Question 1

Exhibit 7-1
  
-Refer to Exhibit 7-1.What is the value of gross domestic product?

Accepted Answer

A)  $6,062 
B)  $5,731 
C)  $3,072 
D)  $6,382 
E)  $2,637 
A)  $6,062 
B)  $5,731 
C)  $3,072 
D)  $6,382 
E)  $2,637

Question 2

Corporate profits is the largest category of national income.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following items is a final good?

Accepted Answer

A)  mustard in a deli 
B)  tin purchased by a can company 
C)  a sweater purchased by someone in a department store 
D)  a and b 
E)  a,b,and c 
A)  mustard in a deli 
B)  tin purchased by a can company 
C)  a sweater purchased by someone in a department store 
D)  a and b 
E)  a,b,and c

Question 4

Which of the following statements is true?

Accepted Answer

A)  National income accountants consider the portion of corporate profits that is used to pay corporate profits taxes to be income earned by households but not received. 
B)  Net domestic product (NDP)is a smaller dollar amount than GDP. 
C)  Personal income includes transfer payments. 
D)  b and c 
E)  a,b,and c 
A)  National income accountants consider the portion of corporate profits that is used to pay corporate profits taxes to be income earned by households but not received. 
B)  Net domestic product (NDP)is a smaller dollar amount than GDP. 
C)  Personal income includes transfer payments. 
D)  b and c 
E)  a,b,and c

Question 5

Investment is equal to all purchases of newly produced capital goods

Accepted Answer

A)  minus changes in business inventories. 
B)  plus fixed investment minus inventory investment. 
C)  plus changes in business inventories. 
D)  plus changes in business inventories plus purchases of new residential housing. 
A)  minus changes in business inventories. 
B)  plus fixed investment minus inventory investment. 
C)  plus changes in business inventories. 
D)  plus changes in business inventories plus purchases of new residential housing.

Question 6

Look at the following data: durable goods = $200 billion;nondurable goods = $350 billion;services = $600 billion;fixed investment + inventory investment = $200 billion;government purchases = $400 billion;exports = $30 billion;imports = $79 billion.GDP is equal to

Accepted Answer

A)  $1,701 billion. 
B)  $1,201 billion. 
C)  $1,859 billion. 
D)  $1,010 billion. 
E)  There is not enough information to answer the question. 
A)  $1,701 billion. 
B)  $1,201 billion. 
C)  $1,859 billion. 
D)  $1,010 billion. 
E)  There is not enough information to answer the question.

Question 7

In 1950,the country with the highest per capita GDP was

Accepted Answer

A)  Switzerland. 
B)  New Zealand. 
C)  the United States. 
D)  Venezuela. 
E)  the Netherlands. 
A)  Switzerland. 
B)  New Zealand. 
C)  the United States. 
D)  Venezuela. 
E)  the Netherlands.

Question 8

Which of the following goods is an intermediate good?

Accepted Answer

A)  lettuce that a restaurant buys to put on sandwiches 
B)  tires that a car company buys to put on the cars it produces 
C)  a television set that Chi-Mai buys to put in her college dorm room 
D)  a and b 
E)  b and c 
A)  lettuce that a restaurant buys to put on sandwiches 
B)  tires that a car company buys to put on the cars it produces 
C)  a television set that Chi-Mai buys to put in her college dorm room 
D)  a and b 
E)  b and c

Question 9

Exhibit 7-2
  
-Refer to Exhibit 7-2.GDP in 1990 is

Accepted Answer

A)  $49. 
B)  $51. 
C)  $86. 
D)  $92. 
E)  impossible to calculate without the CPI. 
A)  $49. 
B)  $51. 
C)  $86. 
D)  $92. 
E)  impossible to calculate without the CPI.

Question 10

Exhibit 7-5
Economic Data for Country Z
  
-Refer to Exhibit 7-5.What was Country Z's economic growth rate between year 3 and year 4?

Accepted Answer

A)  6.1% 
B)  2.3% 
C)  3.0% 
D)  18.2% 
A)  6.1% 
B)  2.3% 
C)  3.0% 
D)  18.2%

Question 11

An example of income received but not earned is

Accepted Answer

A)  government transfer payments. 
B)  undistributed profits. 
C)  compensation of employees. 
D)  rental income. 
E)  a and c 
A)  government transfer payments. 
B)  undistributed profits. 
C)  compensation of employees. 
D)  rental income. 
E)  a and c

Question 12

Increases in import spending

Accepted Answer

A)  raise GDP. 
B)  lower GDP. 
C)  are always balanced off in GDP by changes in exports. 
D)  may raise or lower GDP. 
A)  raise GDP. 
B)  lower GDP. 
C)  are always balanced off in GDP by changes in exports. 
D)  may raise or lower GDP.

Question 13

What does annual economic growth refer to?

