Question 1

Suppose that net investment in 2016 was $20 billion and depreciation was $4 billion. Gross investment in 2016 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 2

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 gross private domestic investment in billions of dollars is

Accepted Answer

A)  740. 
B)  810. 
C)  850. 
D)  890. 
A)  740. 
B)  810. 
C)  850. 
D)  890.

Question 3

What type of tax affects the amount of money you pay for a product?

Accepted Answer

A)  direct tax 
B)  income tax 
C)  indirect tax 
D)  all of the above 
A)  direct tax 
B)  income tax 
C)  indirect tax 
D)  all of the above

Question 4

The GDP deflator in year 3 is 135 using year 1 as a base year. This means that, on average, the price of goods and services is

Accepted Answer

A)  135% higher in year 3 than in year 1. 
B)  17.5% higher in year 3 than in year 1. 
C)  35% higher in year 3 than in year 1. 
D)  17.5% higher in year 1 than in year 3. 
A)  135% higher in year 3 than in year 1. 
B)  17.5% higher in year 3 than in year 1. 
C)  35% higher in year 3 than in year 1. 
D)  17.5% higher in year 1 than in year 3.

Question 5

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

Question 6

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 of government spending in billions of dollars is

Accepted Answer

A)  200. 
B)  600. 
C)  800. 
D)  1,000. 
A)  200. 
B)  600. 
C)  800. 
D)  1,000.

Question 7

A company produced 8 dishwasher machines in 2015. The company sold 6 in 2015 and added 2 to its inventories. The market value of the dishwasher machines in 2015 was $200 per unit. What is the value of this company's output that will be included in the 2015 GDP?

Accepted Answer

A)  $400 
B)  $1,400 
C)  $1,600 
D)  $2,000 
A)  $400 
B)  $1,400 
C)  $1,600 
D)  $2,000

Question 8

A farmer buys a new tractor from John Deere to use on her cotton farm. This tractor is included in GDP as

Accepted Answer

A)  part of gross private domestic investment. 
B)  a durable consumption good. 
C)  a service. 
D)  a nondurable consumption good. 
A)  part of gross private domestic investment. 
B)  a durable consumption good. 
C)  a service. 
D)  a nondurable consumption good.

Question 9

If real GDP in 2016 using 2015 prices is higher than nominal GDP of 2016, then

Accepted Answer

A)  prices in 2016 are higher than prices in 2015. 
B)  nominal GDP in 2016 equals nominal GDP in 2015. 
C)  prices in 2016 are lower than prices in 2015. 
D)  real GDP in 2016 is smaller than real GDP in 2015. 
A)  prices in 2016 are higher than prices in 2015. 
B)  nominal GDP in 2016 equals nominal GDP in 2015. 
C)  prices in 2016 are lower than prices in 2015. 
D)  real GDP in 2016 is smaller than real GDP in 2015.

Question 10

In 2016 final sales equal $400 billion, and the change in business inventories is $100 billion. GDP in 2016 is

Accepted Answer

A)  $100 billion. 
B)  $300 billion. 
C)  $400 billion. 
D)  $500 billion. 
A)  $100 billion. 
B)  $300 billion. 
C)  $400 billion. 
D)  $500 billion.

Question 11

Double counting can be avoided by using the value-added approach when calculating GDP.

Accepted Answer

A) True 
 B)False

Question 12

Refer to the information provided in Table 6.8 below to answer the questions that follow.
Table 6.8  
-Refer to Table 6.8. The value for GNP in billions of dollars is

Accepted Answer

A)  990. 
B)  1,050. 
C)  1,080. 
D)  1,200. 
A)  990. 
B)  1,050. 
C)  1,080. 
D)  1,200.

Suppose that net investment in 2016 was $20 billion and depreciation was $4 billion. Gross investment in 2016 was

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 gross private domestic investment in billions of dollars is

What type of tax affects the amount of money you pay for a product?

The GDP deflator in year 3 is 135 using year 1 as a base year. This means that, on average, the price of goods and services is

The GDP deflator is the

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 of government spending in billions of dollars is

A company produced 8 dishwasher machines in 2015. The company sold 6 in 2015 and added 2 to its inventories. The market value of the dishwasher machines in 2015 was $200 per unit. What is the value of this company's output that will be included in the 2015 GDP?

A farmer buys a new tractor from John Deere to use on her cotton farm. This tractor is included in GDP as

If real GDP in 2016 using 2015 prices is higher than nominal GDP of 2016, then

In 2016 final sales equal $400 billion, and the change in business inventories is $100 billion. GDP in 2016 is

Double counting can be avoided by using the value-added approach when calculating GDP.

Refer to the information provided in Table 6.8 below to answer the questions that follow. Table 6.8 -Refer to Table 6.8. The value for GNP in billions of dollars is

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

Money, the Federal Reserve, and the Interest Rate

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

Policy Effects and Cost 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 Economies

Critical Thinking About Research

Filters

Exam 6: Measuring National Output and National Income

Suppose that net investment in 2016 was $20 billion and depreciation was $4 billion. Gross investment in 2016 was

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 gross private domestic investment in billions of dollars is

What type of tax affects the amount of money you pay for a product?

The GDP deflator in year 3 is 135 using year 1 as a base year. This means that, on average, the price of goods and services is

The GDP deflator is the

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 of government spending in billions of dollars is

A company produced 8 dishwasher machines in 2015. The company sold 6 in 2015 and added 2 to its inventories. The market value of the dishwasher machines in 2015 was $200 per unit. What is the value of this company's output that will be included in the 2015 GDP?

A farmer buys a new tractor from John Deere to use on her cotton farm. This tractor is included in GDP as

If real GDP in 2016 using 2015 prices is higher than nominal GDP of 2016, then

In 2016 final sales equal $400 billion, and the change in business inventories is $100 billion. GDP in 2016 is

Double counting can be avoided by using the value-added approach when calculating GDP.

Refer to the information provided in Table 6.8 below to answer the questions that follow. Table 6.8 -Refer to Table 6.8. The value for GNP in billions of dollars is

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

Money, the Federal Reserve, and the Interest Rate

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

Policy Effects and Cost 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 Economies

Critical Thinking About Research

Filters