Question 1

Which of the following statements is true?

Accepted Answer

A)  Nominal GDP is a good measure of social welfare. 
B)  GDP per capita is a complete measure of social welfare. 
C)  Crime and pollution reduce social welfare which reduces GDP. 
D)  GDP is not necessarily the best measure of social welfare. 
A)  Nominal GDP is a good measure of social welfare. 
B)  GDP per capita is a complete measure of social welfare. 
C)  Crime and pollution reduce social welfare which reduces GDP. 
D)  GDP is not necessarily the best measure of social welfare.

Question 2

According to your textbook,for the United States,investment accounts for approximately _____ percent of GDP.

Accepted Answer

A)  13 
B)  25 
C)  35 
D)  70 
A)  13 
B)  25 
C)  35 
D)  70

Question 3

Sole proprietorships:

Accepted Answer

A)  Are each owned by many individual stockholders. 
B)  Are owned by one individual. 
C)  Account for most business sales and assets. 
D)  Are the least common type of business firm. 
A)  Are each owned by many individual stockholders. 
B)  Are owned by one individual. 
C)  Account for most business sales and assets. 
D)  Are the least common type of business firm.

Question 4

Which of the following is included in investment,according to economists?

Accepted Answer

A)  Production of plant and machinery. 
B)  Purchases of corporate stock. 
C)  Money put into a pension fund. 
D)  Dollars spent in the stock market. 
A)  Production of plant and machinery. 
B)  Purchases of corporate stock. 
C)  Money put into a pension fund. 
D)  Dollars spent in the stock market.

Question 5

Over the last century in the United States there has been an increase in _______ as a percentage of total output.

Accepted Answer

A)  Manufacturing,government,and services 
B)  Farming,international trade,and manufacturing 
C)  Services,government,and international trade 
D)  Services,farming,and construction 
A)  Manufacturing,government,and services 
B)  Farming,international trade,and manufacturing 
C)  Services,government,and international trade 
D)  Services,farming,and construction

Question 6

Government services:

Accepted Answer

A)  Is larger than consumption in the United States. 
B)  Includes the dollars spent on income transfers. 
C)  Includes federal,state,and local government purchases of goods and services. 
D)  Equals approximately $10 trillion per year in the United States. 
A)  Is larger than consumption in the United States. 
B)  Includes the dollars spent on income transfers. 
C)  Includes federal,state,and local government purchases of goods and services. 
D)  Equals approximately $10 trillion per year in the United States.

Question 7

The largest component of U.S.GDP is:

Accepted Answer

A)  Government services at the federal,state and local levels combined. 
B)  Business investment. 
C)  Household consumption. 
D)  Net exports. 
A)  Government services at the federal,state and local levels combined. 
B)  Business investment. 
C)  Household consumption. 
D)  Net exports.

Question 8

The factors of production include all of the following EXCEPT:

Accepted Answer

A)  Money. 
B)  Land. 
C)  Labor. 
D)  Entrepreneurship. 
A)  Money. 
B)  Land. 
C)  Labor. 
D)  Entrepreneurship.

Question 9

Consumer goods:

Accepted Answer

A)  Account for over two-thirds of total U.S.output. 
B)  Include nondurable goods but not durable goods. 
C)  Account for a smaller portion of GDP than government services. 
D)  Include durable and nondurable goods but not services. 
A)  Account for over two-thirds of total U.S.output. 
B)  Include nondurable goods but not durable goods. 
C)  Account for a smaller portion of GDP than government services. 
D)  Include durable and nondurable goods but not services.

Question 10

The output of cell phones can be added to the output of refrigerators in order to compute GDP by:

Accepted Answer

A)  Multiplying the output of each by the corresponding prices and adding these dollar values. 
B)  Dividing the output of each by price and adding these dollar values. 
C)  Adding up the physical number of cell phones and refrigerators produced. 
D)  Dividing dollar values of output for each by price and adding the results. 
A)  Multiplying the output of each by the corresponding prices and adding these dollar values. 
B)  Dividing the output of each by price and adding these dollar values. 
C)  Adding up the physical number of cell phones and refrigerators produced. 
D)  Dividing dollar values of output for each by price and adding the results.

Question 11

One reason that GDP is not the best measure of social welfare is because it does not include volunteer activities.

Accepted Answer

A) True 
 B)False

Question 12

The basic economic issue concerning the FOR WHOM question is specifically interpreted to mean,who:

Accepted Answer

A)  Gets the available jobs. 
B)  Gets to consume the goods and services that are produced. 
C)  Inherits the accumulated wealth in the economy. 
D)  Produces the goods and services. 
A)  Gets the available jobs. 
B)  Gets to consume the goods and services that are produced. 
C)  Inherits the accumulated wealth in the economy. 
D)  Produces the goods and services.

Question 13

Consumer goods:

Accepted Answer

A)  Account for half of total U.S.output. 
B)  Include expenditures for durable goods,nondurable goods,and services. 
C)  Include government expenditure on welfare and food stamps. 
D)  Account for the smallest portion of U. 
A)  Account for half of total U.S.output. 
B)  Include expenditures for durable goods,nondurable goods,and services. 
C)  Include government expenditure on welfare and food stamps. 
D)  Account for the smallest portion of U.

Question 14

GDP is a measure of the market value of final goods and services produced within a nation's borders in a given period.

Accepted Answer

A) True 
 B)False

Question 15

If the United States imports more than it exports,this implies that the country uses more goods and services than it produces.

Accepted Answer

A) True 
 B)False

Question 16

Economic growth implies that:

Accepted Answer

A)  Prices have risen. 
B)  Total value of the output produced has increased. 
C)  Per capita GDP has declined. 
D)  Resources are limited. 
A)  Prices have risen. 
B)  Total value of the output produced has increased. 
C)  Per capita GDP has declined. 
D)  Resources are limited.

Question 17

A monopoly is:

Accepted Answer

A)  A firm that produces the entire market supply of a particular good or service. 
B)  Not likely to charge a high price because if it does consumers will switch to a different product. 
C)  Rarely affected by government regulation since there is only one firm in the industry. 
D)  The most common type of U. 
A)  A firm that produces the entire market supply of a particular good or service. 
B)  Not likely to charge a high price because if it does consumers will switch to a different product. 
C)  Rarely affected by government regulation since there is only one firm in the industry. 
D)  The most common type of U.

Question 18

Net exports measures the:

Accepted Answer

A)  Total dollar value of U.S.exports. 
B)  Dollar amount of imports. 
C)  Quantity of goods produced abroad. 
D)  Dollar value of exports minus the dollar value of imports. 
A)  Total dollar value of U.S.exports. 
B)  Dollar amount of imports. 
C)  Quantity of goods produced abroad. 
D)  Dollar value of exports minus the dollar value of imports.

Question 19

Which of the following components of consumer spending is the most cyclical?

Accepted Answer

A)  Services. 
B)  Agricultural goods. 
C)  Nondurable goods. 
D)  Durable goods. 
A)  Services. 
B)  Agricultural goods. 
C)  Nondurable goods. 
D)  Durable goods.

Question 20

Consumer goods account for approximately 70 percent of total U.S.output.

Accepted Answer

A) True 
 B)False

Which of the following statements is true?

According to your textbook,for the United States,investment accounts for approximately _____ percent of GDP.

Sole proprietorships:

Which of the following is included in investment,according to economists?

Over the last century in the United States there has been an increase in _______ as a percentage of total output.

Government services:

The largest component of U.S.GDP is:

The factors of production include all of the following EXCEPT:

Consumer goods:

The output of cell phones can be added to the output of refrigerators in order to compute GDP by:

One reason that GDP is not the best measure of social welfare is because it does not include volunteer activities.

The basic economic issue concerning the FOR WHOM question is specifically interpreted to mean,who:

Consumer goods:

GDP is a measure of the market value of final goods and services produced within a nation's borders in a given period.

If the United States imports more than it exports,this implies that the country uses more goods and services than it produces.

Economic growth implies that:

A monopoly is:

Net exports measures the:

Which of the following components of consumer spending is the most cyclical?

Consumer goods account for approximately 70 percent of total U.S.output.

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

Which of the following statements is true?

According to your textbook,for the United States,investment accounts for approximately _____ percent of GDP.

Sole proprietorships:

Which of the following is included in investment,according to economists?

Over the last century in the United States there has been an increase in _______ as a percentage of total output.

Government services:

The largest component of U.S.GDP is:

The factors of production include all of the following EXCEPT:

Consumer goods:

The output of cell phones can be added to the output of refrigerators in order to compute GDP by:

One reason that GDP is not the best measure of social welfare is because it does not include volunteer activities.

The basic economic issue concerning the FOR WHOM question is specifically interpreted to mean,who:

Consumer goods:

GDP is a measure of the market value of final goods and services produced within a nation's borders in a given period.

If the United States imports more than it exports,this implies that the country uses more goods and services than it produces.

Economic growth implies that:

A monopoly is:

Net exports measures the:

Which of the following components of consumer spending is the most cyclical?

Consumer goods account for approximately 70 percent of total U.S.output.

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