Question 1

If nominal GDP is $5 trillion and real GDP is $4 trillion,the GDP deflator is

Accepted Answer

A) 12.5. 
B) 80. 
C) 125. 
D) 800. 
A) 12.5. 
B) 80. 
C) 125. 
D) 800.

Question 2

Which of the following is not an example of a transfer payment?

Accepted Answer

A) unemployment insurance payments 
B) health insurance payments to an army private 
C) social security payments to retirees 
D) social security payments to disabled persons 
A) unemployment insurance payments 
B) health insurance payments to an army private 
C) social security payments to retirees 
D) social security payments to disabled persons

Question 3

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 4

If a German firm produces cars in the United States,that production should count towards

Accepted Answer

A) U.S.GNP. 
B) German GDP. 
C) U.S.GDP. 
D) both U.S.GNP and German GDP. 
A) U.S.GNP. 
B) German GDP. 
C) U.S.GDP. 
D) both U.S.GNP and German GDP.

Question 5

Gross domestic product is calculated by summing up

Accepted Answer

A) the total quantity of goods and services in the economy. 
B) the total quantity of goods and services produced in the economy during a period of time. 
C) the total market value of goods and services in the economy. 
D) the total market value of final goods and services produced in the economy during a period of time. 
A) the total quantity of goods and services in the economy. 
B) the total quantity of goods and services produced in the economy during a period of time. 
C) the total market value of goods and services in the economy. 
D) the total market value of final goods and services produced in the economy during a period of time.

Question 6

If Gladys sells her 2003 Jeep Cherokee for $3,500 in 2018,the sale of her car contributes $3,500 to 2018 GDP.

Accepted Answer

A) True 
 B)False

Question 7

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

Accepted Answer

A) average price levels of goods and services in the economy. 
B) price charged for laptop computers by Dell. 
C) wages paid to employees by Dell. 
D) quantity of Dell employees. 
A) average price levels of goods and services in the economy. 
B) price charged for laptop computers by Dell. 
C) wages paid to employees by Dell. 
D) quantity of Dell employees.

Question 8

The Bureau of Economic Analysis divides it's statistics on GDP into four major categories.List the categories of expenditures and define each.

Accepted Answer

The largest category of expenditures is

Question 9

Table 8-5
   Consider the table above showing three stages of production of an automobile.
-Refer to Table 8-5.The value added by the automobile dealer equals

Accepted Answer

A) $7,000. 
B) $15,000. 
C) $18,000. 
D) $25,000. 
A) $7,000. 
B) $15,000. 
C) $18,000. 
D) $25,000.

Question 10

The underground economy-the informal sector-can be a significant drag on the economies of developing countries.Why are firms in the informal sector often less efficient than firms in the formal sector?

Accepted Answer

Entrepreneurs of the firms in the inform

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Table 8-19
  
-Refer to Table 8-19.Given the information above,calculate the GDP deflator in 2017.

Accepted Answer

A) 87 
B) 95 
C) 105 
D) 114 
A) 87 
B) 95 
C) 105 
D) 114

Question 13

An example of an intermediate good would be

Accepted Answer

A) a new car. 
B) a used car. 
C) the rims on a new car. 
D) new rims to replace old rims on a used car. 
A) a new car. 
B) a used car. 
C) the rims on a new car. 
D) new rims to replace old rims on a used car.

Question 14

Which of the following is a true statement about real and nominal GDP?

Accepted Answer

A) If nominal GDP increases from one year to the next,we know that production of goods and services has risen. 
B) Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and service year after year. 
C) Increases in average prices do not affect the calculation of nominal GDP. 
D) If real GDP increases from one year to the next,we know that production of goods and services has risen. 
A) If nominal GDP increases from one year to the next,we know that production of goods and services has risen. 
B) Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and service year after year. 
C) Increases in average prices do not affect the calculation of nominal GDP. 
D) If real GDP increases from one year to the next,we know that production of goods and services has risen.

Question 15

In 2016,Ford Motor Company's sales were rising.These events were caused by

Accepted Answer

A) an economic recession. 
B) an economic expansion. 
C) an increase in advertising. 
D) improving quality of service. 
A) an economic recession. 
B) an economic expansion. 
C) an increase in advertising. 
D) improving quality of service.

