Question 1

GDP may be calculated as the sum of:

Accepted Answer

A) consumer spending, investment spending, government purchases of goods and services, and exports minus imports. 
B) consumer spending, investment spending, government transfer payments, and exports minus imports. 
C) consumer spending, investment spending, government purchases of goods and services, and exports. 
D) exports and imports only. 
A) consumer spending, investment spending, government purchases of goods and services, and exports minus imports. 
B) consumer spending, investment spending, government transfer payments, and exports minus imports. 
C) consumer spending, investment spending, government purchases of goods and services, and exports. 
D) exports and imports only.

Question 2

Use the following to answer questions :
Table: Per Capita GDP
  
-(Table: Per Capita GDP) Look at the table Per Capita GDP. The growth rate of nominal GDP from 2011 to 2014 was:

Accepted Answer

A) 37.5%. 
B) 60%. 
C) 62.5%. 
D) 166.7%. 
A) 37.5%. 
B) 60%. 
C) 62.5%. 
D) 166.7%.

Question 3

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 2012 and 2013?

Accepted Answer

A) 4.5% 
B) 11.25% 
C) 22.5% 
D) 44.5% 
A) 4.5% 
B) 11.25% 
C) 22.5% 
D) 44.5%

Question 4

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 value of the price index in 2012?

Accepted Answer

A) 0 
B) 90 
C) 100 
D) 111.25 
A) 0 
B) 90 
C) 100 
D) 111.25

Question 5

In the circular-flow diagram, the value of household income-the sum of wages, dividends, interest, rental income, and transfer payments-equals the sum of:

Accepted Answer

A) household tax payments. 
B) consumer spending, private saving, and household tax payments. 
C) the money supply. 
D) transfer payments and household tax payments. 
A) household tax payments. 
B) consumer spending, private saving, and household tax payments. 
C) the money supply. 
D) transfer payments and household tax payments.

Question 6

Assume that the real GDP of the United States is approximately $12 trillion and the population of the United States is approximately 300 million. What is per capita real GDP?

Accepted Answer

A) $4,000 
B) $36,000 
C) $40,000 
D) Real per capita GDP can't be determined without more information. 
A) $4,000 
B) $36,000 
C) $40,000 
D) Real per capita GDP can't be determined without more information.

Question 7

You read in the newspaper that the consumer price index in 2011 was 120. You conclude that a typical market basket in 2011 would have cost _____ more than the same market basket purchased in _____.

Accepted Answer

A) 20%; 2010 
B) 120%; 2010 
C) 20%; the base year 
D) 120%; the base year 
A) 20%; 2010 
B) 120%; 2010 
C) 20%; the base year 
D) 120%; the base year

Question 8

In 2013, _____ spending was the largest component of U.S. GDP, at approximately 70% of aggregate spending.

Accepted Answer

A) government 
B) consumer 
C) investment 
D) net export 
A) government 
B) consumer 
C) investment 
D) net export

Question 9

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 change in nominal output between years 3 and 4 is an increase of:

Accepted Answer

A) 64%. 
B) 100%. 
C) 180%. 
D) 280%. 
A) 64%. 
B) 100%. 
C) 180%. 
D) 280%.

Question 10

Purchases of imported products are:

Accepted Answer

A) subtracted from GDP. 
B) considered domestic spending, since the money is spent by a domestic consumer. 
C) double counting. 
D) not a part of the GDP calculation. 
A) subtracted from GDP. 
B) considered domestic spending, since the money is spent by a domestic consumer. 
C) double counting. 
D) not a part of the GDP calculation.

Question 11

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 price index in year 1, using year 3 as the base period, is:

Accepted Answer

A) 25 
B) 50. 
C) 100. 
D) 150. 
A) 25 
B) 50. 
C) 100. 
D) 150.

Question 12

Use the following to answer questions :  
-(Table: Peanut Butter and Jelly Economy) Look at the table Peanut Butter and Jelly Economy. From 2010 to 2011 real GDP ____ by _____.

Accepted Answer

A) increased; 12.5% 
B) decreased; 50% 
C) increased; 43.75% 
D) decreased; 12.5% 
A) increased; 12.5% 
B) decreased; 50% 
C) increased; 43.75% 
D) decreased; 12.5%

Question 13

A country's GNP:

Accepted Answer

A) must be larger than its GDP. 
B) is the total factor income earned by residents of a country. 
C) includes factor income earned by foreigners. 
D) excludes factor income earned abroad by Americans. 
A) must be larger than its GDP. 
B) is the total factor income earned by residents of a country. 
C) includes factor income earned by foreigners. 
D) excludes factor income earned abroad by Americans.

Question 14

Gross domestic product is defined as:

Accepted Answer

A) consumer spending + government purchases of goods and services + financial spending + exports - imports. 
B) consumer spending + government transfers + investment spending + exports - imports. 
C) disposable income + taxes + investment spending + exports + imports. 
D) consumer spending + government purchases of goods and services + investment spending + exports - imports. 
A) consumer spending + government purchases of goods and services + financial spending + exports - imports. 
B) consumer spending + government transfers + investment spending + exports - imports. 
C) disposable income + taxes + investment spending + exports + imports. 
D) consumer spending + government purchases of goods and services + investment spending + exports - imports.

