Question 1

Gross domestic product is a measure of the total value of all

Accepted Answer

A)  sales in an economy over a period of time. 
B)  consumer income in an economy over a period of time. 
C)  capital accumulation in an economy over a period of time. 
D)  final goods and services produced in an economy over a period of time. 
A)  sales in an economy over a period of time. 
B)  consumer income in an economy over a period of time. 
C)  capital accumulation in an economy over a period of time. 
D)  final goods and services produced in an economy over a period of time.

Question 2

The four categories of expenditure used by the expenditure approach method to calculate GDP are

Accepted Answer

A)  consumption expenditure, taxes, saving and investment. 
B)  consumption expenditure, investment, net imports and saving. 
C)  saving, taxes, government expenditure and investment. 
D)  consumption expenditure, investment, government expenditure and net exports. 
A)  consumption expenditure, taxes, saving and investment. 
B)  consumption expenditure, investment, net imports and saving. 
C)  saving, taxes, government expenditure and investment. 
D)  consumption expenditure, investment, government expenditure and net exports.

Question 3

The chain-weighted output index method ________.

Accepted Answer

A)  is used to calculate the value of nominal GDP 
B)  values the quantities produced in a year at the prices of the base year 
C)  shows that real GDP increases every year 
D)  uses the prices of two adjacent years to calculate the real GDP growth rate 
A)  is used to calculate the value of nominal GDP 
B)  values the quantities produced in a year at the prices of the base year 
C)  shows that real GDP increases every year 
D)  uses the prices of two adjacent years to calculate the real GDP growth rate

Question 4

-In the above figure, which point represents an economy which is at the peak part of a business cycle?

Accepted Answer

A)  point F 
B)  point G 
C)  point I 
D)  point K 
A)  point F 
B)  point G 
C)  point I 
D)  point K

Question 5

All of the following household expenditures are included in consumption expenditure EXCEPT

Accepted Answer

A)  payment to a dentist for filling a tooth. 
B)  purchase of corporate stock. 
C)  purchase of a new purse. 
D)  purchase of hair styling. 
A)  payment to a dentist for filling a tooth. 
B)  purchase of corporate stock. 
C)  purchase of a new purse. 
D)  purchase of hair styling.

Question 6

-Using the information in the table above, calculate gross domestic product.

Accepted Answer

A)  $118 
B)  $108 
C)  $86 
D)  $78 
A)  $118 
B)  $108 
C)  $86 
D)  $78

Question 7

Which of the following items is NOT part of government expenditure on goods and services in the GDP accounts?

Accepted Answer

A)  gasoline purchases for government car pools 
B)  Social Security expenditures 
C)  new computer hardware for use by the IRS 
D)  drapes to brighten up the president's office 
A)  gasoline purchases for government car pools 
B)  Social Security expenditures 
C)  new computer hardware for use by the IRS 
D)  drapes to brighten up the president's office

Question 8

GDP can be computed as the sum of

Accepted Answer

A)  all sales that have taken place in an economy over a period of time. 
B)  the total expenditures of consumers and business over a period of time. 
C)  the total expenditures of consumption, investment, and government expenditure on goods and services over a period of time. 
D)  the total expenditures of consumption, investment, government expenditure on goods and services, and net exports over a period of time. 
A)  all sales that have taken place in an economy over a period of time. 
B)  the total expenditures of consumers and business over a period of time. 
C)  the total expenditures of consumption, investment, and government expenditure on goods and services over a period of time. 
D)  the total expenditures of consumption, investment, government expenditure on goods and services, and net exports over a period of time.

Question 9

If a measure of real GDP could include the value of leisure time, measured real GDP would increase.

Accepted Answer

A) True 
 B)False

Question 10

-Which of the following is a component of the incomes approach to GDP?

Accepted Answer

A)  consumption expenditure 
B)  wages and salaries 
C)  investment 
D)  government expenditure on goods and services 
A)  consumption expenditure 
B)  wages and salaries 
C)  investment 
D)  government expenditure on goods and services

Question 11

-In the above figure, the distance between points T and U represents

Accepted Answer

A)  an expansion. 
B)  a trough. 
C)  a peak. 
D)  a recession. 
A)  an expansion. 
B)  a trough. 
C)  a peak. 
D)  a recession.

