Question 1

The "underground economy" is also referred to as

Accepted Answer

A) the informal sector. 
B) the formal sector. 
C) the halfway economy. 
D) the net domestic product economy. 
A) the informal sector. 
B) the formal sector. 
C) the halfway economy. 
D) the net domestic product economy.

Question 2

An example of a final good would be

Accepted Answer

A) the soy milk sold to Starbucks. 
B) the whipped cream sold to Starbucks. 
C) a soy latte sold by Starbucks to a student. 
D) the coffee beans sold to Starbucks. 
A) the soy milk sold to Starbucks. 
B) the whipped cream sold to Starbucks. 
C) a soy latte sold by Starbucks to a student. 
D) the coffee beans sold to Starbucks.

Question 3

The circular flow of income shows that GDP can be measured as the sum of wages,interest,rent,and profits received by households or total expenditures on goods and services by households,firms,government,and the rest of the world.

Accepted Answer

A) True 
 B)False

Question 4

What are the differences between national income,personal income,and disposable personal income?

Accepted Answer

National income is the total income rece

Question 5

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Accepted Answer

Nominal GDP can change because

Question 6

Which of the following would increase GNP in the United States?

Accepted Answer

A) an increase in the production of U.S.-owned General Motors cars made in Mexico 
B) an increase in the production of Japanese-owned Toyota cars in Mexico 
C) an increase in the production of Japanese-owned Toyota cars in the U.S. 
D) an increase in the production of Mexican-owned Grupo Minsa corn in the U.S. 
A) an increase in the production of U.S.-owned General Motors cars made in Mexico 
B) an increase in the production of Japanese-owned Toyota cars in Mexico 
C) an increase in the production of Japanese-owned Toyota cars in the U.S. 
D) an increase in the production of Mexican-owned Grupo Minsa corn in the U.S.

Question 7

GDP is not a perfect measure of well-being because

Accepted Answer

A) the value of leisure is included in GDP. 
B) GDP is not adjusted for pollution. 
C) GDP is adjusted for changes in crime rates. 
D) GDP is adjusted for increases in drug addiction. 
A) the value of leisure is included in GDP. 
B) GDP is not adjusted for pollution. 
C) GDP is adjusted for changes in crime rates. 
D) GDP is adjusted for increases in drug addiction.

Question 8

The measure of production that values output using base-year prices is called

Accepted Answer

A) real GDP. 
B) nominal GDP. 
C) value-added GDP. 
D) underground GDP. 
A) real GDP. 
B) nominal GDP. 
C) value-added GDP. 
D) underground GDP.

Question 9

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 the GDP deflator in 2011 if 2016 is the base year?

Accepted Answer

A) 187 
B) 87 
C) 8.7 
D) 0.87 
A) 187 
B) 87 
C) 8.7 
D) 0.87

Question 10

Which of the following would increase gross private domestic investment in an economy?

Accepted Answer

A) an increase in the shares of Apple stock households own 
B) an increase in the number of workers Apple hires 
C) an increase in the level of Apple's inventory 
D) an increase in the number of highway construction projects the government is funding 
A) an increase in the shares of Apple stock households own 
B) an increase in the number of workers Apple hires 
C) an increase in the level of Apple's inventory 
D) an increase in the number of highway construction projects the government is funding

Question 11

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

Accepted Answer

A) average price levels of goods and services in the economy. 
B) price charged for laptop computers by Dell. 
C) wages paid to employees by Dell. 
D) quantity of Dell employees. 
A) average price levels of goods and services in the economy. 
B) price charged for laptop computers by Dell. 
C) wages paid to employees by Dell. 
D) quantity of Dell employees.

Question 12

Which of the following is not a durable good?

Accepted Answer

A) furniture 
B) automobile 
C) clothing 
D) refrigerator 
A) furniture 
B) automobile 
C) clothing 
D) refrigerator

Question 13

Table 8-24
  
-Refer to Table 8-24.Suppose that a very simple economy produces three goods: pizzas,haircuts,and backpacks.Suppose the quantities produced and their corresponding prices for 2011 and 2016 are shown in the table above.Use the information to compute real GDP in the year 2011 and 2016.Calculate real GDP in 2016 assuming the base year is 2011.Do the same calculation assuming the base year is 2016.Are the calculations different? Why?

Accepted Answer

Recall that real GDP is found by valuing

Question 14

Which of the following is considered a durable good?

Accepted Answer

A) medical care 
B) clothing 
C) food 
D) a washing machine 
A) medical care 
B) clothing 
C) food 
D) a washing machine

Question 15

In the United States in 2013,the Bureau of Economic Analysis began counting spending by firms and individuals on developing entertainment products as investment.This change will

Accepted Answer

A) take away from GDP. 
B) add to GDP. 
C) not change GDP. 
D) only change GDP if the development occurs within the borders of the United States. 
A) take away from GDP. 
B) add to GDP. 
C) not change GDP. 
D) only change GDP if the development occurs within the borders of the United States.

Question 16

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.Real GDP for Vicuna for 2013 using 2015 as the base year equals

Accepted Answer

A) $4,620. 
B) $5,100. 
C) $5,650. 
D) $5,850. 
A) $4,620. 
B) $5,100. 
C) $5,650. 
D) $5,850.

Question 17

Nominal GDP is another term for

Accepted Answer

A) inflation-adjusted GDP. 
B) real GDP. 
C) constant-dollar GDP. 
D) current-dollar GDP. 
A) inflation-adjusted GDP. 
B) real GDP. 
C) constant-dollar GDP. 
D) current-dollar GDP.

Question 18

If GDP calculations included measurements of pollution and environmental damage,GDP values would most likely be

Accepted Answer

A) greater than their values without these measurements. 
B) less than their values without these measurements. 
C) unchanged from their values without these measurements. 
D) meaningless,since GDP values without these measurements would no longer be of value. 
A) greater than their values without these measurements. 
B) less than their values without these measurements. 
C) unchanged from their values without these measurements. 
D) meaningless,since GDP values without these measurements would no longer be of value.

Question 19

The measure of production that values production using current prices is called

Accepted Answer

A) value-added GDP. 
B) nominal GDP. 
C) real GDP. 
D) underground GDP. 
A) value-added GDP. 
B) nominal GDP. 
C) real GDP. 
D) underground GDP.

Question 20

The underground economy can be described as

Accepted Answer

A) production of intermediate goods and services. 
B) economic production that includes mining. 
C) economic activity that is hidden from the government to avoid taxes or because the activity is illegal. 
D) production of infrastructure that spurs growth in the rest of the economy. 
A) production of intermediate goods and services. 
B) economic production that includes mining. 
C) economic activity that is hidden from the government to avoid taxes or because the activity is illegal. 
D) production of infrastructure that spurs growth in the rest of the economy.

The "underground economy" is also referred to as

An example of a final good would be

The circular flow of income shows that GDP can be measured as the sum of wages,interest,rent,and profits received by households or total expenditures on goods and services by households,firms,government,and the rest of the world.

What are the differences between national income,personal income,and disposable personal income?

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Which of the following would increase GNP in the United States?

GDP is not a perfect measure of well-being because

The measure of production that values output using base-year prices is called

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 the GDP deflator in 2011 if 2016 is the base year?

Which of the following would increase gross private domestic investment in an economy?

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

Which of the following is not a durable good?

Which of the following is considered a durable good?

In the United States in 2013,the Bureau of Economic Analysis began counting spending by firms and individuals on developing entertainment products as investment.This change will

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.Real GDP for Vicuna for 2013 using 2015 as the base year equals

Nominal GDP is another term for

If GDP calculations included measurements of pollution and environmental damage,GDP values would most likely be

The measure of production that values production using current prices is called

The underground economy can be described as

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

The "underground economy" is also referred to as

An example of a final good would be

The circular flow of income shows that GDP can be measured as the sum of wages,interest,rent,and profits received by households or total expenditures on goods and services by households,firms,government,and the rest of the world.

What are the differences between national income,personal income,and disposable personal income?

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Which of the following would increase GNP in the United States?

GDP is not a perfect measure of well-being because

The measure of production that values output using base-year prices is called

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 the GDP deflator in 2011 if 2016 is the base year?

Which of the following would increase gross private domestic investment in an economy?

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

Which of the following is not a durable good?

Which of the following is considered a durable good?

In the United States in 2013,the Bureau of Economic Analysis began counting spending by firms and individuals on developing entertainment products as investment.This change will

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.Real GDP for Vicuna for 2013 using 2015 as the base year equals

Nominal GDP is another term for

If GDP calculations included measurements of pollution and environmental damage,GDP values would most likely be

The measure of production that values production using current prices is called

The underground economy can be described as

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