Question 1

Which of the following is considered a durable good?

Accepted Answer

A) medical care 
B) clothing 
C) food 
D) a washing machine 
A) medical care 
B) clothing 
C) food 
D) a washing machine

Question 2

Government spending ________ is included in gross domestic product.

Accepted Answer

A) at federal,state,and local levels of government 
B) at the federal level of government only 
C) at state and local levels of government only 
D) on defense goods only 
A) at federal,state,and local levels of government 
B) at the federal level of government only 
C) at state and local levels of government only 
D) on defense goods only

Question 3

The output of U.S.citizens who work in Canada would be included in the

Accepted Answer

A) gross domestic product of Canada. 
B) gross national product of Canada. 
C) gross domestic product of the United States. 
D) gross national product of Canada and the gross national product of the United States. 
A) gross domestic product of Canada. 
B) gross national product of Canada. 
C) gross domestic product of the United States. 
D) gross national product of Canada and the gross national product of the United States.

Question 4

In the circular flow diagram,________ supply the factors of production,and ________ goods and services.

Accepted Answer

A) households;sell 
B) households;buy 
C) firms;sell 
D) firms;buy 
A) households;sell 
B) households;buy 
C) firms;sell 
D) firms;buy

Question 5

The purchase of a new house is included in

Accepted Answer

A) consumption expenditures. 
B) investment expenditures. 
C) government purchases. 
D) net exports. 
A) consumption expenditures. 
B) investment expenditures. 
C) government purchases. 
D) net exports.

Question 6

The Bureau of Economic Analysis divides it's statistics on GDP into four major categories.List the categories of expenditures and define each.

Accepted Answer

The largest category of expenditures is

Question 7

The measure of production that values production using current prices is called

Accepted Answer

A) value-added GDP. 
B) nominal GDP. 
C) real GDP. 
D) underground GDP. 
A) value-added GDP. 
B) nominal GDP. 
C) real GDP. 
D) underground GDP.

Question 8

If the GDP deflator is 142,by how much have prices changed since the base year?

Accepted Answer

A) Prices have increased by 42%. 
B) Prices have increased by 142%. 
C) Prices have decreased by 4.2%. 
D) Prices have increased by 58%. 
A) Prices have increased by 42%. 
B) Prices have increased by 142%. 
C) Prices have decreased by 4.2%. 
D) Prices have increased by 58%.

Question 9

Disposable personal income equals personal income

Accepted Answer

A) minus personal tax payments. 
B) plus government transfer payments. 
C) minus personal tax payments plus government transfer payments. 
D) minus government transfer payments plus personal tax payments. 
A) minus personal tax payments. 
B) plus government transfer payments. 
C) minus personal tax payments plus government transfer payments. 
D) minus government transfer payments plus personal tax payments.

Question 10

Increases in real GDP would overstate the increase in the well-being of a country over time if,over that time period,the

Accepted Answer

A) average hours worked per week increased. 
B) amount of pollution decreased. 
C) price level increased. 
D) crime rate decreased. 
A) average hours worked per week increased. 
B) amount of pollution decreased. 
C) price level increased. 
D) crime rate decreased.

Question 11

In the circular flow model,the value of total income for an economy ________ the value of total production.

Accepted Answer

A) equals 
B) is greater than 
C) is less than 
D) may be greater than or less than 
A) equals 
B) is greater than 
C) is less than 
D) may be greater than or less than

Question 12

Which of the following is not an example of a transfer payment?

Accepted Answer

A) unemployment insurance payments 
B) health insurance payments to an army private 
C) social security payments to retirees 
D) social security payments to disabled persons 
A) unemployment insurance payments 
B) health insurance payments to an army private 
C) social security payments to retirees 
D) social security payments to disabled persons

Question 13

Table 19-3
 $$\begin{array} { | l | r | } 
\hline \text { Consumption expenditures } & \$ 800 \
\hline \text { Investment expenditures } & 200 \
\hline \text { Government purchases } & 300 \
\hline \text { Exports } & 100 \
\hline \text { Imports } & 200 \
\hline \text { Wages } & 800 \
\hline
\end{array}$$
-Refer to Table 19-3.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals

Accepted Answer

A) $2,200. 
B) $1,600. 
C) $1,400. 
D) $1,200. 
A) $2,200. 
B) $1,600. 
C) $1,400. 
D) $1,200.

Question 14

Which of the following is not directly counted in GDP?

