Question 1

In the actual economy, households

Accepted Answer

A)  spend all of their income. 
B)  divide their income among spending, taxes, and saving. 
C)  buy all goods and services produced in the economy. 
D)  Both (a) and (c) are correct. 
A)  spend all of their income. 
B)  divide their income among spending, taxes, and saving. 
C)  buy all goods and services produced in the economy. 
D)  Both (a) and (c) are correct.

Question 2

Which of the following is included in the investment component of GDP?

Accepted Answer

A)  spending on new residential construction and spending on stocks and bonds 
B)  spending on new residential construction but not spending on stocks and bonds 
C)  spending on stocks and bonds but not spending on new residential construction 
D)  neither spending on stocks and bonds nor spending on new residential construction 
A)  spending on new residential construction and spending on stocks and bonds 
B)  spending on new residential construction but not spending on stocks and bonds 
C)  spending on stocks and bonds but not spending on new residential construction 
D)  neither spending on stocks and bonds nor spending on new residential construction

Question 3

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

Accepted Answer

A) True 
 B)False

Question 4

Table 5-1
The table below contains data for Bahkan for the year 2010.
  
-Refer to Table 5-1. Personal income for Bahkan in 2010 is

Accepted Answer

A)  $87. 
B)  $89. 
C)  $103. 
D)  $105. 
A)  $87. 
B)  $89. 
C)  $103. 
D)  $105.

Question 5

If in some year real GDP was $25 billion and the GDP deflator was 68, what was nominal GDP?

Accepted Answer

A)  $2.72 billion 
B)  $17 billion 
C)  $36.8 billion 
D)  $43 billion 
A)  $2.72 billion 
B)  $17 billion 
C)  $36.8 billion 
D)  $43 billion

Question 6

Consumption consists of spending by households on goods and services, with the exception of

Accepted Answer

A)  purchases of intangible services. 
B)  purchases of durable goods. 
C)  purchases of new houses. 
D)  spending on education. 
A)  purchases of intangible services. 
B)  purchases of durable goods. 
C)  purchases of new houses. 
D)  spending on education.

Question 7

Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale, are

Accepted Answer

A)  included in current GDP because GDP measures the value of all goods and services sold in the current year. 
B)  included in current GDP but valued at their original prices. 
C)  not included in current GDP because it is difficult to determine their value. 
D)  not included in current GDP because GDP only measures the value of goods and services produced in the current year. 
A)  included in current GDP because GDP measures the value of all goods and services sold in the current year. 
B)  included in current GDP but valued at their original prices. 
C)  not included in current GDP because it is difficult to determine their value. 
D)  not included in current GDP because GDP only measures the value of goods and services produced in the current year.

Question 8

Table 5-2
The table below contains data for the country of Crete for the year 2010.
  
-Refer to Table 5-2. What was Crete's GDP in 2010?

Accepted Answer

A)  $4623 
B)  $5731 
C)  $6037 
D)  $6839 
A)  $4623 
B)  $5731 
C)  $6037 
D)  $6839

In the actual economy, households

Which of the following is included in the investment component of GDP?

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

Table 5-1 The table below contains data for Bahkan for the year 2010. -Refer to Table 5-1. Personal income for Bahkan in 2010 is

If in some year real GDP was $25 billion and the GDP deflator was 68, what was nominal GDP?

Consumption consists of spending by households on goods and services, with the exception of

Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale, are

Table 5-2 The table below contains data for the country of Crete for the year 2010. -Refer to Table 5-2. What was Crete's GDP in 2010?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Exam 5: Measuring a Nations Income

In the actual economy, households

Which of the following is included in the investment component of GDP?

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

Table 5-1 The table below contains data for Bahkan for the year 2010. -Refer to Table 5-1. Personal income for Bahkan in 2010 is

If in some year real GDP was $25 billion and the GDP deflator was 68, what was nominal GDP?

Consumption consists of spending by households on goods and services, with the exception of

Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale, are

Table 5-2 The table below contains data for the country of Crete for the year 2010. -Refer to Table 5-2. What was Crete's GDP in 2010?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters