Question 1

Which of the following would be included in the calculation of the GDP for the year 2010?

Accepted Answer

A)  Purchase of a 2004 model Volkswagen sedan in 2010 
B)  Swapping of baseball cards among two college students 
C)  Car repairs done by a person on his/her own 
D)  Fresh lemonade sold at a local diner 
E)  A lamp sold at a garage sale 
A)  Purchase of a 2004 model Volkswagen sedan in 2010 
B)  Swapping of baseball cards among two college students 
C)  Car repairs done by a person on his/her own 
D)  Fresh lemonade sold at a local diner 
E)  A lamp sold at a garage sale

Question 2

The total expenditure on goods and services in a country must be the same as the total income earned from selling goods and services because:

Accepted Answer

A)  the government annual budget has to balance. 
B)  net exports in an economy is usually zero. 
C)  one sector's expenditures are another sector's income. 
D)  total investment in an economy always equals total saving. 
E)  the sum of consumption spending and saving is zero. 
A)  the government annual budget has to balance. 
B)  net exports in an economy is usually zero. 
C)  one sector's expenditures are another sector's income. 
D)  total investment in an economy always equals total saving. 
E)  the sum of consumption spending and saving is zero.

Question 3

When estimating GDP, changes in the level of inventory are calculated because:

Accepted Answer

A)  it indicates the level of employment in the economy. 
B)  it provides information about a firm's expectations. 
C)  it is a good indicator of the competitiveness of the economy. 
D)  it shows the level of business spending by firms. 
E)  it determines the value of goods produced in a year but not sold in that year. 
A)  it indicates the level of employment in the economy. 
B)  it provides information about a firm's expectations. 
C)  it is a good indicator of the competitiveness of the economy. 
D)  it shows the level of business spending by firms. 
E)  it determines the value of goods produced in a year but not sold in that year.

Question 4

If net investment spending in a nation is zero, we can conclude that:

Accepted Answer

A)  gross investment exceeds the capital consumption allowance. 
B)  the capital consumption allowance exceeds gross investment. 
C)  imports equal exports. 
D)  gross investment equals the capital consumption allowance. 
E)  no investment goods were produced in the economy. 
A)  gross investment exceeds the capital consumption allowance. 
B)  the capital consumption allowance exceeds gross investment. 
C)  imports equal exports. 
D)  gross investment equals the capital consumption allowance. 
E)  no investment goods were produced in the economy.

Which of the following would be included in the calculation of the GDP for the year 2010?

The total expenditure on goods and services in a country must be the same as the total income earned from selling goods and services because:

When estimating GDP, changes in the level of inventory are calculated because:

If net investment spending in a nation is zero, we can conclude that:

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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Exam 5: National Income Accounting

Which of the following would be included in the calculation of the GDP for the year 2010?

The total expenditure on goods and services in a country must be the same as the total income earned from selling goods and services because:

When estimating GDP, changes in the level of inventory are calculated because:

If net investment spending in a nation is zero, we can conclude that:

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

Filters