Question 1

If Nike,an American corporation,produces sneakers in Thailand this would

Accepted Answer

A)  count as part of U.S. GDP since it is a U.S. corporation. 
B)  count for both Thailand's GDP and U.S. GDP. 
C)  add to Thailand's GDP but not to U.S. GDP. 
D)  add to neither U.S. GDP nor Thailand's GDP. 
A)  count as part of U.S. GDP since it is a U.S. corporation. 
B)  count for both Thailand's GDP and U.S. GDP. 
C)  add to Thailand's GDP but not to U.S. GDP. 
D)  add to neither U.S. GDP nor Thailand's GDP.

Question 2

Which of the following is NOT part of the expenditure approach to measuring GDP?

Accepted Answer

A)  gross private domestic investment 
B)  net exports of goods and services 
C)  net interest 
D)  personal consumption expenditures 
A)  gross private domestic investment 
B)  net exports of goods and services 
C)  net interest 
D)  personal consumption expenditures

Question 3

Explain the difference between the capital stock,gross investment,depreciation,and net investment.

Accepted Answer

The capital stock is the total quantity

Question 4

What is a business cycle?

Accepted Answer

The business cycle is the recurrent but

Question 5

The following data describe France's economy in 2008. Consumption 234 billion euros
Government expenditure 93 billion euros
Investment 88 billion euros
Exports 128 billion euros
Imports 137 billion euros
From the data,we can conclude that in France

Accepted Answer

A)  net exports totaled -11 billion euros. 
B)  GDP equaled 424 billion euros. 
C)  GDP equaled 680 billion euros. 
D)  Net exports totaled 265 billion euros. 
A)  net exports totaled -11 billion euros. 
B)  GDP equaled 424 billion euros. 
C)  GDP equaled 680 billion euros. 
D)  Net exports totaled 265 billion euros.

Question 6

Net investment is the

Accepted Answer

A)  total amount of gross investment minus depreciation. 
B)  value of software and other network related products. 
C)  profit or loss in the stock market. 
D)  value of the depreciated capital multiplied by the changes in the price level. 
A)  total amount of gross investment minus depreciation. 
B)  value of software and other network related products. 
C)  profit or loss in the stock market. 
D)  value of the depreciated capital multiplied by the changes in the price level.

Question 7

Real Gross Domestic Product is

Accepted Answer

A)  the amount of people unemployed divided by the total labor force. 
B)  the productivity of labor. 
C)  the most that can be produced when the economy's resources are fully employed. 
D)  the value of total production linked back to the prices of a single year. 
A)  the amount of people unemployed divided by the total labor force. 
B)  the productivity of labor. 
C)  the most that can be produced when the economy's resources are fully employed. 
D)  the value of total production linked back to the prices of a single year.

Question 8

An expansion ends when the economy hits a trough and then enters a recession.

Accepted Answer

A) True 
 B)False

Question 9

In the national income accounts,government expenditure on goods and services refer to those purchases made by

Accepted Answer

A)  federal and state governments only. 
B)  the federal government only. 
C)  state and local governments only. 
D)  all levels of government. 
A)  federal and state governments only. 
B)  the federal government only. 
C)  state and local governments only. 
D)  all levels of government.

Question 10

In the equation,GDP = C + I + G + X - M,G refers to

Accepted Answer

A)  federal government expenditures plus all transfer payments. 
B)  local, state, and federal government spending for all purposes. 
C)  the taxes and expenditures of all government units. 
D)  local, state, and federal government expenditure on goods and services, but does not include transfer payments. 
A)  federal government expenditures plus all transfer payments. 
B)  local, state, and federal government spending for all purposes. 
C)  the taxes and expenditures of all government units. 
D)  local, state, and federal government expenditure on goods and services, but does not include transfer payments.

Question 11

$\begin{array}{c}
\begin{array}{|l|}
\hline\
 \text {Component}\
\hline \text {Net taxes}\
\hline \text {Personal consumption}\
\text {expenditure}\
\hline \text {Depreciation}\
\hline \text {Government expenditure}\
\hline \text {Gross investment}\
\hline \text {Net exports}\
\hline \text {Compensation of}\
\text {employees}\
\hline 
\end{array}
\begin{array}{c|}
\hline \text { Amount }\
\text { (dollars) } \
\hline 10 \
\hline\
 50 \
\hline 8 \
\hline 20 \
\hline 26 \
\hline-10 \
\hline\
 65\
\hline
\end{array}
\end{array}$

-Using the information in the table above,calculate the government's budget deficit or surplus.

Accepted Answer

A)  $2 
B)  -$4 
C)  -$10 
D)  $4 
A)  $2 
B)  -$4 
C)  -$10 
D)  $4

Question 12

Which of the following expenditures is for an intermediate good?

Accepted Answer

A)  The government buys new tires for its military vehicles. 
B)  A U.S. tire firm sells new tires to Canada. 
C)  General Motors buys new tires to put on the cars it's building. 
D)  You buy new tires for your used car. 
A)  The government buys new tires for its military vehicles. 
B)  A U.S. tire firm sells new tires to Canada. 
C)  General Motors buys new tires to put on the cars it's building. 
D)  You buy new tires for your used car.

Question 13

What we produce during our working time is ________ as part of GDP and the enjoyment we gain from our leisure time is ________ as part of GDP.

Accepted Answer

A)  included; not included 
B)  included; included 
C)  not included; included 
D)  not included; not included 
A)  included; not included 
B)  included; included 
C)  not included; included 
D)  not included; not included

Question 14

$$\begin{array} { | l | c | } 
\hline  { \text { Component } } & \begin{array} { c } 
\text { Amount } \
\text { (billions of } \
\text { dollars) }
\end{array} \
\hline \text { Gross investment } & 1300 \
\hline \begin{array} { l } 
\text { Personal consumption } \
\text { expenditure }
\end{array} & 1475 \
\hline \text { Depreciation } & 25 \
\hline \begin{array} { l } 
\text { Government expenditure on } \
\text { goods and services }
\end{array} & 1315 \
\hline \text { U.S. imports } & 260 \
\hline \text { U.S. exports } & 249 \
\hline \text { Compensation of employees } & 65 \
\hline
\end{array}$$
-The above table gives data for a hypothetical nation.Gross domestic product is

Accepted Answer

A)  $4,049 billion. 
B)  $4,079 billion. 
C)  $4,054 billion. 
D)  $4,339 billion. 
A)  $4,049 billion. 
B)  $4,079 billion. 
C)  $4,054 billion. 
D)  $4,339 billion.

Question 15

Proprietors' income is a component of which approach to measuring GDP?

Accepted Answer

A)  incomes approach 
B)  expenditure approach 
C)  cost approach 
D)  output approach 
A)  incomes approach 
B)  expenditure approach 
C)  cost approach 
D)  output approach

Question 16

To calculate GDP using the expenditure approach,in part it is necessary to

Accepted Answer

A)  add imports and exports. 
B)  add imports and subtract exports. 
C)  add exports and subtract imports. 
D)  subtract both exports and imports. 
A)  add imports and exports. 
B)  add imports and subtract exports. 
C)  add exports and subtract imports. 
D)  subtract both exports and imports.

If Nike,an American corporation,produces sneakers in Thailand this would

Which of the following is NOT part of the expenditure approach to measuring GDP?

Explain the difference between the capital stock,gross investment,depreciation,and net investment.

What is a business cycle?

The following data describe France's economy in 2008. Consumption 234 billion euros Government expenditure 93 billion euros Investment 88 billion euros Exports 128 billion euros Imports 137 billion euros From the data,we can conclude that in France

Net investment is the

Real Gross Domestic Product is

An expansion ends when the economy hits a trough and then enters a recession.

In the national income accounts,government expenditure on goods and services refer to those purchases made by

In the equation,GDP = C + I + G + X - M,G refers to

Component Net taxes Personal consumption expenditure Depreciation Government expenditure Gross investment Net exports Compensation of employees Amount (dollars) 10 50 8 20 26 -10 65 -Using the information in the table above,calculate the government's budget deficit or surplus.

Which of the following expenditures is for an intermediate good?

What we produce during our working time is as part of GDP and the enjoyment we gain from our leisure time is as part of GDP.

Proprietors' income is a component of which approach to measuring GDP?

To calculate GDP using the expenditure approach,in part it is necessary to

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

If Nike,an American corporation,produces sneakers in Thailand this would

Which of the following is NOT part of the expenditure approach to measuring GDP?

Explain the difference between the capital stock,gross investment,depreciation,and net investment.

What is a business cycle?

The following data describe France's economy in 2008. Consumption 234 billion euros Government expenditure 93 billion euros Investment 88 billion euros Exports 128 billion euros Imports 137 billion euros From the data,we can conclude that in France

Net investment is the

Real Gross Domestic Product is

An expansion ends when the economy hits a trough and then enters a recession.

In the national income accounts,government expenditure on goods and services refer to those purchases made by

In the equation,GDP = C + I + G + X - M,G refers to

Component Net taxes Personal consumption expenditure Depreciation Government expenditure Gross investment Net exports Compensation of employees Amount (dollars) 10 50 8 20 26 -10 65 -Using the information in the table above,calculate the government's budget deficit or surplus.

Which of the following expenditures is for an intermediate good?

What we produce during our working time is ________ as part of GDP and the enjoyment we gain from our leisure time is ________ as part of GDP.

Proprietors' income is a component of which approach to measuring GDP?

To calculate GDP using the expenditure approach,in part it is necessary to

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

What we produce during our working time is as part of GDP and the enjoyment we gain from our leisure time is as part of GDP.