Question 1

Interest paid by households and by the government is

Accepted Answer

A) counted in national income,but not in GDP. 
B) not counted in GDP because it is not assumed to flow from the production of goods and services. 
C) not counted in GDP but is counted in GNP because it is paid by U.S.citizens to people living in the United States. 
D) included in both GDP and GNP because it represents an expenditure by one group and a receipt of income by another group. 
A) counted in national income,but not in GDP. 
B) not counted in GDP because it is not assumed to flow from the production of goods and services. 
C) not counted in GDP but is counted in GNP because it is paid by U.S.citizens to people living in the United States. 
D) included in both GDP and GNP because it represents an expenditure by one group and a receipt of income by another group.

Question 2

If in a year there is a positive inventory investment,then final sales

Accepted Answer

A) exceed GDP. 
B) are less than GDP. 
C) equal GDP. 
D) are zero. 
A) exceed GDP. 
B) are less than GDP. 
C) equal GDP. 
D) are zero.

Question 3

Saving rates tend to ________ during boom times and ________ during recession periods.

Accepted Answer

A) rise; rise 
B) rise; fall 
C) fall; rise 
D) fall; fall 
A) rise; rise 
B) rise; fall 
C) fall; rise 
D) fall; fall

Question 4

Which of the following is included in both the U.S.GDP and GNP?

Accepted Answer

A) The value of all cars produced by Ford in Mexico. 
B) The value of all cars produced by General Motors in the U.S. 
C) The value of all cars produced by Toyota in the U.S. 
D) The value of cars produced by Nissan in Japan and the U.S. 
A) The value of all cars produced by Ford in Mexico. 
B) The value of all cars produced by General Motors in the U.S. 
C) The value of all cars produced by Toyota in the U.S. 
D) The value of cars produced by Nissan in Japan and the U.S.

Question 5

Refer to the information provided in Table 6.3 below to answer the questions that follow.
Table 6.3
  
-Refer to Table 6.3.The value for gross domestic product in billions of dollars is

Accepted Answer

A) 485. 
B) 680. 
C) 685. 
D) 710. 
A) 485. 
B) 680. 
C) 685. 
D) 710.

Question 6

Refer to the information provided in Table 6.3 below to answer the questions that follow.
Table 6.3
  
-If receipts of factor income from the rest of the world exceed payments of factor income to the rest of the world,then

Accepted Answer

A) GDP is greater than GNP. 
B) GDP equals GNP. 
C) GNP equals NNP. 
D) GNP is greater than GDP. 
A) GDP is greater than GNP. 
B) GDP equals GNP. 
C) GNP equals NNP. 
D) GNP is greater than GDP.

Question 7

Refer to the information provided in Table 6.2 below to answer the questions that follow.
Table 6.2
  
-Refer to Table 6.2.The value for net exports in billions of dollars is

Accepted Answer

A) -200. 
B) -150. 
C) 50. 
D) 250. 
A) -200. 
B) -150. 
C) 50. 
D) 250.

Question 8

If GDP is $300 billion,depreciation is $30 billion,and net factor income from the rest of the world is -$40 billion,then net national product is

Accepted Answer

A) $230 billion. 
B) $270 billion. 
C) $290 billion. 
D) $310 billion. 
A) $230 billion. 
B) $270 billion. 
C) $290 billion. 
D) $310 billion.

Question 9

Net interest is the interest on loans paid by

Accepted Answer

A) businesses,households,and the government. 
B) businesses and households. 
C) businesses and the government. 
D) businesses. 
A) businesses,households,and the government. 
B) businesses and households. 
C) businesses and the government. 
D) businesses.

Question 10

Real GDP is gross domestic product measured

Accepted Answer

A) at a constant output level but at current prices. 
B) in current dollars. 
C) in the prices of a base year. 
D) as the difference between the current year's GDP and last year's GDP. 
A) at a constant output level but at current prices. 
B) in current dollars. 
C) in the prices of a base year. 
D) as the difference between the current year's GDP and last year's GDP.

Question 11

Personal income is national income minus

Accepted Answer

A) depreciation. 
B) net factor income to the rest of the world. 
C) the amount of national income not going to households. 
D) imports. 
A) depreciation. 
B) net factor income to the rest of the world. 
C) the amount of national income not going to households. 
D) imports.

Question 12

Proprietors' income is

Accepted Answer

A) the income of unincorporated businesses. 
B) the income of all businesses-incorporated and unincorporated. 
C) the income of sole proprietorships. 
D) the income of partnerships. 
A) the income of unincorporated businesses. 
B) the income of all businesses-incorporated and unincorporated. 
C) the income of sole proprietorships. 
D) the income of partnerships.