Accepted Answer

A) investment expenditures 
B) government purchases 
C) intermediate goods 
D) consumer goods 
A) investment expenditures 
B) government purchases 
C) intermediate goods 
D) consumer goods

Question 15

The GDP deflator is the

Accepted Answer

A) difference between real GDP and nominal GDP multiplied by 100. 
B) difference between nominal GDP and real GDP divided by 100. 
C) ratio of real GDP to nominal GDP multiplied by 100. 
D) ratio of nominal GDP to real GDP multiplied by 100. 
A) difference between real GDP and nominal GDP multiplied by 100. 
B) difference between nominal GDP and real GDP divided by 100. 
C) ratio of real GDP to nominal GDP multiplied by 100. 
D) ratio of nominal GDP to real GDP multiplied by 100.

Question 16

If a U.S.firm produces cars in Mexico,that production should count towards

Accepted Answer

A) U.S.GNP. 
B) Mexico's GNP. 
C) U.S.GDP. 
D) It will not affect either U.S.GNP or U.S.GDP. 
A) U.S.GNP. 
B) Mexico's GNP. 
C) U.S.GDP. 
D) It will not affect either U.S.GNP or U.S.GDP.

Question 17

Which of the following accurately describes an effect of hurricane Katrina on GDP?

Accepted Answer

A) GDP would decrease reflecting the costs of cleanup. 
B) GDP would increase reflecting the costs of cleanup. 
C) GDP would increase reflecting the decrease in production that occurred during the storm and the productive capacity lost in the storm. 
D) GDP would increase well-being. 
A) GDP would decrease reflecting the costs of cleanup. 
B) GDP would increase reflecting the costs of cleanup. 
C) GDP would increase reflecting the decrease in production that occurred during the storm and the productive capacity lost in the storm. 
D) GDP would increase well-being.

Question 18

Which of the following transactions would take place in the "underground economy"?

Accepted Answer

A) Elizabeth tells her mother she's going to work but really goes to see a movie. 
B) Paul buys 15 gallons of gasoline for $3.29 a gallon,not realizing that $1.50 per gallon of that price goes to the government as tax revenue. 
C) John makes chain-link belts and necklaces and sells them at a local flea market for cash to avoid paying taxes. 
D) Matt bought an iPad for $499 but decided to sell it on eBay instead of keeping it. 
A) Elizabeth tells her mother she's going to work but really goes to see a movie. 
B) Paul buys 15 gallons of gasoline for $3.29 a gallon,not realizing that $1.50 per gallon of that price goes to the government as tax revenue. 
C) John makes chain-link belts and necklaces and sells them at a local flea market for cash to avoid paying taxes. 
D) Matt bought an iPad for $499 but decided to sell it on eBay instead of keeping it.

Question 19

If prices in the economy rise,then

Accepted Answer

A) the purchasing power of a dollar rises. 
B) the purchasing power of a dollar stays constant. 
C) the purchasing power of a dollar declines. 
D) the purchasing power of a dollar cannot be determined. 
A) the purchasing power of a dollar rises. 
B) the purchasing power of a dollar stays constant. 
C) the purchasing power of a dollar declines. 
D) the purchasing power of a dollar cannot be determined.

Question 20

The output of Mexican citizens who work in Texas would be included in the

Accepted Answer

A) gross domestic product of Mexico. 
B) gross national product of Mexico. 
C) gross national product of the United States. 
D) net national product of the United States. 
A) gross domestic product of Mexico. 
B) gross national product of Mexico. 
C) gross national product of the United States. 
D) net national product of the United States.

Exam 19: Gdp: Measuring Total Production and Income

Which of the following is considered a durable good?

Government spending ________ is included in gross domestic product.

The output of U.S.citizens who work in Canada would be included in the

In the circular flow diagram,________ supply the factors of production,and ________ goods and services.

The purchase of a new house is included in

The Bureau of Economic Analysis divides it's statistics on GDP into four major categories.List the categories of expenditures and define each.

The measure of production that values production using current prices is called

If the GDP deflator is 142,by how much have prices changed since the base year?

Disposable personal income equals personal income

Increases in real GDP would overstate the increase in the well-being of a country over time if,over that time period,the

In the circular flow model,the value of total income for an economy ________ the value of total production.

Which of the following is not an example of a transfer payment?

Table 19-3 Consumption expenditures \ 800 Investment expenditures 200 Government purchases 300 Exports 100 Imports 200 Wages 800 -Refer to Table 19-3.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals

Which of the following is not directly counted in GDP?

The GDP deflator is the

If a U.S.firm produces cars in Mexico,that production should count towards

Which of the following accurately describes an effect of hurricane Katrina on GDP?

Which of the following transactions would take place in the "underground economy"?

If prices in the economy rise,then

The output of Mexican citizens who work in Texas would be included in the

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology,production,and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, taxes, and the Distribution of Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

In the circular flow diagram, supply the factors of production,and goods and services.