Question 1

If the GDP deflator is less than 100,then for that year nominal GDP ________ real GDP.

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 2

If real GDP increases we know for sure that

Accepted Answer

A) output has risen. 
B) prices have risen. 
C) prices have risen but output has remained constant. 
D) prices have remained constant. 
A) output has risen. 
B) prices have risen. 
C) prices have risen but output has remained constant. 
D) prices have remained constant.

Question 3

Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so,how?

Accepted Answer

We would double count if we co

Question 4

"Household production" refers to

Accepted Answer

A) the manufacturing of durable household products. 
B) the home building sector of the economy. 
C) home-based craft businesses. 
D) goods and services people produce for themselves. 
A) the manufacturing of durable household products. 
B) the home building sector of the economy. 
C) home-based craft businesses. 
D) goods and services people produce for themselves.

Question 5

If nominal GDP is less than real GDP,then the GDP deflator will be greater than 100.

Accepted Answer

A) True 
 B)False

Question 6

The GDP deflator in year 2 is 105,using year 1 as the base year.This means that,on average,the cost of goods and services is

Accepted Answer

A) 5% higher in year 2 than in year 1. 
B) 105% higher in year 2 than in year 1. 
C) 5% higher in year 1 than in year 2. 
D) 105% higher in year 1 than in year 2. 
A) 5% higher in year 2 than in year 1. 
B) 105% higher in year 2 than in year 1. 
C) 5% higher in year 1 than in year 2. 
D) 105% higher in year 1 than in year 2.

Question 7

Which of the following transactions would be included in the official calculation of GDP?

Accepted Answer

A) A student buys a used textbook at the bookstore. 
B) Firestone sells $2 million worth of tires to General Motors. 
C) You wash and wax your father's car as a favor to him. 
D) You buy a new iPod. 
E) You illegally download music off the Internet to put on your new iPod. 
A) A student buys a used textbook at the bookstore. 
B) Firestone sells $2 million worth of tires to General Motors. 
C) You wash and wax your father's car as a favor to him. 
D) You buy a new iPod. 
E) You illegally download music off the Internet to put on your new iPod.

Question 8

Table 8-21
2014 2016
  
-Refer to Table 8-21.Consider the following data for a simple economy: Calculate nominal GDP and real GDP for 2016,using 2014 as the base year.Show your work.

Accepted Answer

Nominal GDP for 2016 equals (2

Question 9

Table 8-5
   Consider the table above showing three stages of production of an automobile.
-Refer to Table 8-5.The value of each automobile in gross domestic product equals

Accepted Answer

A) $7,000. 
B) $15,000. 
C) $18,000. 
D) $25,000. 
A) $7,000. 
B) $15,000. 
C) $18,000. 
D) $25,000.

Question 10

In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?

Accepted Answer

GDP stands for gross domestic product an

Question 11

Which of the following could cause nominal GDP to decrease,but real GDP to increase?

Accepted Answer

A) The price level rises and the quantity of final goods and services produced rises. 
B) The price level falls and the quantity of final goods and services produced rises. 
C) The price level rises and the quantity of final goods and services produced falls. 
D) The price level falls and the quantity of final goods and services produced falls. 
A) The price level rises and the quantity of final goods and services produced rises. 
B) The price level falls and the quantity of final goods and services produced rises. 
C) The price level rises and the quantity of final goods and services produced falls. 
D) The price level falls and the quantity of final goods and services produced falls.

Question 12

If a German firm produces cars in the United States,that production should count towards

Accepted Answer

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

Question 13

A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where

Accepted Answer

A) GNP is much larger than GDP. 
B) GDP is much larger than GNP. 
C) GDP is equal to GNP. 
D) GDP is not comparable to GDP. 
A) GNP is much larger than GDP. 
B) GDP is much larger than GNP. 
C) GDP is equal to GNP. 
D) GDP is not comparable to GDP.

Question 14

The GDP deflator is a measure of the

Accepted Answer

A) total production of the economy adjusted for inflation. 
B) total production of the economy unadjusted for inflation. 
C) average level of prices of final goods and services in the economy. 
D) average level of prices of intermediate goods and services in the economy. 
A) total production of the economy adjusted for inflation. 
B) total production of the economy unadjusted for inflation. 
C) average level of prices of final goods and services in the economy. 
D) average level of prices of intermediate goods and services in the economy.

Question 15

Table 8-18
   A very simple economy produces three goods: cameras,legal services,and books.The quantities produced and their corresponding prices for 2011 and 2016 are shown in the table above.
-Refer to Table 8-18.What is real GDP in 2016,using 2011 as the base year?

