The table given below reports the price of soda over four consecutive years. Table 5.7 $\begin{array}{c} \text { Price Data }\\ \begin{array}{|c|c|c|} \hline \text { Year } & \text { Base-Year Soda Price } & \text { Current Soda Price } \\ \hline 1 \text { (base year) } & \$ 0.30 & \$ 0.30 \\ \hline 2 & \$ 0.30 & \$ 0.45 \\ \hline 3 & \$ 0.30 & \$ 0.55 \\ \hline 4 & \$ 0.30 & \$ 0.65 \\ \hline \end{array} \end{array}$ -Refer to Table 5.7. By what percentage did the price of soda increase from the third to the fourth year?

A) 15 percent B) 30 percent C) 35 percent D) 18 percent E) 65 percent A) 15 percent B) 30 percent C) 35 percent D) 18 percent E) 65 percent

The table given below reports the value of different economic variables of a country during a year. Table 5.4 $\begin{array}{c} \text { GNP Data }\\ \text { (Adjusted for net factor ícome from abroad) }\\ \begin{array}{|l|l|} \hline \text { Net Investment } & \$ 400 \\ \hline \text { Capital Consumption Allowance } & \$ 800 \\ \hline \text { Indirect Business Taxes } & \$ 600 \\ \hline \text { U.S. Exports } & \$ 200 \\ \hline \text { U.S. Imports } & \$ 300 \\ \hline \text { Government Purchases } & \$ 150 \\ \hline \text { Consumption Spending } & \$ 2,030 \\ \hline \end{array}\end{array}$ -Refer to Table 5.4. What will be the value of gross investment?

A) $400 B) $1,200 C) $1,000 D) $1,800 E) Indeterminate A) $400 B) $1,200 C) $1,000 D) $1,800 E) Indeterminate

The table given below reports the sales value at each stage of production of the soft drink Pepsi. Table 5.3 $\begin{array}{|l|c|} \hline {\text { Production Stage }} & \text { Sales Value } \\ \hline \text { Sugar cane } & \$ 0.05 \\ \hline \text { Processed sugar } & \$ 0.10 \\ \hline \text { Wholesale Pepsi } & \$ 0.40 \\ \hline \text { Pepsi in a vending machine } & \$ 0.60 \\ \hline \end{array}$ -Refer to Table 5.3. If this Pepsi were the only good produced in the economy, what would GDP by the expenditures approach be equal to?

A) $0.05 B) $0.20 C) $0.40 D) $1.15 E) $0.60 A) $0.05 B) $0.20 C) $0.40 D) $1.15 E) $0.60

Exam 5: National Income Accounting

The table given below reports the price of soda over four consecutive years. Table 5.7 Price Data Year Base-Year Soda Price Current Soda Price 1 (base year) \ 0.30 \ 0.30 2 \ 0.30 \ 0.45 3 \ 0.30 \ 0.55 4 \ 0.30 \ 0.65 -Refer to Table 5.7. By what percentage did the price of soda increase from the third to the fourth year?

(Multiple Choice)

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Question 81

The difference between GNP and NNP is equal to:

(Multiple Choice)

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Question 82

To arrive at a more accurate measure of real output changes in an economy, nominal GDP figures should be adjusted for inflation.

(True/False)

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Question 83

Consider a hypothetical economy, whose GDP was $10,000, consumption equaled $9,800, investment equaled $125, goods exported equaled $255, and goods imported equaled $500, in 2010. Calculate the government spending in this economy during the year.

(Multiple Choice)

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Question 84

Scenario 5.1 Suppose that personal income is $250 billion. Furthermore, assume that retained corporate earnings are $2 billion, social security taxes are $15 billion, social security benefit checks equal $16 billion, the capital consumption allowance is $32 billion, and corporate taxes amount to $40 billion. -Refer to Scenario 5.1. What will be the value of net national product in this country?

(Multiple Choice)

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Question 85

A reduction in the value of capital goods over time due to their use in production is called:

(Multiple Choice)

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Question 86

The services of a husband or wife as a homemaker and cash gains from a lottery are included in the calculation of gross domestic product.

(True/False)

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Question 87

The circular flow diagram shows the flow of money and goods and services between households, firms, government, and foreign countries.

(True/False)

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Question 88

Which of the following would not be included in the calculation of GDP?

(Multiple Choice)

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Question 89

Which of the following will be categorized as an intermediate good in national income accounting?

(Multiple Choice)

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Question 90

The purchase of a new machine to replace the one that is worn out is:

(Multiple Choice)

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Question 91

The table given below reports the value of different economic variables of a country during a year. Table 5.4 GNP Data (Adjusted for net factor come from abroad) Net Investment \ 400 Capital Consumption Allowance \ 800 Indirect Business Taxes \ 600 U.S. Exports \ 200 U.S. Imports \ 300 Government Purchases \ 150 Consumption Spending \ 2,030 -Refer to Table 5.4. What will be the value of gross investment?

(Multiple Choice)

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Question 92

The table given below reports the sales value at each stage of production of the soft drink Pepsi. Table 5.3 Production Stage Sales Value Sugar cane \ 0.05 Processed sugar \ 0.10 Wholesale Pepsi \ 0.40 Pepsi in a vending machine \ 0.60 -Refer to Table 5.3. If this Pepsi were the only good produced in the economy, what would GDP by the expenditures approach be equal to?

(Multiple Choice)

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Question 93

Which of the following is true of indirect business taxes?

(Multiple Choice)

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Question 94

Wheat produced in the U.S. but sold in Japan would not be included while calculating the U.S. GDP.

(True/False)

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Question 95

If 'C' denotes consumption expenditure, 'I' denotes investment expenditure, 'G' denotes government expenditure and 'X' denotes net exports, then C + I + G + X equals:

(Multiple Choice)

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Question 96

The sale of live cattle to a slaughterhouse constitutes a final transaction that is counted as part of the gross domestic product.

(True/False)

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Question 97

Which of the following industrial countries experienced a relatively slower growth of real GDP in the latter half of the 1990s?

(Multiple Choice)

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Question 98

Suppose the current price of DVDs is $16, while its base-year price is $11.50. The value of the price index for the current year is approximately:

(Multiple Choice)

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Question 99

The consumer price index:

(Multiple Choice)

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Question 100

Showing 81 - 100 of 104

The difference between GNP and NNP is equal to:

To arrive at a more accurate measure of real output changes in an economy, nominal GDP figures should be adjusted for inflation.

Consider a hypothetical economy, whose GDP was $10,000, consumption equaled $9,800, investment equaled $125, goods exported equaled $255, and goods imported equaled $500, in 2010. Calculate the government spending in this economy during the year.

A reduction in the value of capital goods over time due to their use in production is called:

The services of a husband or wife as a homemaker and cash gains from a lottery are included in the calculation of gross domestic product.

The circular flow diagram shows the flow of money and goods and services between households, firms, government, and foreign countries.

Which of the following would not be included in the calculation of GDP?

Which of the following will be categorized as an intermediate good in national income accounting?

The purchase of a new machine to replace the one that is worn out is:

Which of the following is true of indirect business taxes?

Wheat produced in the U.S. but sold in Japan would not be included while calculating the U.S. GDP.

If 'C' denotes consumption expenditure, 'I' denotes investment expenditure, 'G' denotes government expenditure and 'X' denotes net exports, then C + I + G + X equals:

The sale of live cattle to a slaughterhouse constitutes a final transaction that is counted as part of the gross domestic product.

Which of the following industrial countries experienced a relatively slower growth of real GDP in the latter half of the 1990s?

Suppose the current price of DVDs is $16, while its base-year price is $11.50. The value of the price index for the current year is approximately:

The consumer price index:

Economics: the World Around You

Choice, Opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

An Introduction to the Foreign Exchange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

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