Question 1

-In the above figure, the distance between points S and T represents

Accepted Answer

A)  an expansion. 
B)  a trough. 
C)  a peak. 
D)  a recession. 
A)  an expansion. 
B)  a trough. 
C)  a peak. 
D)  a recession.

Question 2

Explain how GDP is measured according to the expenditure and income approaches.

Accepted Answer

GDP is measured using the expenditure ap

Question 3

GDP using the expenditure approach equals the sum of personal consumption expenditures plus

Accepted Answer

A)  gross private investment. 
B)  gross private investment plus government expenditure on goods and services. 
C)  gross private investment plus government expenditure on goods and services minus imports of goods and services. 
D)  gross private investment plus government expenditure on goods and services plus net exports of goods and services. 
A)  gross private investment. 
B)  gross private investment plus government expenditure on goods and services. 
C)  gross private investment plus government expenditure on goods and services minus imports of goods and services. 
D)  gross private investment plus government expenditure on goods and services plus net exports of goods and services.

Question 4

The approach to GDP that sums compensation of employees, rental income, corporate profits, net interest, proprietors' income, depreciation, and indirect taxes and subtracts subsidies is the

Accepted Answer

A)  opportunity cost approach. 
B)  expenditure approach. 
C)  added cost approach. 
D)  income approach. 
A)  opportunity cost approach. 
B)  expenditure approach. 
C)  added cost approach. 
D)  income approach.

Question 5

A time-series graph reveals whether there is a ________ which represents ________.

Accepted Answer

A)  trend in a variable; a general tendency for the variable to rise or fall 
B)  relationship between two variables; a cross-section graph 
C)  trend in a variable; unrelated variables 
D)  relationship between two variables; a trend in a variable 
A)  trend in a variable; a general tendency for the variable to rise or fall 
B)  relationship between two variables; a cross-section graph 
C)  trend in a variable; unrelated variables 
D)  relationship between two variables; a trend in a variable

Question 6

Gross domestic product is a measure of the total value of all

Accepted Answer

A)  sales in an economy over a period of time. 
B)  consumer income in an economy over a period of time. 
C)  capital accumulation in an economy over a period of time. 
D)  final goods and services produced in an economy over a period of time. 
A)  sales in an economy over a period of time. 
B)  consumer income in an economy over a period of time. 
C)  capital accumulation in an economy over a period of time. 
D)  final goods and services produced in an economy over a period of time.

Question 7

GDP is defined as the market value of all ________ in a given time period.

Accepted Answer

A)  final goods produced in a country 
B)  final goods and services produced by citizens of a particular country regardless of where in the world they are located 
C)  final goods and services produced in a country by only the citizens of the country 
D)  final goods and services produced in a country 
A)  final goods produced in a country 
B)  final goods and services produced by citizens of a particular country regardless of where in the world they are located 
C)  final goods and services produced in a country by only the citizens of the country 
D)  final goods and services produced in a country

Question 8

Which of the following items is NOT part of government expenditure on goods and services in the GDP accounts?

Accepted Answer

A)  gasoline purchases for government car pools 
B)  Social Security expenditures 
C)  new computer hardware for use by the IRS 
D)  drapes to brighten up the president's office 
A)  gasoline purchases for government car pools 
B)  Social Security expenditures 
C)  new computer hardware for use by the IRS 
D)  drapes to brighten up the president's office

Question 9

If a larger fraction of the adult population is working in the marketplace, household production

Accepted Answer

A)  counted in real GDP increases. 
B)  not counted in real GDP increases. 
C)  counted in real GDP decreases. 
D)  not counted in real GDP decreases. 
A)  counted in real GDP increases. 
B)  not counted in real GDP increases. 
C)  counted in real GDP decreases. 
D)  not counted in real GDP decreases.

Question 10

Which of the following is TRUE regarding the circular flow diagram?
I. "Aggregate income" is the flow of income earned by firms.
II. Retained earnings are considered income earned by firms rather than part of households' income.
III. The government, households, and firms all have transactions in the goods market.

Accepted Answer

A)  I only 
B)  I and II 
C)  I and III 
D)  III only 
A)  I only 
B)  I and II 
C)  I and III 
D)  III only

Question 11

In calculating GDP, household production is

Accepted Answer

A)  included as part of consumption. 
B)  ignored because it is not a large amount. 
C)  not included because there is no market transaction. 
D)  included under employee compensation. 
A)  included as part of consumption. 
B)  ignored because it is not a large amount. 
C)  not included because there is no market transaction. 
D)  included under employee compensation.

Question 12

What kind of information is conveyed in a time-series graph?

Accepted Answer

A time series graph reveals four types o

Question 13

GDP equals

Accepted Answer

A)  C + S + G + (X + M). 
B)  C + I + G + (X + M). 
C)  C + I + G + (X - M). 
D)  C + S + G + (X - M). 
A)  C + S + G + (X + M). 
B)  C + I + G + (X + M). 
C)  C + I + G + (X - M). 
D)  C + S + G + (X - M).

