Question 1

All of the following are included in gross private domestic investment expenditure EXCEPT a

Accepted Answer

A)  business's purchase of a fleet of cars. 
B)  household's purchase of a new house. 
C)  business's purchase of another company's stock. 
D)  a retail store's purchase of shoes to add to its inventory. 
A)  business's purchase of a fleet of cars. 
B)  household's purchase of a new house. 
C)  business's purchase of another company's stock. 
D)  a retail store's purchase of shoes to add to its inventory.

Question 2

Which,if any,of the following causes a country's reported GDP to be less than its total economic production?

Accepted Answer

A)  the exclusion of household production 
B)  the exclusion of government transfers 
C)  the inclusion of government expenditures 
D)  None of the above cause reported GDP to be less than total production. 
A)  the exclusion of household production 
B)  the exclusion of government transfers 
C)  the inclusion of government expenditures 
D)  None of the above cause reported GDP to be less than total production.

Question 3

The components of the expenditure approach to measuring GDP include all of the following EXCEPT

Accepted Answer

A)  net exports. 
B)  government expenditure on goods and services. 
C)  investment. 
D)  the implicit payments for unpaid household work. 
A)  net exports. 
B)  government expenditure on goods and services. 
C)  investment. 
D)  the implicit payments for unpaid household work.

Question 4

-In the above figure,a recession begins at point ________ and an expansion begins at point ________.

Accepted Answer

A)  a; b 
B)  b; c 
C)  b; a 
D)  d; c 
A)  a; b 
B)  b; c 
C)  b; a 
D)  d; c

Question 5

In 2013,Ozzie purchased a 2010 Ford Escort from his neighbor for his son,purchased a 2009 "one owner" Camry from Larchmont Toyota for his wife,bought a 2013 new Ford for himself,and sold his 2002 Dodge Caravan to his teenage nephew.Which,if any,of these transactions will be included in GDP in 2013?

Accepted Answer

A)  all four transactions 
B)  all three purchases but not the sale 
C)  the purchase of the Ford and the Caravan 
D)  only the purchase of the Ford 
A)  all four transactions 
B)  all three purchases but not the sale 
C)  the purchase of the Ford and the Caravan 
D)  only the purchase of the Ford

Question 6

Which of the following is included in government expenditures when measuring GDP?

Accepted Answer

A)  Social Security payments 
B)  unemployment compensation payments 
C)  pension payment made to past presidents 
D)  the current president's salary 
A)  Social Security payments 
B)  unemployment compensation payments 
C)  pension payment made to past presidents 
D)  the current president's salary

Question 7

-In the above figure,the letters A,B,and C represent which positions in the business cycle?

Accepted Answer

A)  peak, expansion, and recession, respectively 
B)  recession, expansion, and peak, respectively 
C)  expansion, peak, and recession, respectively 
D)  peak, recession, and expansion, respectively 
A)  peak, expansion, and recession, respectively 
B)  recession, expansion, and peak, respectively 
C)  expansion, peak, and recession, respectively 
D)  peak, recession, and expansion, respectively

Question 8

-The horizontal axis on a time-series graph

Accepted Answer

A)  measures the variable being graphed. 
B)  measures units of time such as years. 
C)  runs parallel to the y-axis. 
D)  measures how the variable being graphed changes. 
A)  measures the variable being graphed. 
B)  measures units of time such as years. 
C)  runs parallel to the y-axis. 
D)  measures how the variable being graphed changes.

Question 9

The business cycle is the

Accepted Answer

A)  regular growth rate of the real GDP. 
B)  regular fluctuations of real GDP below potential GDP. 
C)  irregular fluctuations of prices around real GDP. 
D)  irregular fluctuations of real GDP around potential GDP. 
A)  regular growth rate of the real GDP. 
B)  regular fluctuations of real GDP below potential GDP. 
C)  irregular fluctuations of prices around real GDP. 
D)  irregular fluctuations of real GDP around potential GDP.

Question 10

$$\begin{array} { | l | c | } 
\hline { \text { Component } } & \begin{array} { c } 
\text { Amount } \
\text { (billions of } \
\text { dollars) }
\end{array} \
\hline \text { Personal consumption } & 3,720 \
 \text { expenditure } \
\hline \text { Government }& 430   \
\text { expenditure } &  \
\hline \text { Gross investment } &610 \
\hline \text { Net investment } & 520 \
\hline \text { Exports } &   650\
\hline \text { Imports } &720 \
\hline
\end{array}$$
-Using the information in the table above,calculate gross domestic product.

Accepted Answer

A)  $5,130 billion 
B)  $5,320 billion 
C)  $4,760 billion 
D)  $4,690 billion 
A)  $5,130 billion 
B)  $5,320 billion 
C)  $4,760 billion 
D)  $4,690 billion

Question 11

Two methods of measuring GDP are

Accepted Answer

A)  the income approach and the expenditure approach. 
B)  the income approach and the receipts approach. 
C)  the goods approach and the services approach. 
D)  the saving approach and the investment approach. 
A)  the income approach and the expenditure approach. 
B)  the income approach and the receipts approach. 
C)  the goods approach and the services approach. 
D)  the saving approach and the investment approach.

Question 12

In the post World War II period,considerable growth in total production took place in the United States.But at the same time,businesses were dumping their waste into the Great Lakes with minimal cost to themselves,significantly polluting the bodies of water as a result.This occurrence is an example where

Accepted Answer

A)  real GDP gives an overly positive view of economic welfare. 
B)  real GDP gives an overly negative view of economic welfare. 
C)  investment would have been a better measure of total production. 
D)  the pollution counts as a final good. 
A)  real GDP gives an overly positive view of economic welfare. 
B)  real GDP gives an overly negative view of economic welfare. 
C)  investment would have been a better measure of total production. 
D)  the pollution counts as a final good.

Question 13

Which of the following purchases is included in personal consumption expenditures when determining gross domestic product?

Accepted Answer

A)  purchase of a new house because of the arrival of a new baby 
B)  purchase of a new office building 
C)  vacation expenses for a spring trip to Fort Lauderdale 
D)  purchases of jeans to add to a store's inventory 
A)  purchase of a new house because of the arrival of a new baby 
B)  purchase of a new office building 
C)  vacation expenses for a spring trip to Fort Lauderdale 
D)  purchases of jeans to add to a store's inventory

Question 14

Use the idea of the circular flow diagram to explain why the value of production equals total income equals total expenditure.

Accepted Answer

The basic point is that nothing escapes

Question 15

A common definition of a recession is a time with

Accepted Answer

A)  a decline in the price level. 
B)  a decline in interest rates. 
C)  a decrease in real GDP for two or more successive quarters. 
D)  a decrease in real GDP for two or more successive years. 
A)  a decline in the price level. 
B)  a decline in interest rates. 
C)  a decrease in real GDP for two or more successive quarters. 
D)  a decrease in real GDP for two or more successive years.

Question 16

GDP is defined as the market value of all ________ in a given time period.

Accepted Answer

A)  final goods produced in a country 
B)  final goods and services produced by citizens of a particular country regardless of where in the world they are located 
C)  final goods and services produced in a country by only the citizens of the country 
D)  final goods and services produced in a country 
A)  final goods produced in a country 
B)  final goods and services produced by citizens of a particular country regardless of where in the world they are located 
C)  final goods and services produced in a country by only the citizens of the country 
D)  final goods and services produced in a country

Question 17

The data show Argentina's GDP (using purchasing power parity) in billions of dollars. Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
GDP($) 182 209 235 255 277 274 294 324 340 333 338 330 300 333 373 420 470
The data show that

Accepted Answer

A)  Argentina's economy was in a recession from 2004 through 2006. 
B)  Argentina's economy was in a recession in 2001 and 2002. 
C)  GDP per person more than doubled between 1990 and 2006. 
D)  Argentina's economy reached a peak in 1996. 
A)  Argentina's economy was in a recession from 2004 through 2006. 
B)  Argentina's economy was in a recession in 2001 and 2002. 
C)  GDP per person more than doubled between 1990 and 2006. 
D)  Argentina's economy reached a peak in 1996.

Question 18

Is every product produced in the United States included in U.S.gross domestic product?

Accepted Answer

No,not every product produced is include

Question 19

-Using the above figure,during which of the following periods does the price of crude oil shows an upward trend?

