Question 1

Exhibit 11-7  GDP data (billions of dollars)   In Exhibit 11-7, personal income (PI) equals:

Accepted Answer

A)  $3,472 billion. 
B)  $3,691 billion. 
C)  $4,291 billion. 
D)  $3,384 billion. 
E)  $3,175 billion. 
A)  $3,472 billion. 
B)  $3,691 billion. 
C)  $4,291 billion. 
D)  $3,384 billion. 
E)  $3,175 billion.

Question 2

Using the expenditure approach, GDP equals:

Accepted Answer

A)  C + I + G + (X − M). 
B)  C + I + G + (X + M). 
C)  C + I − G + (X − M). 
D)  C + I + G − (X − M). 
A)  C + I + G + (X − M). 
B)  C + I + G + (X + M). 
C)  C + I − G + (X − M). 
D)  C + I + G − (X − M).

Question 3

GDP underestimates our economic well-being:

Accepted Answer

A)  for of all the following reasons. 
B)  because it includes the value of work done by nannies. 
C)  because it ignores leisure. 
D)  because it includes the value of work done by householders. 
E)  because it includes the value of work done by illegal immigrants. 
A)  for of all the following reasons. 
B)  because it includes the value of work done by nannies. 
C)  because it ignores leisure. 
D)  because it includes the value of work done by householders. 
E)  because it includes the value of work done by illegal immigrants.

Question 4

Based on the circular flow model, money flows from households to businesses in:

Accepted Answer

A)  factor markets. 
B)  product markets. 
C)  neither factor nor product markets. 
D)  both factor and product markets. 
A)  factor markets. 
B)  product markets. 
C)  neither factor nor product markets. 
D)  both factor and product markets.

Question 5

Which of the following statements is true ?

Accepted Answer

A)  National income is total income earned by households whereas personal income is total income received by households (including transfer payments). 
B)  Disposable personal income equals personal income minus personal taxes. 
C)  The expenditures approach and the income approach yield the same GDP figure. 
D)  All of the above. 
A)  National income is total income earned by households whereas personal income is total income received by households (including transfer payments). 
B)  Disposable personal income equals personal income minus personal taxes. 
C)  The expenditures approach and the income approach yield the same GDP figure. 
D)  All of the above.

Question 6

Discuss the components of GDP using the expenditure approach.

Accepted Answer

GDP equals consumption spendin

Question 7

Resources that flow through the circular flow model include all of the following except:

Accepted Answer

A)  land. 
B)  labor. 
C)  capital. 
D)  final goods. 
A)  land. 
B)  labor. 
C)  capital. 
D)  final goods.

Exhibit 11-7 GDP data (billions of dollars) In Exhibit 11-7, personal income (PI) equals:

Using the expenditure approach, GDP equals:

GDP underestimates our economic well-being:

Based on the circular flow model, money flows from households to businesses in:

Which of the following statements is true ?

Discuss the components of GDP using the expenditure approach.

Resources that flow through the circular flow model include all of the following except:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters

Exam 11: Gross Domestic Product

Exhibit 11-7 GDP data (billions of dollars) In Exhibit 11-7, personal income (PI) equals:

Using the expenditure approach, GDP equals:

GDP underestimates our economic well-being:

Based on the circular flow model, money flows from households to businesses in:

Which of the following statements is true ?

Discuss the components of GDP using the expenditure approach.

Resources that flow through the circular flow model include all of the following except:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters