Question 1

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

Accepted Answer

A) by using final goods and services, they avoid double counting. 
B) final goods can be exported to other countries. 
C) intermediate goods are imported from other countries. 
D) GDP is underestimated if intermediate goods are used instead. 
E) none of the above. 
A) by using final goods and services, they avoid double counting. 
B) final goods can be exported to other countries. 
C) intermediate goods are imported from other countries. 
D) GDP is underestimated if intermediate goods are used instead. 
E) none of the above.

Question 2

Which of the following would not be included in GDP for 2011?

Accepted Answer

A) A car produced in 2011 and held in inventory until 2012. 
B) A car produced in 2011 and sold in 2012. 
C) The value of all cars produced in 2011. 
D) A car produced in January of 2011 and sold in November of 2011. 
E) A car produced in 2010 and sold in 2011. 
A) A car produced in 2011 and held in inventory until 2012. 
B) A car produced in 2011 and sold in 2012. 
C) The value of all cars produced in 2011. 
D) A car produced in January of 2011 and sold in November of 2011. 
E) A car produced in 2010 and sold in 2011.

Question 3

Use the table below to answer the following questions.
Table 20.4.1
  
-Refer to Table 20.4.1.In this table,at 2011 prices,the value of production from 2011 to 2012 has increased by

Accepted Answer

A) 77.3 percent. 
B) 54.5 percent. 
C) 10.8 percent. 
D) 91.7 percent. 
E) 56 percent. 
A) 77.3 percent. 
B) 54.5 percent. 
C) 10.8 percent. 
D) 91.7 percent. 
E) 56 percent.

Question 4

Use the table below to answer the following questions.
Table 20.2.4
  
-Refer to Table 20.2.4.Net domestic income at market prices is equal to

Accepted Answer

A) $2,150. 
B) $1,920. 
C) $2,400. 
D) $1,940. 
E) $2,350. 
A) $2,150. 
B) $1,920. 
C) $2,400. 
D) $1,940. 
E) $2,350.

Question 5

Real GDP will increase only if the

Accepted Answer

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

Question 6

Real GDP equals

Accepted Answer

A) nominal GDP minus the value of intermediate goods. 
B) nominal GDP adjusted for the depreciation of capital. 
C) the value of final goods and services produced in a given year when valued at the prices of a reference base year. 
D) nominal GDP minus the value of goods exported to foreign countries. 
E) nominal GDP minus the rate of inflation. 
A) nominal GDP minus the value of intermediate goods. 
B) nominal GDP adjusted for the depreciation of capital. 
C) the value of final goods and services produced in a given year when valued at the prices of a reference base year. 
D) nominal GDP minus the value of goods exported to foreign countries. 
E) nominal GDP minus the rate of inflation.

Question 7

Which of the following is not correct?

Accepted Answer

A) Investment is the purchase of new plant, equipment, and buildings and the additions to inventories. 
B) Net investment equals gross investment minus depreciation. 
C) Depreciation decreases the value of a firm's capital. 
D) Gross investment is the amount by which the value of capital increases. 
E) Gross investment is the total amount spent buying new capital and replacing depreciated capital. 
A) Investment is the purchase of new plant, equipment, and buildings and the additions to inventories. 
B) Net investment equals gross investment minus depreciation. 
C) Depreciation decreases the value of a firm's capital. 
D) Gross investment is the amount by which the value of capital increases. 
E) Gross investment is the total amount spent buying new capital and replacing depreciated capital.

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

Which of the following would not be included in GDP for 2011?

Use the table below to answer the following questions. Table 20.4.1 -Refer to Table 20.4.1.In this table,at 2011 prices,the value of production from 2011 to 2012 has increased by

Use the table below to answer the following questions. Table 20.2.4 -Refer to Table 20.2.4.Net domestic income at market prices is equal to

Real GDP will increase only if the

Real GDP equals

Which of the following is not correct?

What Is Economics?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

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 Keynesian Model

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 20: Measuring GDP and Economic Growth

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

Which of the following would not be included in GDP for 2011?

Use the table below to answer the following questions. Table 20.4.1 -Refer to Table 20.4.1.In this table,at 2011 prices,the value of production from 2011 to 2012 has increased by

Use the table below to answer the following questions. Table 20.2.4 -Refer to Table 20.2.4.Net domestic income at market prices is equal to

Real GDP will increase only if the

Real GDP equals

Which of the following is not correct?

What Is Economics?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

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 Keynesian Model

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters