Question 1

The total value of production from Ford's manufacturing plant in Cologne,Germany would be included in Germany's gross national product.

Accepted Answer

A) True 
 B)False

Question 2

For developed countries like the United States,GDP will always exceed GNP.

Accepted Answer

A) True 
 B)False

Question 3

Transfer payments are subtracted from national income to get to personal income.

Accepted Answer

A) True 
 B)False

Question 4

If the GDP deflator is equal to 100,then for that year nominal GDP is equal to real GDP

Accepted Answer

A) True 
 B)False

Question 5

Table 19-4
  
-Refer to Table 19-4.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals

Accepted Answer

A)  $2,200. 
B)  $2,100. 
C)  $1,600. 
D)  $1,400. 
A)  $2,200. 
B)  $2,100. 
C)  $1,600. 
D)  $1,400.

Question 6

If the GDP deflator is less than 100,then for that year nominal GDP ________ real GDP.

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

Question 7

Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?

Accepted Answer

A)  Avocado prices rise due to a late frost in California. 
B)  The United Auto Workers sign a contract raising wages and benefits 7% over the next 3 years. 
C)  Real GDP grows by 2.3% in the second quarter. 
D)  Airlines raise ticket prices in response to rising fuel costs. 
A)  Avocado prices rise due to a late frost in California. 
B)  The United Auto Workers sign a contract raising wages and benefits 7% over the next 3 years. 
C)  Real GDP grows by 2.3% in the second quarter. 
D)  Airlines raise ticket prices in response to rising fuel costs.

Question 8

Nominal GDP is GDP in a given year

Accepted Answer

A)  adjusted for inflation. 
B)  adjusted for anticipated inflation. 
C)  valued in the prices of that year. 
D)  valued in the prices of the base year. 
A)  adjusted for inflation. 
B)  adjusted for anticipated inflation. 
C)  valued in the prices of that year. 
D)  valued in the prices of the base year.

Question 9

Suppose,in 2012,you purchased a house built in 2003.Which of the following would be included in the gross domestic product for 2012?

Accepted Answer

A)  the value of the house in 2012 
B)  the value of the house in 2003 
C)  the value of the house in 2012 minus depreciation 
D)  the value of the services of the real estate agent 
A)  the value of the house in 2012 
B)  the value of the house in 2003 
C)  the value of the house in 2012 minus depreciation 
D)  the value of the services of the real estate agent

Question 10

Which of the following could cause nominal GDP to increase,but real GDP to decrease?

Accepted Answer

A)  The price level rises and the quantity of final goods and services produced rises. 
B)  The price level rises and the quantity of final goods and services produced falls. 
C)  The price level falls and the quantity of final goods and services produced rises. 
D)  The price level falls and the quantity of final goods and services produced falls. 
A)  The price level rises and the quantity of final goods and services produced rises. 
B)  The price level rises and the quantity of final goods and services produced falls. 
C)  The price level falls and the quantity of final goods and services produced rises. 
D)  The price level falls and the quantity of final goods and services produced falls.

Question 11

How can a firm have a negative valued added,as supposedly some state-owned businesses did in the former Soviet Union? What has to be true for value added to be negative?

Accepted Answer

A negative value added means that the co

Question 12

In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?

Accepted Answer

GDP stands for gross domestic product an

Question 13

Table 19-14
  
-Refer to Table 19-14.Consider the data above for a simple economy: Using 2005 as the base year,calculate nominal GDP,real GDP,and the GDP deflator for 2011.Show your work.

Accepted Answer

Nominal GDP for 2011 equals (5

Question 14

Table 19-1
  
-Refer to Table 19-1.Suppose that a simple economy produces only four goods and services: sweatshirts,dental examinations,coffee drinks,and coffee beans.Assume all of the coffee beans are used in the production of the coffee drinks.Using the information in the above table,nominal GDP for this simple economy equals

Accepted Answer

A)  3,090 units. 
B)  $7,250. 
C)  $8,750. 
D)  $9,750. 
A)  3,090 units. 
B)  $7,250. 
C)  $8,750. 
D)  $9,750.

Question 15

The nominal GDP of the U.S.in 2010 was approximately $14.6 trillion.This means that

Accepted Answer

A)  the value of output in 2010 was around $14.6 trillion. 
B)  total income in 2010 was around $14.6 trillion. 
C)  total spending in 2010 was around $14.6 trillion. 
D)  all of the above are true. 
A)  the value of output in 2010 was around $14.6 trillion. 
B)  total income in 2010 was around $14.6 trillion. 
C)  total spending in 2010 was around $14.6 trillion. 
D)  all of the above are true.

Question 16

If the value added of a firm is positive,will the firm necessarily have positive profits?

Accepted Answer

No.Value added equals the price of the f

Question 17

A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where

Accepted Answer

A)  GNP is much larger than GDP. 
B)  GDP is much larger than GNP. 
C)  GDP is equal to GNP. 
D)  GDP is not comparable to GDP. 
A)  GNP is much larger than GDP. 
B)  GDP is much larger than GNP. 
C)  GDP is equal to GNP. 
D)  GDP is not comparable to GDP.

Question 18

If the GDP deflator is less than 100,which will be higher: nominal GDP or real GDP? Why?

Accepted Answer

Real GDP will be higher.The GD

Question 19

Which of the following is not directly counted in GDP?

Accepted Answer

A)  investment expenditures 
B)  government purchases 
C)  intermediate goods 
D)  consumer goods 
A)  investment expenditures 
B)  government purchases 
C)  intermediate goods 
D)  consumer goods

Question 20

If the quantity of goods and services produced in the economy decreases,

Accepted Answer

A)  it may be possible for real GDP to increase. 
B)  real GDP would certainly increase. 
C)  it may be possible for nominal GDP to increase. 
D)  nominal GDP would certainly increase. 
A)  it may be possible for real GDP to increase. 
B)  real GDP would certainly increase. 
C)  it may be possible for nominal GDP to increase. 
D)  nominal GDP would certainly increase.

The total value of production from Ford's manufacturing plant in Cologne,Germany would be included in Germany's gross national product.

For developed countries like the United States,GDP will always exceed GNP.

Transfer payments are subtracted from national income to get to personal income.

If the GDP deflator is equal to 100,then for that year nominal GDP is equal to real GDP

Table 19-4 -Refer to Table 19-4.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals

If the GDP deflator is less than 100,then for that year nominal GDP ________ real GDP.

Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?

Nominal GDP is GDP in a given year

Suppose,in 2012,you purchased a house built in 2003.Which of the following would be included in the gross domestic product for 2012?

Which of the following could cause nominal GDP to increase,but real GDP to decrease?

How can a firm have a negative valued added,as supposedly some state-owned businesses did in the former Soviet Union? What has to be true for value added to be negative?

In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?

Table 19-14 -Refer to Table 19-14.Consider the data above for a simple economy: Using 2005 as the base year,calculate nominal GDP,real GDP,and the GDP deflator for 2011.Show your work.

The nominal GDP of the U.S.in 2010 was approximately $14.6 trillion.This means that

If the value added of a firm is positive,will the firm necessarily have positive profits?

A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where

If the GDP deflator is less than 100,which will be higher: nominal GDP or real GDP? Why?

Which of the following is not directly counted in GDP?

If the quantity of goods and services produced in the economy decreases,

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

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Exam 8: Gdp: Measuring Total Production and Income

The total value of production from Ford's manufacturing plant in Cologne,Germany would be included in Germany's gross national product.

For developed countries like the United States,GDP will always exceed GNP.

Transfer payments are subtracted from national income to get to personal income.

If the GDP deflator is equal to 100,then for that year nominal GDP is equal to real GDP

Table 19-4 -Refer to Table 19-4.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals

If the GDP deflator is less than 100,then for that year nominal GDP ________ real GDP.

Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?

Nominal GDP is GDP in a given year

Suppose,in 2012,you purchased a house built in 2003.Which of the following would be included in the gross domestic product for 2012?

Which of the following could cause nominal GDP to increase,but real GDP to decrease?

How can a firm have a negative valued added,as supposedly some state-owned businesses did in the former Soviet Union? What has to be true for value added to be negative?

In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?

Table 19-14 -Refer to Table 19-14.Consider the data above for a simple economy: Using 2005 as the base year,calculate nominal GDP,real GDP,and the GDP deflator for 2011.Show your work.

The nominal GDP of the U.S.in 2010 was approximately $14.6 trillion.This means that

If the value added of a firm is positive,will the firm necessarily have positive profits?

A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where

If the GDP deflator is less than 100,which will be higher: nominal GDP or real GDP? Why?

Which of the following is not directly counted in GDP?

If the quantity of goods and services produced in the economy decreases,

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