Question 1

A transfer payment is a payment for:

Accepted Answer

A) a military transfer to a war zone. 
B) which no services were rendered. 
C) transfer of a debt to a different person. 
D) being transferred to a different city by your employer. 
A) a military transfer to a war zone. 
B) which no services were rendered. 
C) transfer of a debt to a different person. 
D) being transferred to a different city by your employer.

Question 2

Use the following to answer questions :  
-(Scenario: Market Basket) Look at the scenario Market Basket. What is the rate of inflation between 2010 and 2011?

Accepted Answer

A) -10% 
B) 11% 
C) 32% 
D) 0% 
A) -10% 
B) 11% 
C) 32% 
D) 0%

Question 3

If the United States exports $500 of goods and services and imports $700 of goods and services, net exports are $1,200.

Accepted Answer

A) True 
 B)False

Question 4

Use the following to answer question :  
-(Table: Pizza Economy II) Look at the table Pizza Economy II. GDP in this economy is:

Accepted Answer

A) $74,000. 
B) $45,000. 
C) $29,000. 
D) $16,000. 
A) $74,000. 
B) $45,000. 
C) $29,000. 
D) $16,000.

Question 5

Use the following to answer questions :
Table: Peanut Butter and Jelly
  
-(Table: Peanut Butter and Jelly) Look at the table Peanut Butter and Jelly. Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly. If 2012 is the base year, what is the rate of inflation between 2013 and 2014?

Accepted Answer

A) 4.9% 
B) 11.25% 
C) 22.5% 
D) 10.1% 
A) 4.9% 
B) 11.25% 
C) 22.5% 
D) 10.1%

Question 6

Use the following to answer questions :
Table: Lemonade and Cookies
  
-(Table: Lemonade and Cookies) Look at the table Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. If 2014 is the base year, real GDP in 2014 was:

Accepted Answer

A) $400. 
B) $420. 
C) $425. 
D) $445. 
A) $400. 
B) $420. 
C) $425. 
D) $445.

Question 7

Use the following to answer questions:
Table: Real and Nominal Output  
-(Table: Real and Nominal Output) Look at the table Real and Nominal Output. The year in which the increase in nominal GDP is exclusively due to the increase in the price level rather than physical output is year:

Accepted Answer

A) 2. 
B) 3 
C)  4. 
D)  6. 
A) 2. 
B) 3 
C)  4. 
D)  6.

Question 8

Goods that are produced domestically but sold abroad are:

Accepted Answer

A) imports. 
B) exports. 
C) part of domestic consumption. 
D) investment. 
A) imports. 
B) exports. 
C) part of domestic consumption. 
D) investment.

Question 9

Aggregate output is the sum of consumer spending on goods and services and investment spending by firms.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is NOT included in the calculation of GDP?

Accepted Answer

A) your granny's monthly Social Security payment 
B) the new textbook you purchase 
C) a cup of coffee from a vendor 
D) the wages you pay to the employee who cleans your house 
A) your granny's monthly Social Security payment 
B) the new textbook you purchase 
C) a cup of coffee from a vendor 
D) the wages you pay to the employee who cleans your house

Question 11

A bond is:

Accepted Answer

A) a share of ownership of a company. 
B) an IOU that pays interest. 
C) a portion of a firm's profits paid to shareholders. 
D) part of private savings. 
A) a share of ownership of a company. 
B) an IOU that pays interest. 
C) a portion of a firm's profits paid to shareholders. 
D) part of private savings.

Question 12

In the United States, investment spending accounts for approximately _____ of GDP.

Accepted Answer

A) 6% 
B) 16% 
C) 24% 
D) 33% 
A) 6% 
B) 16% 
C) 24% 
D) 33%

Question 13

Private saving by households is:

Accepted Answer

A) the portion of disposable income not spent on goods and services. 
B) the portion of income coming from transfer payments. 
C) often larger than consumption spending. 
D) not related to consumption spending. 
A) the portion of disposable income not spent on goods and services. 
B) the portion of income coming from transfer payments. 
C) often larger than consumption spending. 
D) not related to consumption spending.

Question 14

Use the following to answer questions :
Table: Per Capita GDP
  
-(Table: Per Capita GDP) Look at the table Per Capita GDP. Per capita real GDP in 2011 was:

Accepted Answer

A) $600. 
B) $400. 
C) $300. 
D) $30. 
A) $600. 
B) $400. 
C) $300. 
D) $30.

Question 15

Investment spending refers to the:

Accepted Answer

A) accumulation of financial stock by an individual firm. 
B) addition to the economy's supply of productive physical capital. 
C) total net value of assets sold to foreigners. 
D) total spending by households. 
A) accumulation of financial stock by an individual firm. 
B) addition to the economy's supply of productive physical capital. 
C) total net value of assets sold to foreigners. 
D) total spending by households.

Question 16

The national income and product accounts keep track of:

Accepted Answer

A) consumer debt. 
B) sales and investment spending by businesses. 
C) worker productivity. 
D) unemployment rates. 
A) consumer debt. 
B) sales and investment spending by businesses. 
C) worker productivity. 
D) unemployment rates.

Question 17

Which one of the following transactions is included in a current year's GDP as investment spending?

Accepted Answer

A) ABC company purchased 10,000 shares of IBM stock. 
B) Ronnie bought a new BMW. 
C) Anton purchased his friend's condo. 
D) Maggie bought a play-gym set for her day-care business. 
A) ABC company purchased 10,000 shares of IBM stock. 
B) Ronnie bought a new BMW. 
C) Anton purchased his friend's condo. 
D) Maggie bought a play-gym set for her day-care business.

Question 18

Use the following to answer questions :
Table: Price and Output Data  
-(Table: Price and Output Data) Look at the table Price and Output Data. The price index for year 4 is:

Accepted Answer

A) 80. 
B) 120. 
C) 0. 
D) 6. 
A) 80. 
B) 120. 
C) 0. 
D) 6.

Question 19

The national income and product accounts keep track of:

Accepted Answer

A) consumer spending. 
B) interest rates. 
C) rates of inflation. 
D) exchange rates. 
A) consumer spending. 
B) interest rates. 
C) rates of inflation. 
D) exchange rates.

Question 20

In the United States:

Accepted Answer

A) GNP is about twice GDP. 
B) GDP is about twice GNP. 
C) GDP exceeds GNP by depreciation plus indirect business taxes. 
D) GNP and GDP are about equal. 
A) GNP is about twice GDP. 
B) GDP is about twice GNP. 
C) GDP exceeds GNP by depreciation plus indirect business taxes. 
D) GNP and GDP are about equal.

A transfer payment is a payment for:

Use the following to answer questions : -(Scenario: Market Basket) Look at the scenario Market Basket. What is the rate of inflation between 2010 and 2011?

If the United States exports $500 of goods and services and imports $700 of goods and services, net exports are $1,200.

Use the following to answer question : -(Table: Pizza Economy II) Look at the table Pizza Economy II. GDP in this economy is:

Use the following to answer questions : Table: Lemonade and Cookies -(Table: Lemonade and Cookies) Look at the table Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. If 2014 is the base year, real GDP in 2014 was:

Use the following to answer questions: Table: Real and Nominal Output -(Table: Real and Nominal Output) Look at the table Real and Nominal Output. The year in which the increase in nominal GDP is exclusively due to the increase in the price level rather than physical output is year:

Goods that are produced domestically but sold abroad are:

Aggregate output is the sum of consumer spending on goods and services and investment spending by firms.

Which of the following is NOT included in the calculation of GDP?

A bond is:

In the United States, investment spending accounts for approximately _____ of GDP.

Private saving by households is:

Use the following to answer questions : Table: Per Capita GDP -(Table: Per Capita GDP) Look at the table Per Capita GDP. Per capita real GDP in 2011 was:

Investment spending refers to the:

The national income and product accounts keep track of:

Which one of the following transactions is included in a current year's GDP as investment spending?

Use the following to answer questions : Table: Price and Output Data -(Table: Price and Output Data) Look at the table Price and Output Data. The price index for year 4 is:

The national income and product accounts keep track of:

In the United States:

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

Exam 7: Gdp and Cpi: Tracking the Macroeconomy

A transfer payment is a payment for:

Use the following to answer questions : -(Scenario: Market Basket) Look at the scenario Market Basket. What is the rate of inflation between 2010 and 2011?

If the United States exports $500 of goods and services and imports $700 of goods and services, net exports are $1,200.

Use the following to answer question : -(Table: Pizza Economy II) Look at the table Pizza Economy II. GDP in this economy is:

Use the following to answer questions : Table: Lemonade and Cookies -(Table: Lemonade and Cookies) Look at the table Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. If 2014 is the base year, real GDP in 2014 was:

Use the following to answer questions: Table: Real and Nominal Output -(Table: Real and Nominal Output) Look at the table Real and Nominal Output. The year in which the increase in nominal GDP is exclusively due to the increase in the price level rather than physical output is year:

Goods that are produced domestically but sold abroad are:

Aggregate output is the sum of consumer spending on goods and services and investment spending by firms.

Which of the following is NOT included in the calculation of GDP?

A bond is:

In the United States, investment spending accounts for approximately _____ of GDP.

Private saving by households is:

Use the following to answer questions : Table: Per Capita GDP -(Table: Per Capita GDP) Look at the table Per Capita GDP. Per capita real GDP in 2011 was:

Investment spending refers to the:

The national income and product accounts keep track of:

Which one of the following transactions is included in a current year's GDP as investment spending?

Use the following to answer questions : Table: Price and Output Data -(Table: Price and Output Data) Look at the table Price and Output Data. The price index for year 4 is:

The national income and product accounts keep track of:

In the United States:

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters