Question 1

According to the data in Exhibit 18-5, the increase in real GDP from 2016 to 2017 was

Accepted Answer

A) 22.5 percent. 
B) 25 percent. 
C) 40 percent 
D) 24 percent. 
E) 30 percent. 
A) 22.5 percent. 
B) 25 percent. 
C) 40 percent 
D) 24 percent. 
E) 30 percent.

Question 2

Exhibit 18-8
  
-Suppose an economy's GDP consists only of speakers and televisions. Exhibit 18-8 shows the production of these goods in 2016 and 2017.

Accepted Answer

The answer of Exhibit 18-8
  
-Suppose an economy's GDP...

Question 3

Exhibit 18-7
  
-The information in Exhibit 18-7 gives the 2011 base period market basket and prices used to construct the CPI for a small nation. It also has the 2016 prices. What is the value of the CPI for the base period 2011?

Accepted Answer

A) 1.33 
B) 1.00 
C) 0.71 
D) 1.40 
E) 1.25 
A) 1.33 
B) 1.00 
C) 0.71 
D) 1.40 
E) 1.25

Question 4

Jessy builds a desk that is valued at $200. To build the desk, he has purchased new materials for a total cost of $150. The value of GDP in this case would

Accepted Answer

A) increase by $50. 
B) increase by $200. 
C) increase by $150. 
D) increase by $350. 
E) decrease by $50. 
A) increase by $50. 
B) increase by $200. 
C) increase by $150. 
D) increase by $350. 
E) decrease by $50.

Question 5

The number of new cars produced in a given time period in the United States is a flow measure, while the number of cars in the United States is a stock measure.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is most likely a final good?

Accepted Answer

A) wheat 
B) crude oil 
C) steel 
D) cotton 
E) a laptop computer 
A) wheat 
B) crude oil 
C) steel 
D) cotton 
E) a laptop computer

Question 7

When computing U.S. GDP, a good or service is weighted

Accepted Answer

A) according to corporate concerns. 
B) according to the quantity of the good or service available. 
C) according to the concerns of pressure groups. 
D) according to government directive. 
E) according to its value. 
A) according to corporate concerns. 
B) according to the quantity of the good or service available. 
C) according to the concerns of pressure groups. 
D) according to government directive. 
E) according to its value.

Question 8

How do the CPI and the GDP deflator differ?

Accepted Answer

The CPI measures the average price of co

Question 9

Exhibit 18-1
  
-In a simple economy, Wanda's Weavers grows cotton and weaves it into cloth. In the current year, Wanda's Weavers produces cloth valued at $1,000, half of which it sells directly to consumers for their own personal use and half of which it sells to Joe's T-shirts. Joe's T-shirts produces T-shirts valued at $1,500 for the current year. What is the value of GDP in this simple economy?

Accepted Answer

A) $2,500 
B) $1,500 
C) $500 
D) $1,000 
E) $2,000 
A) $2,500 
B) $1,500 
C) $500 
D) $1,000 
E) $2,000

Question 10

Can real GDP per capita serve, by itself, as an adequate measure of individual well-being?

Accepted Answer

No. There are parts of well-be

Question 11

What best describes what is included in the GDP measure?

Accepted Answer

A) Only newly produced goods 
B) Only newly produced services 
C) All goods and services sold 
D) Only newly produced goods and services 
E) Any economic interaction 
A) Only newly produced goods 
B) Only newly produced services 
C) All goods and services sold 
D) Only newly produced goods and services 
E) Any economic interaction

Question 12

If prices were kept constant at 2017 levels, then according to the data in Exhibit 18-5, production between 2016 and 2017 changed by

Accepted Answer

A) 25 percent. 
B) 60 percent. 
C) 28 percent. 
D) 20 percent. 
E) 30 percent. 
A) 25 percent. 
B) 60 percent. 
C) 28 percent. 
D) 20 percent. 
E) 30 percent.

Question 13

The salary of a Japanese manager working in the United States is

Accepted Answer

A) included in labor income. 
B) payment for services produced and is not included in GDP. 
C) not part of U.S.labor income. 
D) included in Japan's GDP. 
E) part of net exports. 
A) included in labor income. 
B) payment for services produced and is not included in GDP. 
C) not part of U.S.labor income. 
D) included in Japan's GDP. 
E) part of net exports.

Question 14

Exhibit 18-3  
-According to the data in Exhibit 18-3, the value added by the grocer is

Accepted Answer

A) $1.25. 
B) $4.50. 
C) $.75. 
D) $2.00. 
E) $.50. 
A) $1.25. 
B) $4.50. 
C) $.75. 
D) $2.00. 
E) $.50.

Question 15

Use the following data for an ice-cream vendor at a local fair:

Accepted Answer

The answer of Use the following data for an ice-cream...

Question 16

Consider the case of a hypothetical economy that has no government or foreign trade. This economy produces one final product, books. Moreover, there are only two stages of production, writing by authors and publishing by a single publishing company, Inco. In 2017, Inco produced $4 million worth of books, and consumers purchased $3 million of those books.

Accepted Answer

The answer of Consider the case of a hypothetical economy...

Question 17

Why are revisions of GDP inevitable? Why does it matter?

Accepted Answer

Revisions are inevitable because the dat

Question 18

In dollar terms, U.S. GDP in 2015 is approximately

Accepted Answer

A) $8,037,000,000,000,000. 
B) $8,037,000,000,000. 
C) $18,037,000,000,000,000. 
D) $18,037,000,000,000. 
E) $18,037,000. 
A) $8,037,000,000,000,000. 
B) $8,037,000,000,000. 
C) $18,037,000,000,000,000. 
D) $18,037,000,000,000. 
E) $18,037,000.

Question 19

Exhibit 18-5
  
-Using 2017 prices, according to the data in Exhibit 18-5, production in 2016 equaled

Accepted Answer

A) $1,000. 
B) $500. 
C) $800. 
D) $625. 
E) $640. 
A) $1,000. 
B) $500. 
C) $800. 
D) $625. 
E) $640.

Question 20

Investment, as defined in the text, refers to

Accepted Answer

A) putting away funds for the future. 
B) purchase of new capital, such as new factories or equipment. 
C) purchase of stocks and bonds. 
D) consumer purchases of big-ticket items. 
E) All of these 
A) putting away funds for the future. 
B) purchase of new capital, such as new factories or equipment. 
C) purchase of stocks and bonds. 
D) consumer purchases of big-ticket items. 
E) All of these

Exam 18: Measuring the Production, Income, and Spending of Nations

According to the data in Exhibit 18-5, the increase in real GDP from 2016 to 2017 was

Exhibit 18-8 -Suppose an economy's GDP consists only of speakers and televisions. Exhibit 18-8 shows the production of these goods in 2016 and 2017.

Exhibit 18-7 -The information in Exhibit 18-7 gives the 2011 base period market basket and prices used to construct the CPI for a small nation. It also has the 2016 prices. What is the value of the CPI for the base period 2011?

Jessy builds a desk that is valued at $200. To build the desk, he has purchased new materials for a total cost of $150. The value of GDP in this case would

The number of new cars produced in a given time period in the United States is a flow measure, while the number of cars in the United States is a stock measure.

Which of the following is most likely a final good?

When computing U.S. GDP, a good or service is weighted

How do the CPI and the GDP deflator differ?

Can real GDP per capita serve, by itself, as an adequate measure of individual well-being?

What best describes what is included in the GDP measure?

If prices were kept constant at 2017 levels, then according to the data in Exhibit 18-5, production between 2016 and 2017 changed by

The salary of a Japanese manager working in the United States is

Exhibit 18-3 -According to the data in Exhibit 18-3, the value added by the grocer is

Use the following data for an ice-cream vendor at a local fair:

Why are revisions of GDP inevitable? Why does it matter?

In dollar terms, U.S. GDP in 2015 is approximately

Exhibit 18-5 -Using 2017 prices, according to the data in Exhibit 18-5, production in 2016 equaled

Investment, as defined in the text, refers to

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth Around the World

International Trade

International Finance

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