Question 1

________ is/are the payment for the factor of production ________.

Accepted Answer

A) Wages;capital 
B) Interest;labor 
C) Profit;entrepreneurship 
D) Rent;capital 
A) Wages;capital 
B) Interest;labor 
C) Profit;entrepreneurship 
D) Rent;capital

Question 2

Table 8-6
  
-Refer to Table 8-6.Consider the table of production and price statistics for a small economy in 2013.If the economy only produces the four goods listed below,what is GDP for 2013?

Accepted Answer

A) $428,000 
B) $267,000 
C) $24,000 
D) $1,424 
A) $428,000 
B) $267,000 
C) $24,000 
D) $1,424

Question 3

Table 8-4
  
-Refer to Table 8-4.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) $2,100. 
C) $1,600. 
D) $1,400. 
A) $2,200. 
B) $2,100. 
C) $1,600. 
D) $1,400.

Question 4

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

Accepted Answer

A) True 
 B)False

Question 5

In an "underground economy," the production of goods and services

Accepted Answer

A) is not measured or included in GDP. 
B) is not measured but is included in GDP. 
C) is measured and included in GDP. 
D) is usually too insignificant to be included in GDP. 
A) is not measured or included in GDP. 
B) is not measured but is included in GDP. 
C) is measured and included in GDP. 
D) is usually too insignificant to be included in GDP.

Question 6

Legalizing all forms of illegal activities

Accepted Answer

A) reduces GDP and reduces the size of the underground economy. 
B) reduces GDP and increases the size of the underground economy. 
C) increases GDP and reduces the size of the underground economy. 
D) increases GDP and increases the size of the underground economy. 
A) reduces GDP and reduces the size of the underground economy. 
B) reduces GDP and increases the size of the underground economy. 
C) increases GDP and reduces the size of the underground economy. 
D) increases GDP and increases the size of the underground economy.

Question 7

An increase in national income could by caused by which of the following?

Accepted Answer

A) an increase in depreciation 
B) an increase in personal taxes 
C) a decrease in personal income 
D) an increase in gross domestic product 
A) an increase in depreciation 
B) an increase in personal taxes 
C) a decrease in personal income 
D) an increase in gross domestic product

Question 8

In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

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 9

Disposable personal income is defined as

Accepted Answer

A) personal income less personal taxes plus indirect sales taxes. 
B) personal income less transfer payments plus personal taxes. 
C) personal income less personal taxes. 
D) personal income less depreciation. 
A) personal income less personal taxes plus indirect sales taxes. 
B) personal income less transfer payments plus personal taxes. 
C) personal income less personal taxes. 
D) personal income less depreciation.

Question 10

Gross national product,GNP,of the United States is the market value of all final goods and services

Accepted Answer

A) produced within the United States. 
B) consumed within the United States. 
C) produced by citizens of the United States anywhere in the world. 
D) consumed by citizens of the United States anywhere in the world. 
A) produced within the United States. 
B) consumed within the United States. 
C) produced by citizens of the United States anywhere in the world. 
D) consumed by citizens of the United States anywhere in the world.

Question 11

If prices rise on average in the U.S.economy,the purchasing power of a dollar declines.

Accepted Answer

A) True 
 B)False

Question 12

The total value of production from Ford's manufacturing plant in Cologne,Germany would be included in Germany's gross national product.

Accepted Answer

A) True 
 B)False

Question 13

National income equals gross domestic product

Accepted Answer

A) plus sales taxes. 
B) plus government transfer payments. 
C) minus the consumption of fixed capital. 
D) minus government transfer payments. 
A) plus sales taxes. 
B) plus government transfer payments. 
C) minus the consumption of fixed capital. 
D) minus government transfer payments.

Question 14

The GDP deflator is equal to

Accepted Answer

A) real GDP divided by nominal GDP. 
B) nominal GDP divided by real GDP,multiplied by 100. 
C) nominal GDP divided by real GDP. 
D) real GDP divided by nominal GDP,multiplied by 100. 
A) real GDP divided by nominal GDP. 
B) nominal GDP divided by real GDP,multiplied by 100. 
C) nominal GDP divided by real GDP. 
D) real GDP divided by nominal GDP,multiplied by 100.

Question 15

Table 8-13
   Consider the data shown above for Vicuna,a country that produces only two products: oranges and shirts.
-Refer to Table 8-13.Nominal GDP for Vicuna for 2013 equals

Accepted Answer

A) $4,920. 
B) $5,100. 
C) $5,300. 
D) $5,850. 
A) $4,920. 
B) $5,100. 
C) $5,300. 
D) $5,850.