Question 15

Which of the following is included in the calculation of GDP?

Accepted Answer

A) expenditure on new construction 
B) a retiree's monthly Social Security check 
C) buying a house built 10 years ago 
D) buying shares of Home Depot stock 
A) expenditure on new construction 
B) a retiree's monthly Social Security check 
C) buying a house built 10 years ago 
D) buying shares of Home Depot stock

Question 16

If GDP increases from $10 trillion to $12 trillion in a year, it can only mean that aggregate output grew by 20%.

Accepted Answer

A) True 
 B)False

Question 17

The GDP deflator is equal to:

Accepted Answer

A) nominal GDP divided by real GDP times 100. 
B) real GDP divided by nominal GDP times 100. 
C) real GDP times nominal GDP times 100. 
D) [(real GDP times nominal GDP) divided by real GDP] times 100. 
A) nominal GDP divided by real GDP times 100. 
B) real GDP divided by nominal GDP times 100. 
C) real GDP times nominal GDP times 100. 
D) [(real GDP times nominal GDP) divided by real GDP] times 100.

Question 18

If we add up the consumer spending on goods and services, investment spending, government purchases of goods and services, and the value of exports, then subtract the value of imports, we have measured the nation's:

Accepted Answer

A) disposable income. 
B) gross domestic product. 
C) trade deficit. 
D) budget deficit. 
A) disposable income. 
B) gross domestic product. 
C) trade deficit. 
D) budget deficit.

Question 19

Use the following to answer questions:
Figure: Expanded Circular-Flow Model  
-(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. What is the value of disposable income?

Accepted Answer

A) $1,020 
B) $1,000 
C) $870 
D) $850 
A) $1,020 
B) $1,000 
C) $870 
D) $850

Question 20

Households demand resources in the factor markets.

Accepted Answer

A) True 
 B)False

GDP may be calculated as the sum of:

Use the following to answer questions : Table: Per Capita GDP -(Table: Per Capita GDP) Look at the table Per Capita GDP. The growth rate of nominal GDP from 2011 to 2014 was:

In the circular-flow diagram, the value of household income-the sum of wages, dividends, interest, rental income, and transfer payments-equals the sum of:

Assume that the real GDP of the United States is approximately $12 trillion and the population of the United States is approximately 300 million. What is per capita real GDP?

You read in the newspaper that the consumer price index in 2011 was 120. You conclude that a typical market basket in 2011 would have cost _ more than the same market basket purchased in _.

In 2013, _____ spending was the largest component of U.S. GDP, at approximately 70% of aggregate spending.

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 change in nominal output between years 3 and 4 is an increase of:

Purchases of imported products are:

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 price index in year 1, using year 3 as the base period, is:

Use the following to answer questions : -(Table: Peanut Butter and Jelly Economy) Look at the table Peanut Butter and Jelly Economy. From 2010 to 2011 real GDP by _.

A country's GNP:

Gross domestic product is defined as:

Which of the following is included in the calculation of GDP?

If GDP increases from $10 trillion to $12 trillion in a year, it can only mean that aggregate output grew by 20%.

The GDP deflator is equal to:

If we add up the consumer spending on goods and services, investment spending, government purchases of goods and services, and the value of exports, then subtract the value of imports, we have measured the nation's:

Use the following to answer questions: Figure: Expanded Circular-Flow Model -(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. What is the value of disposable income?

Households demand resources in the factor markets.

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

GDP may be calculated as the sum of:

Use the following to answer questions : Table: Per Capita GDP -(Table: Per Capita GDP) Look at the table Per Capita GDP. The growth rate of nominal GDP from 2011 to 2014 was:

In the circular-flow diagram, the value of household income-the sum of wages, dividends, interest, rental income, and transfer payments-equals the sum of:

Assume that the real GDP of the United States is approximately $12 trillion and the population of the United States is approximately 300 million. What is per capita real GDP?

You read in the newspaper that the consumer price index in 2011 was 120. You conclude that a typical market basket in 2011 would have cost _____ more than the same market basket purchased in _____.

In 2013, _____ spending was the largest component of U.S. GDP, at approximately 70% of aggregate spending.

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 change in nominal output between years 3 and 4 is an increase of:

Purchases of imported products are:

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 price index in year 1, using year 3 as the base period, is:

Use the following to answer questions : -(Table: Peanut Butter and Jelly Economy) Look at the table Peanut Butter and Jelly Economy. From 2010 to 2011 real GDP ____ by _____.

A country's GNP:

Gross domestic product is defined as:

Which of the following is included in the calculation of GDP?

If GDP increases from $10 trillion to $12 trillion in a year, it can only mean that aggregate output grew by 20%.

The GDP deflator is equal to:

If we add up the consumer spending on goods and services, investment spending, government purchases of goods and services, and the value of exports, then subtract the value of imports, we have measured the nation's:

Use the following to answer questions: Figure: Expanded Circular-Flow Model -(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. What is the value of disposable income?

Households demand resources in the factor markets.

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

You read in the newspaper that the consumer price index in 2011 was 120. You conclude that a typical market basket in 2011 would have cost _ more than the same market basket purchased in _.

Use the following to answer questions : -(Table: Peanut Butter and Jelly Economy) Look at the table Peanut Butter and Jelly Economy. From 2010 to 2011 real GDP by _.