net domestic product is _____.

Depreciation refers to:

Gross domestic product (GDP)will increase if illegal drugs are made legal.

If real gross domestic product (GDP)in a particular year is $5,000 trillion and nominal gross domestic product (GDP)in that same year is $4,000 trillion,then the:

The table below shows the real gross domestic product (GDP),consumption,planned investment,and government purchases for an economy.The aggregate expenditure in equilibrium is _____. Table 6.1

Gross domestic product (GDP)is not a perfect measure of welfare because it:

An increase in household production will increase gross domestic product (GDP).

If the consumer price index (CPI)is 200 one year and 206 the next year,the annual rate of inflation as measured by the CPI is approximately _____.

If an economy produces final output worth $5 trillion,then the aggregate income generated by that production:

Which of the following is reflected in the gross domestic product (GDP)?

The gross domestic product (GDP)of a country measures the _____.

The U.S.Department of Commerce has been developing so-called "green accounting" to:

Suppose the real gross domestic product (GDP)equals $200 billion this year and the nominal gross domestic product (GDP)equals $300 billion.This implies that the price level has increased by _____.

Which of the following is an example of an intermediate good?

Which of the following is an example of a leakage from the circular flow of income and expenditure?