Question 1

The term "final goods and services" refers to:

Accepted Answer

A) goods and services which are unsold and therefore added to inventories. 
B) goods and services whose value has been adjusted for changes in the price level. 
C) goods and services purchased by ultimate users, as opposed to resale or further processing. 
D) the excess of Canadians exports over Canadians imports. 
A) goods and services which are unsold and therefore added to inventories. 
B) goods and services whose value has been adjusted for changes in the price level. 
C) goods and services purchased by ultimate users, as opposed to resale or further processing. 
D) the excess of Canadians exports over Canadians imports.

Question 2

If real GDP falls from one period to another, we can conclude that:

Accepted Answer

A) deflation occurred. 
B) inflation occurred. 
C) nominal GDP fell. 
D) less goods and services have been produced. 
A) deflation occurred. 
B) inflation occurred. 
C) nominal GDP fell. 
D) less goods and services have been produced.

Question 3

If nominal GDP is 150 and the GDP price index is 200, real GDP is 75.

Accepted Answer

A) True 
 B)False

Question 4

Real GDP and nominal GDP differ because the real GDP:

Accepted Answer

A) is adjusted for changes in the volume of intermediate transactions. 
B) includes the economic effects of international trade. 
C) has been adjusted for changes in the price level. 
D) excludes depreciation charges. 
A) is adjusted for changes in the volume of intermediate transactions. 
B) includes the economic effects of international trade. 
C) has been adjusted for changes in the price level. 
D) excludes depreciation charges.

Question 5

All figures are in billions of dollars.   Refer to the above information.The gross domestic product is:

Accepted Answer

A) $328 
B) $402 
C) $382 
D) $336 
A) $328 
B) $402 
C) $382 
D) $336

Question 6

Money spent on the purchase of a new house is included in the GDP as a part of:

Accepted Answer

A) the consumption of private fixed capital. 
B) personal consumption expenditures. 
C) personal saving. 
D) investment. 
A) the consumption of private fixed capital. 
B) personal consumption expenditures. 
C) personal saving. 
D) investment.

Question 7

Which of the following transactions is included in GDP?

Accepted Answer

A) The production of text books 
B) Public transfer payments 
C) Private transfer payments 
D) Transactions in the stock market 
A) The production of text books 
B) Public transfer payments 
C) Private transfer payments 
D) Transactions in the stock market

Question 8

Suppose Smith pays $100 to Jones.

Accepted Answer

A) We can say with certainty that the GDP has increased by $100. 
B) We can say with certainty that the GDP has increased, but we cannot determine the amount. 
C) We can say with certainty that the nominal GDP has increased, but we can't say whether real GDP has increased or decreased. 
D) We need more information to determine whether GDP has changed. 
A) We can say with certainty that the GDP has increased by $100. 
B) We can say with certainty that the GDP has increased, but we cannot determine the amount. 
C) We can say with certainty that the nominal GDP has increased, but we can't say whether real GDP has increased or decreased. 
D) We need more information to determine whether GDP has changed.

Question 9

GDP tends to overstate economic well-being because it takes into account:

Accepted Answer

A) all of the illegal activities conducted by organized crime in the economy. 
B) spending on intermediate goods that are used to produce final goods. 
C) health care costs related to the consumption of products with adverse health effects. 
D) the personal labour time that car owners spend working on car repairs and maintenance of their vehicles. 
A) all of the illegal activities conducted by organized crime in the economy. 
B) spending on intermediate goods that are used to produce final goods. 
C) health care costs related to the consumption of products with adverse health effects. 
D) the personal labour time that car owners spend working on car repairs and maintenance of their vehicles.

Question 10

In an economy experiencing persistent deflation:

Accepted Answer

A) potential GDP will necessarily exceed actual GDP. 
B) changes in nominal GDP may either overstate or understate changes in real GDP. 
C) changes in nominal GDP understate changes in real GDP. 
D) changes in nominal GDP overstate changes in real GDP. 
A) potential GDP will necessarily exceed actual GDP. 
B) changes in nominal GDP may either overstate or understate changes in real GDP. 
C) changes in nominal GDP understate changes in real GDP. 
D) changes in nominal GDP overstate changes in real GDP.

Question 11

Assume an economy which is producing only one product.Output and price data for a three-year period are as follows.   Refer to the above data.If year 2 is chosen as the base year, in years 1 and 3 the price index values, respectively, are:

Accepted Answer

A) 4 and 6. 
B) 6 and 4. 
C) 120 and 100. 
D) 100 and 150. 
A) 4 and 6. 
B) 6 and 4. 
C) 120 and 100. 
D) 100 and 150.

Exam 7: B: Measuring the Economys Output

The term "final goods and services" refers to:

If real GDP falls from one period to another, we can conclude that:

If nominal GDP is 150 and the GDP price index is 200, real GDP is 75.

Real GDP and nominal GDP differ because the real GDP:

All figures are in billions of dollars. Refer to the above information.The gross domestic product is:

Money spent on the purchase of a new house is included in the GDP as a part of:

Which of the following transactions is included in GDP?

Suppose Smith pays $100 to Jones.

GDP tends to overstate economic well-being because it takes into account:

In an economy experiencing persistent deflation:

Assume an economy which is producing only one product.Output and price data for a three-year period are as follows. Refer to the above data.If year 2 is chosen as the base year, in years 1 and 3 the price index values, respectively, are:

B: Limits, Alternatives, and Choices

A: - Limits, Alternatives, and Choices

B: The Market System and the Circular Flow

A: - The Market System and the Circular Flow

B: Demand, Supply, and Market Equilibrium

A: - Demand, Supply, and Market Equilibrium

B: Market Failures: Public Goods and Externalities

A: - Market Failures: Public Goods and Externalities

B: Governments Role and Government Failure

A: Governments Role and Government Failure

B: an Introduction to Macroeconomics

A: an Introduction to Macroeconomics

A: Measuring the Economys Output

B: Economic Growth

A: Economic Growth

B: Business Cycles, Unemployment, and Inflation

A: Business Cycles, Unemployment, and Inflation

B: Basic Macroeconomic Relationships

A: Basic Macroeconomic Relationships

B: The Aggregate Expenditures Model

A: The Aggregate Expenditures Model

B: Aggregate Demand and Aggregate Supply

A: Aggregate Demand and Aggregate Supply

B: Fiscal Policy, Deficits, Surpluses, and Debt

A: Fiscal Policy, Deficits, Surpluses, and Debt

B: Money, Banking, and Money Creation

A: Money, Banking, and Money Creation

B: Interest Rates and Monetary Policy

A: Interest Rates and Monetary Policy

C: Financial Economics

A: Long-Run Macroeconomic Adjustments

B: Long-Run Macroeconomic Adjustments

A: International Trade

B: International Trade

A: The Balance of Payments and Exchange Rates

B: The Balance of Payments and Exchange Rates

The Economics of Developing Countries

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