Question 1

If the GDP deflator rises from 185 to 190,what is the percentage increase in the price level between the two years?

Accepted Answer

A)  270 per cent 
B)  50 per cent 
C)  5 per cent 
D)  2.7 per cent 
A)  270 per cent 
B)  50 per cent 
C)  5 per cent 
D)  2.7 per cent

Question 2

A 'final good' is one that is

Accepted Answer

A)  used in the production of another good. 
B)  a natural resource used to produce a good. 
C)  purchased as an input in the production process. 
D)  not used as an input in the production process. 
A)  used in the production of another good. 
B)  a natural resource used to produce a good. 
C)  purchased as an input in the production process. 
D)  not used as an input in the production process.

Question 3

Outline the trend in real GDP per capita in Australia from 1901 to 2013.

Accepted Answer

It has trended upwards,increas

Question 4

Marla is an architect who is designing a home for Charles.Charles is paying Marla $150 per hour to design his new home.When Charles and Marla get married,Marla continues to work on designing the home,but she no longer charges Charles for her work.As a result,GDP ________ because ________.

Accepted Answer

A)  falls; Marla's work takes place in the underground economy once she's married 
B)  falls; Marla's work becomes less valuable once she's married 
C)  falls; Marla's architectural design services are no longer bought by Charles once they're married 
D)  rises; Marla becomes more productive once she's married 
A)  falls; Marla's work takes place in the underground economy once she's married 
B)  falls; Marla's work becomes less valuable once she's married 
C)  falls; Marla's architectural design services are no longer bought by Charles once they're married 
D)  rises; Marla becomes more productive once she's married

Question 5

Economist Paul Romer argued that

Accepted Answer

A)  technological change was determined by forces outside of the market. 
B)  at the firm level, diminishing returns to labour occur. 
C)  at the economy level, knowledge capital is subject to increasing returns. 
D)  knowledge capital is excludable but rival. 
A)  technological change was determined by forces outside of the market. 
B)  at the firm level, diminishing returns to labour occur. 
C)  at the economy level, knowledge capital is subject to increasing returns. 
D)  knowledge capital is excludable but rival.

Question 6

Which of the following is most likely to be able to sustain economic growth in an economy?

Accepted Answer

A)  Sustained increases in the labour force participation rate. 
B)  Technological change. 
C)  Increases in capital per hour worked. 
D)  The accumulation of economic resources. 
A)  Sustained increases in the labour force participation rate. 
B)  Technological change. 
C)  Increases in capital per hour worked. 
D)  The accumulation of economic resources.

Question 7

Which factors explain labour productivity?

Accepted Answer

A)  Technological change and the quantity of labour per hour. 
B)  Diminishing returns and the quantity of labour per hour. 
C)  Diminishing returns and the quantity of capital per hour. 
D)  Technological change and the quantity of capital per hour. 
A)  Technological change and the quantity of labour per hour. 
B)  Diminishing returns and the quantity of labour per hour. 
C)  Diminishing returns and the quantity of capital per hour. 
D)  Technological change and the quantity of capital per hour.

Question 8

Why do we subtract import spending from total expenditures?

Accepted Answer

When we total up consumption expenditure

Question 9

Which of the following is included in the gross domestic product for an economy in a given year?

Accepted Answer

A)  The value of intermediate goods produced in that year. 
B)  The value of used goods sold in that year. 
C)  The value of final goods produced in that year. 
D)  All of the above would be included in the gross domestic product for an economy in a given year. 
A)  The value of intermediate goods produced in that year. 
B)  The value of used goods sold in that year. 
C)  The value of final goods produced in that year. 
D)  All of the above would be included in the gross domestic product for an economy in a given year.

Question 10

The circular-flow model demonstrates that the value of total production is equal to the value of total income in an economy.

Accepted Answer

A) True 
 B)False

Question 11

Give reasons why measured GDP does not reflect total production in an economy.

Accepted Answer

The measure of GDP leaves out production

Question 12

The 'rule of 70' states that

Accepted Answer

A)  it takes an economy 70 years to double in size. 
B)  the number of years it takes an economy to double is 70 divided by the growth rate. 
C)  the number of years it takes an economy to double is the growth rate multiplied by 70. 
D)  the number of years it takes an economy to double is the growth rate divided by 70. 
A)  it takes an economy 70 years to double in size. 
B)  the number of years it takes an economy to double is 70 divided by the growth rate. 
C)  the number of years it takes an economy to double is the growth rate multiplied by 70. 
D)  the number of years it takes an economy to double is the growth rate divided by 70.

