Question 1

Explain the difference between the capital stock, gross investment, depreciation, and net investment.

Accepted Answer

The capital stock is the total quantity

Question 2

Household production is

Accepted Answer

A)  not measured in the GDP. 
B)  most significant in underdeveloped countries. 
C)  the value of goods and services produced within the home. 
D)  All of the above answers are correct. 
A)  not measured in the GDP. 
B)  most significant in underdeveloped countries. 
C)  the value of goods and services produced within the home. 
D)  All of the above answers are correct.

Question 3

GDP using the expenditure approach equals the sum of personal consumption expenditures plus

Accepted Answer

A)  gross private investment plus government expenditure on goods and services minus imports of goods and services. 
B)  gross private investment plus government expenditure on goods and services plus net exports of goods and services. 
C)  gross private investment. 
D)  gross private investment plus government expenditure on goods and services. 
A)  gross private investment plus government expenditure on goods and services minus imports of goods and services. 
B)  gross private investment plus government expenditure on goods and services plus net exports of goods and services. 
C)  gross private investment. 
D)  gross private investment plus government expenditure on goods and services.

Question 4

The chain- weighted output index

Accepted Answer

A)  uses prices for the current year and the previous year to calculate growth in real GDP. 
B)  uses only the current year's prices to calculate growth in real GDP. 
C)  is an inaccurate way to measure growth in real GDP and so has been replaced by the "nominal- to- real" index. 
D)  must be calculated only every other year. 
A)  uses prices for the current year and the previous year to calculate growth in real GDP. 
B)  uses only the current year's prices to calculate growth in real GDP. 
C)  is an inaccurate way to measure growth in real GDP and so has been replaced by the "nominal- to- real" index. 
D)  must be calculated only every other year.

Question 5

-Using the data in the above table, what is the value of national saving?

Accepted Answer

A)  $2,837 billion 
B)  $1,202 billion 
C)  - $85 billion 
D)  $1,053 billion 
A)  $2,837 billion 
B)  $1,202 billion 
C)  - $85 billion 
D)  $1,053 billion

Question 6

An U.S. firm buys a new industrial sewing machine from a company located in France. Which of the following is true?
I. U.S. net exports decrease.
II. U.S. investment increases.

Accepted Answer

A)  only I 
B)  only II 
C)  both I and II 
D)  neither I nor II 
A)  only I 
B)  only II 
C)  both I and II 
D)  neither I nor II

Question 7

On January 1, 2008, United Delivery had trucks valued at $1.3 million. During 2008, United Delivery purchased new trucks valued at $500,000. If the value of the trucks on December 31, 2008 was $1.5 million, what is the amount of its net investment and its depreciation during 2008?

Accepted Answer

Net investment is the change in the capi

Question 8

To measure economic welfare, one needs only to measure real GDP.

Accepted Answer

A) True 
 B)False

Question 9

-In the above figure, a recession begins at point and an expansion begins at point
)

Accepted Answer

A)  a; b 
B)  d; c 
C)  b; c 
D)  b; a 
A)  a; b 
B)  d; c 
C)  b; c 
D)  b; a

Question 10

The chain- weighted output index method .

Accepted Answer

A)  shows that real GDP increases every year 
B)  values the quantities produced in a year at the prices of the base year 
C)  uses the prices of two adjacent years to calculate the real GDP growth rate 
D)  is used to calculate the value of nominal GDP 
A)  shows that real GDP increases every year 
B)  values the quantities produced in a year at the prices of the base year 
C)  uses the prices of two adjacent years to calculate the real GDP growth rate 
D)  is used to calculate the value of nominal GDP

Question 11

Explain the relationship between real GDP and potential GDP during the two phases of the business cycle.

Accepted Answer

During an expansion the level

Question 12

The following data show Uruguay's GDP using purchasing power parity in billions of dollars.   Using the data, we can conclude that

Accepted Answer

A)  Uruguay's economy was entered a recession in 2008. 
B)  GDP per person in Uruguay almost doubled between 2000 and 2008. 
C)  potential GDP in Uruguay doubled between 2000 and 2008. 
D)  Uruguay's economy reached a peak in 2000. 
A)  Uruguay's economy was entered a recession in 2008. 
B)  GDP per person in Uruguay almost doubled between 2000 and 2008. 
C)  potential GDP in Uruguay doubled between 2000 and 2008. 
D)  Uruguay's economy reached a peak in 2000.

Question 13

Investment, as included in GDP, consists of what?

Accepted Answer

Investment is the purchase of new capita

Question 14

The business cycle is defined as the

Accepted Answer

A)  regular growth rate of the real GDP. 
B)  irregular fluctuations of prices around real GDP. 
C)  regular fluctuations of real GDP below potential GDP. 
D)  irregular fluctuations of real GDP around potential GDP. 
A)  regular growth rate of the real GDP. 
B)  irregular fluctuations of prices around real GDP. 
C)  regular fluctuations of real GDP below potential GDP. 
D)  irregular fluctuations of real GDP around potential GDP.

Question 15

In the equation, GDP = C + I + G + NX, G refers to

Accepted Answer

A)  local, state, and federal government expenditure on goods and services, but does not include transfer payments. 
B)  the taxes and expenditures of all government units. 
C)  local, state, and federal government spending for all purposes. 
D)  federal government expenditures plus all transfer payments. 
A)  local, state, and federal government expenditure on goods and services, but does not include transfer payments. 
B)  the taxes and expenditures of all government units. 
C)  local, state, and federal government spending for all purposes. 
D)  federal government expenditures plus all transfer payments.

Question 16

Suppose an economy has some inflation. Then, after a base year, the value of real GDP will

Accepted Answer

A)  be greater than nominal GDP. 
B)  will be approximately half the value of nominal GDP. 
C)  not be different from nominal GDP. 
D)  be less than nominal GDP. 
A)  be greater than nominal GDP. 
B)  will be approximately half the value of nominal GDP. 
C)  not be different from nominal GDP. 
D)  be less than nominal GDP.

Question 17

Valuing the quantities of goods produced in consecutive years using prices in both years and then averaging the percentage changes in the value of output is part of the method of calculating real GDP.

Accepted Answer

A)  moving- base- year 
B)  base- year 
C)  fixed quantities/variable prices 
D)  chain- weighted output index 
A)  moving- base- year 
B)  base- year 
C)  fixed quantities/variable prices 
D)  chain- weighted output index

Question 18

Which, if any, of the following causes reported GDP to be less than total economic production?

Accepted Answer

A)  the exclusion of government transfers 
B)  the exclusion of household production 
C)  the inclusion of government expenditures 
D)  All of the above cause reported GDP to be less than total production. 
A)  the exclusion of government transfers 
B)  the exclusion of household production 
C)  the inclusion of government expenditures 
D)  All of the above cause reported GDP to be less than total production.

Question 19

-Using the data in the table above, what is the value of GDP?

Accepted Answer

A)  $10,679 billion 
B)  $9,541 billion 
C)  $13,516 billion 
D)  $8,403 billion 
A)  $10,679 billion 
B)  $9,541 billion 
C)  $13,516 billion 
D)  $8,403 billion

Question 20

A ton of coal purchased by your local utility to burn to make electricity would be best described as

Accepted Answer

A)  a final product. 
B)  a financial asset. 
C)  a used good. 
D)  an intermediate good. 
A)  a final product. 
B)  a financial asset. 
C)  a used good. 
D)  an intermediate good.

Explain the difference between the capital stock, gross investment, depreciation, and net investment.

Household production is

GDP using the expenditure approach equals the sum of personal consumption expenditures plus

The chain- weighted output index

-Using the data in the above table, what is the value of national saving?

An U.S. firm buys a new industrial sewing machine from a company located in France. Which of the following is true? I. U.S. net exports decrease. II. U.S. investment increases.

On January 1, 2008, United Delivery had trucks valued at $1.3 million. During 2008, United Delivery purchased new trucks valued at $500,000. If the value of the trucks on December 31, 2008 was $1.5 million, what is the amount of its net investment and its depreciation during 2008?

To measure economic welfare, one needs only to measure real GDP.

-In the above figure, a recession begins at point and an expansion begins at point )

The chain- weighted output index method .

Explain the relationship between real GDP and potential GDP during the two phases of the business cycle.

The following data show Uruguay's GDP using purchasing power parity in billions of dollars. Using the data, we can conclude that

Investment, as included in GDP, consists of what?

The business cycle is defined as the

In the equation, GDP = C + I + G + NX, G refers to

Suppose an economy has some inflation. Then, after a base year, the value of real GDP will

Valuing the quantities of goods produced in consecutive years using prices in both years and then averaging the percentage changes in the value of output is part of the method of calculating real GDP.

Which, if any, of the following causes reported GDP to be less than total economic production?

-Using the data in the table above, what is the value of GDP?

A ton of coal purchased by your local utility to burn to make electricity would be best described as

What Is Economics

The Economic Problem

Demand and Supply

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 4: Measuring Gdp and Economic Growth

Explain the difference between the capital stock, gross investment, depreciation, and net investment.

Household production is

GDP using the expenditure approach equals the sum of personal consumption expenditures plus

The chain- weighted output index

-Using the data in the above table, what is the value of national saving?

An U.S. firm buys a new industrial sewing machine from a company located in France. Which of the following is true? I. U.S. net exports decrease. II. U.S. investment increases.

On January 1, 2008, United Delivery had trucks valued at $1.3 million. During 2008, United Delivery purchased new trucks valued at $500,000. If the value of the trucks on December 31, 2008 was $1.5 million, what is the amount of its net investment and its depreciation during 2008?

To measure economic welfare, one needs only to measure real GDP.

-In the above figure, a recession begins at point and an expansion begins at point )

The chain- weighted output index method .

Explain the relationship between real GDP and potential GDP during the two phases of the business cycle.

The following data show Uruguay's GDP using purchasing power parity in billions of dollars. Using the data, we can conclude that

Investment, as included in GDP, consists of what?

The business cycle is defined as the

In the equation, GDP = C + I + G + NX, G refers to

Suppose an economy has some inflation. Then, after a base year, the value of real GDP will

Valuing the quantities of goods produced in consecutive years using prices in both years and then averaging the percentage changes in the value of output is part of the method of calculating real GDP.

Which, if any, of the following causes reported GDP to be less than total economic production?

-Using the data in the table above, what is the value of GDP?

A ton of coal purchased by your local utility to burn to make electricity would be best described as

What Is Economics

The Economic Problem

Demand and Supply

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters