Question 1

In the United States since the mid-1980s,consumption as a percentage of GDP has

Accepted Answer

A)  increased. 
B)  slowly decreased. 
C)  remained the same. 
D)  dropped by more than half. 
A)  increased. 
B)  slowly decreased. 
C)  remained the same. 
D)  dropped by more than half.

Question 2

If prices rise on average in the U.S.economy,the purchasing power of a dollar declines.

Accepted Answer

A) True 
 B)False

Question 3

In 2011,Kendall Ford,an automobile dealership,spent $20,000 on a new car lift for its repair shop,$2,000 on a new copy machine for its sales division,and $600,000 on Ford Motor company stock.Unsold cars and trucks were valued at $400,000 on January 1,2011 and unsold cars and trucks were valued at $900,000 on December 31,2011.What is Kendall Ford's total investment spending in 2011?

Accepted Answer

A)  $22,000 
B)  $322,000 
C)  $522,000 
D)  $1,022,000 
A)  $22,000 
B)  $322,000 
C)  $522,000 
D)  $1,022,000

Question 4

What are the differences between national income,personal income,and disposable personal income?

Accepted Answer

National income is the total income rece

Question 5

The size of the underground economy would tend to decrease if the government of a country

Accepted Answer

A)  decreased government regulations on businesses. 
B)  made over-the-counter drugs illegal. 
C)  increased income tax rates. 
D)  increased business taxes. 
A)  decreased government regulations on businesses. 
B)  made over-the-counter drugs illegal. 
C)  increased income tax rates. 
D)  increased business taxes.

Question 6

National income equals gross domestic product

Accepted Answer

A)  plus sales taxes. 
B)  plus government transfer payments. 
C)  minus the consumption of fixed capital. 
D)  minus government transfer payments. 
A)  plus sales taxes. 
B)  plus government transfer payments. 
C)  minus the consumption of fixed capital. 
D)  minus government transfer payments.

Question 7

Suppose Bob works for Mary as a proofreader.Mary and Bob fall deeply in love,marry and have eight children.Bob stops working for Mary in order to care for the children.What will be the effect on GDP?

Accepted Answer

A)  GDP will decrease. 
B)  GDP will increase. 
C)  GDP will not change. 
D)  GDP may increase or may decrease depending on inflation. 
A)  GDP will decrease. 
B)  GDP will increase. 
C)  GDP will not change. 
D)  GDP may increase or may decrease depending on inflation.

Question 8

Scenario 19-1
CANOES-R-US makes canoes. It buys the shell of the canoe from another firm for $300 and uses its labor and intermediate goods to make the canoe. It sells the finished canoe to a retail canoe store for $800. The retail canoe store then sells the canoe to a consumer for $1,200.
-Refer to Scenario 19-1.The value added of CANOES-R-US for each canoe equals

Accepted Answer

A)  $1,200. 
B)  $800. 
C)  $500. 
D)  $400. 
A)  $1,200. 
B)  $800. 
C)  $500. 
D)  $400.

Question 9

Table 19-6
  
-Refer to Table 19-6.Suppose that a simple economy produces only four goods and services: iPods,t-shirts,bottled water,and oranges.Calculate nominal GDP for this simple economy.

Accepted Answer

Nominal GDP equals (

Question 10

If nominal GDP is $5 trillion and real GDP is $4 trillion,the GDP deflator is

Accepted Answer

A)  12.5. 
B)  80. 
C)  125. 
D)  800. 
A)  12.5. 
B)  80. 
C)  125. 
D)  800.

Question 11

Recent estimates put the size of the underground economy in the United States at ________ of measured GDP.

Accepted Answer

A)  2 percent 
B)  8 percent 
C)  13 percent 
D)  over 50 percent 
A)  2 percent 
B)  8 percent 
C)  13 percent 
D)  over 50 percent

Question 12

Residential investment includes spending by firms on office buildings.

Accepted Answer

A) True 
 B)False

Question 13

Table 19-2
  
-Refer to Table 19-2.Suppose that a simple economy produces only four goods and services: shoes,DVDs,tomatoes,and ketchup.Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.Using the information in the above table,nominal GDP for this simple economy equals

Accepted Answer

A)  $7,400. 
B)  $6,400. 
C)  $5,800. 
D)  2,440 units. 
A)  $7,400. 
B)  $6,400. 
C)  $5,800. 
D)  2,440 units.

Question 14

The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S.________ and the South Korean ________.

Accepted Answer

A)  GDP; GDP 
B)  GNP; GDP 
C)  GDP; GNP 
D)  GNP; GNP 
A)  GDP; GDP 
B)  GNP; GDP 
C)  GDP; GNP 
D)  GNP; GNP

Question 15

Nominal GDP will increase

Accepted Answer

A)  only if the price level rises. 
B)  only if the price level falls. 
C)  only if the quantity of final goods and services produced rises. 
D)  if either the price level or the quantity of goods and services produced rises. 
A)  only if the price level rises. 
B)  only if the price level falls. 
C)  only if the quantity of final goods and services produced rises. 
D)  if either the price level or the quantity of goods and services produced rises.

Question 16

Table 19-5
   
Consider the table above showing three stages of production of an automobile.
-Refer to Table 19-5.The value of each automobile in gross domestic product equals

Accepted Answer

A)  $7,000. 
B)  $15,000. 
C)  $18,000. 
D)  $25,000. 
A)  $7,000. 
B)  $15,000. 
C)  $18,000. 
D)  $25,000.

Question 17

Which of the following is included in both the U.S.GDP and U.S.GNP?

Accepted Answer

A)  the value of all cars produced by General Motors in the United States 
B)  the value of all cars produced by Ford in Mexico 
C)  the value of all cars produced by Toyota in the United States 
D)  the value of all cars produced by Nissan in Japan and the United States 
A)  the value of all cars produced by General Motors in the United States 
B)  the value of all cars produced by Ford in Mexico 
C)  the value of all cars produced by Toyota in the United States 
D)  the value of all cars produced by Nissan in Japan and the United States

Question 18

Which of the following is not a true statement about the impact of World War II on the U.S.economy?

Accepted Answer

A)  U.S. GDP increased dramatically from 1941 to 1945. 
B)  The war time years were a period of prosperity for U.S. consumers. 
C)  More than 40% of the labor force was in the military or producing war goods. 
D)  Increased production of tanks, ships, planes, and munitions accounted for most of the increase in GDP. 
A)  U.S. GDP increased dramatically from 1941 to 1945. 
B)  The war time years were a period of prosperity for U.S. consumers. 
C)  More than 40% of the labor force was in the military or producing war goods. 
D)  Increased production of tanks, ships, planes, and munitions accounted for most of the increase in GDP.

Question 19

Gross national product,GNP,of the United States is the market value of all final goods and services

Accepted Answer

A)  produced within the United States. 
B)  consumed within the United States. 
C)  produced by citizens of the United States anywhere in the world. 
D)  consumed by citizens of the United States anywhere in the world. 
A)  produced within the United States. 
B)  consumed within the United States. 
C)  produced by citizens of the United States anywhere in the world. 
D)  consumed by citizens of the United States anywhere in the world.

Question 20

The purchase of a new house is included in

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.

In the United States since the mid-1980s,consumption as a percentage of GDP has

If prices rise on average in the U.S.economy,the purchasing power of a dollar declines.

What are the differences between national income,personal income,and disposable personal income?

The size of the underground economy would tend to decrease if the government of a country

National income equals gross domestic product

Suppose Bob works for Mary as a proofreader.Mary and Bob fall deeply in love,marry and have eight children.Bob stops working for Mary in order to care for the children.What will be the effect on GDP?

Table 19-6 -Refer to Table 19-6.Suppose that a simple economy produces only four goods and services: iPods,t-shirts,bottled water,and oranges.Calculate nominal GDP for this simple economy.

If nominal GDP is $5 trillion and real GDP is $4 trillion,the GDP deflator is

Recent estimates put the size of the underground economy in the United States at ________ of measured GDP.

Residential investment includes spending by firms on office buildings.

The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S. and the South Korean .

Nominal GDP will increase

Table 19-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 19-5.The value of each automobile in gross domestic product equals

Which of the following is included in both the U.S.GDP and U.S.GNP?

Which of the following is not a true statement about the impact of World War II on the U.S.economy?

Gross national product,GNP,of the United States is the market value of all final goods and services

The purchase of a new house is included in

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

In the United States since the mid-1980s,consumption as a percentage of GDP has

If prices rise on average in the U.S.economy,the purchasing power of a dollar declines.

What are the differences between national income,personal income,and disposable personal income?

The size of the underground economy would tend to decrease if the government of a country

National income equals gross domestic product

Suppose Bob works for Mary as a proofreader.Mary and Bob fall deeply in love,marry and have eight children.Bob stops working for Mary in order to care for the children.What will be the effect on GDP?

Table 19-6 -Refer to Table 19-6.Suppose that a simple economy produces only four goods and services: iPods,t-shirts,bottled water,and oranges.Calculate nominal GDP for this simple economy.

If nominal GDP is $5 trillion and real GDP is $4 trillion,the GDP deflator is

Recent estimates put the size of the underground economy in the United States at ________ of measured GDP.

Residential investment includes spending by firms on office buildings.

The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S.________ and the South Korean ________.

Nominal GDP will increase

Table 19-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 19-5.The value of each automobile in gross domestic product equals

Which of the following is included in both the U.S.GDP and U.S.GNP?

Which of the following is not a true statement about the impact of World War II on the U.S.economy?

Gross national product,GNP,of the United States is the market value of all final goods and services

The purchase of a new house is included in

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

The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S. and the South Korean .