Accepted Answer

A) $28,885 
B) $11,790 
C) $11,200 
D) $10,275 
A) $28,885 
B) $11,790 
C) $11,200 
D) $10,275

Question 16

If real GDP in 2016 (using 2009 prices)is lower than nominal GDP of 2015,then

Accepted Answer

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

Question 17

The best measure of the income households actually have available to spend is

Accepted Answer

A) personal income. 
B) disposable personal income. 
C) national income. 
D) net national income. 
A) personal income. 
B) disposable personal income. 
C) national income. 
D) net national income.

Question 18

Because workers in the United States work fewer hours per week,on average,than they did over 100 years ago,

Accepted Answer

A) workers in the United States are worse off than they were over 100 years ago. 
B) workers in the United States earn less income than they did over 100 years ago. 
C) GDP is lower than it would be if U.S.workers worked the same workweek they had 100 years ago. 
D) GDP is higher than it would be if U.S.workers worked the same workweek they had 100 years ago. 
A) workers in the United States are worse off than they were over 100 years ago. 
B) workers in the United States earn less income than they did over 100 years ago. 
C) GDP is lower than it would be if U.S.workers worked the same workweek they had 100 years ago. 
D) GDP is higher than it would be if U.S.workers worked the same workweek they had 100 years ago.

Question 19

The GDP deflator is a measure of the price level which is calculated as nominal GDP divided by real GDP and multiplied by 100.

Accepted Answer

A) True 
 B)False

Question 20

For developed countries like the United States,GDP will always exceed GNP.

Accepted Answer

A) True 
 B)False

If the GDP deflator is less than 100,then for that year nominal GDP ________ real GDP.

If real GDP increases we know for sure that

Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so,how?

"Household production" refers to

If nominal GDP is less than real GDP,then the GDP deflator will be greater than 100.

The GDP deflator in year 2 is 105,using year 1 as the base year.This means that,on average,the cost of goods and services is

Which of the following transactions would be included in the official calculation of GDP?

Table 8-21 2014 2016 -Refer to Table 8-21.Consider the following data for a simple economy: Calculate nominal GDP and real GDP for 2016,using 2014 as the base year.Show your work.

Table 8-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 8-5.The value of each automobile in gross domestic product equals

In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?

Which of the following could cause nominal GDP to decrease,but real GDP to increase?

If a German firm produces cars in the United States,that production should count towards

A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where

The GDP deflator is a measure of the

Table 8-18 A very simple economy produces three goods: cameras,legal services,and books.The quantities produced and their corresponding prices for 2011 and 2016 are shown in the table above. -Refer to Table 8-18.What is real GDP in 2016,using 2011 as the base year?

If real GDP in 2016 (using 2009 prices)is lower than nominal GDP of 2015,then

The best measure of the income households actually have available to spend is

Because workers in the United States work fewer hours per week,on average,than they did over 100 years ago,

The GDP deflator is a measure of the price level which is calculated as nominal GDP divided by real GDP and multiplied by 100.

For developed countries like the United States,GDP will always exceed GNP.

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

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

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Exam 8: Gdp: Measuring Total Production and Income

If the GDP deflator is less than 100,then for that year nominal GDP ________ real GDP.

If real GDP increases we know for sure that

Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so,how?

"Household production" refers to

If nominal GDP is less than real GDP,then the GDP deflator will be greater than 100.

The GDP deflator in year 2 is 105,using year 1 as the base year.This means that,on average,the cost of goods and services is

Which of the following transactions would be included in the official calculation of GDP?

Table 8-21 2014 2016 -Refer to Table 8-21.Consider the following data for a simple economy: Calculate nominal GDP and real GDP for 2016,using 2014 as the base year.Show your work.

Table 8-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 8-5.The value of each automobile in gross domestic product equals

In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?

Which of the following could cause nominal GDP to decrease,but real GDP to increase?

If a German firm produces cars in the United States,that production should count towards

A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where

The GDP deflator is a measure of the

Table 8-18 A very simple economy produces three goods: cameras,legal services,and books.The quantities produced and their corresponding prices for 2011 and 2016 are shown in the table above. -Refer to Table 8-18.What is real GDP in 2016,using 2011 as the base year?

If real GDP in 2016 (using 2009 prices)is lower than nominal GDP of 2015,then

The best measure of the income households actually have available to spend is

Because workers in the United States work fewer hours per week,on average,than they did over 100 years ago,

The GDP deflator is a measure of the price level which is calculated as nominal GDP divided by real GDP and multiplied by 100.

For developed countries like the United States,GDP will always exceed GNP.

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

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