Question 1

Gross domestic product measures

Accepted Answer

A) income and expenditures. 
B) income but not expenditures. 
C) expenditures but not income. 
D) neither income nor expenditures. 
A) income and expenditures. 
B) income but not expenditures. 
C) expenditures but not income. 
D) neither income nor expenditures.

Question 2

GDP is a good measure of economic well-being for all purposes.

Accepted Answer

A) True 
 B)False

Question 3

Tyler and Camille both live in Oklahoma. A new-car dealer in Oklahoma bought a new car from the manufacturer for $18,000 and sold it to Tyler for $22,000. Later that year, Tyler sold the car to Camille for $17,000. By how much did these transactions contribute to U.S. GDP for the year?

Accepted Answer

A) $18,000 
B) $22,000 
C) $39,000 
D) $57,000 
A) $18,000 
B) $22,000 
C) $39,000 
D) $57,000

Question 4

Table 23-2
The table below contains data for country A for the year 2010.  
-Refer to Table 23-2. What was country A's investment in 2010?

Accepted Answer

A) $1178 
B) $1295 
C) $1882 
D) $1999 
A) $1178 
B) $1295 
C) $1882 
D) $1999

Question 5

Which of the following transactions adds to U.S. GDP for 2015?

Accepted Answer

A) In 2015, Ann sells a car that she bought in 2011 to Bill for $7,000. 
B) An American management consultant works in Canada during the summer of 2015 and earns the equivalent of $40,000 during that time. 
C) When Ken and Kim were both single, they lived in separate apartments and each paid $800 in rent. Ken and Kim got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,700 per month. 
D) None of the above transactions adds to U.S. GDP for 2015. 
A) In 2015, Ann sells a car that she bought in 2011 to Bill for $7,000. 
B) An American management consultant works in Canada during the summer of 2015 and earns the equivalent of $40,000 during that time. 
C) When Ken and Kim were both single, they lived in separate apartments and each paid $800 in rent. Ken and Kim got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,700 per month. 
D) None of the above transactions adds to U.S. GDP for 2015.

Question 6

For an economy as a whole, income must equal expenditure because

Accepted Answer

A) the number of firms is equal to the number of households in an economy. 
B) individuals can only spend what they earn each period. 
C) every dollar of spending by some buyer is a dollar of income for some seller. 
D) every dollar of saving by some consumer is a dollar of spending by some other consumer. 
A) the number of firms is equal to the number of households in an economy. 
B) individuals can only spend what they earn each period. 
C) every dollar of spending by some buyer is a dollar of income for some seller. 
D) every dollar of saving by some consumer is a dollar of spending by some other consumer.

Question 7

An economy's income is the same as its expenditure because every transaction has a buyer and a seller.

Accepted Answer

A) True 
 B)False

Exam 23: Measuring a Nation S Income

Gross domestic product measures

GDP is a good measure of economic well-being for all purposes.

Tyler and Camille both live in Oklahoma. A new-car dealer in Oklahoma bought a new car from the manufacturer for $18,000 and sold it to Tyler for $22,000. Later that year, Tyler sold the car to Camille for $17,000. By how much did these transactions contribute to U.S. GDP for the year?

Table 23-2 The table below contains data for country A for the year 2010. -Refer to Table 23-2. What was country A's investment in 2010?

Which of the following transactions adds to U.S. GDP for 2015?

For an economy as a whole, income must equal expenditure because

An economy's income is the same as its expenditure because every transaction has a buyer and a seller.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Applications: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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