Question 1

In calculating GDP, economists use the value of final goods and services because

Accepted Answer

A) GDP is underestimated if intermediate goods are used instead. 
B) intermediate goods are imported from other countries. 
C) final goods can be exported to other countries. 
D) final goods and services do not depreciate. 
E) by using final goods and services, they avoid double counting. 
A) GDP is underestimated if intermediate goods are used instead. 
B) intermediate goods are imported from other countries. 
C) final goods can be exported to other countries. 
D) final goods and services do not depreciate. 
E) by using final goods and services, they avoid double counting.

Question 2

Real GDP will increase only if the

Accepted Answer

A) employment rate rises. 
B) average level of prices rises. 
C) quantity of goods and services produced increases. 
D) unemployment rate rises. 
E) employment rate falls. 
A) employment rate rises. 
B) average level of prices rises. 
C) quantity of goods and services produced increases. 
D) unemployment rate rises. 
E) employment rate falls.

Question 3

For the aggregate economy, income equals

Accepted Answer

A) expenditure equals GDP only if there is no depreciation. 
B) expenditure, but these are not generally equal to GDP. 
C) expenditure equals GDP. 
D) expenditure equals GDP only if there is no government or foreign sectors. 
E) GDP, but expenditure is generally less than these. 
A) expenditure equals GDP only if there is no depreciation. 
B) expenditure, but these are not generally equal to GDP. 
C) expenditure equals GDP. 
D) expenditure equals GDP only if there is no government or foreign sectors. 
E) GDP, but expenditure is generally less than these.

Question 4

In recent history, real GDP has risen less rapidly than nominal GDP.This is because

Accepted Answer

A) the goal of zero population growth has been reached. 
B) capital increased. 
C) the level of population rose. 
D) the general price level fell. 
E) the general price level rose. 
A) the goal of zero population growth has been reached. 
B) capital increased. 
C) the level of population rose. 
D) the general price level fell. 
E) the general price level rose.

Question 5

Nominal GDP will increase

Accepted Answer

A) only if the unemployment rate rises. 
B) only if the quantity of goods and services produced increases. 
C) only if the average level of prices rises. 
D) only if both the average level of prices rises and the quantity of goods and services produced increases. 
E) if either the average level of prices rises or the quantity of goods and services produced increases. 
A) only if the unemployment rate rises. 
B) only if the quantity of goods and services produced increases. 
C) only if the average level of prices rises. 
D) only if both the average level of prices rises and the quantity of goods and services produced increases. 
E) if either the average level of prices rises or the quantity of goods and services produced increases.

Question 6

SaskWidget produces plastic parts.At the beginning of the year, they held $24 million worth of capital.At the end of the year, they held $20 million worth of capital.It must be the case that

Accepted Answer

A) depreciation exceeded gross investment by $4 million. 
B) depreciation equals $4 million. 
C) gross investment decreased by $4 million. 
D) gross investment increased by $4 million. 
E) net investment increased by $4 million. 
A) depreciation exceeded gross investment by $4 million. 
B) depreciation equals $4 million. 
C) gross investment decreased by $4 million. 
D) gross investment increased by $4 million. 
E) net investment increased by $4 million.

In calculating GDP, economists use the value of final goods and services because

Real GDP will increase only if the

For the aggregate economy, income equals

In recent history, real GDP has risen less rapidly than nominal GDP.This is because

Nominal GDP will increase

SaskWidget produces plastic parts.At the beginning of the year, they held $24 million worth of capital.At the end of the year, they held $20 million worth of capital.It must be the case that

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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 4: Measuring Gdp and Economic Growth

In calculating GDP, economists use the value of final goods and services because

Real GDP will increase only if the

For the aggregate economy, income equals

In recent history, real GDP has risen less rapidly than nominal GDP.This is because

Nominal GDP will increase

SaskWidget produces plastic parts.At the beginning of the year, they held $24 million worth of capital.At the end of the year, they held $20 million worth of capital.It must be the case that

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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters