Question 1

-In the above figure, the diagram shows

Accepted Answer

A)  a downward trend in x. 
B)  an upward trend in x. 
C)  a scatter diagram. 
D)  a two-variable scatter diagram. 
A)  a downward trend in x. 
B)  an upward trend in x. 
C)  a scatter diagram. 
D)  a two-variable scatter diagram.

Question 2

-In the above figure, which point represents the under use of resources?

Accepted Answer

A)  point F 
B)  point G 
C)  point H 
D)  point K 
A)  point F 
B)  point G 
C)  point H 
D)  point K

Question 3

-In the above figure, the distance between points T and U 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 4

When calculating the compensation of employees part of GDP

Accepted Answer

A)  Social Security contributions must be included. 
B)  fringe benefits are not included. 
C)  taxes withheld on earnings are not included. 
D)  the value of vacation time must be included. 
A)  Social Security contributions must be included. 
B)  fringe benefits are not included. 
C)  taxes withheld on earnings are not included. 
D)  the value of vacation time must be included.

Question 5

-Using the data in the above table, net private domestic investment equals

Accepted Answer

A)  $210. 
B)  $260. 
C)  $510. 
D)  some amount that cannot be determined without more information. 
A)  $210. 
B)  $260. 
C)  $510. 
D)  some amount that cannot be determined without more information.

Question 6

Government expenditures included in the expenditure approach to GDP include

Accepted Answer

A)  Social Security and education. 
B)  net exports. 
C)  buying a new bomber. 
D)  Both answers A and C are correct. 
A)  Social Security and education. 
B)  net exports. 
C)  buying a new bomber. 
D)  Both answers A and C are correct.

Question 7

The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euros, in constant prices): 2006 2007
Consumption 84,000 89,000
Government expenditure 24,000 26,000
Investment 48,000 48,000
Exports 142,000 151,000
Imports 123,000 128,000
Subsidies 1,800 1,900
Taxes 500 500
In 2007, Ireland's net exports was ________ million euros.

Accepted Answer

A)  23,000 
B)  -23,000 
C)  279,000 
D)  149,100 
A)  23,000 
B)  -23,000 
C)  279,000 
D)  149,100

Question 8

Assume a small nation has the following statistics: its consumption expenditure is $15 million, investment is $2 million, government purchases of goods and services is $1 million, exports of goods and services to foreigners is $1 million, and imports of goods and services from foreigners is $1.5 million. Calculate this nation's GDP.

Accepted Answer

The nation's GDP equals the sum of consu

Question 9

The low point of economic activity during a business cycle is called the

Accepted Answer

A)  trough. 
B)  recession. 
C)  peak. 
D)  failure. 
A)  trough. 
B)  recession. 
C)  peak. 
D)  failure.

Question 10

Which of the following is NOT one of the components for computing GDP based upon the income approach?

Accepted Answer

A)  investment 
B)  corporate profits 
C)  compensation of employees 
D)  net interest 
A)  investment 
B)  corporate profits 
C)  compensation of employees 
D)  net interest

Question 11

An expansion

Accepted Answer

A)  follows a peak. 
B)  is defined as a period of negative real GDP growth. 
C)  comes just before a trough. 
D)  is defined as a period of real GDP increases. 
A)  follows a peak. 
B)  is defined as a period of negative real GDP growth. 
C)  comes just before a trough. 
D)  is defined as a period of real GDP increases.

Question 12

Real GDP

Accepted Answer

A)  fluctuates from year to year but is always below potential GDP. 
B)  fluctuates around potential GDP. 
C)  grows at a constant 3 to 4 percent per year. 
D)  can be called potential GDP when it is adjusted for price changes. 
A)  fluctuates from year to year but is always below potential GDP. 
B)  fluctuates around potential GDP. 
C)  grows at a constant 3 to 4 percent per year. 
D)  can be called potential GDP when it is adjusted for price changes.

Question 13

________ refers to a period when the ________ decreases.

Accepted Answer

A)  Recession; growth rate of nominal GDP 
B)  Recession; growth rate of output per person 
C)  Productivity growth slowdown; growth rate of real GDP 
D)  Productivity growth slowdown; growth rate of output per person 
A)  Recession; growth rate of nominal GDP 
B)  Recession; growth rate of output per person 
C)  Productivity growth slowdown; growth rate of real GDP 
D)  Productivity growth slowdown; growth rate of output per person

Question 14

Net investment is the

Accepted Answer

A)  total amount of gross investment minus depreciation. 
B)  value of software and other network related products. 
C)  profit or loss in the stock market. 
D)  value of the depreciated capital multiplied by the changes in the price level. 
A)  total amount of gross investment minus depreciation. 
B)  value of software and other network related products. 
C)  profit or loss in the stock market. 
D)  value of the depreciated capital multiplied by the changes in the price level.