Question 12

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 13

An economy recovering from a recession

Accepted Answer

A)  moves up from its trough to a period of expansion. 
B)  moves up from its peak to a period of expansion. 
C)  moves down from its trough to a period of depression. 
D)  moves down from its peak to a period of expansion. 
A)  moves up from its trough to a period of expansion. 
B)  moves up from its peak to a period of expansion. 
C)  moves down from its trough to a period of depression. 
D)  moves down from its peak to a period of expansion.

Question 14

Pollution is a by-product of some production processes, so on this count real GDP as measured

Accepted Answer

A)  is adjusted downward to take into account the pollution. 
B)  is adjusted upward to take into account the expenditures that will be made in the future to clean up the pollution. 
C)  tends to overstate economic welfare. 
D)  tends to understate economic welfare. 
A)  is adjusted downward to take into account the pollution. 
B)  is adjusted upward to take into account the expenditures that will be made in the future to clean up the pollution. 
C)  tends to overstate economic welfare. 
D)  tends to understate economic welfare.

Question 15

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 16

Net investment equals gross investment minus depreciation.

Accepted Answer

A) True 
 B)False

Question 17

8 Extended Problems
  
-The table above shows the transaction in Pinkland last year:
a)Calculate Pinkland's GDP.
b)What approach did you use to make this calculation?

Accepted Answer

a)GDP = C + I + G + (X - M) =

Question 18

-Based on the data in the above table, gross domestic product equals

Accepted Answer

A)  $2,190. 
B)  $2,840. 
C)  $2,465. 
D)  $2,750. 
A)  $2,190. 
B)  $2,840. 
C)  $2,465. 
D)  $2,750.

Question 19

Explain how our economic welfare depends upon our level of real GDP per person but there might not be a one-to-one relationship between economic welfare and real GDP per person. Give examples of things that can effect one but not the other.

Accepted Answer

Although GDP has a significant impact on

Question 20

The data show Argentina's GDP (using purchasing power parity)in billions of dollars.
 
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.

Gross domestic product is a measure of the total value of all

The four categories of expenditure used by the expenditure approach method to calculate GDP are

The chain-weighted output index method ________.

-In the above figure, which point represents an economy which is at the peak part of a business cycle?

All of the following household expenditures are included in consumption expenditure EXCEPT

-Using the information in the table above, calculate gross domestic product.

Which of the following items is NOT part of government expenditure on goods and services in the GDP accounts?

GDP can be computed as the sum of

If a measure of real GDP could include the value of leisure time, measured real GDP would increase.

-Which of the following is a component of the incomes approach to GDP?

-In the above figure, the distance between points T and U represents

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

An economy recovering from a recession

Pollution is a by-product of some production processes, so on this count real GDP as measured

Net investment

Net investment equals gross investment minus depreciation.

8 Extended Problems -The table above shows the transaction in Pinkland last year: a)Calculate Pinkland's GDP. b)What approach did you use to make this calculation?

-Based on the data in the above table, gross domestic product equals

Explain how our economic welfare depends upon our level of real GDP per person but there might not be a one-to-one relationship between economic welfare and real GDP per person. Give examples of things that can effect one but not the other.

The data show Argentina's GDP (using purchasing power parity)in billions of dollars. 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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 4: Measuring GDP and Economic Growth

Gross domestic product is a measure of the total value of all

The four categories of expenditure used by the expenditure approach method to calculate GDP are

The chain-weighted output index method ________.

-In the above figure, which point represents an economy which is at the peak part of a business cycle?

All of the following household expenditures are included in consumption expenditure EXCEPT

-Using the information in the table above, calculate gross domestic product.

Which of the following items is NOT part of government expenditure on goods and services in the GDP accounts?

GDP can be computed as the sum of

If a measure of real GDP could include the value of leisure time, measured real GDP would increase.

-Which of the following is a component of the incomes approach to GDP?

-In the above figure, the distance between points T and U represents

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

An economy recovering from a recession

Pollution is a by-product of some production processes, so on this count real GDP as measured

Net investment

Net investment equals gross investment minus depreciation.

8 Extended Problems -The table above shows the transaction in Pinkland last year: a)Calculate Pinkland's GDP. b)What approach did you use to make this calculation?

-Based on the data in the above table, gross domestic product equals

Explain how our economic welfare depends upon our level of real GDP per person but there might not be a one-to-one relationship between economic welfare and real GDP per person. Give examples of things that can effect one but not the other.

The data show Argentina's GDP (using purchasing power parity)in billions of dollars. 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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters