Question 1

In 2012 the change in business inventories is -$70 billion and GDP is $200 billion.Final sales in 2012

Accepted Answer

A) are $130 billion. 
B) are $200 billion. 
C) are $270 billion. 
D) are $340 billion. 
A) are $130 billion. 
B) are $200 billion. 
C) are $270 billion. 
D) are $340 billion. C

Question 2

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. A

Question 3

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 A

Question 4

If nominal GDP is $8 trillion and real GDP is $6 trillion,the GDP deflator is

Accepted Answer

A) 48. 
B) 75. 
C) 133.33. 
D) 480. 
A) 48. 
B) 75. 
C) 133.33. 
D) 480.

Question 5

Profits earned in the United States by foreign-owned companies are included in

Accepted Answer

A) the U.S.GDP but not GNP. 
B) neither the U.S.GDP nor GNP. 
C) the U.S.GNP but not GDP. 
D) both the U.S.GDP and GNP. 
A) the U.S.GDP but not GNP. 
B) neither the U.S.GDP nor GNP. 
C) the U.S.GNP but not GDP. 
D) both the U.S.GDP and GNP.

Question 6

The total value of all capital goods newly produced in a given period is

Accepted Answer

A) the change in business inventories. 
B) depreciation. 
C) net investment. 
D) gross investment. 
A) the change in business inventories. 
B) depreciation. 
C) net investment. 
D) gross investment.

Question 7

If real GDP in 2012 using 2011 prices is higher than nominal GDP of 2012,then

Accepted Answer

A) prices in 2012 are lower than prices in the base year. 
B) nominal GDP in 2012 equals nominal GDP in 2011. 
C) prices in 2012 are higher than prices in the base year. 
D) real GDP in 2012 is larger than real GDP in 2011. 
A) prices in 2012 are lower than prices in the base year. 
B) nominal GDP in 2012 equals nominal GDP in 2011. 
C) prices in 2012 are higher than prices in the base year. 
D) real GDP in 2012 is larger than real GDP in 2011.

Question 8

Nominal GDP measures the value of all goods and services

Accepted Answer

A) in constant dollars. 
B) in current dollars. 
C) in fixed dollars. 
D) without inflation. 
A) in constant dollars. 
B) in current dollars. 
C) in fixed dollars. 
D) without inflation.

Question 9

If net investment is zero,then

Accepted Answer

A) gross investment is greater than depreciation. 
B) gross investment is less than depreciation. 
C) gross investment equals depreciation. 
D) depreciation is zero. 
A) gross investment is greater than depreciation. 
B) gross investment is less than depreciation. 
C) gross investment equals depreciation. 
D) depreciation is zero.

Question 10

Which of the following would NOT be counted in 2013's GDP?

Accepted Answer

A) the value of a 2008 boat you purchase from a boat dealer in 2013 
B) the 2013 salary of a used motorcycle salesperson 
C) the commissions earned by a real estate agent in selling condominiums built prior to 2013 
D) the value of a refrigerator manufactured in 2013 but not sold in 2013 
A) the value of a 2008 boat you purchase from a boat dealer in 2013 
B) the 2013 salary of a used motorcycle salesperson 
C) the commissions earned by a real estate agent in selling condominiums built prior to 2013 
D) the value of a refrigerator manufactured in 2013 but not sold in 2013

Question 11

Depreciation is

Accepted Answer

A) the decrease in the overall price level. 
B) the additional capital stock in a year. 
C) the amount of used up machinery in a year. 
D) the amount of decline in business inventories. 
A) the decrease in the overall price level. 
B) the additional capital stock in a year. 
C) the amount of used up machinery in a year. 
D) the amount of decline in business inventories.

Question 12

A GDP deflator is real GDP divided by nominal GDP times 100.

Accepted Answer

A) True 
 B)False

Question 13

If GNP is $800 billion and depreciation is $90 billion,then net national product is

Accepted Answer

A) $710 billion. 
B) $845 billion. 
C) $890 billion. 
D) $980 billion. 
A) $710 billion. 
B) $845 billion. 
C) $890 billion. 
D) $980 billion.

Question 14

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 15

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 national income in billions of dollars is

Accepted Answer

A) 585. 
B) 600. 
C) 635. 
D) 850. 
A) 585. 
B) 600. 
C) 635. 
D) 850.

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

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 18

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 19

All economic activities in the economy are included in the GDP.

Accepted Answer

A) True 
 B)False

Question 20

Personal income

Accepted Answer

A) is always less than national income. 
B) is always greater than national income. 
C) may be greater than or less than national income. 
D) will always equal national income. 
A) is always less than national income. 
B) is always greater than national income. 
C) may be greater than or less than national income. 
D) will always equal national income.

Exam 6: Measuring National Output and National Income

In 2012 the change in business inventories is -$70 billion and GDP is $200 billion.Final sales in 2012

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

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

If nominal GDP is $8 trillion and real GDP is $6 trillion,the GDP deflator is

Profits earned in the United States by foreign-owned companies are included in

The total value of all capital goods newly produced in a given period is

If real GDP in 2012 using 2011 prices is higher than nominal GDP of 2012,then

Nominal GDP measures the value of all goods and services

If net investment is zero,then

Which of the following would NOT be counted in 2013's GDP?

Depreciation is

A GDP deflator is real GDP divided by nominal GDP times 100.

If GNP is $800 billion and depreciation is $90 billion,then net national product is

The GDP includes

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 national income in billions of dollars is

The base year of an index is

If receipts of factor income from the rest of the world exceed payments of factor income to the rest of the world,then

Real GDP is gross domestic product measured

All economic activities in the economy are included in the GDP.

Personal income

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