Accepted Answer

A)  annual increases in GDP 
B)  annual increases in consumption spending 
C)  annual increases in investment spending 
D)  annual increases in Real GDP 
E)  none of the above 
A)  annual increases in GDP 
B)  annual increases in consumption spending 
C)  annual increases in investment spending 
D)  annual increases in Real GDP 
E)  none of the above

Question 14

Disposable income is

Accepted Answer

A)  equal to GDP minus the capital consumption allowance. 
B)  that portion of personal income that can be used for consumption and saving. 
C)  the sum of all payments to suppliers of the factors of production. 
D)  the amount of income that individuals actually receive. 
E)  another term for personal income. 
A)  equal to GDP minus the capital consumption allowance. 
B)  that portion of personal income that can be used for consumption and saving. 
C)  the sum of all payments to suppliers of the factors of production. 
D)  the amount of income that individuals actually receive. 
E)  another term for personal income.

Question 15

If the GDP in one year is greater than it was in the previous year,then economic growth must have occurred.

Accepted Answer

A) True 
 B)False

Question 16

Given that GDP is a measure of what is produced in a country,explain how the expenditure approach can measure GDP.How are items produced,but not yet sold,accounted for in the expenditure approach?

Accepted Answer

The expenditure approach measures GDP by

Question 17

Germany has a ____________________ GDP than Austria and has a _____________________ GDP per capita than Austria.

Accepted Answer

A)  larger;smaller 
B)  larger;larger 
C)  smaller;larger 
D)  smaller;smaller 
A)  larger;smaller 
B)  larger;larger 
C)  smaller;larger 
D)  smaller;smaller

Question 18

The sale of __________ goods is omitted from current GDP because __________.

Accepted Answer

A)  intermediate goods;these goods do not constitute production 
B)  used goods;these goods were counted in an earlier year 
C)  illegal;these goods do not constitute economic value 
D)  b and c 
E)  a,b,and c 
A)  intermediate goods;these goods do not constitute production 
B)  used goods;these goods were counted in an earlier year 
C)  illegal;these goods do not constitute economic value 
D)  b and c 
E)  a,b,and c

Question 19

Which of the following would definitely not be included in the measurement of GDP?

Accepted Answer

A)  value of the services of a painter who paints your garage 
B)  value of the services of a person who mows his or her own lawn 
C)  value of the services of a maid who cleans your house 
D)  value of the services of a plumber who fixes your kitchen sink 
A)  value of the services of a painter who paints your garage 
B)  value of the services of a person who mows his or her own lawn 
C)  value of the services of a maid who cleans your house 
D)  value of the services of a plumber who fixes your kitchen sink

Question 20

To macroeconomists,investment is mainly the purchases of goods and services

Accepted Answer

A)  by businesses. 
B)  to hold as wealth,such as gold coins or art. 
C)  to hold as wealth,such as stocks and bonds. 
D)  in the period previous to the period being studied. 
A)  by businesses. 
B)  to hold as wealth,such as gold coins or art. 
C)  to hold as wealth,such as stocks and bonds. 
D)  in the period previous to the period being studied.

Exam 7: Macroeconomic Measurements, Gdp and Real Gdp

Exhibit 7-1 -Refer to Exhibit 7-1.What is the value of gross domestic product?

Corporate profits is the largest category of national income.

Which of the following items is a final good?

Which of the following statements is true?

Investment is equal to all purchases of newly produced capital goods

Look at the following data: durable goods = $200 billion;nondurable goods = $350 billion;services = $600 billion;fixed investment + inventory investment = $200 billion;government purchases = $400 billion;exports = $30 billion;imports = $79 billion.GDP is equal to

In 1950,the country with the highest per capita GDP was

Which of the following goods is an intermediate good?

Exhibit 7-2 -Refer to Exhibit 7-2.GDP in 1990 is

Exhibit 7-5 Economic Data for Country Z -Refer to Exhibit 7-5.What was Country Z's economic growth rate between year 3 and year 4?

An example of income received but not earned is

Increases in import spending

What does annual economic growth refer to?

Disposable income is

If the GDP in one year is greater than it was in the previous year,then economic growth must have occurred.

Given that GDP is a measure of what is produced in a country,explain how the expenditure approach can measure GDP.How are items produced,but not yet sold,accounted for in the expenditure approach?

Germany has a ____________________ GDP than Austria and has a _____________________ GDP per capita than Austria.

The sale of __________ goods is omitted from current GDP because __________.

Which of the following would definitely not be included in the measurement of GDP?

To macroeconomists,investment is mainly the purchases of goods and services

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, controlled, and Relative

Supply,demand,and Price: Applications

Macroeconomic Measurements, Prices and Unemployment

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self-Regulating Economy

Keynesian Macroeconomics and Economic Instability: a Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money,banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, technology, ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case for and Against Government: Five Topics Considered

Stocks, bonds, futures, and Options

Agriculture: Problems, policies, and Unintended Effects

Filters

Germany has a GDP than Austria and has a _ GDP per capita than Austria.

The sale of goods is omitted from current GDP because .