Question 1

Value added in national income accounts refers to the:

Accepted Answer

A)  value added by labour to the production process. 
B)  difference between the price and the value of inputs purchased. 
C)  difference in profits at various stages of production. 
D)  value of all inputs used by the final producer. 
A)  value added by labour to the production process. 
B)  difference between the price and the value of inputs purchased. 
C)  difference in profits at various stages of production. 
D)  value of all inputs used by the final producer.

Question 2

Real GDP will increase if aggregate output increases.

Accepted Answer

A) True 
 B)False

Question 3

The total of the values added at every stage of production for a good leads to the:

Accepted Answer

A)  total cost of the labour used to produce the good. 
B)  prices of the factors of production used to produce the good. 
C)  final value of the good. 
D)  intermediate value of the good. 
A)  total cost of the labour used to produce the good. 
B)  prices of the factors of production used to produce the good. 
C)  final value of the good. 
D)  intermediate value of the good.

Question 4

Use the following to answer questions:  
-Table: Measuring GDP (billions of dollars)Use Table: Measuring GDP.GDP is equal to:

Accepted Answer

A)  $500 billion. 
B)  $850 billion. 
C)  $995 billion. 
D)  $1000 billion. 
A)  $500 billion. 
B)  $850 billion. 
C)  $995 billion. 
D)  $1000 billion.

Question 5

Use the following to answer questions:  
-(Table: Peanut Butter and Jelly)Use 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 6

Aggregate output is the total quantity of final goods and services produced.

Accepted Answer

A) True 
 B)False

Question 7

An increase in the value of nominal GDP over time:

Accepted Answer

A)  is always due to an increase in prices. 
B)  is always due to an increase in the production of goods and services. 
C)  may be due to an increase in prices,in the production of goods and services,or both. 
D)  may be due to a decrease in prices,in the production of goods and services,or both. 
A)  is always due to an increase in prices. 
B)  is always due to an increase in the production of goods and services. 
C)  may be due to an increase in prices,in the production of goods and services,or both. 
D)  may be due to a decrease in prices,in the production of goods and services,or both.

Question 8

The IPPI and the consumer price index are both price indexes.

Accepted Answer

A) True 
 B)False

Question 9

Real GDP per capita is:

Accepted Answer

A)  a perfect measure of a country's standard of living. 
B)  the only way to measure living standards among different countries. 
C)  an incomplete measure of a country's standard of living. 
D)  used only by the United Nations to compare nations based on measures of welfare. 
A)  a perfect measure of a country's standard of living. 
B)  the only way to measure living standards among different countries. 
C)  an incomplete measure of a country's standard of living. 
D)  used only by the United Nations to compare nations based on measures of welfare.

Question 10

If,during 2010,the Republic of Sildavia recorded investment spending of $3 billion,government purchases of $3 billion,consumer spending of $7 billion,imports of $5 billion,government transfers of $1 billion,and exports of $3 billion,Sildavia's GDP in 2010 was:

Accepted Answer

A)  $11 billion. 
B)  $12 billion. 
C)  $13 billion. 
D)  $14 billion. 
A)  $11 billion. 
B)  $12 billion. 
C)  $13 billion. 
D)  $14 billion.

Question 11

GDP is the total:

Accepted Answer

A)  value of all transactions in a year. 
B)  value of all final goods and services produced in a year. 
C)  value of all final goods and services produced by Canadians at home and abroad in a year. 
D)  value of all goods produced in the economy in a year. 
A)  value of all transactions in a year. 
B)  value of all final goods and services produced in a year. 
C)  value of all final goods and services produced by Canadians at home and abroad in a year. 
D)  value of all goods produced in the economy in a year.

Question 12

Use the following to answer questions:  
-Inflation is a(n):

Accepted Answer

A)  rising aggregate price level. 
B)  expansion of output. 
C)  rise in wages. 
D)  rise in the unemployment rate. 
A)  rising aggregate price level. 
B)  expansion of output. 
C)  rise in wages. 
D)  rise in the unemployment rate.

Question 13

Private savings is equal to:

Accepted Answer

A)  disposable income less taxes. 
B)  disposable income less consumption. 
C)  wealth. 
D)  wealth plus government transfer payments. 
A)  disposable income less taxes. 
B)  disposable income less consumption. 
C)  wealth. 
D)  wealth plus government transfer payments.

Question 14

Households do NOT receive income in the form of:

Accepted Answer

A)  wages. 
B)  dividends. 
C)  interest and rent. 
D)  investment spending. 
A)  wages. 
B)  dividends. 
C)  interest and rent. 
D)  investment spending.

Question 15

Use the following to answer questions:  
-(Table: Peanut Butter and Jelly Economy)Use Table: Peanut Butter and Jelly Economy.In 2011,nominal GDP was _____ and real GDP was _____.

Accepted Answer

A)  $450;$400 
B)  $525;$450 
C)  $525;$400 
D)  $450;$575 
A)  $450;$400 
B)  $525;$450 
C)  $525;$400 
D)  $450;$575

Question 16

The portion of a firm's profit paid to the owner of one share of its stock would accurately be characterized as:

Accepted Answer

A)  an interest payment. 
B)  a dividend. 
C)  a stock. 
D)  a bond. 
A)  an interest payment. 
B)  a dividend. 
C)  a stock. 
D)  a bond.

Question 17

A laptop computer purchased by a private individual for personal use is considered to be:

Accepted Answer

A)  consumption spending. 
B)  investment spending. 
C)  private saving. 
D)  a transfer of income. 
A)  consumption spending. 
B)  investment spending. 
C)  private saving. 
D)  a transfer of income.

Question 18

If Disney were to build a new amusement park in Canada,it is counted as part of GDP.

Accepted Answer

A) True 
 B)False

Question 19

Use the following to answer questions:  
-Table: Measuring GDP (billions of dollars)Use Table: Measuring GDP.Total expenditures on GDP by the household sector are:

Accepted Answer

A)  $100 billion. 
B)  $150 billion. 
C)  $200 billion. 
D)  $500 billion. 
A)  $100 billion. 
B)  $150 billion. 
C)  $200 billion. 
D)  $500 billion.

Question 20

If the price level and nominal GDP both doubled,then real GDP would:

Accepted Answer

A)  also double. 
B)  increase by half. 
C)  remain unchanged. 
D)  decrease by half. 
A)  also double. 
B)  increase by half. 
C)  remain unchanged. 
D)  decrease by half.

Value added in national income accounts refers to the:

Real GDP will increase if aggregate output increases.

The total of the values added at every stage of production for a good leads to the:

Use the following to answer questions: -Table: Measuring GDP (billions of dollars)Use Table: Measuring GDP.GDP is equal to:

Use the following to answer questions: -(Table: Peanut Butter and Jelly)Use 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?

Aggregate output is the total quantity of final goods and services produced.

An increase in the value of nominal GDP over time:

The IPPI and the consumer price index are both price indexes.

Real GDP per capita is:

If,during 2010,the Republic of Sildavia recorded investment spending of $3 billion,government purchases of $3 billion,consumer spending of $7 billion,imports of $5 billion,government transfers of $1 billion,and exports of $3 billion,Sildavia's GDP in 2010 was:

GDP is the total:

Use the following to answer questions: -Inflation is a(n):

Private savings is equal to:

Households do NOT receive income in the form of:

Use the following to answer questions: -(Table: Peanut Butter and Jelly Economy)Use Table: Peanut Butter and Jelly Economy.In 2011,nominal GDP was _ and real GDP was _.

The portion of a firm's profit paid to the owner of one share of its stock would accurately be characterized as:

A laptop computer purchased by a private individual for personal use is considered to be:

If Disney were to build a new amusement park in Canada,it is counted as part of GDP.

Use the following to answer questions: -Table: Measuring GDP (billions of dollars)Use Table: Measuring GDP.Total expenditures on GDP by the household sector are:

If the price level and nominal GDP both doubled,then real GDP would:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Graphs in Economics

Filters

Exam 7: Gdp and the Cpi: Tracking the Macroeconomy

Value added in national income accounts refers to the:

Real GDP will increase if aggregate output increases.

The total of the values added at every stage of production for a good leads to the:

Use the following to answer questions: -Table: Measuring GDP (billions of dollars)Use Table: Measuring GDP.GDP is equal to:

Use the following to answer questions: -(Table: Peanut Butter and Jelly)Use 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?

Aggregate output is the total quantity of final goods and services produced.

An increase in the value of nominal GDP over time:

The IPPI and the consumer price index are both price indexes.

Real GDP per capita is:

If,during 2010,the Republic of Sildavia recorded investment spending of $3 billion,government purchases of $3 billion,consumer spending of $7 billion,imports of $5 billion,government transfers of $1 billion,and exports of $3 billion,Sildavia's GDP in 2010 was:

GDP is the total:

Use the following to answer questions: -Inflation is a(n):

Private savings is equal to:

Households do NOT receive income in the form of:

Use the following to answer questions: -(Table: Peanut Butter and Jelly Economy)Use Table: Peanut Butter and Jelly Economy.In 2011,nominal GDP was _____ and real GDP was _____.

The portion of a firm's profit paid to the owner of one share of its stock would accurately be characterized as:

A laptop computer purchased by a private individual for personal use is considered to be:

If Disney were to build a new amusement park in Canada,it is counted as part of GDP.

Use the following to answer questions: -Table: Measuring GDP (billions of dollars)Use Table: Measuring GDP.Total expenditures on GDP by the household sector are:

If the price level and nominal GDP both doubled,then real GDP would:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Graphs in Economics

Filters

Use the following to answer questions: -(Table: Peanut Butter and Jelly Economy)Use Table: Peanut Butter and Jelly Economy.In 2011,nominal GDP was _ and real GDP was _.