Question 13

Suppose that net investment in 2012 was $20 billion and depreciation was $4 billion.Gross investment in 2012 was

Accepted Answer

A) $16 billion. 
B) $20 billion. 
C) $24 billion. 
D) $28 billion. 
A) $16 billion. 
B) $20 billion. 
C) $24 billion. 
D) $28 billion.

Question 14

Fixed weight indexes

Accepted Answer

A) account for responses to supply shifts. 
B) account for response to demand shifts. 
C) generally become less accurate the farther in time they are from the base year. 
D) generally become less accurate the closer in time they are to the base year. 
A) account for responses to supply shifts. 
B) account for response to demand shifts. 
C) generally become less accurate the farther in time they are from the base year. 
D) generally become less accurate the closer in time they are to the base year.

Question 15

Per capita gross national income (GNI)decreases when

Accepted Answer

A) GNI and the population increase at the same rate. 
B) GNI does not change and the population increases. 
C) GNI and the population decrease at the same rate. 
D) GNI increases and the population does not change. 
A) GNI and the population increase at the same rate. 
B) GNI does not change and the population increases. 
C) GNI and the population decrease at the same rate. 
D) GNI increases and the population does not change.

Question 16

The income of U.S.citizens working abroad counts in U.S.GDP.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is NOT included in 2013's GDP?

Accepted Answer

A) the value of a motorcycle produced in the United States and exported to Japan 
B) the profit earned in 2013 from selling a stock that you purchased in 2008 
C) the value of a motor that is used in the production of a lawn mower 
D) the commission earned by a headhunter when she locates a job for a client 
A) the value of a motorcycle produced in the United States and exported to Japan 
B) the profit earned in 2013 from selling a stock that you purchased in 2008 
C) the value of a motor that is used in the production of a lawn mower 
D) the commission earned by a headhunter when she locates a job for a client

Question 18

Refer to the information provided in Table 6.5 below to answer the questions that follow.
Table 6.5
  
-Refer to Table 6.5.Assume that this economy produces only two goods Good X and Good Y.If year 1 is the base year,the value for this economy's inflation rate between year 1 and year 2 is

Accepted Answer

A) -6.1%. 
B) -5.5%. 
C) 6.5%. 
D) 79%. 
A) -6.1%. 
B) -5.5%. 
C) 6.5%. 
D) 79%.

Question 19

When calculating GDP,exports are ________ and imports are ________.

Accepted Answer

A) added; added 
B) added; subtracted 
C) subtracted; added 
D) subtracted; subtracted 
A) added; added 
B) added; subtracted 
C) subtracted; added 
D) subtracted; subtracted

Question 20

The value of what KFC produces in Japan is included in the U.S.________ and in the Japanese ________.

Accepted Answer

A) GDP; GDP 
B) GNP; GNP 
C) GNP; GDP 
D) GDP; GNP 
A) GDP; GDP 
B) GNP; GNP 
C) GNP; GDP 
D) GDP; GNP

Exam 6: Measuring National Output and National Income

Interest paid by households and by the government is

If in a year there is a positive inventory investment,then final sales

Saving rates tend to ________ during boom times and ________ during recession periods.

Which of the following is included in both the U.S.GDP and GNP?

Refer to the information provided in Table 6.3 below to answer the questions that follow. Table 6.3 -Refer to Table 6.3.The value for gross domestic product in billions of dollars is

Refer to the information provided in Table 6.3 below to answer the questions that follow. Table 6.3 -If receipts of factor income from the rest of the world exceed payments of factor income to the rest of the world,then

Refer to the information provided in Table 6.2 below to answer the questions that follow. Table 6.2 -Refer to Table 6.2.The value for net exports in billions of dollars is

If GDP is $300 billion,depreciation is $30 billion,and net factor income from the rest of the world is -$40 billion,then net national product is

Net interest is the interest on loans paid by

Real GDP is gross domestic product measured

Personal income is national income minus

Proprietors' income is

Suppose that net investment in 2012 was $20 billion and depreciation was $4 billion.Gross investment in 2012 was

Fixed weight indexes

Per capita gross national income (GNI)decreases when

The income of U.S.citizens working abroad counts in U.S.GDP.

Which of the following is NOT included in 2013's GDP?

Refer to the information provided in Table 6.5 below to answer the questions that follow. Table 6.5 -Refer to Table 6.5.Assume that this economy produces only two goods Good X and Good Y.If year 1 is the base year,the value for this economy's inflation rate between year 1 and year 2 is

When calculating GDP,exports are ________ and imports are ________.

The value of what KFC produces in Japan is included in the U.S.________ and in the Japanese ________.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand,supply,and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Unemployment,inflation,and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing and Transitional Economies

Filters

Saving rates tend to during boom times and during recession periods.

When calculating GDP,exports are and imports are .

The value of what KFC produces in Japan is included in the U.S. and in the Japanese .