Question 1

-Using the data in the table above, gross domestic product equals

Accepted Answer

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

Question 2

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 entered a recession in 2005. 
B)  Uruguay's standard of living increased steadily between 2000 and 2008. 
C)  potential GDP more than doubled between 2000 and 2008. 
D)  Uruguay's economy reached a trough in 2002. 
A)  Uruguay's economy entered a recession in 2005. 
B)  Uruguay's standard of living increased steadily between 2000 and 2008. 
C)  potential GDP more than doubled between 2000 and 2008. 
D)  Uruguay's economy reached a trough in 2002.

Question 3

Which of the following items is NOT a component of the income approach to measuring U.S. GDP?

Accepted Answer

A)  interest earned on savings deposits 
B)  profits made by businesses 
C)  income earned by businesses that export goods 
D)  investment 
A)  interest earned on savings deposits 
B)  profits made by businesses 
C)  income earned by businesses that export goods 
D)  investment

Question 4

The income approach to measuring GDP

Accepted Answer

A)  determines the cost of production, then adjusts it to equal the market value of production. 
B)  sums all incomes earned in the United States and makes no other adjustments because other adjustments are not necessary. 
C)  measures the cost of producing GDP rather than the market value. 
D)  sums the value at each stage of production plus the value of depreciation. 
A)  determines the cost of production, then adjusts it to equal the market value of production. 
B)  sums all incomes earned in the United States and makes no other adjustments because other adjustments are not necessary. 
C)  measures the cost of producing GDP rather than the market value. 
D)  sums the value at each stage of production plus the value of depreciation.

Question 5

To see how variables evolve over time we use

Accepted Answer

A)  a scatter graph. 
B)  an evolution plot. 
C)  a cross-section plot. 
D)  a time-series graph. 
A)  a scatter graph. 
B)  an evolution plot. 
C)  a cross-section plot. 
D)  a time-series graph.

Question 6

Explain how underground economic activity affects measurement of GDP.

Accepted Answer

The underground economy is transactions

Question 7

-Using the information in the table above, calculate gross domestic product.

Accepted Answer

A)  $118 
B)  $108 
C)  $86 
D)  $78 
A)  $118 
B)  $108 
C)  $86 
D)  $78

Question 8

Which one of the following transactions in a particular year is included in gross domestic product for that year?

Accepted Answer

A)  Social Security payments to retirees 
B)  The government pays a computer services company that assisted in the delivery of Social Security payments to retirees. 
C)  A car is produced in the previous year and remains in inventory for the entire year under consideration. 
D)  A stay-at-home parent performs housework that the family would otherwise have paid a maid $20,000 a year to perform. 
A)  Social Security payments to retirees 
B)  The government pays a computer services company that assisted in the delivery of Social Security payments to retirees. 
C)  A car is produced in the previous year and remains in inventory for the entire year under consideration. 
D)  A stay-at-home parent performs housework that the family would otherwise have paid a maid $20,000 a year to perform.

Question 9

Nominal GDP is the value of final goods and services

Accepted Answer

A)  at the prices of that year. 
B)  at the prices of the immediately previous year. 
C)  at the prices of a base year. 
D)  produced in foreign countries but consumed in the domestic country. 
A)  at the prices of that year. 
B)  at the prices of the immediately previous year. 
C)  at the prices of a base year. 
D)  produced in foreign countries but consumed in the domestic country.

Question 10

Which of the following is a component of the incomes approach to GDP?

Accepted Answer

A)  consumption expenditure 
B)  wages and salaries 
C)  investment 
D)  government expenditure on goods and services 
A)  consumption expenditure 
B)  wages and salaries 
C)  investment 
D)  government expenditure on goods and services

Question 11

A time-series graph showing total production in Japan from 1960 to 2015 shows a positive trend. It is the case that total production

Accepted Answer

A)  fell every year between 1960 and 2015. 
B)  rose every year between 1960 and 2015. 
C)  was lower in 2015 than in 1960. 
D)  was higher in 2015 than in 1960. 
A)  fell every year between 1960 and 2015. 
B)  rose every year between 1960 and 2015. 
C)  was lower in 2015 than in 1960. 
D)  was higher in 2015 than in 1960.

Question 12

Real Gross Domestic Product is

Accepted Answer

A)  the amount of people unemployed divided by the total labor force. 
B)  the productivity of labor. 
C)  the most that can be produced when the economy's resources are fully employed. 
D)  the value of total production linked back to the prices of a single year. 
A)  the amount of people unemployed divided by the total labor force. 
B)  the productivity of labor. 
C)  the most that can be produced when the economy's resources are fully employed. 
D)  the value of total production linked back to the prices of a single year.

Question 13

An expansion ends when the economy hits a trough and then enters a recession.

Accepted Answer

A) True 
 B)False

Question 14

In the country of Darrowby, net domestic income at factor cost is $2.0 million. Gross domestic product is $3.0 million, and depreciation is $0.5 million. Indirect taxes less subsidies

Accepted Answer

A)  are $1 million. 
B)  are $0.5 million. 
C)  cannot be calculated. 
D)  are -$0.5 million. 
A)  are $1 million. 
B)  are $0.5 million. 
C)  cannot be calculated. 
D)  are -$0.5 million.

Question 15

Real GDP is

Accepted Answer

A)  an increase in the average level of prices. 
B)  the value of total production when the unemployment rate is 6 percent. 
C)  the value of total production of all the nation's farms, factories, shops and offices measured in the prices of a single year. 
D)  the value of total production of all the nation's farms, factories, shops and offices measured at the prices of the year it was produced. 
A)  an increase in the average level of prices. 
B)  the value of total production when the unemployment rate is 6 percent. 
C)  the value of total production of all the nation's farms, factories, shops and offices measured in the prices of a single year. 
D)  the value of total production of all the nation's farms, factories, shops and offices measured at the prices of the year it was produced.

Question 16

The five categories of income used in the income approach to the measurement of GDP are

Accepted Answer

A)  consumption, saving, rental income, corporate profits, and investment. 
B)  employee compensation, net interest, rental income, corporate profits, and proprietor's income. 
C)  employee compensation, consumption, rental income, corporate profits, and proprietor's income. 
D)  employee compensation, saving, rental income, corporate profits, and investment. 
A)  consumption, saving, rental income, corporate profits, and investment. 
B)  employee compensation, net interest, rental income, corporate profits, and proprietor's income. 
C)  employee compensation, consumption, rental income, corporate profits, and proprietor's income. 
D)  employee compensation, saving, rental income, corporate profits, and investment.

Question 17

The fact that prices for similar goods differ across nations complicates comparisons of real GDP across countries.

Accepted Answer

A) True 
 B)False

Question 18

In 2017, Ozzie purchased a 2014 Ford Escort from his neighbor for his son, purchased a 2013 "one owner" Camry from Larchmont Toyota for his wife, bought a 2017 new Ford for himself, and sold his 2006 Dodge Caravan to his teenage nephew. Which, if any, of these transactions will be included in GDP in 2017?

Accepted Answer

A)  all four transactions 
B)  all three purchases but not the sale 
C)  the purchase of the Ford and the Caravan 
D)  only the purchase of the Ford 
A)  all four transactions 
B)  all three purchases but not the sale 
C)  the purchase of the Ford and the Caravan 
D)  only the purchase of the Ford

Question 19

The times during which real GDP increases are referred to as

Accepted Answer

A)  contractions. 
B)  expansions. 
C)  anti-cycles. 
D)  corrections. 
A)  contractions. 
B)  expansions. 
C)  anti-cycles. 
D)  corrections.

Question 20

In the United States, GDP is typically measured

Accepted Answer

A)  monthly. 
B)  quarterly. 
C)  daily. 
D)  weekly. 
A)  monthly. 
B)  quarterly. 
C)  daily. 
D)  weekly.

-Using the data in the table above, gross domestic product equals

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

Which of the following items is NOT a component of the income approach to measuring U.S. GDP?

The income approach to measuring GDP

To see how variables evolve over time we use

Explain how underground economic activity affects measurement of GDP.

-Using the information in the table above, calculate gross domestic product.

Which one of the following transactions in a particular year is included in gross domestic product for that year?

Nominal GDP is the value of final goods and services

Which of the following is a component of the incomes approach to GDP?

A time-series graph showing total production in Japan from 1960 to 2015 shows a positive trend. It is the case that total production

Real Gross Domestic Product is

An expansion ends when the economy hits a trough and then enters a recession.

In the country of Darrowby, net domestic income at factor cost is $2.0 million. Gross domestic product is $3.0 million, and depreciation is $0.5 million. Indirect taxes less subsidies

Real GDP is

The five categories of income used in the income approach to the measurement of GDP are

The fact that prices for similar goods differ across nations complicates comparisons of real GDP across countries.

The times during which real GDP increases are referred to as

In the United States, GDP is typically measured

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

-Using the data in the table above, gross domestic product equals

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

Which of the following items is NOT a component of the income approach to measuring U.S. GDP?

The income approach to measuring GDP

To see how variables evolve over time we use

Explain how underground economic activity affects measurement of GDP.

-Using the information in the table above, calculate gross domestic product.

Which one of the following transactions in a particular year is included in gross domestic product for that year?

Nominal GDP is the value of final goods and services

Which of the following is a component of the incomes approach to GDP?

A time-series graph showing total production in Japan from 1960 to 2015 shows a positive trend. It is the case that total production

Real Gross Domestic Product is

An expansion ends when the economy hits a trough and then enters a recession.

In the country of Darrowby, net domestic income at factor cost is $2.0 million. Gross domestic product is $3.0 million, and depreciation is $0.5 million. Indirect taxes less subsidies

Real GDP is

The five categories of income used in the income approach to the measurement of GDP are

The fact that prices for similar goods differ across nations complicates comparisons of real GDP across countries.

The times during which real GDP increases are referred to as

In the United States, GDP is typically measured

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