Question 16

Gross domestic product is calculated by summing up

Accepted Answer

A) the total quantity of goods and services in the economy. 
B) the total quantity of goods and services produced in the economy during a period of time. 
C) the total market value of goods and services in the economy. 
D) the total market value of final goods and services produced in the economy during a period of time. 
A) the total quantity of goods and services in the economy. 
B) the total quantity of goods and services produced in the economy during a period of time. 
C) the total market value of goods and services in the economy. 
D) the total market value of final goods and services produced in the economy during a period of time.

Question 17

Table 8-12
  
-Refer to Table 8-12.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is

Accepted Answer

A) 2013. 
B) 2014. 
C) 2015. 
D) 2016. 
A) 2013. 
B) 2014. 
C) 2015. 
D) 2016.

Question 18

The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product.

Accepted Answer

A) equals 
B) is greater than 
C) is less than 
D) is sometimes greater than and other times less than 
A) equals 
B) is greater than 
C) is less than 
D) is sometimes greater than and other times less than

Question 19

Refer to the Article Summary.According to the summary,the Chinese economy is trying to move away from an export based economy,while at the same time imports have declined.This decrease in exports and decrease in imports will

Accepted Answer

A) definitely increase net exports. 
B) definitely decrease net exports. 
C) increase net exports if the decline in exports is greater than the decline in imports. 
D) decrease net exports if the decline in exports is greater than the decline in imports. 
A) definitely increase net exports. 
B) definitely decrease net exports. 
C) increase net exports if the decline in exports is greater than the decline in imports. 
D) decrease net exports if the decline in exports is greater than the decline in imports.

Question 20

Gross domestic product understates the total production of final goods and services because of the omission of

Accepted Answer

A) exports. 
B) inflation. 
C) intermediate goods. 
D) household production. 
A) exports. 
B) inflation. 
C) intermediate goods. 
D) household production.

is/are the payment for the factor of production .

Table 8-6 -Refer to Table 8-6.Consider the table of production and price statistics for a small economy in 2013.If the economy only produces the four goods listed below,what is GDP for 2013?

Table 8-4 -Refer to Table 8-4.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

In an "underground economy," the production of goods and services

Legalizing all forms of illegal activities

An increase in national income could by caused by which of the following?

In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

Disposable personal income is defined as

Gross national product,GNP,of the United States is the market value of all final goods and services

If prices rise on average in the U.S.economy,the purchasing power of a dollar declines.

The total value of production from Ford's manufacturing plant in Cologne,Germany would be included in Germany's gross national product.

National income equals gross domestic product

The GDP deflator is equal to

Table 8-13 Consider the data shown above for Vicuna,a country that produces only two products: oranges and shirts. -Refer to Table 8-13.Nominal GDP for Vicuna for 2013 equals

Gross domestic product is calculated by summing up

Table 8-12 -Refer to Table 8-12.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is

The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product.

Refer to the Article Summary.According to the summary,the Chinese economy is trying to move away from an export based economy,while at the same time imports have declined.This decrease in exports and decrease in imports will

Gross domestic product understates the total production of final goods and services because of the omission of

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

Exam 8: Gdp: Measuring Total Production and Income

________ is/are the payment for the factor of production ________.

Table 8-6 -Refer to Table 8-6.Consider the table of production and price statistics for a small economy in 2013.If the economy only produces the four goods listed below,what is GDP for 2013?

Table 8-4 -Refer to Table 8-4.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

In an "underground economy," the production of goods and services

Legalizing all forms of illegal activities

An increase in national income could by caused by which of the following?

In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

Disposable personal income is defined as

Gross national product,GNP,of the United States is the market value of all final goods and services

If prices rise on average in the U.S.economy,the purchasing power of a dollar declines.

The total value of production from Ford's manufacturing plant in Cologne,Germany would be included in Germany's gross national product.

National income equals gross domestic product

The GDP deflator is equal to

Table 8-13 Consider the data shown above for Vicuna,a country that produces only two products: oranges and shirts. -Refer to Table 8-13.Nominal GDP for Vicuna for 2013 equals

Gross domestic product is calculated by summing up

Table 8-12 -Refer to Table 8-12.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is

The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product.

Refer to the Article Summary.According to the summary,the Chinese economy is trying to move away from an export based economy,while at the same time imports have declined.This decrease in exports and decrease in imports will

Gross domestic product understates the total production of final goods and services because of the omission of

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

is/are the payment for the factor of production .