Question 15

Potential GDP is

Accepted Answer

A)  another name for real GDP. 
B)  always different from real GDP. 
C)  the level of GDP not adjusted for price changes. 
D)  the maximum amount of GDP that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation. 
A)  another name for real GDP. 
B)  always different from real GDP. 
C)  the level of GDP not adjusted for price changes. 
D)  the maximum amount of GDP that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation.

Question 16

Which of the following is CORRECT about a time-series graph?
I. The x-axis measures time.
II. A time-series graph can reveal if there is a trend in the variable.

Accepted Answer

A)  only I 
B)  only II 
C)  both I and II 
D)  neither I nor II 
A)  only I 
B)  only II 
C)  both I and II 
D)  neither I nor II

Question 17

-The table above shows the transaction in Pinkland last year:
a) Calculate Pinkland's GDP.
b) What approach did you use to make this calculation?

Accepted Answer

a) GDP = C + I + G + (X - M) =

Question 18

-According to the graph in the figure above, which year experienced the most rapid change in employment?

Accepted Answer

A)  Year 2 
B)  Year 3 
C)  Year 4 
D)  Year 5 
A)  Year 2 
B)  Year 3 
C)  Year 4 
D)  Year 5

Question 19

Transfer payments are not part of government expenditure on goods and services because transfer payments

Accepted Answer

A)  are not predictable given the nature of their appropriation and allocation. 
B)  do not represent the purchase of a final good or service. 
C)  are not always spent on goods produced in the U.S. 
D)  The premise of the question is incorrect because transfer payments are part of government purchases of goods and services. 
A)  are not predictable given the nature of their appropriation and allocation. 
B)  do not represent the purchase of a final good or service. 
C)  are not always spent on goods produced in the U.S. 
D)  The premise of the question is incorrect because transfer payments are part of government purchases of goods and services.

Question 20

Which of the following transfer payments is included in GDP?

Accepted Answer

A)  Social Security payments 
B)  welfare payments 
C)  veteran's benefits 
D)  none of the above 
A)  Social Security payments 
B)  welfare payments 
C)  veteran's benefits 
D)  none of the above

-In the above figure, the diagram shows

-In the above figure, which point represents the under use of resources?

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

When calculating the compensation of employees part of GDP

-Using the data in the above table, net private domestic investment equals

Government expenditures included in the expenditure approach to GDP include

The low point of economic activity during a business cycle is called the

Which of the following is NOT one of the components for computing GDP based upon the income approach?

An expansion

Real GDP

refers to a period when the decreases.

Net investment is the

Potential GDP is

Which of the following is CORRECT about a time-series graph? I. The x-axis measures time. II. A time-series graph can reveal if there is a trend in the variable.

-The table above shows the transaction in Pinkland last year: a) Calculate Pinkland's GDP. b) What approach did you use to make this calculation?

-According to the graph in the figure above, which year experienced the most rapid change in employment?

Transfer payments are not part of government expenditure on goods and services because transfer payments

Which of the following transfer payments is included in GDP?

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 diagram shows

-In the above figure, which point represents the under use of resources?

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

When calculating the compensation of employees part of GDP

-Using the data in the above table, net private domestic investment equals

Government expenditures included in the expenditure approach to GDP include

The low point of economic activity during a business cycle is called the

Which of the following is NOT one of the components for computing GDP based upon the income approach?

An expansion

Real GDP

________ refers to a period when the ________ decreases.

Net investment is the

Potential GDP is

Which of the following is CORRECT about a time-series graph? I. The x-axis measures time. II. A time-series graph can reveal if there is a trend in the variable.

-The table above shows the transaction in Pinkland last year: a) Calculate Pinkland's GDP. b) What approach did you use to make this calculation?

-According to the graph in the figure above, which year experienced the most rapid change in employment?

Transfer payments are not part of government expenditure on goods and services because transfer payments

Which of the following transfer payments is included in GDP?

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

refers to a period when the decreases.