Question 16

The measure of production that values output using base-year prices is called

Accepted Answer

A) real GDP. 
B) nominal GDP. 
C) value-added GDP. 
D) underground GDP. 
A) real GDP. 
B) nominal GDP. 
C) value-added GDP. 
D) underground GDP.

Question 17

Assuming that the United States is the domestic economy,________ are goods and services produced by ________ and purchased by ________.

Accepted Answer

A) exports; foreign countries; the United States 
B) exports; the United States; the United States 
C) imports; foreign countries; foreign countries 
D) imports; foreign countries; the United States 
A) exports; foreign countries; the United States 
B) exports; the United States; the United States 
C) imports; foreign countries; foreign countries 
D) imports; foreign countries; the United States

Question 18

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 19

In 2018,Kendall Ford,an automobile dealership,spent $20,000 on a new car lift for its repair shop,$2,000 on a new copy machine for its sales division,and $600,000 on Ford Motor company stock.Unsold cars and trucks were valued at $400,000 on January 1,2018 and unsold cars and trucks were valued at $900,000 on December 31,2018.What is Kendall Ford's total investment spending in 2018?

Accepted Answer

A) $22,000 
B) $322,000 
C) $522,000 
D) $1,022,000 
A) $22,000 
B) $322,000 
C) $522,000 
D) $1,022,000

Question 20

Relative to Canada,China has a ________ growth rate in GDP and a ________ level of real GDP.

Accepted Answer

A) higher; lower 
B) higher; higher 
C) lower; lower 
D) lower; higher 
A) higher; lower 
B) higher; higher 
C) lower; lower 
D) lower; higher

If nominal GDP is $5 trillion and real GDP is $4 trillion,the GDP deflator is

Which of the following is not an example of a transfer payment?

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 a German firm produces cars in the United States,that production should count towards

Gross domestic product is calculated by summing up

If Gladys sells her 2003 Jeep Cherokee for $3,500 in 2018,the sale of her car contributes $3,500 to 2018 GDP.

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

The Bureau of Economic Analysis divides it's statistics on GDP into four major categories.List the categories of expenditures and define each.

Table 8-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 8-5.The value added by the automobile dealer equals

The underground economy-the informal sector-can be a significant drag on the economies of developing countries.Why are firms in the informal sector often less efficient than firms in the formal sector?

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

Table 8-19 -Refer to Table 8-19.Given the information above,calculate the GDP deflator in 2017.

An example of an intermediate good would be

Which of the following is a true statement about real and nominal GDP?

In 2016,Ford Motor Company's sales were rising.These events were caused by

The measure of production that values output using base-year prices is called

Assuming that the United States is the domestic economy, are goods and services produced by and purchased by .

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

Relative to Canada,China has a growth rate in GDP and a level of real GDP.

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

Exam 8: GDP: Measuring Total Production and Income

If nominal GDP is $5 trillion and real GDP is $4 trillion,the GDP deflator is

Which of the following is not an example of a transfer payment?

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 a German firm produces cars in the United States,that production should count towards

Gross domestic product is calculated by summing up

If Gladys sells her 2003 Jeep Cherokee for $3,500 in 2018,the sale of her car contributes $3,500 to 2018 GDP.

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

The Bureau of Economic Analysis divides it's statistics on GDP into four major categories.List the categories of expenditures and define each.

Table 8-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 8-5.The value added by the automobile dealer equals

The underground economy-the informal sector-can be a significant drag on the economies of developing countries.Why are firms in the informal sector often less efficient than firms in the formal sector?

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

Table 8-19 -Refer to Table 8-19.Given the information above,calculate the GDP deflator in 2017.

An example of an intermediate good would be

Which of the following is a true statement about real and nominal GDP?

In 2016,Ford Motor Company's sales were rising.These events were caused by

The measure of production that values output using base-year prices is called

Assuming that the United States is the domestic economy,________ are goods and services produced by ________ and purchased by ________.

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

Relative to Canada,China has a ________ growth rate in GDP and a ________ level of real GDP.

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

Assuming that the United States is the domestic economy, are goods and services produced by and purchased by .

Relative to Canada,China has a growth rate in GDP and a level of real GDP.