Question 1

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

Accepted Answer

A)  average price levels of goods and services in the economy. 
B)  price charged for laptop computers by Dell. 
C)  wages paid to employees by Dell. 
D)  quantity of Dell employees. 
A)  average price levels of goods and services in the economy. 
B)  price charged for laptop computers by Dell. 
C)  wages paid to employees by Dell. 
D)  quantity of Dell employees. A

Question 2

In the first half of 2011,automobile sales in the United States were lower than they were in the first half of 2010.The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses.

Accepted Answer

A)  nondurable goods; durable goods 
B)  consumption; investment 
C)  investment; consumption 
D)  durable goods; nondurable goods 
A)  nondurable goods; durable goods 
B)  consumption; investment 
C)  investment; consumption 
D)  durable goods; nondurable goods B

Question 3

National income equals gross national product minus

Accepted Answer

A)  imports. 
B)  depreciation. 
C)  inventories. 
D)  changes in inventories. 
A)  imports. 
B)  depreciation. 
C)  inventories. 
D)  changes in inventories. B

Question 4

Presently,GDP is ________ to compensate for the costs of environmental damage.

Accepted Answer

A)  fully adjusted 
B)  partially adjusted 
C)  adjusted on a chain-weight basis 
D)  not adjusted 
A)  fully adjusted 
B)  partially adjusted 
C)  adjusted on a chain-weight basis 
D)  not adjusted

Question 5

Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so,how?

Accepted Answer

We would double count if we co

Question 6

The purchase by a foreign government of an airplane produced in the United States is included in U.S.

Accepted Answer

A)  consumption expenditures. 
B)  investment expenditures. 
C)  government purchases. 
D)  net exports. 
A)  consumption expenditures. 
B)  investment expenditures. 
C)  government purchases. 
D)  net exports.

Question 7

Which of the following would be directly counted in GDP in 2012?

Accepted Answer

A)  kitchen cabinets purchased from Home Depot in 2012 to be installed in a house built in 1997 
B)  kitchen cabinets built in 1887, extracted from the 1887 home, and installed in a brand new country-style home 
C)  kitchen cabinets built in 1887, extracted from the 1887 home, and installed in a farm house built in 1950 
D)  none of the above 
A)  kitchen cabinets purchased from Home Depot in 2012 to be installed in a house built in 1997 
B)  kitchen cabinets built in 1887, extracted from the 1887 home, and installed in a brand new country-style home 
C)  kitchen cabinets built in 1887, extracted from the 1887 home, and installed in a farm house built in 1950 
D)  none of the above

Question 8

If income is unequally distributed in an economy,increases in GDP may not raise well-being in an economy.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not an example of a transfer payment?

Accepted Answer

A)  unemployment insurance payments 
B)  health insurance payments to an army private 
C)  social security payments to retirees 
D)  social security payments to disabled persons 
A)  unemployment insurance payments 
B)  health insurance payments to an army private 
C)  social security payments to retirees 
D)  social security payments to disabled persons

Question 10

Depreciation is

Accepted Answer

A)  the value of worn-out equipment, machinery, and buildings. 
B)  the value of the decrease in business inventory stocks. 
C)  the value of the addition to the capital stock. 
D)  the decline in the value of the stock market, net of dividends. 
A)  the value of worn-out equipment, machinery, and buildings. 
B)  the value of the decrease in business inventory stocks. 
C)  the value of the addition to the capital stock. 
D)  the decline in the value of the stock market, net of dividends.

Question 11

Gross domestic product understates the total production of final goods and services because of the omission of

Accepted Answer

A)  exports. 
B)  inflation. 
C)  intermediate goods. 
D)  household production. 
A)  exports. 
B)  inflation. 
C)  intermediate goods. 
D)  household production.

Question 12

What is the largest component of spending in the United States?

Accepted Answer

A)  consumption spending 
B)  investment spending 
C)  government spending 
D)  net investment spending 
A)  consumption spending 
B)  investment spending 
C)  government spending 
D)  net investment spending

Question 13

Table 19-8
   
Consider the following data for Tyrovia, a country that produces only two products: guns and butter.
-Refer to Table 19-8.Nominal GDP for Tyrovia in 2011 equals

Accepted Answer

A)  $1,140. 
B)  $880. 
C)  $690. 
D)  $560. 
A)  $1,140. 
B)  $880. 
C)  $690. 
D)  $560.

Question 14

Table 19-10
   
Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts.
-Refer to Table 19-10.Real GDP for Vicuna for 2009 using 2011 as the base year equals

Accepted Answer

A)  $4,620. 
B)  $5,100. 
C)  $5,650. 
D)  $5,850. 
A)  $4,620. 
B)  $5,100. 
C)  $5,650. 
D)  $5,850.

Question 15

If GDP calculations included measurements of pollution and environmental damage,GDP values would most likely be

Accepted Answer

A)  greater than their values without these measurements. 
B)  less than their values without these measurements. 
C)  unchanged from their values without these measurements. 
D)  meaningless, since GDP values without these measurements would no longer be of value. 
A)  greater than their values without these measurements. 
B)  less than their values without these measurements. 
C)  unchanged from their values without these measurements. 
D)  meaningless, since GDP values without these measurements would no longer be of value.

Question 16

The GDP deflator is a measure of the

Accepted Answer

A)  total production of the economy adjusted for inflation. 
B)  total production of the economy unadjusted for inflation. 
C)  average level of prices of final goods and services in the economy. 
D)  average level of prices of intermediate goods and services in the economy. 
A)  total production of the economy adjusted for inflation. 
B)  total production of the economy unadjusted for inflation. 
C)  average level of prices of final goods and services in the economy. 
D)  average level of prices of intermediate goods and services in the economy.

Question 17

Value added equals the market price of the firm's product minus

Accepted Answer

A)  wages and salaries. 
B)  the price of intermediate goods. 
C)  the price of all factors of production. 
D)  depreciation on plant and equipment. 
A)  wages and salaries. 
B)  the price of intermediate goods. 
C)  the price of all factors of production. 
D)  depreciation on plant and equipment.

Question 18

Disposable personal income equals personal income

Accepted Answer

A)  minus personal tax payments. 
B)  plus government transfer payments. 
C)  minus personal tax payments plus government transfer payments. 
D)  minus government transfer payments plus personal tax payments. 
A)  minus personal tax payments. 
B)  plus government transfer payments. 
C)  minus personal tax payments plus government transfer payments. 
D)  minus government transfer payments plus personal tax payments.

Question 19

To calculate GDP by the expenditure method,one must add

Accepted Answer

A)  wages, rents, interest, and profits. 
B)  consumption spending, investment spending, government spending and net exports. 
C)  consumption spending, investment spending, government spending and exports. 
D)  labor, natural resources, entrepreneurship, and capital. 
A)  wages, rents, interest, and profits. 
B)  consumption spending, investment spending, government spending and net exports. 
C)  consumption spending, investment spending, government spending and exports. 
D)  labor, natural resources, entrepreneurship, and capital.

Question 20

In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

Accepted Answer

A)  equals 
B)  is greater than 
C)  is less than 
D)  may be greater than or less than 
A)  equals 
B)  is greater than 
C)  is less than 
D)  may be greater than or less than

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

In the first half of 2011,automobile sales in the United States were lower than they were in the first half of 2010.The decrease in auto sales impacts GDP because new automobiles are counted as when purchased by households and when purchased by businesses.

National income equals gross national product minus

Presently,GDP is ________ to compensate for the costs of environmental damage.

Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so,how?

The purchase by a foreign government of an airplane produced in the United States is included in U.S.

Which of the following would be directly counted in GDP in 2012?

If income is unequally distributed in an economy,increases in GDP may not raise well-being in an economy.

Which of the following is not an example of a transfer payment?

Depreciation is

Gross domestic product understates the total production of final goods and services because of the omission of

What is the largest component of spending in the United States?

Table 19-8 Consider the following data for Tyrovia, a country that produces only two products: guns and butter. -Refer to Table 19-8.Nominal GDP for Tyrovia in 2011 equals

Table 19-10 Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts. -Refer to Table 19-10.Real GDP for Vicuna for 2009 using 2011 as the base year equals

If GDP calculations included measurements of pollution and environmental damage,GDP values would most likely be

The GDP deflator is a measure of the

Value added equals the market price of the firm's product minus

Disposable personal income equals personal income

To calculate GDP by the expenditure method,one must add

In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 8: Gdp: Measuring Total Production and Income

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

In the first half of 2011,automobile sales in the United States were lower than they were in the first half of 2010.The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses.

National income equals gross national product minus

Presently,GDP is ________ to compensate for the costs of environmental damage.

Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so,how?

The purchase by a foreign government of an airplane produced in the United States is included in U.S.

Which of the following would be directly counted in GDP in 2012?

If income is unequally distributed in an economy,increases in GDP may not raise well-being in an economy.

Which of the following is not an example of a transfer payment?

Depreciation is

Gross domestic product understates the total production of final goods and services because of the omission of

What is the largest component of spending in the United States?

Table 19-8 Consider the following data for Tyrovia, a country that produces only two products: guns and butter. -Refer to Table 19-8.Nominal GDP for Tyrovia in 2011 equals

Table 19-10 Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts. -Refer to Table 19-10.Real GDP for Vicuna for 2009 using 2011 as the base year equals

If GDP calculations included measurements of pollution and environmental damage,GDP values would most likely be

The GDP deflator is a measure of the

Value added equals the market price of the firm's product minus

Disposable personal income equals personal income

To calculate GDP by the expenditure method,one must add

In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

In the first half of 2011,automobile sales in the United States were lower than they were in the first half of 2010.The decrease in auto sales impacts GDP because new automobiles are counted as when purchased by households and when purchased by businesses.