Question 1

Explain the difference between the capital stock, gross investment, depreciation, and net investment.

Accepted Answer

The capital stock is the total quantity

Question 2

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

Accepted Answer

A)  $250. 
B)  $260. 
C)  $460. 
D)  some amount that cannot be determined without more information. 
A)  $250. 
B)  $260. 
C)  $460. 
D)  some amount that cannot be determined without more information.

Question 3

Is every product produced in the United States included in U.S. gross domestic product?

Accepted Answer

No, not every product produced is includ

Question 4

The difference between gross investment and net investment is

Accepted Answer

A)  inflation. 
B)  depreciation. 
C)  initial capital. 
D)  consumption. 
A)  inflation. 
B)  depreciation. 
C)  initial capital. 
D)  consumption.

Question 5

Which, if any, of the following causes a country's reported GDP to be less than its total economic production?

Accepted Answer

A)  the exclusion of household production 
B)  the exclusion of government transfers 
C)  the inclusion of government expenditures 
D)  None of the above cause reported GDP to be less than total production. 
A)  the exclusion of household production 
B)  the exclusion of government transfers 
C)  the inclusion of government expenditures 
D)  None of the above cause reported GDP to be less than total production.

Question 6

The circular flow diagram shows that

Accepted Answer

A)  the flow of payments to the factors used to produce goods and services exceeds the flow of payments for final goods and services. 
B)  goods and factor markets are independent. 
C)  the total amount of income generated by the economy equals the total purchases of final goods and services. 
D)  consumption expenditure equals saving. 
A)  the flow of payments to the factors used to produce goods and services exceeds the flow of payments for final goods and services. 
B)  goods and factor markets are independent. 
C)  the total amount of income generated by the economy equals the total purchases of final goods and services. 
D)  consumption expenditure equals saving.

Question 7

-In the above figure, a trough is at point ________ and a peak is at point ________.

Accepted Answer

A)  a; b 
B)  b; c 
C)  b; a 
D)  d; c 
A)  a; b 
B)  b; c 
C)  b; a 
D)  d; c

Question 8

Two reasons why valuing goods at their market prices is different than valuing them at their factor costs include

Accepted Answer

A)  depreciation and investment. 
B)  exports and imports. 
C)  personal taxes and corporate taxes. 
D)  indirect taxes and subsidies. 
A)  depreciation and investment. 
B)  exports and imports. 
C)  personal taxes and corporate taxes. 
D)  indirect taxes and subsidies.

Question 9

Which of the following is included in the category of corporate profits when measuring GDP?
I. Profits paid as dividends.
II. Undistributed profits.
III. Income received by owners and operators of businesses.

Accepted Answer

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

Question 10

The circular flow of income shows that

Accepted Answer

A)  households transact only in the goods market. 
B)  governments purchase goods and services. 
C)  firms generally are the demanders in the goods markets and suppliers in the factor markets. 
D)  None of the above answers is correct. 
A)  households transact only in the goods market. 
B)  governments purchase goods and services. 
C)  firms generally are the demanders in the goods markets and suppliers in the factor markets. 
D)  None of the above answers is correct.

Question 11

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)  the standard of living did not change in Uruguay between 2000 and 2008. 
B)  Uruguay entered a recession in 2001. 
C)  potential GDP decreased in 2001. 
D)  Uruguay's economy reached a peak in 2005. 
A)  the standard of living did not change in Uruguay between 2000 and 2008. 
B)  Uruguay entered a recession in 2001. 
C)  potential GDP decreased in 2001. 
D)  Uruguay's economy reached a peak in 2005.

Question 12

Which of the following is NOT part of GDP calculated using the expenditure approach?

Accepted Answer

A)  General Motors' purchases of new capital equipment 
B)  expenditures by the federal government for national defense 
C)  Social Security payments made to the elderly 
D)  the purchase of new homes by consumers 
A)  General Motors' purchases of new capital equipment 
B)  expenditures by the federal government for national defense 
C)  Social Security payments made to the elderly 
D)  the purchase of new homes by consumers

Question 13

It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexico's population was 104 million and GDP was $839 billion. Per GDP person ________ by ________ between 2006 and 2007 in Mexico.

Accepted Answer

A)  increased; $1,038 
B)  increased; 5 percent 
C)  decreased; $2,013 
D)  decreased; 5 percent 
A)  increased; $1,038 
B)  increased; 5 percent 
C)  decreased; $2,013 
D)  decreased; 5 percent

Question 14

Potential GDP

Accepted Answer

A)  measures the actual production from year to year. 
B)  measures the maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation. 
C)  is cyclical. 
D)  Both answers A and C are correct. 
A)  measures the actual production from year to year. 
B)  measures the maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation. 
C)  is cyclical. 
D)  Both answers A and C are correct.

Question 15

Suppose an economy has some inflation. Then, after a base year, the value of real GDP will

Accepted Answer

A)  be less than nominal GDP. 
B)  not be different from nominal GDP. 
C)  be greater than nominal GDP. 
D)  will be approximately half the value of nominal GDP. 
A)  be less than nominal GDP. 
B)  not be different from nominal GDP. 
C)  be greater than nominal GDP. 
D)  will be approximately half the value of nominal GDP.

Question 16

Which of the following expenditures is for an intermediate good?

Accepted Answer

A)  The government buys new tires for its military vehicles. 
B)  A U.S. tire firm sells new tires to Canada. 
C)  General Motors buys new tires to put on the cars it's building. 
D)  You buy new tires for your used car. 
A)  The government buys new tires for its military vehicles. 
B)  A U.S. tire firm sells new tires to Canada. 
C)  General Motors buys new tires to put on the cars it's building. 
D)  You buy new tires for your used car.

Question 17

Personal consumption expenditures include

Accepted Answer

A)  expenditures by households on goods and services produced only in the United States. 
B)  expenditures by households on goods and services produced in the United States and the rest of the world. 
C)  the purchase of new homes. 
D)  the purchase of used goods and new goods. 
A)  expenditures by households on goods and services produced only in the United States. 
B)  expenditures by households on goods and services produced in the United States and the rest of the world. 
C)  the purchase of new homes. 
D)  the purchase of used goods and new goods.

Question 18

-Using the above figure, during which month was the price for crude oil the highest?

Accepted Answer

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

Question 19

A peak is the

Accepted Answer

A)  lower turning point of a business cycle when an expansion ends. 
B)  lower turning point of a business cycle when a recession ends. 
C)  upper turning point of a business cycle when an expansion ends. 
D)  upper turning point of a business cycle when a recession ends. 
A)  lower turning point of a business cycle when an expansion ends. 
B)  lower turning point of a business cycle when a recession ends. 
C)  upper turning point of a business cycle when an expansion ends. 
D)  upper turning point of a business cycle when a recession ends.

Question 20

If Nike, an American corporation, produces sneakers in Thailand this would

Accepted Answer

A)  count as part of U.S. GDP since it is a U.S. corporation. 
B)  count for both Thailand's GDP and U.S. GDP. 
C)  add to Thailand's GDP but not to U.S. GDP. 
D)  add to neither U.S. GDP nor Thailand's GDP. 
A)  count as part of U.S. GDP since it is a U.S. corporation. 
B)  count for both Thailand's GDP and U.S. GDP. 
C)  add to Thailand's GDP but not to U.S. GDP. 
D)  add to neither U.S. GDP nor Thailand's GDP.

Explain the difference between the capital stock, gross investment, depreciation, and net investment.

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

Is every product produced in the United States included in U.S. gross domestic product?

The difference between gross investment and net investment is

Which, if any, of the following causes a country's reported GDP to be less than its total economic production?

The circular flow diagram shows that

-In the above figure, a trough is at point and a peak is at point .

Two reasons why valuing goods at their market prices is different than valuing them at their factor costs include

Which of the following is included in the category of corporate profits when measuring GDP? I. Profits paid as dividends. II. Undistributed profits. III. Income received by owners and operators of businesses.

The circular flow of income shows that

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 is NOT part of GDP calculated using the expenditure approach?

It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexico's population was 104 million and GDP was $839 billion. Per GDP person by between 2006 and 2007 in Mexico.

Potential GDP

Suppose an economy has some inflation. Then, after a base year, the value of real GDP will

Which of the following expenditures is for an intermediate good?

Personal consumption expenditures include

-Using the above figure, during which month was the price for crude oil the highest?

A peak is the

If Nike, an American corporation, produces sneakers in Thailand this would

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

Explain the difference between the capital stock, gross investment, depreciation, and net investment.

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

Is every product produced in the United States included in U.S. gross domestic product?

The difference between gross investment and net investment is

Which, if any, of the following causes a country's reported GDP to be less than its total economic production?

The circular flow diagram shows that

-In the above figure, a trough is at point ________ and a peak is at point ________.

Two reasons why valuing goods at their market prices is different than valuing them at their factor costs include

Which of the following is included in the category of corporate profits when measuring GDP? I. Profits paid as dividends. II. Undistributed profits. III. Income received by owners and operators of businesses.

The circular flow of income shows that

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 is NOT part of GDP calculated using the expenditure approach?

It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexico's population was 104 million and GDP was $839 billion. Per GDP person ________ by ________ between 2006 and 2007 in Mexico.

Potential GDP

Suppose an economy has some inflation. Then, after a base year, the value of real GDP will

Which of the following expenditures is for an intermediate good?

Personal consumption expenditures include

-Using the above figure, during which month was the price for crude oil the highest?

A peak is the

If Nike, an American corporation, produces sneakers in Thailand this would

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

-In the above figure, a trough is at point and a peak is at point .

It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexico's population was 104 million and GDP was $839 billion. Per GDP person by between 2006 and 2007 in Mexico.