Question 1

The factors of production:

Accepted Answer

A)  Are unlimited for the United States since the country is so wealthy. 
B)  Include land,capital,and money. 
C)  Are the resource inputs used to produce goods and services. 
D)  Include consumption,investment and government spending. 
A)  Are unlimited for the United States since the country is so wealthy. 
B)  Include land,capital,and money. 
C)  Are the resource inputs used to produce goods and services. 
D)  Include consumption,investment and government spending.

Question 2

GDP can be found by:

Accepted Answer

A)  Adding the monetary value of all final goods and services produced during a given period of time. 
B)  Adding the physical amount of all final goods and services produced during a given period of time. 
C)  Taking the difference between exports and imports during a given period of time. 
D)  Adding the value of all final output produced and measuring it in constant prices during a given period of time. 
A)  Adding the monetary value of all final goods and services produced during a given period of time. 
B)  Adding the physical amount of all final goods and services produced during a given period of time. 
C)  Taking the difference between exports and imports during a given period of time. 
D)  Adding the value of all final output produced and measuring it in constant prices during a given period of time.

Question 3

In 2012,per capita GDP in the United States was approximately:

Accepted Answer

A)  $41,000. 
B)  $49,000. 
C)  $35,000. 
D)  $51,000. 
A)  $41,000. 
B)  $49,000. 
C)  $35,000. 
D)  $51,000.

Question 4

Country's GDP is:

Accepted Answer

A)  The sum of the physical amounts of goods and services in the economy. 
B)  A dollar measure of output produced within a nation's borders during a given time period. 
C)  A measure of the per capita economic growth rate of the economy. 
D)  A physical measure of the capital stock of the economy. 
A)  The sum of the physical amounts of goods and services in the economy. 
B)  A dollar measure of output produced within a nation's borders during a given time period. 
C)  A measure of the per capita economic growth rate of the economy. 
D)  A physical measure of the capital stock of the economy.

Question 5

Which of the following contribute to high levels of U.S.production?

Accepted Answer

A)  Abundant factors of production. 
B)  Labor-intensive production. 
C)  Barriers to trade. 
D)  Immigration restrictions. 
A)  Abundant factors of production. 
B)  Labor-intensive production. 
C)  Barriers to trade. 
D)  Immigration restrictions.

Question 6

Ceteris paribus,economic growth involves an:

Accepted Answer

A)  Increase in imports. 
B)  Expansion of production possibilities. 
C)  Increase in GDP due to inflation. 
D)  Increase in government spending. 
A)  Increase in imports. 
B)  Expansion of production possibilities. 
C)  Increase in GDP due to inflation. 
D)  Increase in government spending.

Question 7

Real GDP is a more accurate measure of economic growth than nominal GDP because:

Accepted Answer

A)  Nominal GDP is a total dollar measurement. 
B)  Nominal GDP only increases because of an increase in production. 
C)  Nominal GDP can increase due to an increase in production or prices or both. 
D)  Real GDP is a measurement of the overall price level. 
A)  Nominal GDP is a total dollar measurement. 
B)  Nominal GDP only increases because of an increase in production. 
C)  Nominal GDP can increase due to an increase in production or prices or both. 
D)  Real GDP is a measurement of the overall price level.

Question 8

Which of the following plays an increasingly important role in the U.S.economy?

Accepted Answer

A)  International trade. 
B)  Manufacturing. 
C)  Farming. 
D)  Construction and mining. 
A)  International trade. 
B)  Manufacturing. 
C)  Farming. 
D)  Construction and mining.

Question 9

Since investment spending in the United States is a smaller percentage of GDP than consumer spending,it is not essential for economic growth.

Accepted Answer

A) True 
 B)False

Question 10

The dumping of chemicals into a lake,which contaminates the drinking water,is an example of:

Accepted Answer

A)  Income transfers. 
B)  A monopoly. 
C)  An externality. 
D)  Factor mobility. 
A)  Income transfers. 
B)  A monopoly. 
C)  An externality. 
D)  Factor mobility.

Question 11

Nominal GDP is affected by changes in:

Accepted Answer

A)  Output only. 
B)  Output and prices. 
C)  Income transfers. 
D)  Prices only. 
A)  Output only. 
B)  Output and prices. 
C)  Income transfers. 
D)  Prices only.

Question 12

Which of the following is not included in GDP as part of government services?

Accepted Answer

A)  Social Security benefits. 
B)  Military equipment. 
C)  Highways and bridges. 
D)  Education. 
A)  Social Security benefits. 
B)  Military equipment. 
C)  Highways and bridges. 
D)  Education.

Question 13

Education and job training are part of:

Accepted Answer

A)  Business investment spending. 
B)  Consumer spending on durables since the impact is long lasting. 
C)  Human capital investment. 
D)  Income transfers. 
A)  Business investment spending. 
B)  Consumer spending on durables since the impact is long lasting. 
C)  Human capital investment. 
D)  Income transfers.

