Question 1

Expressing GDP in constant dollars is an attempt to adjust for changes in

Accepted Answer

A)  the money supply. 
B)  population. 
C)  the unemployment rate. 
D)  quality improvements. 
E)  prices. 
A)  the money supply. 
B)  population. 
C)  the unemployment rate. 
D)  quality improvements. 
E)  prices.

Question 2

According to economist Richard Gill,the source of our economy's real income is

Accepted Answer

A)  profits. 
B)  the goods we produce. 
C)  the resourcefulness and skill of our people. 
D)  impossible to identify. 
E)  the amount of money in circulation. 
A)  profits. 
B)  the goods we produce. 
C)  the resourcefulness and skill of our people. 
D)  impossible to identify. 
E)  the amount of money in circulation.

Question 3

The two methods of measuring the value of GDP are the ________ approaches.

Accepted Answer

A)  input and output 
B)  direct and residual 
C)  business and household 
D)  domestic and foreign 
E)  income and expenditures 
A)  input and output 
B)  direct and residual 
C)  business and household 
D)  domestic and foreign 
E)  income and expenditures

Question 4

The best example of an indirect business tax is

Accepted Answer

A)  an excise tax on alcoholic beverages. 
B)  the personal income tax. 
C)  depreciation. 
D)  the corporate income tax. 
E)  retained earnings. 
A)  an excise tax on alcoholic beverages. 
B)  the personal income tax. 
C)  depreciation. 
D)  the corporate income tax. 
E)  retained earnings.

Question 5

A leading pioneer in the efforts to provide the first estimates of U.S.income and output was

Accepted Answer

A)  Alexander Hamilton. 
B)  David Schoenmacher. 
C)  Franklin D. Roosevelt. 
D)  John Maynard Keynes. 
E)  Simon Kuznets. 
A)  Alexander Hamilton. 
B)  David Schoenmacher. 
C)  Franklin D. Roosevelt. 
D)  John Maynard Keynes. 
E)  Simon Kuznets.

Question 6

Transfer payments are payments

Accepted Answer

A)  by individuals of taxes to the government. 
B)  for newly produced goods and services. 
C)  to individuals who do not contribute to production in exchange for them. 
D)  for intermediate goods and services. 
E)  for government services. 
A)  by individuals of taxes to the government. 
B)  for newly produced goods and services. 
C)  to individuals who do not contribute to production in exchange for them. 
D)  for intermediate goods and services. 
E)  for government services.

Question 7

If the estimated current dollar output is $3,535 billion and the relevant price index is 2.21,the constant dollar output is ________ billion.

Accepted Answer

A)  $1,600 
B)  $2,921 
C)  $3,314 
D)  $3,756 
E)  $7,812 
A)  $1,600 
B)  $2,921 
C)  $3,314 
D)  $3,756 
E)  $7,812

Question 8

To compute value added in an industry,we must

Accepted Answer

A)  add indirect taxes. 
B)  subtract the cost of intermediate goods from the value of sales. 
C)  add the cost of intermediate goods to the value of output. 
D)  divide by the rate of inflation. 
E)  add depreciation. 
A)  add indirect taxes. 
B)  subtract the cost of intermediate goods from the value of sales. 
C)  add the cost of intermediate goods to the value of output. 
D)  divide by the rate of inflation. 
E)  add depreciation.

Question 9

Double counting takes place if GDP includes

Accepted Answer

A)  sales of secondhand goods. 
B)  nonmarket transactions. 
C)  nonproductive transactions. 
D)  final goods measured in constant dollars. 
E)  the services performed by government officials. 
A)  sales of secondhand goods. 
B)  nonmarket transactions. 
C)  nonproductive transactions. 
D)  final goods measured in constant dollars. 
E)  the services performed by government officials.

Question 10

A case of wine costs $10 to produce and sells for $40.A bottle of prescription pills costs $5 to produce and sells for $10.On the basis of this information,we can conclude that the

Accepted Answer

A)  pills contribute more to GDP, but it is impossible to say how much more. 
B)  pills contribute twice as much as the wine to GDP. 
C)  wine contributes twice as much as the pills to GDP. 
D)  wine contributes four times as much as the pills to GDP. 
E)  wine contributes six times as much as the pills to GDP. 
A)  pills contribute more to GDP, but it is impossible to say how much more. 
B)  pills contribute twice as much as the wine to GDP. 
C)  wine contributes twice as much as the pills to GDP. 
D)  wine contributes four times as much as the pills to GDP. 
E)  wine contributes six times as much as the pills to GDP.

Question 11

As of 1999,software purchases by businesses are

Accepted Answer

A)  counted as a business transfer in GDP. 
B)  counted as a production input in GDP. 
C)  counted as consumer nondurables in GDP. 
D)  counted as a business investment in GDP. 
E)  not explicitly counted in GDP. 
A)  counted as a business transfer in GDP. 
B)  counted as a production input in GDP. 
C)  counted as consumer nondurables in GDP. 
D)  counted as a business investment in GDP. 
E)  not explicitly counted in GDP.

Expressing GDP in constant dollars is an attempt to adjust for changes in

According to economist Richard Gill,the source of our economy's real income is

The two methods of measuring the value of GDP are the ________ approaches.

The best example of an indirect business tax is

A leading pioneer in the efforts to provide the first estimates of U.S.income and output was

Transfer payments are payments

If the estimated current dollar output is $3,535 billion and the relevant price index is 2.21,the constant dollar output is ________ billion.

To compute value added in an industry,we must

Double counting takes place if GDP includes

A case of wine costs $10 to produce and sells for $40.A bottle of prescription pills costs $5 to produce and sells for $10.On the basis of this information,we can conclude that the

As of 1999,software purchases by businesses are

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters

Exam 15: National Income and Product

Expressing GDP in constant dollars is an attempt to adjust for changes in

According to economist Richard Gill,the source of our economy's real income is

The two methods of measuring the value of GDP are the ________ approaches.

The best example of an indirect business tax is

A leading pioneer in the efforts to provide the first estimates of U.S.income and output was

Transfer payments are payments

If the estimated current dollar output is $3,535 billion and the relevant price index is 2.21,the constant dollar output is ________ billion.

To compute value added in an industry,we must

Double counting takes place if GDP includes

A case of wine costs $10 to produce and sells for $40.A bottle of prescription pills costs $5 to produce and sells for $10.On the basis of this information,we can conclude that the

As of 1999,software purchases by businesses are

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters