Question 1

In the income approach to GDP,fixed capital depreciation is defined as the after-tax profits of a firm.

Accepted Answer

A) True 
 B)False  False

Question 2

When the city of Los Angeles hires more police officers,__________ may rise,but it may be due to the ___________ associated with crime.

Accepted Answer

A) GDP;costs 
B) revenues;costs 
C) taxes;benefits 
D) interest rates;costs 
E) prices;costs 
A) GDP;costs 
B) revenues;costs 
C) taxes;benefits 
D) interest rates;costs 
E) prices;costs A

Question 3

The difference between economic profits and normal profits is that:

Accepted Answer

A) normal profits are earnings based on the normal competitive return to one's own labor;economic profits are the above-normal returns associated with prices that exceed competitive prices. 
B) economic profits are earnings based on the normal competitive return to one's own labor;normal profits are the above-normal returns associated with prices that exceed competitive prices. 
C) normal profits are earnings based on the normal competitive return to one's own labor;economic profits are the above-normal returns associated with prices that exceed monopolistic prices. 
D) economic profits are earnings based on the noncompetitive return to one's own labor;normal profits are the above-normal returns associated with prices that exceed competitive prices. 
E) None of the above is correct. 
A) normal profits are earnings based on the normal competitive return to one's own labor;economic profits are the above-normal returns associated with prices that exceed competitive prices. 
B) economic profits are earnings based on the normal competitive return to one's own labor;normal profits are the above-normal returns associated with prices that exceed competitive prices. 
C) normal profits are earnings based on the normal competitive return to one's own labor;economic profits are the above-normal returns associated with prices that exceed monopolistic prices. 
D) economic profits are earnings based on the noncompetitive return to one's own labor;normal profits are the above-normal returns associated with prices that exceed competitive prices. 
E) None of the above is correct. A

Question 4

The National Income and Product Accounts provides a system for:

Accepted Answer

A) aggregating the production of all goods and services into a single measure of economic activity. 
B) aggregating the production of all goods into a single measure of economic activity. 
C) aggregating the production of all services into a single measure of economic activity. 
D) aggregating the production of most goods and services into a single measure of economic activity. 
E) aggregating the production of all goods and services into two measures of economic activity. 
A) aggregating the production of all goods and services into a single measure of economic activity. 
B) aggregating the production of all goods into a single measure of economic activity. 
C) aggregating the production of all services into a single measure of economic activity. 
D) aggregating the production of most goods and services into a single measure of economic activity. 
E) aggregating the production of all goods and services into two measures of economic activity.

Question 5

-Consider Table 2.3.Using the Laspeyres index,the real GDP in 2005 is:

Accepted Answer

A) $9,025. 
B) $8,500. 
C) $8,600. 
D) $9,150. 
E) $8,475. 
A) $9,025. 
B) $8,500. 
C) $8,600. 
D) $9,150. 
E) $8,475.

Question 6

Consider the data in Table 2.4.The value of the Eurozone nominal GDP in U.S.dollars adjusted for price differences is:

Accepted Answer

A) $6,441 billion. 
B) $9,304 billion. 
C) $10,886 billion. 
D) $7,536 billion. 
E) $9,797 billion. 
A) $6,441 billion. 
B) $9,304 billion. 
C) $10,886 billion. 
D) $7,536 billion. 
E) $9,797 billion.

Question 7

The National Income and Product Accounts identity states:

Accepted Answer

A) Expenditure = Production + Income. 
B) Production = Expenditure - Income. 
C) Production = Expenditure + Income. 
D) Expenditure = Production - Income. 
E) Production = Expenditure = Income. 
A) Expenditure = Production + Income. 
B) Production = Expenditure - Income. 
C) Production = Expenditure + Income. 
D) Expenditure = Production - Income. 
E) Production = Expenditure = Income.

Question 8

What is real GDP? Why do we calculate real GDP? What are the shortcomings of real GDP?

Accepted Answer

Real GDP is the value of all goods and s

Question 9

Using the expenditure approach,government expenditures include:

Accepted Answer

A) defense and nondefense federal,state,and local government expenditures. 
B) only nondefense federal government expenditures. 
C) only federal government expenditures. 
D) only state and local government expenditures. 
E) residential investment and state and local government expenditures. 
A) defense and nondefense federal,state,and local government expenditures. 
B) only nondefense federal government expenditures. 
C) only federal government expenditures. 
D) only state and local government expenditures. 
E) residential investment and state and local government expenditures.

Question 10

Who created the original National Income and Product Accounts in the 1930s?

Accepted Answer

A) John M.Keynes 
B) Paul A.Samuelson 
C) William D.Nordhaus 
D) Simon Kuznets 
E) Milton Friedman 
A) John M.Keynes 
B) Paul A.Samuelson 
C) William D.Nordhaus 
D) Simon Kuznets 
E) Milton Friedman

Question 11

According to the income approach to GDP,the largest percentage of GDP comes from:

Accepted Answer

A) indirect business taxes. 
B) firm profits. 
C) compensation to employees. 
D) depreciation of fixed capital. 
E) none of the above 
A) indirect business taxes. 
B) firm profits. 
C) compensation to employees. 
D) depreciation of fixed capital. 
E) none of the above

Question 12

According to the expenditure approach,if Y is GDP,C is consumption,I is investment,G is government purchases,and NX is net exports,which of the following is the national income identity?

Accepted Answer

A) Y = C + I + G - NX 
B) Y = C + I + G + NX 
C) Y + C = I + G + NX 
D) Y = (C + I + G)/NX 
E) Y = C + I + G 
A) Y = C + I + G - NX 
B) Y = C + I + G + NX 
C) Y + C = I + G + NX 
D) Y = (C + I + G)/NX 
E) Y = C + I + G

Question 13

Consider the data in Table 2.4.The value of Eurozone nominal GDP in U.S.dollars is:

Accepted Answer

A) $9,797 billion. 
B) $9,304 billion. 
C) $10,886 billion. 
D) $7,536 billion. 
E) $6,441 billion. 
A) $9,797 billion. 
B) $9,304 billion. 
C) $10,886 billion. 
D) $7,536 billion. 
E) $6,441 billion.

Question 14

-Consider Table 2.1,the National Income Accounts for 2006.From the data,total GDP is:

Accepted Answer

A) $30,951 billion. 
B) $13,247 billion. 
C) $14,772 billion. 
D) $14,009 billion. 
E) $10,719 billion. 
A) $30,951 billion. 
B) $13,247 billion. 
C) $14,772 billion. 
D) $14,009 billion. 
E) $10,719 billion.

Question 15

GDP measures all economic activity.

Accepted Answer

A) True 
 B)False

Question 16

Prior to the late 1970s,the United States __________ about as much as it __________.

Accepted Answer

A) exported;consumed 
B) exported;imported 
C) imported;consumed 
D) invested;exported 
E) imported;invested 
A) exported;consumed 
B) exported;imported 
C) imported;consumed 
D) invested;exported 
E) imported;invested

Question 17

If the nominal GDP rises by 3 percent and the price level rises by 5 percent,then the real GDP __________ by __________.

Accepted Answer

A) rises;8 percent 
B) falls;8 percent 
C) rises;2 percent 
D) falls;2 percent 
E) none of the above 
A) rises;8 percent 
B) falls;8 percent 
C) rises;2 percent 
D) falls;2 percent 
E) none of the above

Question 18

Real gross domestic product is defined as:

Accepted Answer

A) the value of all goods and services produced by an economy,within its borders,over a period of time,at base-year prices. 
B) the value of all goods and services produced by an economy,within its borders,over a period of time,at current prices. 
C) the value of all goods produced by an economy,within its borders,over a period of time,at current prices. 
D) the value of all goods and services produced by an economy's citizens,regardless of where they live,over a period of time,at current prices. 
E) the value of all goods and services produced by an economy's citizens,regardless of where they live,over a period of time,at base-year prices. 
A) the value of all goods and services produced by an economy,within its borders,over a period of time,at base-year prices. 
B) the value of all goods and services produced by an economy,within its borders,over a period of time,at current prices. 
C) the value of all goods produced by an economy,within its borders,over a period of time,at current prices. 
D) the value of all goods and services produced by an economy's citizens,regardless of where they live,over a period of time,at current prices. 
E) the value of all goods and services produced by an economy's citizens,regardless of where they live,over a period of time,at base-year prices.

Question 19

If the nominal GDP rises by 5 percent and the price level falls by 2 percent,the real GDP falls by 7 percent.

Accepted Answer

A) True 
 B)False

Question 20

The value added for a good produced is equal to the value of the firm's output plus the value of the intermediate goods used to produce that output.

Accepted Answer

A) True 
 B)False

In the income approach to GDP,fixed capital depreciation is defined as the after-tax profits of a firm.

When the city of Los Angeles hires more police officers, may rise,but it may be due to the _ associated with crime.

The difference between economic profits and normal profits is that:

The National Income and Product Accounts provides a system for:

-Consider Table 2.3.Using the Laspeyres index,the real GDP in 2005 is:

Consider the data in Table 2.4.The value of the Eurozone nominal GDP in U.S.dollars adjusted for price differences is:

The National Income and Product Accounts identity states:

What is real GDP? Why do we calculate real GDP? What are the shortcomings of real GDP?

Using the expenditure approach,government expenditures include:

Who created the original National Income and Product Accounts in the 1930s?

According to the income approach to GDP,the largest percentage of GDP comes from:

According to the expenditure approach,if Y is GDP,C is consumption,I is investment,G is government purchases,and NX is net exports,which of the following is the national income identity?

Consider the data in Table 2.4.The value of Eurozone nominal GDP in U.S.dollars is:

-Consider Table 2.1,the National Income Accounts for 2006.From the data,total GDP is:

GDP measures all economic activity.

Prior to the late 1970s,the United States about as much as it .

If the nominal GDP rises by 3 percent and the price level rises by 5 percent,then the real GDP by .

Real gross domestic product is defined as:

If the nominal GDP rises by 5 percent and the price level falls by 2 percent,the real GDP falls by 7 percent.

The value added for a good produced is equal to the value of the firm's output plus the value of the intermediate goods used to produce that output.

Introduction to Macroeconomics

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 2: Measuring the Macroeconomy

In the income approach to GDP,fixed capital depreciation is defined as the after-tax profits of a firm.

When the city of Los Angeles hires more police officers,__________ may rise,but it may be due to the ___________ associated with crime.

The difference between economic profits and normal profits is that:

The National Income and Product Accounts provides a system for:

-Consider Table 2.3.Using the Laspeyres index,the real GDP in 2005 is:

Consider the data in Table 2.4.The value of the Eurozone nominal GDP in U.S.dollars adjusted for price differences is:

The National Income and Product Accounts identity states:

What is real GDP? Why do we calculate real GDP? What are the shortcomings of real GDP?

Using the expenditure approach,government expenditures include:

Who created the original National Income and Product Accounts in the 1930s?

According to the income approach to GDP,the largest percentage of GDP comes from:

According to the expenditure approach,if Y is GDP,C is consumption,I is investment,G is government purchases,and NX is net exports,which of the following is the national income identity?

Consider the data in Table 2.4.The value of Eurozone nominal GDP in U.S.dollars is:

-Consider Table 2.1,the National Income Accounts for 2006.From the data,total GDP is:

GDP measures all economic activity.

Prior to the late 1970s,the United States __________ about as much as it __________.

If the nominal GDP rises by 3 percent and the price level rises by 5 percent,then the real GDP __________ by __________.

Real gross domestic product is defined as:

If the nominal GDP rises by 5 percent and the price level falls by 2 percent,the real GDP falls by 7 percent.

The value added for a good produced is equal to the value of the firm's output plus the value of the intermediate goods used to produce that output.

Introduction to Macroeconomics

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

When the city of Los Angeles hires more police officers, may rise,but it may be due to the _ associated with crime.

Prior to the late 1970s,the United States about as much as it .

If the nominal GDP rises by 3 percent and the price level rises by 5 percent,then the real GDP by .