Accepted Answer

A)  May to November 
B)  May to July and October to December 
C)  July to October 
D)  April to November 
A)  May to November 
B)  May to July and October to December 
C)  July to October 
D)  April to November

Question 20

The data show Argentina's GDP (using purchasing power parity) in billions of dollars. Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
GDP($) 182 209 235 255 277 274 294 324 340 333 338 330 300 333 373 420 470
The data show that

Accepted Answer

A)  Argentina's economy reached a peak in 1998. 
B)  GDP per person increased between 1990 and 2006. 
C)  Argentina's potential GDP doubled between 1990 and 2006. 
D)  Argentina's economy entered a recession in 2000. 
A)  Argentina's economy reached a peak in 1998. 
B)  GDP per person increased between 1990 and 2006. 
C)  Argentina's potential GDP doubled between 1990 and 2006. 
D)  Argentina's economy entered a recession in 2000.

All of the following are included in gross private domestic investment expenditure EXCEPT a

Which,if any,of the following causes a country's reported GDP to be less than its total economic production?

The components of the expenditure approach to measuring GDP include all of the following EXCEPT

-In the above figure,a recession begins at point and an expansion begins at point .

In 2013,Ozzie purchased a 2010 Ford Escort from his neighbor for his son,purchased a 2009 "one owner" Camry from Larchmont Toyota for his wife,bought a 2013 new Ford for himself,and sold his 2002 Dodge Caravan to his teenage nephew.Which,if any,of these transactions will be included in GDP in 2013?

Which of the following is included in government expenditures when measuring GDP?

-In the above figure,the letters A,B,and C represent which positions in the business cycle?

-The horizontal axis on a time-series graph

The business cycle is the

Component Amount (billions of dollars) Personal consumption 3,720 expenditure Government 430 expenditure Gross investment 610 Net investment 520 Exports 650 Imports 720 -Using the information in the table above,calculate gross domestic product.

Two methods of measuring GDP are

Which of the following purchases is included in personal consumption expenditures when determining gross domestic product?

Use the idea of the circular flow diagram to explain why the value of production equals total income equals total expenditure.

A common definition of a recession is a time with

GDP is defined as the market value of all ________ in a given time period.

The data show Argentina's GDP (using purchasing power parity) in billions of dollars. Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 GDP($) 182 209 235 255 277 274 294 324 340 333 338 330 300 333 373 420 470 The data show that

Is every product produced in the United States included in U.S.gross domestic product?

-Using the above figure,during which of the following periods does the price of crude oil shows an upward trend?

The data show Argentina's GDP (using purchasing power parity) in billions of dollars. Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 GDP($) 182 209 235 255 277 274 294 324 340 333 338 330 300 333 373 420 470 The data show that

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

All of the following are included in gross private domestic investment expenditure EXCEPT a

Which,if any,of the following causes a country's reported GDP to be less than its total economic production?

The components of the expenditure approach to measuring GDP include all of the following EXCEPT

-In the above figure,a recession begins at point ________ and an expansion begins at point ________.

In 2013,Ozzie purchased a 2010 Ford Escort from his neighbor for his son,purchased a 2009 "one owner" Camry from Larchmont Toyota for his wife,bought a 2013 new Ford for himself,and sold his 2002 Dodge Caravan to his teenage nephew.Which,if any,of these transactions will be included in GDP in 2013?

Which of the following is included in government expenditures when measuring GDP?

-In the above figure,the letters A,B,and C represent which positions in the business cycle?

-The horizontal axis on a time-series graph

The business cycle is the

Component Amount (billions of dollars) Personal consumption 3,720 expenditure Government 430 expenditure Gross investment 610 Net investment 520 Exports 650 Imports 720 -Using the information in the table above,calculate gross domestic product.

Two methods of measuring GDP are

Which of the following purchases is included in personal consumption expenditures when determining gross domestic product?

Use the idea of the circular flow diagram to explain why the value of production equals total income equals total expenditure.

A common definition of a recession is a time with

GDP is defined as the market value of all ________ in a given time period.

The data show Argentina's GDP (using purchasing power parity) in billions of dollars. Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 GDP($) 182 209 235 255 277 274 294 324 340 333 338 330 300 333 373 420 470 The data show that

Is every product produced in the United States included in U.S.gross domestic product?

-Using the above figure,during which of the following periods does the price of crude oil shows an upward trend?

The data show Argentina's GDP (using purchasing power parity) in billions of dollars. Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 GDP($) 182 209 235 255 277 274 294 324 340 333 338 330 300 333 373 420 470 The data show that

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

-In the above figure,a recession begins at point and an expansion begins at point .