Question 1

Compensation paid to employees represented of GDP for the United States in 2008.

Accepted Answer

A)  more than 50 percent 
B)  approximately 15 percent 
C)  35 percent 
D)  about 5 percent 
A)  more than 50 percent 
B)  approximately 15 percent 
C)  35 percent 
D)  about 5 percent

Question 2

In the national income accounts, the purchase of a new house counts as

Accepted Answer

A)  investment. 
B)  consumption expenditure. 
C)  a transfer. 
D)  an addition to inventory. 
A)  investment. 
B)  consumption expenditure. 
C)  a transfer. 
D)  an addition to inventory.

Question 3

What we produce during our working time is as part of GDP and the enjoyment we gain from our leisure time is as part of GDP.

Accepted Answer

A)  not included; included 
B)  included; not included 
C)  not included; not included 
D)  included; included 
A)  not included; included 
B)  included; not included 
C)  not included; not included 
D)  included; included

Question 4

According to the circular flow diagram, the dollar value of a nation's output is equal to

Accepted Answer

A)  profits. 
B)  net income minus taxes. 
C)  total income. 
D)  wages. 
A)  profits. 
B)  net income minus taxes. 
C)  total income. 
D)  wages.

Question 5

Which of the following is NOT one of the components for computing GDP based upon the income approach?

Accepted Answer

A)  net interest 
B)  investment 
C)  compensation of employees 
D)  corporate profits 
A)  net interest 
B)  investment 
C)  compensation of employees 
D)  corporate profits

Question 6

Gross investment equals net investment plus

Accepted Answer

A)  depreciation. 
B)  capital. 
C)  dividends paid to the owners of the company. 
D)  capital gains. 
A)  depreciation. 
B)  capital. 
C)  dividends paid to the owners of the company. 
D)  capital gains.

Question 7

The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euro constant prices):   Which of the following is true regarding Ireland's economy?

Accepted Answer

A)  GDP decreased from 2006 to 2007. 
B)  Consumption was 48 percent of Ireland's GDP in 2007. 
C)  Net exports decreased from 2006 to 2007. 
D)  The change in GDP from 2006 to 2007 represented a peak in the business cycle. 
A)  GDP decreased from 2006 to 2007. 
B)  Consumption was 48 percent of Ireland's GDP in 2007. 
C)  Net exports decreased from 2006 to 2007. 
D)  The change in GDP from 2006 to 2007 represented a peak in the business cycle.

Question 8

If a measure of real GDP could include the value of leisure time, measured real GDP would increase.

Accepted Answer

A) True 
 B)False

Question 9

In the calculation of gross domestic product by the expenditure approach, the "investment" component is

Accepted Answer

A)  gross investment minus depreciation. 
B)  gross investment plus depreciation. 
C)  gross investment. 
D)  net investment. 
A)  gross investment minus depreciation. 
B)  gross investment plus depreciation. 
C)  gross investment. 
D)  net investment.

Question 10

Which of the following is not a phase or turning point of the business cycle?

Accepted Answer

A)  recession 
B)  shutdown 
C)  trough 
D)  expansion 
A)  recession 
B)  shutdown 
C)  trough 
D)  expansion

Question 11

Proprietors' income is a component of which approach to measuring GDP?

Accepted Answer

A)  output approach 
B)  incomes approach 
C)  cost approach 
D)  expenditure approach 
A)  output approach 
B)  incomes approach 
C)  cost approach 
D)  expenditure approach

Question 12

Government expenditures included in the expenditures approach to GDP include .

Accepted Answer

A)  net exports 
B)  social security and education 
C)  buying a new bomber 
D)  Both answers A and C are correct 
A)  net exports 
B)  social security and education 
C)  buying a new bomber 
D)  Both answers A and C are correct

Question 13

Which of the following expressions equals GDP?

Accepted Answer

A)  compensation of employees + consumption + depreciation + net investment 
B)  compensation of employees + gross investment + rental income + depreciation + corporate profits + indirect taxes - subsidies 
C)  compensation of employees + net exports + depreciation + corporate profits 
D)  compensation of employees + net interest + rental income + depreciation + corporate profits + proprietors' income + indirect taxes - subsidies 
A)  compensation of employees + consumption + depreciation + net investment 
B)  compensation of employees + gross investment + rental income + depreciation + corporate profits + indirect taxes - subsidies 
C)  compensation of employees + net exports + depreciation + corporate profits 
D)  compensation of employees + net interest + rental income + depreciation + corporate profits + proprietors' income + indirect taxes - subsidies

Question 14

Two methods of measuring GDP are

Accepted Answer

A)  the saving approach and the investment approach. 
B)  the goods approach and the services approach. 
C)  the income approach and the expenditure approach. 
D)  the income approach and the receipts approach. 
A)  the saving approach and the investment approach. 
B)  the goods approach and the services approach. 
C)  the income approach and the expenditure approach. 
D)  the income approach and the receipts approach.

Question 15

Personal consumption expenditures include

Accepted Answer

A)  the purchase of used goods and new goods. 
B)  the purchase of new homes. 
C)  expenditures by households on goods and services produced in the United States and the rest of the world. 
D)  expenditures by households on goods and services produced only in the United States. 
A)  the purchase of used goods and new goods. 
B)  the purchase of new homes. 
C)  expenditures by households on goods and services produced in the United States and the rest of the world. 
D)  expenditures by households on goods and services produced only in the United States.

Question 16

The circular flow diagram indicates that

Accepted Answer

A)  firms buy goods and services from households. 
B)  households sell goods and services to the government. 
C)  firms buy the services of factors of production from the government. 
D)  households sell the services of factors of production to firms. 
A)  firms buy goods and services from households. 
B)  households sell goods and services to the government. 
C)  firms buy the services of factors of production from the government. 
D)  households sell the services of factors of production to firms.

Question 17

Is it possible for nominal GDP to increase while real GDP does not change?

Accepted Answer

Yes, it is possible for nominal GDP to i

Question 18

-Based on the data in the above table, gross domestic product equals

Accepted Answer

A)  $2,750. 
B)  $2,465. 
C)  $2,840. 
D)  $2,190. 
A)  $2,750. 
B)  $2,465. 
C)  $2,840. 
D)  $2,190.

Question 19

GDP declines during

Accepted Answer

A)  the movement from trough to peak. 
B)  a decrease in unemployment. 
C)  the movement from below potential GDP back to potential GDP. 
D)  the movement from peak to trough. 
A)  the movement from trough to peak. 
B)  a decrease in unemployment. 
C)  the movement from below potential GDP back to potential GDP. 
D)  the movement from peak to trough.

Question 20

In years with inflation, nominal GDP increases real GDP.

Accepted Answer

A)  slower than 
B)  faster than 
C)  at the same rate as 
D)  sometimes faster, sometimes slower, and sometimes at the same rate as 
A)  slower than 
B)  faster than 
C)  at the same rate as 
D)  sometimes faster, sometimes slower, and sometimes at the same rate as

Compensation paid to employees represented of GDP for the United States in 2008.

In the national income accounts, the purchase of a new house counts as

What we produce during our working time is as part of GDP and the enjoyment we gain from our leisure time is as part of GDP.

According to the circular flow diagram, the dollar value of a nation's output is equal to

Which of the following is NOT one of the components for computing GDP based upon the income approach?

Gross investment equals net investment plus

The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euro constant prices): Which of the following is true regarding Ireland's economy?

If a measure of real GDP could include the value of leisure time, measured real GDP would increase.

In the calculation of gross domestic product by the expenditure approach, the "investment" component is

Which of the following is not a phase or turning point of the business cycle?

Proprietors' income is a component of which approach to measuring GDP?

Government expenditures included in the expenditures approach to GDP include .

Which of the following expressions equals GDP?

Two methods of measuring GDP are

Personal consumption expenditures include

The circular flow diagram indicates that

Is it possible for nominal GDP to increase while real GDP does not change?

-Based on the data in the above table, gross domestic product equals

GDP declines during

In years with inflation, nominal GDP increases real GDP.

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

Compensation paid to employees represented of GDP for the United States in 2008.

In the national income accounts, the purchase of a new house counts as

What we produce during our working time is as part of GDP and the enjoyment we gain from our leisure time is as part of GDP.

According to the circular flow diagram, the dollar value of a nation's output is equal to

Which of the following is NOT one of the components for computing GDP based upon the income approach?

Gross investment equals net investment plus

The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euro constant prices): Which of the following is true regarding Ireland's economy?

If a measure of real GDP could include the value of leisure time, measured real GDP would increase.

In the calculation of gross domestic product by the expenditure approach, the "investment" component is

Which of the following is not a phase or turning point of the business cycle?

Proprietors' income is a component of which approach to measuring GDP?

Government expenditures included in the expenditures approach to GDP include .

Which of the following expressions equals GDP?

Two methods of measuring GDP are

Personal consumption expenditures include

The circular flow diagram indicates that

Is it possible for nominal GDP to increase while real GDP does not change?

-Based on the data in the above table, gross domestic product equals

GDP declines during

In years with inflation, nominal GDP increases real GDP.

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