Question 1

The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product.

Accepted Answer

A)  equals 
B)  is greater than 
C)  is less than 
D)  is sometimes greater than and other times less than 
A)  equals 
B)  is greater than 
C)  is less than 
D)  is sometimes greater than and other times less than

Question 2

Investment,as defined by economists,would not include which of the following? Ford

Accepted Answer

A)  buys a new robotic machine (from a plant in Ohio) to assemble cars. 
B)  adds 1,000 new cars to inventories. 
C)  builds another assembly plant in the United States. 
D)  buys U.S. government bonds. 
A)  buys a new robotic machine (from a plant in Ohio) to assemble cars. 
B)  adds 1,000 new cars to inventories. 
C)  builds another assembly plant in the United States. 
D)  buys U.S. government bonds.

Question 3

Table 19-5
   
Consider the table above showing three stages of production of an automobile.
-Refer to Scenario 19-1.The value of each canoe in gross domestic product equals

Accepted Answer

A)  $1,200. 
B)  $800. 
C)  $500. 
D)  $400. 
A)  $1,200. 
B)  $800. 
C)  $500. 
D)  $400.

Question 4

The output of Mexican citizens who work in Texas would be included in the

Accepted Answer

A)  gross domestic product of Mexico. 
B)  gross national product of Mexico. 
C)  gross national product of the United States. 
D)  net national product of the United States. 
A)  gross domestic product of Mexico. 
B)  gross national product of Mexico. 
C)  gross national product of the United States. 
D)  net national product of the United States.

Question 5

Real GDP will increase

Accepted Answer

A)  only if the price level rises. 
B)  only if the price level falls. 
C)  only if the quantity of final goods and services produced rises. 
D)  if either the price level rises or the quantity of final goods and services produced rises. 
A)  only if the price level rises. 
B)  only if the price level falls. 
C)  only if the quantity of final goods and services produced rises. 
D)  if either the price level rises or the quantity of final goods and services produced rises.

Question 6

A sharp increase in the divorce rate increases the number of lawyers hired to determine divorce settlements.This will

Accepted Answer

A)  increase GDP and increase well being in the economy. 
B)  increase GDP and decrease well being in the economy. 
C)  decrease GDP and increase well being in the economy. 
D)  decrease GDP and decrease well being in the economy. 
A)  increase GDP and increase well being in the economy. 
B)  increase GDP and decrease well being in the economy. 
C)  decrease GDP and increase well being in the economy. 
D)  decrease GDP and decrease well being in the economy.

Question 7

Nominal GDP is GDP in a given year

Accepted Answer

A)  adjusted for inflation. 
B)  adjusted for anticipated inflation. 
C)  valued in the prices of that year. 
D)  valued in the prices of the base year. 
A)  adjusted for inflation. 
B)  adjusted for anticipated inflation. 
C)  valued in the prices of that year. 
D)  valued in the prices of the base year.

Question 8

The output of U.S.citizens who work in Canada would be included in the

Accepted Answer

A)  gross domestic product of Canada. 
B)  gross national product of Canada. 
C)  gross domestic product of the United States. 
D)  gross national product of Canada and the gross national product of the United States. 
A)  gross domestic product of Canada. 
B)  gross national product of Canada. 
C)  gross domestic product of the United States. 
D)  gross national product of Canada and the gross national product of the United States.

Question 9

Even though it is generally true that the more goods and services people have,the better off they are,GDP provides only a rough measure of well-being.Assuming language is not an issue,what other factors besides GDP might you consider when deciding where to live and work?

Accepted Answer

Factors not included in GDP which you mi

Question 10

An example of business fixed investment spending is

Accepted Answer

A)  a purchase of a home by a household. 
B)  a purchase of a computer by an accounting firm. 
C)  a purchase of a bond by General Electric Corporation. 
D)  $200 million of unsold cars at a car dealership. 
A)  a purchase of a home by a household. 
B)  a purchase of a computer by an accounting firm. 
C)  a purchase of a bond by General Electric Corporation. 
D)  $200 million of unsold cars at a car dealership.

Question 11

Nominal GDP will increase

Accepted Answer

A)  only if the price level rises. 
B)  only if the price level falls. 
C)  only if the quantity of final goods and services produced rises. 
D)  if either the price level or the quantity of goods and services produced rises. 
A)  only if the price level rises. 
B)  only if the price level falls. 
C)  only if the quantity of final goods and services produced rises. 
D)  if either the price level or the quantity of goods and services produced rises.

Question 12

If the GDP deflator is less than 100,then for that year nominal GDP ________ real GDP.

Accepted Answer

A)  equals 
B)  is greater than 
C)  is less than 
D)  may be greater than or less than 
A)  equals 
B)  is greater than 
C)  is less than 
D)  may be greater than or less than

Question 13

A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where

Accepted Answer

A)  GNP is much larger than GDP. 
B)  GDP is much larger than GNP. 
C)  GDP is equal to GNP. 
D)  GDP is not comparable to GDP. 
A)  GNP is much larger than GDP. 
B)  GDP is much larger than GNP. 
C)  GDP is equal to GNP. 
D)  GDP is not comparable to GDP.

Question 14

The U.S.work week has declined from 60 hours in 1890 to 40 hours today.The impact of the decline in working hours

Accepted Answer

A)  increases U.S. GDP and increases the well-being of a typical working person in the U.S. 
B)  increases U.S. GDP and decreases the well-being of a typical working person in the U.S. 
C)  decreases U.S. GDP and increases the well-being of a typical working person in the U.S. 
D)  decreases U.S. GDP and decreases the well-being of a typical working person in the U.S. 
A)  increases U.S. GDP and increases the well-being of a typical working person in the U.S. 
B)  increases U.S. GDP and decreases the well-being of a typical working person in the U.S. 
C)  decreases U.S. GDP and increases the well-being of a typical working person in the U.S. 
D)  decreases U.S. GDP and decreases the well-being of a typical working person in the U.S.

Question 15

The informal sector can be a significant drag on the economies of developing countries because the firms in the informal sector

Accepted Answer

A)  produce goods and services no one wants. 
B)  sell their goods and services to citizens in other countries. 
C)  do not pay taxes to the government. 
D)  employ illegal immigrants from other countries. 
A)  produce goods and services no one wants. 
B)  sell their goods and services to citizens in other countries. 
C)  do not pay taxes to the government. 
D)  employ illegal immigrants from other countries.

Exam 19: GDP: Measuring Total Production and Income

The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product.

Investment,as defined by economists,would not include which of the following? Ford

Table 19-5 Consider the table above showing three stages of production of an automobile. -Refer to Scenario 19-1.The value of each canoe in gross domestic product equals

The output of Mexican citizens who work in Texas would be included in the

Real GDP will increase

A sharp increase in the divorce rate increases the number of lawyers hired to determine divorce settlements.This will

Nominal GDP is GDP in a given year

The output of U.S.citizens who work in Canada would be included in the

Even though it is generally true that the more goods and services people have,the better off they are,GDP provides only a rough measure of well-being.Assuming language is not an issue,what other factors besides GDP might you consider when deciding where to live and work?

An example of business fixed investment spending is

Nominal GDP will increase

If the GDP deflator is less than 100,then for that year nominal GDP ________ real GDP.

A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where

The U.S.work week has declined from 60 hours in 1890 to 40 hours today.The impact of the decline in working hours

The informal sector can be a significant drag on the economies of developing countries because the firms in the informal sector

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: The Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, taxes, and the Distribution of Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

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