Question 14

What is the relationship shown by the circular flow among income, total expenditure, and GDP?

Accepted Answer

They are all equal. The value of product

Question 15

When calculating GDP, underground economic activity is

Accepted Answer

A)  the production of goods and services in the home. 
B)  that portion of the time when we are enjoying leisure activities and not producing marketable goods. 
C)  the part of the economy purposely hidden. 
D)  an aspect of the quality of life, such as health and life expectancy. 
A)  the production of goods and services in the home. 
B)  that portion of the time when we are enjoying leisure activities and not producing marketable goods. 
C)  the part of the economy purposely hidden. 
D)  an aspect of the quality of life, such as health and life expectancy.

Question 16

The following data show Uruguay's GDP using purchasing power parity in billions of dollars. Year 2000 2001 2002 2003 2004 2005 2006 2007 2008
GDP($) 26.1 25.8 23.3 24.3 27.9 30.1 33.9 37.2 40.2
Using the data, we can conclude that

Accepted Answer

A)  Uruguay's economy reached a peak in 2000. 
B)  GDP per person in Uruguay almost doubled between 2000 and 2008. 
C)  potential GDP in Uruguay doubled between 2000 and 2008. 
D)  Uruguay's economy was entered a recession in 2008. 
A)  Uruguay's economy reached a peak in 2000. 
B)  GDP per person in Uruguay almost doubled between 2000 and 2008. 
C)  potential GDP in Uruguay doubled between 2000 and 2008. 
D)  Uruguay's economy was entered a recession in 2008.

Question 17

In the national income accounts, government expenditure on goods and services exclude

Accepted Answer

A)  transfer payments. 
B)  state and local government purchases. 
C)  local government purchases but include state government purchases. 
D)  spending on national defense. 
A)  transfer payments. 
B)  state and local government purchases. 
C)  local government purchases but include state government purchases. 
D)  spending on national defense.

Question 18

GDP equals

Accepted Answer

A)  aggregate expenditure. 
B)  aggregate income. 
C)  the value of the aggregate production in a country during a given time period. 
D)  all of the above. 
A)  aggregate expenditure. 
B)  aggregate income. 
C)  the value of the aggregate production in a country during a given time period. 
D)  all of the above.

Question 19

List and explain the two phases and two turning points of the business cycle.

Accepted Answer

The economy is defined as being an expan

Question 20

-From the data in the above table, GDP equals

Accepted Answer

A)  $1,120. 
B)  $1,280. 
C)  $1,290. 
D)  $1,360. 
A)  $1,120. 
B)  $1,280. 
C)  $1,290. 
D)  $1,360.

-In the above figure, the distance between points S and T represents

Explain how GDP is measured according to the expenditure and income approaches.

GDP using the expenditure approach equals the sum of personal consumption expenditures plus

The approach to GDP that sums compensation of employees, rental income, corporate profits, net interest, proprietors' income, depreciation, and indirect taxes and subtracts subsidies is the

A time-series graph reveals whether there is a which represents .

Gross domestic product is a measure of the total value of all

GDP is defined as the market value of all ________ in a given time period.

Which of the following items is NOT part of government expenditure on goods and services in the GDP accounts?

If a larger fraction of the adult population is working in the marketplace, household production

In calculating GDP, household production is

What kind of information is conveyed in a time-series graph?

GDP equals

What is the relationship shown by the circular flow among income, total expenditure, and GDP?

When calculating GDP, underground economic activity is

The following data show Uruguay's GDP using purchasing power parity in billions of dollars. Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 GDP($) 26.1 25.8 23.3 24.3 27.9 30.1 33.9 37.2 40.2 Using the data, we can conclude that

In the national income accounts, government expenditure on goods and services exclude

GDP equals

List and explain the two phases and two turning points of the business cycle.

-From the data in the above table, GDP equals

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 the above figure, the distance between points S and T represents

Explain how GDP is measured according to the expenditure and income approaches.

GDP using the expenditure approach equals the sum of personal consumption expenditures plus

The approach to GDP that sums compensation of employees, rental income, corporate profits, net interest, proprietors' income, depreciation, and indirect taxes and subtracts subsidies is the

A time-series graph reveals whether there is a ________ which represents ________.

Gross domestic product is a measure of the total value of all

GDP is defined as the market value of all ________ in a given time period.

Which of the following items is NOT part of government expenditure on goods and services in the GDP accounts?

If a larger fraction of the adult population is working in the marketplace, household production

In calculating GDP, household production is

What kind of information is conveyed in a time-series graph?

GDP equals

What is the relationship shown by the circular flow among income, total expenditure, and GDP?

When calculating GDP, underground economic activity is

The following data show Uruguay's GDP using purchasing power parity in billions of dollars. Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 GDP($) 26.1 25.8 23.3 24.3 27.9 30.1 33.9 37.2 40.2 Using the data, we can conclude that

In the national income accounts, government expenditure on goods and services exclude

GDP equals

List and explain the two phases and two turning points of the business cycle.

-From the data in the above table, GDP equals

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

A time-series graph reveals whether there is a which represents .