Question 1

Which of the following actions would increase the consumption spending component of the gross domestic product (GDP)?​

Accepted Answer

A) Ann cooking dinner for Tim instead of going out 
B) Ann and Tim buying a used microwave oven​ 
C) Ann and Tim buying vegetables to prepare soup at home​ 
D) Tim buying Ann a dress​ 
E) Tim and Ann painting the garage themselves​ 
A) Ann cooking dinner for Tim instead of going out 
B) Ann and Tim buying a used microwave oven​ 
C) Ann and Tim buying vegetables to prepare soup at home​ 
D) Tim buying Ann a dress​ 
E) Tim and Ann painting the garage themselves​

Question 2

Which of the following is not true about gross domestic product (GDP)?​

Accepted Answer

A) It includes only final goods and services. 
B) It reflects production in a particular year. 
C) Intermediate goods and services are excluded to prevent double counting. 
D) It excludes purchases of financial assets. 
E) It includes transfer payments. 
A) It includes only final goods and services. 
B) It reflects production in a particular year. 
C) Intermediate goods and services are excluded to prevent double counting. 
D) It excludes purchases of financial assets. 
E) It includes transfer payments.

Question 3

Real gross domestic product (GDP)is measured in terms of _____.​

Accepted Answer

A) current-year prices 
B) base-year prices​ 
C) foreign currencies​ 
D) the quality of goods produced​ 
E) hours of employment​ 
A) current-year prices 
B) base-year prices​ 
C) foreign currencies​ 
D) the quality of goods produced​ 
E) hours of employment​

Question 4

Which of the following is not a component of aggregate expenditure?​

Accepted Answer

A) Consumption expenditures 
B) Investment​ 
C) Imports​ 
D) Rent​ 
E) Government purchases​ 
A) Consumption expenditures 
B) Investment​ 
C) Imports​ 
D) Rent​ 
E) Government purchases​

Question 5

Disposable income equals personal income minus net taxes.​

Accepted Answer

A) True 
 B)False

Question 6

The consumer price index (CPI)overstates the true inflation rate because it ignores changes in consumers' purchasing patterns as relative prices change.​

Accepted Answer

A) True 
 B)False

Question 7

Gross domestic product (GDP)is a poor measure of social well-being because:​

Accepted Answer

A) the value of leisure time is included in GDP accounting. 
B) the revenue earned through exports is ignored. 
C) each dollar of government spending is valued at less than one-half of private spending. 
D) consumer spending is more important than business spending and should be considered more valuable. 
E) it values products at their market prices but ignores services produced. 
A) the value of leisure time is included in GDP accounting. 
B) the revenue earned through exports is ignored. 
C) each dollar of government spending is valued at less than one-half of private spending. 
D) consumer spending is more important than business spending and should be considered more valuable. 
E) it values products at their market prices but ignores services produced.

Question 8

The gross domestic product (GDP)excludes:​

Accepted Answer

A) the increase in inventories during a given period. 
B) the expenditures by government for newly produced goods and services during a given period. 
C) the value of intermediate goods produced in an economy during a given period. 
D) the value of final output during a given period. 
E) household expenditure on durable goods. 
A) the increase in inventories during a given period. 
B) the expenditures by government for newly produced goods and services during a given period. 
C) the value of intermediate goods produced in an economy during a given period. 
D) the value of final output during a given period. 
E) household expenditure on durable goods.

Question 9

Aggregate income equals:​

Accepted Answer

A) the sum of income earned by all laborers in the world economy. 
B) the sum of income earned by all workers in the private sector. 
C) the sum of the income earned by all the resource suppliers in an economy. 
D) the total income of all employees after payment of income tax. 
E) the total income of all employees after purchases of necessities. 
A) the sum of income earned by all laborers in the world economy. 
B) the sum of income earned by all workers in the private sector. 
C) the sum of the income earned by all the resource suppliers in an economy. 
D) the total income of all employees after payment of income tax. 
E) the total income of all employees after purchases of necessities.

Question 10

The gross domestic product (GDP)excludes:​

Accepted Answer

A) the value of a new building. 
B) the value of new stocks and shares. 
C) the cost of a new vending machine. 
D) government expenditure on a new bridge. 
E) the money spent on the purchase of legal services by a household. 
A) the value of a new building. 
B) the value of new stocks and shares. 
C) the cost of a new vending machine. 
D) government expenditure on a new bridge. 
E) the money spent on the purchase of legal services by a household.

Which of the following actions would increase the consumption spending component of the gross domestic product (GDP)?

Which of the following is not true about gross domestic product (GDP)?

Real gross domestic product (GDP)is measured in terms of _____.

Which of the following is not a component of aggregate expenditure?

Disposable income equals personal income minus net taxes.

The consumer price index (CPI)overstates the true inflation rate because it ignores changes in consumers' purchasing patterns as relative prices change.

Gross domestic product (GDP)is a poor measure of social well-being because:

The gross domestic product (GDP)excludes:

Aggregate income equals:

The gross domestic product (GDP)excludes:

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 would increase the consumption spending component of the gross domestic product (GDP)?​

Which of the following is not true about gross domestic product (GDP)?​

Real gross domestic product (GDP)is measured in terms of _____.​

Which of the following is not a component of aggregate expenditure?​

Disposable income equals personal income minus net taxes.​

The consumer price index (CPI)overstates the true inflation rate because it ignores changes in consumers' purchasing patterns as relative prices change.​

Gross domestic product (GDP)is a poor measure of social well-being because:​

The gross domestic product (GDP)excludes:​

Aggregate income equals:​

The gross domestic product (GDP)excludes:​

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 would increase the consumption spending component of the gross domestic product (GDP)?

Which of the following is not true about gross domestic product (GDP)?

Real gross domestic product (GDP)is measured in terms of _____.

Which of the following is not a component of aggregate expenditure?

Disposable income equals personal income minus net taxes.

The consumer price index (CPI)overstates the true inflation rate because it ignores changes in consumers' purchasing patterns as relative prices change.

Gross domestic product (GDP)is a poor measure of social well-being because:

The gross domestic product (GDP)excludes:

Aggregate income equals:

The gross domestic product (GDP)excludes: