Question 1

-Using the above figure,during which month was the price for crude oil the highest?

Accepted Answer

A)  July 
B)  December 
C)  May 
D)  October 
A)  July 
B)  December 
C)  May 
D)  October

Question 2

The chain-weighted output index method of measuring real GDP is based on

Accepted Answer

A)  using current prices rather than base year prices 
B)  averaging the market value of the expenditures over a two year period and then comparing with a base period. 
C)  using the prices of two adjacent years to calculate the growth rate of real GDP. 
D)  averaging the nominal and real measures of GDP to come up with a more accurate figure. 
A)  using current prices rather than base year prices 
B)  averaging the market value of the expenditures over a two year period and then comparing with a base period. 
C)  using the prices of two adjacent years to calculate the growth rate of real GDP. 
D)  averaging the nominal and real measures of GDP to come up with a more accurate figure.

Question 3

Which of the following is included in "compensation of employees" part of the income approach to measuring GDP?
I. Wages and salaries.
II. Pension fund contributions.
III. Social security contributions.

Accepted Answer

A)  I only 
B)  I and II 
C)  I and III 
D)  I, II and III 
A)  I only 
B)  I and II 
C)  I and III 
D)  I, II and III

Question 4

In the United States,GDP is typically measured

Accepted Answer

A)  monthly. 
B)  quarterly. 
C)  daily. 
D)  weekly. 
A)  monthly. 
B)  quarterly. 
C)  daily. 
D)  weekly.

Question 5

The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euros,in constant prices): 2006 2007
Consumption 84,000 89,000
Government expenditure 24,000 26,000
Investment 48,000 48,000
Exports 142,000 151,000
Imports 123,000 128,000
Subsidies 1,800 1,900
Taxes 500 500
Ireland's real GDP in 2007 was ________ million euros.

Accepted Answer

A)  442,000 
B)  186,000 
C)  188,400 
D)  163,000 
A)  442,000 
B)  186,000 
C)  188,400 
D)  163,000

Question 6

To measure economic welfare,one needs only to measure real GDP.

Accepted Answer

A) True 
 B)False

Question 7

$$\begin{array} { | c | c | } 
\hline { \text { Item } } & \begin{array} { c } 
\text { Millions of } \
\text { dollars }
\end{array} \
\hline \begin{array} { l } 
\text { Personal consumption } \
\text { expenditure }
\end{array} & 80 \
\hline \begin{array} { l } 
\text { Government expenditure on } \
\text { goods and services }
\end{array} & 30 \
\hline \text { Net taxes } & 35 \
\hline \text { Gross private domestic } & 20 \
\hline \text { investment } & 10 \
\hline \begin{array} { l } 
\text { Emports of goods and services }
\end{array} \
\text { Exports of goods and services } & 20 \
\hline
\end{array}$$
-Using the information in the table above,calculate the value of GDP.

Accepted Answer

A)  $185 million 
B)  $145 million 
C)  $195 million 
D)  $140 million 
A)  $185 million 
B)  $145 million 
C)  $195 million 
D)  $140 million

Question 8

Potential GDP is

Accepted Answer

A)  the maximum GDP that an economy actually achieves throughout its entire history. 
B)  the level of GDP achieved during periods when 100 percent of the labor force is employed. 
C)  a goal that can never be achieved by the economy. 
D)  the maximum amount of GDP that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation. 
A)  the maximum GDP that an economy actually achieves throughout its entire history. 
B)  the level of GDP achieved during periods when 100 percent of the labor force is employed. 
C)  a goal that can never be achieved by the economy. 
D)  the maximum amount of GDP that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation.

Question 9

Potential GDP is

Accepted Answer

A)  another name for real GDP. 
B)  always different from real GDP. 
C)  the level of GDP not adjusted for price changes. 
D)  the maximum amount of GDP that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation. 
A)  another name for real GDP. 
B)  always different from real GDP. 
C)  the level of GDP not adjusted for price changes. 
D)  the maximum amount of GDP that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation.

Question 10

Investment,as included in GDP,consists of what?

Accepted Answer

Investment is the purchase of

Question 11

An indirect tax is a tax paid by consumers

Accepted Answer

A)  to a state or local government. 
B)  when they purchase goods and services. 
C)  on unearned income (as opposed to wages and salaries). 
D)  that is a percentage of the value of their real property. 
A)  to a state or local government. 
B)  when they purchase goods and services. 
C)  on unearned income (as opposed to wages and salaries). 
D)  that is a percentage of the value of their real property.

Question 12

When gross investment is greater than depreciation,then the nation's capital stock increased.

Accepted Answer

A) True 
 B)False

Question 13

In the circular flow model of an economy,households

Accepted Answer

A)  receive income from buyers of goods and services. 
B)  receive income from the sale of factors in the goods markets. 
C)  pay firms for the use of their factors. 
D)  receive income from producers for the use of factors in the factor markets. 
A)  receive income from buyers of goods and services. 
B)  receive income from the sale of factors in the goods markets. 
C)  pay firms for the use of their factors. 
D)  receive income from producers for the use of factors in the factor markets.

Question 14

Which one of the following transactions in a particular year is included in gross domestic product for that year?

Accepted Answer

A)  Social Security payments to retirees 
B)  The government pays a computer services company that assisted in the delivery of Social Security payments to retirees. 
C)  A car is produced in the previous year and remains in inventory for the entire year under consideration. 
D)  A stay-at-home parent performs housework that the family would otherwise have paid a maid $20,000 a year to perform. 
A)  Social Security payments to retirees 
B)  The government pays a computer services company that assisted in the delivery of Social Security payments to retirees. 
C)  A car is produced in the previous year and remains in inventory for the entire year under consideration. 
D)  A stay-at-home parent performs housework that the family would otherwise have paid a maid $20,000 a year to perform.

Question 15

You believe that the total amount of goods produced in the United States has generally increased over the years.In a time-series graph illustrating the total amount produced,you expect to find

Accepted Answer

A)  an upward trend. 
B)  no relationship between time and the amount of goods produced. 
C)  an inverse relationship between time and the amount of goods produced. 
D)  a linear relationship. 
A)  an upward trend. 
B)  no relationship between time and the amount of goods produced. 
C)  an inverse relationship between time and the amount of goods produced. 
D)  a linear relationship.

Question 16

Net investment

Accepted Answer

A)  equals gross investment plus depreciation. 
B)  is the only measure of investment used to calculate GDP. 
C)  equals gross investment minus depreciation. 
D)  is equivalent to the existing capital stock in the economy. 
A)  equals gross investment plus depreciation. 
B)  is the only measure of investment used to calculate GDP. 
C)  equals gross investment minus depreciation. 
D)  is equivalent to the existing capital stock in the economy.

Question 17

What is the distinction between gross investment and net investment?

Accepted Answer

Gross investment is the total spending o

Question 18

Transfer payments are not included in GDP because

Accepted Answer

A)  their market value cannot be accurately determined. 
B)  they do not generate additional income. 
C)  they are not purchases of goods or services. 
D)  their value is included in government expenditure. 
A)  their market value cannot be accurately determined. 
B)  they do not generate additional income. 
C)  they are not purchases of goods or services. 
D)  their value is included in government expenditure.

Question 19

________ is gross investment minus ________.

Accepted Answer

A)  The capital stock; net investment 
B)  The capital stock; depreciation 
C)  Depreciation; replacement investment 
D)  Net investment; depreciation 
A)  The capital stock; net investment 
B)  The capital stock; depreciation 
C)  Depreciation; replacement investment 
D)  Net investment; depreciation

Question 20

Which of the following is NOT included in real GDP?

Accepted Answer

A)  production of services, such as the services of hair dressers 
B)  production of goods that last less than a year, such as production of hot dogs 
C)  production that takes place in the underground economy 
D)  production of goods that last more than a year, such as a pair of roller blades 
A)  production of services, such as the services of hair dressers 
B)  production of goods that last less than a year, such as production of hot dogs 
C)  production that takes place in the underground economy 
D)  production of goods that last more than a year, such as a pair of roller blades

-Using the above figure,during which month was the price for crude oil the highest?

The chain-weighted output index method of measuring real GDP is based on

Which of the following is included in "compensation of employees" part of the income approach to measuring GDP? I. Wages and salaries. II. Pension fund contributions. III. Social security contributions.

In the United States,GDP is typically measured

To measure economic welfare,one needs only to measure real GDP.

Item Millions of dollars Personal consumption expenditure 80 Government expenditure on goods and services 30 Net taxes 35 Gross private domestic 20 investment 10 Emports of goods and services Exports of goods and services 20 -Using the information in the table above,calculate the value of GDP.

Potential GDP is

Potential GDP is

Investment,as included in GDP,consists of what?

An indirect tax is a tax paid by consumers

When gross investment is greater than depreciation,then the nation's capital stock increased.

In the circular flow model of an economy,households

Which one of the following transactions in a particular year is included in gross domestic product for that year?

You believe that the total amount of goods produced in the United States has generally increased over the years.In a time-series graph illustrating the total amount produced,you expect to find

Net investment

What is the distinction between gross investment and net investment?

Transfer payments are not included in GDP because

is gross investment minus .

Which of the following is NOT included in real GDP?

What Is Economics

The Economic Problem

Demand and Supply

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 4: Measuring GDP and Economic Growth

-Using the above figure,during which month was the price for crude oil the highest?

The chain-weighted output index method of measuring real GDP is based on

Which of the following is included in "compensation of employees" part of the income approach to measuring GDP? I. Wages and salaries. II. Pension fund contributions. III. Social security contributions.

In the United States,GDP is typically measured

To measure economic welfare,one needs only to measure real GDP.

Item Millions of dollars Personal consumption expenditure 80 Government expenditure on goods and services 30 Net taxes 35 Gross private domestic 20 investment 10 Emports of goods and services Exports of goods and services 20 -Using the information in the table above,calculate the value of GDP.

Potential GDP is

Potential GDP is

Investment,as included in GDP,consists of what?

An indirect tax is a tax paid by consumers

When gross investment is greater than depreciation,then the nation's capital stock increased.

In the circular flow model of an economy,households

Which one of the following transactions in a particular year is included in gross domestic product for that year?

You believe that the total amount of goods produced in the United States has generally increased over the years.In a time-series graph illustrating the total amount produced,you expect to find

Net investment

What is the distinction between gross investment and net investment?

Transfer payments are not included in GDP because

________ is gross investment minus ________.

Which of the following is NOT included in real GDP?

What Is Economics

The Economic Problem

Demand and Supply

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

is gross investment minus .