Question 1

How does the income approach measure GDP?

Accepted Answer

The incomes approach adds the compensati

Question 2

-Using the above figure, during which of the following periods does the price of crude oil have a downward trend?

Accepted Answer

A)  May to July 
B)  May to November 
C)  July to October 
D)  October to December 
A)  May to July 
B)  May to November 
C)  July to October 
D)  October to December

Question 3

In any year, real GDP

Accepted Answer

A)  must always be less than potential GDP. 
B)  might be greater or less than potential GDP. 
C)  will be greater than potential GDP if the inflation rate is positive. 
D)  always equals potential GDP. 
A)  must always be less than potential GDP. 
B)  might be greater or less than potential GDP. 
C)  will be greater than potential GDP if the inflation rate is positive. 
D)  always equals potential GDP.

Question 4

Intermediate goods and services are one of the largest components of the expenditure approach to measuring GDP.

Accepted Answer

A) True 
 B)False

Question 5

The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called

Accepted Answer

A)  real GDP. 
B)  nominal GDP. 
C)  actual GDP. 
D)  potential GDP. 
A)  real GDP. 
B)  nominal GDP. 
C)  actual GDP. 
D)  potential GDP.

Question 6

-The above table gives data for a hypothetical nation. Gross domestic product is

Accepted Answer

A)  $4,049 billion. 
B)  $4,079 billion. 
C)  $4,054 billion. 
D)  $4,339 billion. 
A)  $4,049 billion. 
B)  $4,079 billion. 
C)  $4,054 billion. 
D)  $4,339 billion.

Question 7

Explain the business cycle by describing the phases and turning points.

Accepted Answer

The business cycle has two phases, the e

Question 8

-Using the data in the above table, gross domestic product as calculated by the income approach equals

Accepted Answer

A)  $2,333. 
B)  $2,592. 
C)  $2,925. 
D)  $2,205. 
A)  $2,333. 
B)  $2,592. 
C)  $2,925. 
D)  $2,205.

Question 9

Transfer payments

Accepted Answer

A)  are included in the government expenditure category in gross domestic product. 
B)  refer to all payments made to households by governments. 
C)  refer to payments made by the government that are not made to purchase a good or service. 
D)  are made by households to firms in exchange for goods and services. 
A)  are included in the government expenditure category in gross domestic product. 
B)  refer to all payments made to households by governments. 
C)  refer to payments made by the government that are not made to purchase a good or service. 
D)  are made by households to firms in exchange for goods and services.

Question 10

An indirect tax is a tax paid by consumers

Accepted Answer

A)  to a state or local government. 
B)  when they purchase goods and services. 
C)  on unearned income (as opposed to wages and salaries). 
D)  that is a percentage of the value of their real property. 
A)  to a state or local government. 
B)  when they purchase goods and services. 
C)  on unearned income (as opposed to wages and salaries). 
D)  that is a percentage of the value of their real property.

Question 11

Which of the following are equal to one another?
I. aggregate production
II. aggregate expenditure
III. aggregate income

Accepted Answer

A)  I equals II, but not III. 
B)  I equals III, but not II. 
C)  II equals III, but not I. 
D)  I equals II equals III. 
A)  I equals II, but not III. 
B)  I equals III, but not II. 
C)  II equals III, but not I. 
D)  I equals II equals III.

Question 12

-Using the information in the table above, depreciation equals

Accepted Answer

A)  -$90 billion. 
B)  $90 billion. 
C)  -$70 billion. 
D)  some amount that cannot be determined. 
A)  -$90 billion. 
B)  $90 billion. 
C)  -$70 billion. 
D)  some amount that cannot be determined.

Question 13

What term is used to describe the lowest point of a business cycle?

Accepted Answer

A)  peak 
B)  trough 
C)  expansion 
D)  recession 
A)  peak 
B)  trough 
C)  expansion 
D)  recession

Question 14

Two methods of measuring GDP are

Accepted Answer

A)  the income approach and the expenditure approach. 
B)  the income approach and the receipts approach. 
C)  the goods approach and the services approach. 
D)  the saving approach and the investment approach. 
A)  the income approach and the expenditure approach. 
B)  the income approach and the receipts approach. 
C)  the goods approach and the services approach. 
D)  the saving approach and the investment approach.

Question 15

An indirect tax is exemplified by

Accepted Answer

A)  an income tax. 
B)  a sales tax. 
C)  a subsidy. 
D)  None of the above answers is correct. 
A)  an income tax. 
B)  a sales tax. 
C)  a subsidy. 
D)  None of the above answers is correct.

How does the income approach measure GDP?

-Using the above figure, during which of the following periods does the price of crude oil have a downward trend?

In any year, real GDP

Intermediate goods and services are one of the largest components of the expenditure approach to measuring GDP.

The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called

-The above table gives data for a hypothetical nation. Gross domestic product is

Explain the business cycle by describing the phases and turning points.

-Using the data in the above table, gross domestic product as calculated by the income approach equals

Transfer payments

An indirect tax is a tax paid by consumers

Which of the following are equal to one another? I. aggregate production II. aggregate expenditure III. aggregate income

-Using the information in the table above, depreciation equals

What term is used to describe the lowest point of a business cycle?

Two methods of measuring GDP are

An indirect tax is exemplified by

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

How does the income approach measure GDP?

-Using the above figure, during which of the following periods does the price of crude oil have a downward trend?

In any year, real GDP

Intermediate goods and services are one of the largest components of the expenditure approach to measuring GDP.

The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called

-The above table gives data for a hypothetical nation. Gross domestic product is

Explain the business cycle by describing the phases and turning points.

-Using the data in the above table, gross domestic product as calculated by the income approach equals

Transfer payments

An indirect tax is a tax paid by consumers

Which of the following are equal to one another? I. aggregate production II. aggregate expenditure III. aggregate income

-Using the information in the table above, depreciation equals

What term is used to describe the lowest point of a business cycle?

Two methods of measuring GDP are

An indirect tax is exemplified by

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