Question 1

The ratio of nominal GDP to real GDP multiplied by 100 is the

Accepted Answer

A)  NNP. 
B)  GDP deflator. 
C)  national income. 
D)  same as depreciation. 
A)  NNP. 
B)  GDP deflator. 
C)  national income. 
D)  same as depreciation.

Question 2

The formula C + I + G + EX - IM is the ________ to calculating GDP.

Accepted Answer

A)  income approach 
B)  value-added approach 
C)  expenditure approach 
D)  only accurate approach 
A)  income approach 
B)  value-added approach 
C)  expenditure approach 
D)  only accurate approach

Question 3

If GNP is $625 billion, receipts of factor income from the rest of the world are $25 billion, and payments of factor income to the rest of the world are $50 billion, then GDP is

Accepted Answer

A)  $550 billion. 
B)  $600 billion. 
C)  $650 billion. 
D)  $700 billion. 
A)  $550 billion. 
B)  $600 billion. 
C)  $650 billion. 
D)  $700 billion.

Question 4

As long as an item has never been sold, its value is counted in GDP for the year in which it is finally sold.

Accepted Answer

A) True 
 B)False

Question 5

Income Mexican citizens earn in the U.S. counts in

Accepted Answer

A)  U.S. GNP. 
B)  Mexican GNP. 
C)  Mexican GDP. 
D)  both U.S. and Mexican GDP. 
A)  U.S. GNP. 
B)  Mexican GNP. 
C)  Mexican GDP. 
D)  both U.S. and Mexican GDP.

Question 6

Related to the Economics in Practice on p. 117: Actions that impact the state of the environment, like pollution, are considered ________ activities in terms of the national income and product accounts.

Accepted Answer

A)  market 
B)  nonmarket 
C)  underground economy 
D)  depreciable 
A)  market 
B)  nonmarket 
C)  underground economy 
D)  depreciable

Question 7

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 8

Refer to the information provided in Table 6.7 below to answer the questions that follow.
Table 6.7  
-If receipts of factor income from the rest of the world are less than 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 9

The value of all motorcycles produced by Harley Davidson in the United States is

Accepted Answer

A)  included in the U.S. GDP but not the U.S. GNP. 
B)  included in both the U.S. GDP and GNP. 
C)  included in the U.S. GNP but not the U.S. GDP. 
D)  not included in either the U.S. GDP or GNP. 
A)  included in the U.S. GDP but not the U.S. GNP. 
B)  included in both the U.S. GDP and GNP. 
C)  included in the U.S. GNP but not the U.S. GDP. 
D)  not included in either the U.S. GDP or GNP.

Question 10

Fixed weight indexes

Accepted Answer

A)  account for responses to supply shifts. 
B)  account for response to demand shifts. 
C)  generally become less accurate the farther in time they are from the base year. 
D)  generally become less accurate the closer in time they are to the base year. 
A)  account for responses to supply shifts. 
B)  account for response to demand shifts. 
C)  generally become less accurate the farther in time they are from the base year. 
D)  generally become less accurate the closer in time they are to the base year.

Question 11

If in a year there is a positive inventory investment, then final sales

Accepted Answer

A)  exceed GDP. 
B)  are less than GDP. 
C)  equal GDP. 
D)  are zero. 
A)  exceed GDP. 
B)  are less than GDP. 
C)  equal GDP. 
D)  are zero.

Question 12

Which of the following would not be counted in 2016's GDP?

Accepted Answer

A)  the value of a laser printer manufactured in 2016 but not sold in 2016 
B)  the commissions earned by a sales associate in selling home theater systems built prior to 2016 
C)  the value of a 1976 convertible you purchase from a dealer in 2016 
D)  the 2016 salary of a used furniture salesperson 
A)  the value of a laser printer manufactured in 2016 but not sold in 2016 
B)  the commissions earned by a sales associate in selling home theater systems built prior to 2016 
C)  the value of a 1976 convertible you purchase from a dealer in 2016 
D)  the 2016 salary of a used furniture salesperson

Question 13

If in a year there is a negative inventory investment, then final sales

Accepted Answer

A)  exceed GDP. 
B)  are less than GDP. 
C)  equal GDP. 
D)  are zero. 
A)  exceed GDP. 
B)  are less than GDP. 
C)  equal GDP. 
D)  are zero.

Question 14

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 15

Personal income is national income minus

Accepted Answer

A)  depreciation. 
B)  net factor income to the rest of the world. 
C)  the amount of national income not going to households. 
D)  imports. 
A)  depreciation. 
B)  net factor income to the rest of the world. 
C)  the amount of national income not going to households. 
D)  imports.

Question 16

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 17

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 18

The personal saving rate is

Accepted Answer

A)  the difference between total personal spending and personal saving. 
B)  the difference between personal income and disposable personal income. 
C)  the ratio of personal income to personal saving. 
D)  the percentage of disposable personal income that is saved. 
A)  the difference between total personal spending and personal saving. 
B)  the difference between personal income and disposable personal income. 
C)  the ratio of personal income to personal saving. 
D)  the percentage of disposable personal income that is saved.

Question 19

Related to the Economics in Practice on p. 112: The economist most closely associated with the development of the National Income and Product Accounts (NIPAs) is

Accepted Answer

A)  John Maynard Keynes. 
B)  David Ricardo. 
C)  Simon Kuznets. 
D)  Alan Greenspan. 
A)  John Maynard Keynes. 
B)  David Ricardo. 
C)  Simon Kuznets. 
D)  Alan Greenspan.

Question 20

The data in the national income and product accounts are compiled by

Accepted Answer

A)  the Bureau of Economic Analysis. 
B)  the House Ways and Means Committee. 
C)  the Federal Reserve. 
D)  the Bureau of Labor Statistics. 
A)  the Bureau of Economic Analysis. 
B)  the House Ways and Means Committee. 
C)  the Federal Reserve. 
D)  the Bureau of Labor Statistics.

Exam 6: Measuring National Output and National Income

The ratio of nominal GDP to real GDP multiplied by 100 is the

The formula C + I + G + EX - IM is the ________ to calculating GDP.

If GNP is $625 billion, receipts of factor income from the rest of the world are $25 billion, and payments of factor income to the rest of the world are $50 billion, then GDP is

As long as an item has never been sold, its value is counted in GDP for the year in which it is finally sold.

Income Mexican citizens earn in the U.S. counts in

Related to the Economics in Practice on p. 117: Actions that impact the state of the environment, like pollution, are considered ________ activities in terms of the national income and product accounts.

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

Refer to the information provided in Table 6.7 below to answer the questions that follow. Table 6.7 -If receipts of factor income from the rest of the world are less than payments of factor income to the rest of the world, then

The value of all motorcycles produced by Harley Davidson in the United States is

Fixed weight indexes

If in a year there is a positive inventory investment, then final sales

Which of the following would not be counted in 2016's GDP?

If in a year there is a negative inventory investment, then final sales

Nominal GDP measures the value of all goods and services

Personal income is national income minus

The largest income component of GDP is

If the GDP deflator is greater than 100, then

The personal saving rate is

Related to the Economics in Practice on p. 112: The economist most closely associated with the development of the National Income and Product Accounts (NIPAs) is

The data in the national income and product accounts are compiled by

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

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