Question 1

Which of the following is not considered part of government purchases?

Accepted Answer

A)  Transfer payments paid by the government. 
B)  Teacher salaries paid by the government. 
C)  Military equipment purchased by the government. 
D)  A bridge purchased by the government. 
A)  Transfer payments paid by the government. 
B)  Teacher salaries paid by the government. 
C)  Military equipment purchased by the government. 
D)  A bridge purchased by the government.

Question 2

Over the past 100 years,economic growth has ________ health,and health has ________ economic growth.

Accepted Answer

A)  improved; worsened 
B)  improved; improved 
C)  worsened; improved 
D)  worsened; worsened 
A)  improved; worsened 
B)  improved; improved 
C)  worsened; improved 
D)  worsened; worsened

Question 3

The economic growth model focuses on the long-run increase in the productivity of capital.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following has not been a long-term trend in the Australian economy since 1901?

Accepted Answer

A)  Increasing nominal GDP. 
B)  Increasing real GDP. 
C)  Increasing unemployment rates. 
D)  Increasing real GDP per capita. 
A)  Increasing nominal GDP. 
B)  Increasing real GDP. 
C)  Increasing unemployment rates. 
D)  Increasing real GDP per capita.

Question 5

The drawback to calculating real GDP using base year prices is that

Accepted Answer

A)  real GDP in one year is not comparable to real GDP in another year. 
B)  relative prices change over time and these are not reflected in base year prices, which distorts GDP. 
C)  relative prices change over time and these changes are reflected in base year prices. 
D)  quality changes are reflected in base year prices. 
A)  real GDP in one year is not comparable to real GDP in another year. 
B)  relative prices change over time and these are not reflected in base year prices, which distorts GDP. 
C)  relative prices change over time and these changes are reflected in base year prices. 
D)  quality changes are reflected in base year prices.

Question 6

Which of the following is the best measure of the standard of living?

Accepted Answer

A)  Nominal GDP for the whole economy. 
B)  Real GDP for the whole economy. 
C)  Nominal GDP per capita. 
D)  Real GDP per capita. 
A)  Nominal GDP for the whole economy. 
B)  Real GDP for the whole economy. 
C)  Nominal GDP per capita. 
D)  Real GDP per capita.

Question 7

Which of the following would not increase potential GDP?

Accepted Answer

A)  An increase in the size of the labour force. 
B)  Technological change. 
C)  A fall in the rate of unemployment. 
D)  New factories being built. 
A)  An increase in the size of the labour force. 
B)  Technological change. 
C)  A fall in the rate of unemployment. 
D)  New factories being built.

Question 8

Fees that Australian universities receive from overseas students studying in Australia are not included as part of GDP but are included as part of Gross National Income (GNI),as GNI includes flows of funds from overseas.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Gross domestic product in the economy is measured by the

Accepted Answer

A)  total number of goods and services produced in the economy. 
B)  market value of all final goods and services produced in the economy. 
C)  total number of goods produced in the economy. 
D)  total number of services produced in the economy. 
A)  total number of goods and services produced in the economy. 
B)  market value of all final goods and services produced in the economy. 
C)  total number of goods produced in the economy. 
D)  total number of services produced in the economy.

Question 11

If a book film,or piece of software was created today,for how long would Australian copyright law guarantee exclusive legal rights to the creator to use the creation?

Accepted Answer

A)  10 years 
B)  20 years 
C)  The creator's lifetime plus 50 years for the creator's heirs. 
D)  The creator's lifetime plus 70 years for the creator's heirs. 
A)  10 years 
B)  20 years 
C)  The creator's lifetime plus 50 years for the creator's heirs. 
D)  The creator's lifetime plus 70 years for the creator's heirs.

Question 12

Explain the difference between gross domestic product and gross national income.

Accepted Answer

Gross domestic product is the market val

Question 13

Which of the following is not a policy that can increase the accumulation of knowledge capital?

Accepted Answer

A)  Subsidised research and development. 
B)  Patent laws to encourage innovation. 
C)  Free provision of education. 
D)  Removing patent laws to allow for the spread of knowledge. 
A)  Subsidised research and development. 
B)  Patent laws to encourage innovation. 
C)  Free provision of education. 
D)  Removing patent laws to allow for the spread of knowledge.

Question 14

Long-run economic growth is measured by changes in real GDP per person over time.

Accepted Answer

A) True 
 B)False

Question 15

Figure 12.1  
-The movement from A to D in Figure 12.1 illustrates

Accepted Answer

A)  an improvement in technology. 
B)  a decline in capital per worker. 
C)  diminishing returns to capital. 
D)  diminishing returns to labour. 
A)  an improvement in technology. 
B)  a decline in capital per worker. 
C)  diminishing returns to capital. 
D)  diminishing returns to labour.

Question 16

The owner of a firm wants some advice on how to increase productivity.Suggest three ways the entrepreneur could increase labour productivity through improving technology.

Accepted Answer

There are three main ways to improve tec

Question 17

China's current rate of GDP growth is quite rapid.Its growth rate is much higher than that of Australia.However,the levels of pollution are much higher than in Australia.Would you consider China to be better off than Australia given this information? Why or why not?

Accepted Answer

China is not better off because of highe

Question 18

Suppose you are a highly regarded international economic advisor.You have been asked to assess the possibilities of growth in an African country.It is a country abundant in labour and some natural resources.The capital to labour ratio is low.It has a free market economy.You have found that this country does not have a very strong and healthy banking system,however the political system is stable and the government does a good job protecting property rights.Assess this country's prospects for growth.Recommend two things that would enhance the country's growth.

Accepted Answer

The prospects for this country's growth

Question 19

An example of an intermediate good would be

Accepted Answer

A)  a new car. 
B)  a used car. 
C)  the tyres on a new car. 
D)  new tyres to replace old tyres on a used car. 
A)  a new car. 
B)  a used car. 
C)  the tyres on a new car. 
D)  new tyres to replace old tyres on a used car.

Question 20

Use the circular-flow diagram to explain why the value of total expenditure in an economy is equal to the value of total income.

Accepted Answer

This question should be answered with a

Which of the following is not considered part of government purchases?

Over the past 100 years,economic growth has health,and health has economic growth.

The economic growth model focuses on the long-run increase in the productivity of capital.

Which of the following has not been a long-term trend in the Australian economy since 1901?

The drawback to calculating real GDP using base year prices is that

Which of the following is the best measure of the standard of living?

Which of the following would not increase potential GDP?

Fees that Australian universities receive from overseas students studying in Australia are not included as part of GDP but are included as part of Gross National Income (GNI),as GNI includes flows of funds from overseas.

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

Gross domestic product in the economy is measured by the

If a book film,or piece of software was created today,for how long would Australian copyright law guarantee exclusive legal rights to the creator to use the creation?

Explain the difference between gross domestic product and gross national income.

Which of the following is not a policy that can increase the accumulation of knowledge capital?

Long-run economic growth is measured by changes in real GDP per person over time.

Figure 12.1 -The movement from A to D in Figure 12.1 illustrates

The owner of a firm wants some advice on how to increase productivity.Suggest three ways the entrepreneur could increase labour productivity through improving technology.

China's current rate of GDP growth is quite rapid.Its growth rate is much higher than that of Australia.However,the levels of pollution are much higher than in Australia.Would you consider China to be better off than Australia given this information? Why or why not?

An example of an intermediate good would be

Use the circular-flow diagram to explain why the value of total expenditure in an economy is equal to the value of total income.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 12: GDP: Measuring Total Production and Income

Which of the following is not considered part of government purchases?

Over the past 100 years,economic growth has ________ health,and health has ________ economic growth.

The economic growth model focuses on the long-run increase in the productivity of capital.

Which of the following has not been a long-term trend in the Australian economy since 1901?

The drawback to calculating real GDP using base year prices is that

Which of the following is the best measure of the standard of living?

Which of the following would not increase potential GDP?

Fees that Australian universities receive from overseas students studying in Australia are not included as part of GDP but are included as part of Gross National Income (GNI),as GNI includes flows of funds from overseas.

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

Gross domestic product in the economy is measured by the

If a book film,or piece of software was created today,for how long would Australian copyright law guarantee exclusive legal rights to the creator to use the creation?

Explain the difference between gross domestic product and gross national income.

Which of the following is not a policy that can increase the accumulation of knowledge capital?

Long-run economic growth is measured by changes in real GDP per person over time.

Figure 12.1 -The movement from A to D in Figure 12.1 illustrates

The owner of a firm wants some advice on how to increase productivity.Suggest three ways the entrepreneur could increase labour productivity through improving technology.

China's current rate of GDP growth is quite rapid.Its growth rate is much higher than that of Australia.However,the levels of pollution are much higher than in Australia.Would you consider China to be better off than Australia given this information? Why or why not?

An example of an intermediate good would be

Use the circular-flow diagram to explain why the value of total expenditure in an economy is equal to the value of total income.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Over the past 100 years,economic growth has health,and health has economic growth.