Question 13

The purchase of shares in a company is not included in the investment component of GDP.

Accepted Answer

A) True 
 B)False

Question 14

Suppose that the following table represents the goods and services produced in a very simple closed economy in 2013.Assume that steel is used as an input in the production of cars.Using that information,calculate the GDP for the year 2013.

Accepted Answer

GDP is defined as the market value of fi

Question 15

If an economy is growing at a rate of 2.5 per cent per year,how long will it take the economy to double in size?

Accepted Answer

A)  60 years 
B)  43 years 
C)  36 years 
D)  28 years 
A)  60 years 
B)  43 years 
C)  36 years 
D)  28 years

Question 16

What is the underground economy and how could it hurt an economy? How does it hurt developing economies?

Accepted Answer

The underground economy is that part of

Question 17

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Accepted Answer

Nominal GDP can change because

Question 18

Technological change causes a movement along a per-worker production function.

Accepted Answer

A) True 
 B)False

Question 19

Outline the various actions the government sector should take to promote growth.

Accepted Answer

The government should secure private pro

Question 20

An example of a final good would be

Accepted Answer

A)  the soy milk sold to Starbucks. 
B)  the whipped cream sold to Starbucks. 
C)  a soy latte drink sold by Starbucks to a student. 
D)  the coffee beans sold to Starbucks. 
A)  the soy milk sold to Starbucks. 
B)  the whipped cream sold to Starbucks. 
C)  a soy latte drink sold by Starbucks to a student. 
D)  the coffee beans sold to Starbucks.

If the GDP deflator rises from 185 to 190,what is the percentage increase in the price level between the two years?

A 'final good' is one that is

Outline the trend in real GDP per capita in Australia from 1901 to 2013.

Marla is an architect who is designing a home for Charles.Charles is paying Marla $150 per hour to design his new home.When Charles and Marla get married,Marla continues to work on designing the home,but she no longer charges Charles for her work.As a result,GDP because .

Economist Paul Romer argued that

Which of the following is most likely to be able to sustain economic growth in an economy?

Which factors explain labour productivity?

Why do we subtract import spending from total expenditures?

Which of the following is included in the gross domestic product for an economy in a given year?

The circular-flow model demonstrates that the value of total production is equal to the value of total income in an economy.

Give reasons why measured GDP does not reflect total production in an economy.

The 'rule of 70' states that

The purchase of shares in a company is not included in the investment component of GDP.

Suppose that the following table represents the goods and services produced in a very simple closed economy in 2013.Assume that steel is used as an input in the production of cars.Using that information,calculate the GDP for the year 2013.

If an economy is growing at a rate of 2.5 per cent per year,how long will it take the economy to double in size?

What is the underground economy and how could it hurt an economy? How does it hurt developing economies?

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Technological change causes a movement along a per-worker production function.

Outline the various actions the government sector should take to promote growth.

An example of a final good would be

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

If the GDP deflator rises from 185 to 190,what is the percentage increase in the price level between the two years?

A 'final good' is one that is

Outline the trend in real GDP per capita in Australia from 1901 to 2013.

Marla is an architect who is designing a home for Charles.Charles is paying Marla $150 per hour to design his new home.When Charles and Marla get married,Marla continues to work on designing the home,but she no longer charges Charles for her work.As a result,GDP ________ because ________.

Economist Paul Romer argued that

Which of the following is most likely to be able to sustain economic growth in an economy?

Which factors explain labour productivity?

Why do we subtract import spending from total expenditures?

Which of the following is included in the gross domestic product for an economy in a given year?

The circular-flow model demonstrates that the value of total production is equal to the value of total income in an economy.

Give reasons why measured GDP does not reflect total production in an economy.

The 'rule of 70' states that

The purchase of shares in a company is not included in the investment component of GDP.

Suppose that the following table represents the goods and services produced in a very simple closed economy in 2013.Assume that steel is used as an input in the production of cars.Using that information,calculate the GDP for the year 2013.

If an economy is growing at a rate of 2.5 per cent per year,how long will it take the economy to double in size?

What is the underground economy and how could it hurt an economy? How does it hurt developing economies?

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Technological change causes a movement along a per-worker production function.

Outline the various actions the government sector should take to promote growth.

An example of a final good would be

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

Marla is an architect who is designing a home for Charles.Charles is paying Marla $150 per hour to design his new home.When Charles and Marla get married,Marla continues to work on designing the home,but she no longer charges Charles for her work.As a result,GDP because .