Question 1

If in the same period output doubles and the price level remains the same,nominal GDP doubles.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would be counted in 2013's GDP?

Accepted Answer

A) the value of a loan you take in 2013 
B) the value of a TV that was produced in 2012 but not sold until 2013 
C) the bonus check a stockbroker gets from his/her company in 2013 
D) the value of a bond sold by the federal government 
A) the value of a loan you take in 2013 
B) the value of a TV that was produced in 2012 but not sold until 2013 
C) the bonus check a stockbroker gets from his/her company in 2013 
D) the value of a bond sold by the federal government

Question 3

Final sales plus changes in inventories equals GDP.

Accepted Answer

A) True 
 B)False

Question 4

Refer to the information provided in Table 6.4 below to answer the questions that follow.
Table 6.4
  
-Refer to Table 6.4.The value for GDP in billions of dollars is

Accepted Answer

A) 910. 
B) 920. 
C) 950. 
D) 1,050. 
A) 910. 
B) 920. 
C) 950. 
D) 1,050.

Question 5

If disposable personal income is $400 billion and personal saving is $8 billion,the personal saving rate is

Accepted Answer

A) 1.5%. 
B) 2%. 
C) 5%. 
D) 12%. 
A) 1.5%. 
B) 2%. 
C) 5%. 
D) 12%.

Question 6

Refer to the information provided in Table 6.4 below to answer the questions that follow.
Table 6.4
  
-Refer to Table 6.4.The value for NNP in billions of dollars is

Accepted Answer

A) 890. 
B) 910. 
C) 940. 
D) 970. 
A) 890. 
B) 910. 
C) 940. 
D) 970.

Question 7

If personal saving is -$10 billion and disposable personal income is $370 billion,then personal consumption spending

Accepted Answer

A) is $360 billion. 
B) is $380 billion. 
C) is $390 billion. 
D) cannot be determined from this information. 
A) is $360 billion. 
B) is $380 billion. 
C) is $390 billion. 
D) cannot be determined from this information.

Question 8

Net national product is

Accepted Answer

A) GDP plus depreciation. 
B) GDP minus depreciation. 
C) GNP minus depreciation. 
D) GNP plus depreciation. 
A) GDP plus depreciation. 
B) GDP minus depreciation. 
C) GNP minus depreciation. 
D) GNP plus depreciation.

Question 9

Which of the following is subtracted from national income to get to personal income?

Accepted Answer

A) retained earnings 
B) personal interest income 
C) depreciation 
D) personal Taxes 
A) retained earnings 
B) personal interest income 
C) depreciation 
D) personal Taxes

Question 10

The equation for GDP using the expenditure approach is

Accepted Answer

A) GDP = C + I + G + EX - IM. 
B) GDP = C + I + G + (IM - EX). 
C) GDP = C + I + G + EX + IM. 
D) GDP = C + I + G - EX - IM. 
A) GDP = C + I + G + EX - IM. 
B) GDP = C + I + G + (IM - EX). 
C) GDP = C + I + G + EX + IM. 
D) GDP = C + I + G - EX - IM.

Question 11

If the GDP deflator is greater than 100,then

Accepted Answer

A) nominal GDP is greater than real GDP. 
B) nominal GDP is lower than real GDP. 
C) nominal GDP equals real GDP. 
D) prices decreased by more than half between the current and the base years. 
A) nominal GDP is greater than real GDP. 
B) nominal GDP is lower than real GDP. 
C) nominal GDP equals real GDP. 
D) prices decreased by more than half between the current and the base years.

Question 12

The GDP includes

Accepted Answer

A) the value of all intermediate goods and services. 
B) the value of all final goods and services. 
C) the value of both intermediate and final goods and services. 
D) the value of all transactions. 
A) the value of all intermediate goods and services. 
B) the value of all final goods and services. 
C) the value of both intermediate and final goods and services. 
D) the value of all transactions.

Question 13

The costs of pollution are subtracted from the value of final sales before calculating GDP.

Accepted Answer

A) True 
 B)False

Question 14

The largest income component of GDP is

Accepted Answer

A) proprietors' income. 
B) rental income. 
C) compensation of employees. 
D) corporate profit. 
A) proprietors' income. 
B) rental income. 
C) compensation of employees. 
D) corporate profit.

Question 15

A weakness in the concept of GDP is that it ignores income distribution.

Accepted Answer

A) True 
 B)False

Question 16

The base year of an index is

Accepted Answer

A) the year chosen for the weights in a fixed weight procedure. 
B) the year currently being calculated. 
C) the last year of the index. 
D) the first year of the index. 
A) the year chosen for the weights in a fixed weight procedure. 
B) the year currently being calculated. 
C) the last year of the index. 
D) the first year of the index.

Question 17

The single largest expenditure component in GDP is

Accepted Answer

A) government spending. 
B) investment. 
C) consumption. 
D) net exports. 
A) government spending. 
B) investment. 
C) consumption. 
D) net exports.

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.The value for this economy's nominal GDP in year 2 is

Accepted Answer

A) $168. 
B) $179. 
C) $202. 
D) $214. 
A) $168. 
B) $179. 
C) $202. 
D) $214.

Question 19

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 of disposable income

Accepted Answer

A) is 505. 
B) is 560. 
C) is 605. 
D) cannot be calculated given the information in Table 6.3. 
A) is 505. 
B) is 560. 
C) is 605. 
D) cannot be calculated given the information in Table 6.3.

Question 20

Which of the following is an example of an intermediate good?

Accepted Answer

A) the dough you buy to fix yourself a pizza for dinner 
B) the chocolate you buy to make yourself some cookies 
C) the pizza sauce you purchase to make pizzas to sell for a fund-raiser for an organization you belong to 
D) lumber you buy to build a house for your dog 
A) the dough you buy to fix yourself a pizza for dinner 
B) the chocolate you buy to make yourself some cookies 
C) the pizza sauce you purchase to make pizzas to sell for a fund-raiser for an organization you belong to 
D) lumber you buy to build a house for your dog

Exam 6: Measuring National Output and National Income

If in the same period output doubles and the price level remains the same,nominal GDP doubles.

Which of the following would be counted in 2013's GDP?

Final sales plus changes in inventories equals GDP.

Refer to the information provided in Table 6.4 below to answer the questions that follow. Table 6.4 -Refer to Table 6.4.The value for GDP in billions of dollars is

If disposable personal income is $400 billion and personal saving is $8 billion,the personal saving rate is

Refer to the information provided in Table 6.4 below to answer the questions that follow. Table 6.4 -Refer to Table 6.4.The value for NNP in billions of dollars is

If personal saving is -$10 billion and disposable personal income is $370 billion,then personal consumption spending

Net national product is

Which of the following is subtracted from national income to get to personal income?

The equation for GDP using the expenditure approach is

If the GDP deflator is greater than 100,then

The GDP includes

The costs of pollution are subtracted from the value of final sales before calculating GDP.

The largest income component of GDP is

A weakness in the concept of GDP is that it ignores income distribution.

The base year of an index is

The single largest expenditure component in GDP is

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.The value for this economy's nominal GDP in year 2 is

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 of disposable income

Which of the following is an example of an intermediate good?

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

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