Question 1

Which of the following statements is true?

Accepted Answer

A)  GDP = NDP 
B)  GDP = NI 
C)  GDP = GDI 
D)  GDP = PI 
A)  GDP = NDP 
B)  GDP = NI 
C)  GDP = GDI 
D)  GDP = PI

Question 2

The GDP deflator is equal to.

Accepted Answer

A)  nominal GDP divided by real GDP. 
B)  nominal GDP multiplied by real GDP. 
C)  nominal GDP minus real GDP. 
D)  nominal GDP plus real GDP. 
A)  nominal GDP divided by real GDP. 
B)  nominal GDP multiplied by real GDP. 
C)  nominal GDP minus real GDP. 
D)  nominal GDP plus real GDP.

Question 3

-Using the data in the above table, what is the real GDP for year 2013 (in billions of constant dollars)?

Accepted Answer

A)  9,250 
B)  8,500 
C)  7,708 
D)  8,950 
A)  9,250 
B)  8,500 
C)  7,708 
D)  8,950

Question 4

-Using the data in the above table, what is the real GDP for year 2005 (in billions of constant dollars)?

Accepted Answer

A)  9,250 
B)  8,500 
C)  7,708 
D)  8,950 
A)  9,250 
B)  8,500 
C)  7,708 
D)  8,950

Question 5

Which one of the following accounting identities is true?

Accepted Answer

A)  Disposable personal income plus indirect business taxes equals personal income. 
B)  Disposable personal income plus non-income expense items equals personal income. 
C)  Disposable personal income plus personal income taxes equals personal income. 
D)  National income plus profit equals personal income. 
A)  Disposable personal income plus indirect business taxes equals personal income. 
B)  Disposable personal income plus non-income expense items equals personal income. 
C)  Disposable personal income plus personal income taxes equals personal income. 
D)  National income plus profit equals personal income.

Question 6

Net exports equal the

Accepted Answer

A)  total value of all exports. 
B)  total value of all government produced exports. 
C)  value of exports minus the value of imports. 
D)  value of imports minus the value of exports. 
A)  total value of all exports. 
B)  total value of all government produced exports. 
C)  value of exports minus the value of imports. 
D)  value of imports minus the value of exports.

Question 7

To find the U.S. dollar equivalent of a given amount of Mexican pesos, you would have to know

Accepted Answer

A)  per capita GDP in Mexico. 
B)  per capita GDP in the United States. 
C)  per capita GDP in both the United States and Mexico. 
D)  the foreign exchange rate between dollars and pesos. 
A)  per capita GDP in Mexico. 
B)  per capita GDP in the United States. 
C)  per capita GDP in both the United States and Mexico. 
D)  the foreign exchange rate between dollars and pesos.

Question 8

An increase in Social Security contributions will make

Accepted Answer

A)  net domestic product smaller. 
B)  national income larger. 
C)  national income smaller. 
D)  personal income smaller. 
A)  net domestic product smaller. 
B)  national income larger. 
C)  national income smaller. 
D)  personal income smaller.

Question 9

Durable consumer goods include all of the following EXCEPT

Accepted Answer

A)  an automobile. 
B)  stock in IBM. 
C)  a computer. 
D)  a compact disc player. 
A)  an automobile. 
B)  stock in IBM. 
C)  a computer. 
D)  a compact disc player.

Question 10

Suppose Social Security contributions rise by $1 billion while Social Security benefits also rise by $1 billion. Further, personal income taxes fall by $500 million. As a result,

Accepted Answer

A)  both personal and disposable personal income should increase. 
B)  national income, personal income, and disposable income should increase. 
C)  disposable income should increase while personal income and national income are unchanged. 
D)  personal income, disposable personal income, and national income remain unchanged. 
A)  both personal and disposable personal income should increase. 
B)  national income, personal income, and disposable income should increase. 
C)  disposable income should increase while personal income and national income are unchanged. 
D)  personal income, disposable personal income, and national income remain unchanged.

Question 11

The income approach to measuring GDP

Accepted Answer

A)  adds the dollar value of final goods and services. 
B)  adds the income received by all factors of production. 
C)  excludes durable consumer goods since they last more than a year. 
D)  excludes profits since profits are a cost of production. 
A)  adds the dollar value of final goods and services. 
B)  adds the income received by all factors of production. 
C)  excludes durable consumer goods since they last more than a year. 
D)  excludes profits since profits are a cost of production.

Question 12

Where does profit enter in the circular flow? Why?

Accepted Answer

Profit is a payment made to entrepreneur

Question 13

Social Security payments received by your grandmother

Accepted Answer

A)  are excluded from GDP, but are included in personal income. 
B)  are included in both GDP and personal income. 
C)  are included in GDP , but are excluded from personal income. 
D)  are excluded in both GDP and personal income. 
A)  are excluded from GDP, but are included in personal income. 
B)  are included in both GDP and personal income. 
C)  are included in GDP , but are excluded from personal income. 
D)  are excluded in both GDP and personal income.

Exam 8: Measuring the Economys Performance

Which of the following statements is true?

The GDP deflator is equal to.

-Using the data in the above table, what is the real GDP for year 2013 (in billions of constant dollars)?

-Using the data in the above table, what is the real GDP for year 2005 (in billions of constant dollars)?

Which one of the following accounting identities is true?

Net exports equal the

To find the U.S. dollar equivalent of a given amount of Mexican pesos, you would have to know

An increase in Social Security contributions will make

Durable consumer goods include all of the following EXCEPT

Suppose Social Security contributions rise by $1 billion while Social Security benefits also rise by $1 billion. Further, personal income taxes fall by $500 million. As a result,

The income approach to measuring GDP

Where does profit enter in the circular flow? Why?

Social Security payments received by your grandmother

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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