Question 1

Right or wrong,using the expenditure approach to GDP will show a net increase in GDP because of the 2005 Hurricanes.

Accepted Answer

A) True 
 B)False

Question 2

Assume that net exports are -$340,private investment is $1500,tax revenues are $800,government purchases are $2000,and GDP - using the expenditure approach - is $9,000.In this case,consumption expenditures must be

Accepted Answer

A)  $1,840 
B)  $12,960 
C)  $5,840 
D)  $4,360 
E)  $5,160 
A)  $1,840 
B)  $12,960 
C)  $5,840 
D)  $4,360 
E)  $5,160

Question 3

Using the table below,calculate GDP:
$\begin{array}{|l|r}
\hline \text { Wages and Salaries } & \$ 1,000 \
\hline \text { Government Purchases } & \$ 300 \
\hline \text { Exports } & \$ 400 \
\hline \text { Rental Income } & \$ 150 \
\hline \text { Profit } & \$ 400 \
\hline \text { Interest } & \$ 250 \
\hline \text { Consumption Spending } & \$ 1,200 \
\hline \text { Imports } & \$ 600 \
\hline \text { Private Investment Spending } & \$ 500
\end{array}$

Accepted Answer

A)  $2,600 
B)  $1,800 
C)  $4,800 
D)  $2,200 
E)  $2,500 
A)  $2,600 
B)  $1,800 
C)  $4,800 
D)  $2,200 
E)  $2,500

Question 4

Unsold goods are part of the nation's capital stock.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the correct formula for computing GDP?

Accepted Answer

A)  GDP = consumption + private investment + government spending + exports - imports 
B)  GDP = consumption + public investment + government spending + exports - imports 
C)  GDP = consumption + private investment + government spending - exports - imports 
D)  GDP = consumption + private investment + government spending + transfers 
E)  GDP = consumption + private investment + tax revenue + transfers 
A)  GDP = consumption + private investment + government spending + exports - imports 
B)  GDP = consumption + public investment + government spending + exports - imports 
C)  GDP = consumption + private investment + government spending - exports - imports 
D)  GDP = consumption + private investment + government spending + transfers 
E)  GDP = consumption + private investment + tax revenue + transfers

Question 6

During the current year,Jessica sold her house,built two years ago,to Kim for $175,000.Kim then sold the house to Dave for $185,000.How much does GDP increase due to these transactions?

Accepted Answer

A)  $370,000 
B)  $175,000 
C)  $185,000 
D)  $360,000 
E)  $10,000 
A)  $370,000 
B)  $175,000 
C)  $185,000 
D)  $360,000 
E)  $10,000

Question 7

The term investment,in the language of economists,refers to the purchases of stocks,bonds,and other financial instruments.

Accepted Answer

A) True 
 B)False

Right or wrong,using the expenditure approach to GDP will show a net increase in GDP because of the 2005 Hurricanes.

Assume that net exports are -$340,private investment is $1500,tax revenues are $800,government purchases are $2000,and GDP - using the expenditure approach - is $9,000.In this case,consumption expenditures must be

Using the table below,calculate GDP: Wages and Salaries \ 1,000 Government Purchases \ 300 Exports \ 400 Rental Income \ 150 Profit \ 400 Interest \ 250 Consumption Spending \ 1,200 Imports \ 600 Private Investment Spending \ 500

Unsold goods are part of the nation's capital stock.

Which of the following is the correct formula for computing GDP?

During the current year,Jessica sold her house,built two years ago,to Kim for $175,000.Kim then sold the house to Dave for $185,000.How much does GDP increase due to these transactions?

The term investment,in the language of economists,refers to the purchases of stocks,bonds,and other financial instruments.

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

What Macroeconomics Tries to Explain

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters

Exam 6: Production, Income, and Employment

Right or wrong,using the expenditure approach to GDP will show a net increase in GDP because of the 2005 Hurricanes.

Assume that net exports are -$340,private investment is $1500,tax revenues are $800,government purchases are $2000,and GDP - using the expenditure approach - is $9,000.In this case,consumption expenditures must be

Using the table below,calculate GDP: Wages and Salaries \ 1,000 Government Purchases \ 300 Exports \ 400 Rental Income \ 150 Profit \ 400 Interest \ 250 Consumption Spending \ 1,200 Imports \ 600 Private Investment Spending \ 500

Unsold goods are part of the nation's capital stock.

Which of the following is the correct formula for computing GDP?

During the current year,Jessica sold her house,built two years ago,to Kim for $175,000.Kim then sold the house to Dave for $185,000.How much does GDP increase due to these transactions?

The term investment,in the language of economists,refers to the purchases of stocks,bonds,and other financial instruments.

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

What Macroeconomics Tries to Explain

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters