Question 1

Figure 12.1  
-The movement from E to B 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)  increasing returns to labour. 
A)  an improvement in technology. 
B)  a decline in capital per worker. 
C)  diminishing returns to capital. 
D)  increasing returns to labour.

Question 2

Starting at point E in the following diagram,identify which combinations of points illustrate technological change.Give a brief explanation to support your answer.

Accepted Answer

The movement from E to B to D in the dia

Question 3

Gross domestic product is generally ________ net domestic product.

Accepted Answer

A)  greater than 
B)  less than 
C)  equal to 
D)  unrelated to 
A)  greater than 
B)  less than 
C)  equal to 
D)  unrelated to

Question 4

Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products.For his wife's birthday,he designs and creates an intricate birds-eye maple jewellery box that takes him 15 hours to complete.By how much and in what direction does GDP change as a result of his efforts?

Accepted Answer

A)  GDP rises by $1875. 
B)  GDP is not affected by Scott's production of the jewellery box. 
C)  GDP rises by $125. 
D)  GDP falls by $1875. 
A)  GDP rises by $1875. 
B)  GDP is not affected by Scott's production of the jewellery box. 
C)  GDP rises by $125. 
D)  GDP falls by $1875.

Question 5

What reasons does Paul Romer give to support his claim that firms free ride on knowledge capital?

Accepted Answer

Unlike physical capi

Question 6

Gross national income (GNI)is defined as the value of final goods and services produced

Accepted Answer

A)  within Australia. 
B)  outside of Australia. 
C)  by residents of Australia even if the production takes place outside of Australia. 
D)  within Australia, by Australian residents. 
A)  within Australia. 
B)  outside of Australia. 
C)  by residents of Australia even if the production takes place outside of Australia. 
D)  within Australia, by Australian residents.

Question 7

The smallest component of spending in GDP in Australia is usually

Accepted Answer

A)  consumption spending. 
B)  investment spending. 
C)  government spending. 
D)  net export spending. 
A)  consumption spending. 
B)  investment spending. 
C)  government spending. 
D)  net export spending.

Question 8

The 'GDP deflator' is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100.

Accepted Answer

A)  real GDP; nominal GDP 
B)  real GDP; the price level 
C)  nominal GDP; real GDP 
D)  the price level; nominal GDP 
A)  real GDP; nominal GDP 
B)  real GDP; the price level 
C)  nominal GDP; real GDP 
D)  the price level; nominal GDP

Question 9

If a German firm produces cars in the United States of America (USA),that production should count toward

Accepted Answer

A)  the USA's GNI. 
B)  Germany's GDP. 
C)  the USA's GDP. 
D)  It will not affect either the USA's GNI or the USA's GDP. 
A)  the USA's GNI. 
B)  Germany's GDP. 
C)  the USA's GDP. 
D)  It will not affect either the USA's GNI or the USA's GDP.

Question 10

What is the economic growth model?

Accepted Answer

A model that explain

Question 11

Net domestic product (NDP)is calculated by measuring GDP and subtracting

Accepted Answer

A)  depreciation. 
B)  transfer payments. 
C)  indirect sales taxes. 
D)  good and services produced overseas. 
A)  depreciation. 
B)  transfer payments. 
C)  indirect sales taxes. 
D)  good and services produced overseas.

Question 12

A weakness of the measurement of GDP is that it includes the value of intermediate goods,therefore some double counting occurs.

Accepted Answer

A) True 
 B)False

Question 13

Total production in the economy is measured as 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 14

Which of the following issues would be considered part of the study of macroeconomics?

Accepted Answer

A)  The price of clothing. 
B)  Profit levels in the retail sector. 
C)  The unemployment rate. 
D)  The wages of economists. 
A)  The price of clothing. 
B)  Profit levels in the retail sector. 
C)  The unemployment rate. 
D)  The wages of economists.

Question 15

Debbie makes porcelain plates in her home and sells them to a gallery.She spent $400 last month on supplies and made 50 plates.She sold the plates to the gallery at $25 per plate.The gallery sells all the plates for $40 each.For all of the 50 plates,what is Debbie's total value added? For all the 50 plates,what is the gallery's total value added?

Accepted Answer

To determine Debbie's value added we mus

Question 16

Which of the following describes the growth in real GDP per person in Australia from 1901 to 2013?

Accepted Answer

A)  It has decreased more times than it has increased. 
B)  It has increased by more than five times. 
C)  It has doubled. 
D)  Nominal GDP has increased but real GDP has slowly decreased. 
A)  It has decreased more times than it has increased. 
B)  It has increased by more than five times. 
C)  It has doubled. 
D)  Nominal GDP has increased but real GDP has slowly decreased.

Question 17

Which of the following transactions would be included in GDP?

Accepted Answer

A)  The purchase of a used car. 
B)  The purchase of a Monet painting. 
C)  The purchase of Telstra shares. 
D)  The purchase of paper clips. 
A)  The purchase of a used car. 
B)  The purchase of a Monet painting. 
C)  The purchase of Telstra shares. 
D)  The purchase of paper clips.

Question 18

Refer to Table 12.2 for the following questions.
Table 12.2
  
-Refer to Table 12.2.Calculate the GDP deflator in 2012.

Accepted Answer

A)  105 
B)  114 
C)  95 
D)  87 
A)  105 
B)  114 
C)  95 
D)  87

Question 19

Refer to Table 12.1 for the following questions.
Table 12.1 A very simple economy producing three goods: movies, burgers and bikes.  
-Refer to Table 12.1.What is nominal GDP in 2008?

Accepted Answer

A)  $3320 
B)  $3690 
C)  $6360 
D)  $7035 
A)  $3320 
B)  $3690 
C)  $6360 
D)  $7035

Question 20

Labour productivity will increase if the ________ increases and ________.

Accepted Answer

A)  quantity of capital per hour worked; technological change occurs 
B)  quantity of labour per unit of capital; technological change occurs 
C)  quantity of capital per hour worked; immigration increases while capital is fixed 
D)  quantity of labour per unit of capital; immigration increases while capital is fixed 
A)  quantity of capital per hour worked; technological change occurs 
B)  quantity of labour per unit of capital; technological change occurs 
C)  quantity of capital per hour worked; immigration increases while capital is fixed 
D)  quantity of labour per unit of capital; immigration increases while capital is fixed

Figure 12.1 -The movement from E to B to D in Figure 12.1 illustrates

Starting at point E in the following diagram,identify which combinations of points illustrate technological change.Give a brief explanation to support your answer.

Gross domestic product is generally ________ net domestic product.

What reasons does Paul Romer give to support his claim that firms free ride on knowledge capital?

Gross national income (GNI)is defined as the value of final goods and services produced

The smallest component of spending in GDP in Australia is usually

The 'GDP deflator' is a measure of the price level and is calculated by dividing by and multiplying by 100.

If a German firm produces cars in the United States of America (USA),that production should count toward

What is the economic growth model?

Net domestic product (NDP)is calculated by measuring GDP and subtracting

A weakness of the measurement of GDP is that it includes the value of intermediate goods,therefore some double counting occurs.

Total production in the economy is measured as the

Which of the following issues would be considered part of the study of macroeconomics?

Which of the following describes the growth in real GDP per person in Australia from 1901 to 2013?

Which of the following transactions would be included in GDP?

Refer to Table 12.2 for the following questions. Table 12.2 -Refer to Table 12.2.Calculate the GDP deflator in 2012.

Refer to Table 12.1 for the following questions. Table 12.1 A very simple economy producing three goods: movies, burgers and bikes. -Refer to Table 12.1.What is nominal GDP in 2008?

Labour productivity will increase if the increases and .

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

Figure 12.1 -The movement from E to B to D in Figure 12.1 illustrates

Starting at point E in the following diagram,identify which combinations of points illustrate technological change.Give a brief explanation to support your answer.

Gross domestic product is generally ________ net domestic product.

What reasons does Paul Romer give to support his claim that firms free ride on knowledge capital?

Gross national income (GNI)is defined as the value of final goods and services produced

The smallest component of spending in GDP in Australia is usually

The 'GDP deflator' is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100.

If a German firm produces cars in the United States of America (USA),that production should count toward

What is the economic growth model?

Net domestic product (NDP)is calculated by measuring GDP and subtracting

A weakness of the measurement of GDP is that it includes the value of intermediate goods,therefore some double counting occurs.

Total production in the economy is measured as the

Which of the following issues would be considered part of the study of macroeconomics?

Which of the following describes the growth in real GDP per person in Australia from 1901 to 2013?

Which of the following transactions would be included in GDP?

Refer to Table 12.2 for the following questions. Table 12.2 -Refer to Table 12.2.Calculate the GDP deflator in 2012.

Refer to Table 12.1 for the following questions. Table 12.1 A very simple economy producing three goods: movies, burgers and bikes. -Refer to Table 12.1.What is nominal GDP in 2008?

Labour productivity will increase if the ________ increases and ________.

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

The 'GDP deflator' is a measure of the price level and is calculated by dividing by and multiplying by 100.

Labour productivity will increase if the increases and .