Question 14

Which sector is expected to grow most rapidly for the United States in the future?

Accepted Answer

A)  Farming since Americans are getting fatter. 
B)  Services since Americans have high relative incomes. 
C)  Manufacturing since Americans demand more and more luxury items. 
D)  Mining since Americans use a lot of natural resources. 
A)  Farming since Americans are getting fatter. 
B)  Services since Americans have high relative incomes. 
C)  Manufacturing since Americans demand more and more luxury items. 
D)  Mining since Americans use a lot of natural resources.

Question 15

Capital intensive means:

Accepted Answer

A)  The production process uses a high ratio of capital to labor inputs. 
B)  The production process uses a high ratio of labor to capital inputs. 
C)  The production process is inefficient because it requires too much capital. 
D)  That there are fewer jobs for workers and the economy will begin to decline. 
A)  The production process uses a high ratio of capital to labor inputs. 
B)  The production process uses a high ratio of labor to capital inputs. 
C)  The production process is inefficient because it requires too much capital. 
D)  That there are fewer jobs for workers and the economy will begin to decline.

Question 16

Exports represent:

Accepted Answer

A)  Goods and services sold to foreigners. 
B)  Goods and services bought from foreigners. 
C)  A larger number than imports for the United States. 
D)  A negative number when calculating GDP. 
A)  Goods and services sold to foreigners. 
B)  Goods and services bought from foreigners. 
C)  A larger number than imports for the United States. 
D)  A negative number when calculating GDP.

Question 17

Which of the following does NOT contribute to an increase in productivity?

Accepted Answer

A)  Technological advances. 
B)  High quality of capital. 
C)  High quantity of labor. 
D)  Highly skilled labor. 
A)  Technological advances. 
B)  High quality of capital. 
C)  High quantity of labor. 
D)  Highly skilled labor.

Question 18

Which of the following is NOT true about investment goods?

Accepted Answer

A)  They add to the nation's stock of capital. 
B)  They can be used to replace worn-out equipment. 
C)  They can expand the nation's production possibilities. 
D)  They increase the retirement benefits for individuals. 
A)  They add to the nation's stock of capital. 
B)  They can be used to replace worn-out equipment. 
C)  They can expand the nation's production possibilities. 
D)  They increase the retirement benefits for individuals.

Question 19

Per capita GDP measures the distribution of income within a country.

Accepted Answer

A) True 
 B)False

Question 20

Nominal GDP measures the:

Accepted Answer

A)  Inflation-adjusted value of output. 
B)  Real value of output per worker. 
C)  Value of output produced in current prices. 
D)  Value of output produced in constant prices. 
A)  Inflation-adjusted value of output. 
B)  Real value of output per worker. 
C)  Value of output produced in current prices. 
D)  Value of output produced in constant prices.

The factors of production:

GDP can be found by:

In 2012,per capita GDP in the United States was approximately:

Country's GDP is:

Which of the following contribute to high levels of U.S.production?

Ceteris paribus,economic growth involves an:

Real GDP is a more accurate measure of economic growth than nominal GDP because:

Which of the following plays an increasingly important role in the U.S.economy?

Since investment spending in the United States is a smaller percentage of GDP than consumer spending,it is not essential for economic growth.

The dumping of chemicals into a lake,which contaminates the drinking water,is an example of:

Nominal GDP is affected by changes in:

Which of the following is not included in GDP as part of government services?

Education and job training are part of:

Which sector is expected to grow most rapidly for the United States in the future?

Capital intensive means:

Exports represent:

Which of the following does NOT contribute to an increase in productivity?

Which of the following is NOT true about investment goods?

Per capita GDP measures the distribution of income within a country.

Nominal GDP measures the:

The Challenge of Economics

Supply and Demand

Consumer Demand

Supply Decisions

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters

Exam 2: The US Economy

The factors of production:

GDP can be found by:

In 2012,per capita GDP in the United States was approximately:

Country's GDP is:

Which of the following contribute to high levels of U.S.production?

Ceteris paribus,economic growth involves an:

Real GDP is a more accurate measure of economic growth than nominal GDP because:

Which of the following plays an increasingly important role in the U.S.economy?

Since investment spending in the United States is a smaller percentage of GDP than consumer spending,it is not essential for economic growth.

The dumping of chemicals into a lake,which contaminates the drinking water,is an example of:

Nominal GDP is affected by changes in:

Which of the following is not included in GDP as part of government services?

Education and job training are part of:

Which sector is expected to grow most rapidly for the United States in the future?

Capital intensive means:

Exports represent:

Which of the following does NOT contribute to an increase in productivity?

Which of the following is NOT true about investment goods?

Per capita GDP measures the distribution of income within a country.

Nominal GDP measures the:

The Challenge of Economics

Supply and Demand

Consumer Demand

Supply Decisions

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters