Question 1

If GDP grows at a rate of 2.8% per year,approximately how long will it take for GDP to double in size?

Accepted Answer

A)  12 years 
B)  21 years 
C)  23 years 
D)  25 years 
A)  12 years 
B)  21 years 
C)  23 years 
D)  25 years D

Question 2

The 'rule of 70' states that

Accepted Answer

A)  it takes an economy 70 years to double in size. 
B)  the number of years it takes an economy to double is 70 divided by the growth rate. 
C)  the number of years it takes an economy to double is the growth rate multiplied by 70. 
D)  the number of years it takes an economy to double is the growth rate divided by 70. 
A)  it takes an economy 70 years to double in size. 
B)  the number of years it takes an economy to double is 70 divided by the growth rate. 
C)  the number of years it takes an economy to double is the growth rate multiplied by 70. 
D)  the number of years it takes an economy to double is the growth rate divided by 70. B

Question 3

The circular-flow diagram shows that

Accepted Answer

A)  the value of total income is equal to the total value of expenditures on final goods and services. 
B)  firms pay households wages, and households receive transfer payments from firms. 
C)  households spend all their income on goods and services. 
D)  GDP will be less than the total value of expenditures on final goods and services in the economy. 
A)  the value of total income is equal to the total value of expenditures on final goods and services. 
B)  firms pay households wages, and households receive transfer payments from firms. 
C)  households spend all their income on goods and services. 
D)  GDP will be less than the total value of expenditures on final goods and services in the economy. A

Question 4

Macroeconomics involves the economic issues of

Accepted Answer

A)  how the economy should organise resources within a particular industry. 
B)  how to generate full employment, create price stability, and maintain long-term economic growth. 
C)  how firms choose the prices they should charge for their products. 
D)  profit maximisation by firms. 
A)  how the economy should organise resources within a particular industry. 
B)  how to generate full employment, create price stability, and maintain long-term economic growth. 
C)  how firms choose the prices they should charge for their products. 
D)  profit maximisation by firms.

Question 5

Using the information in the following table,calculate the rate of increase in the price level from 2017 to 2018.Use the percentage change in the GDP deflator.
 $$\begin{array} { | l | c | c | } 
\hline & \mathbf { 2 0 1 7 } & \mathbf { 2 0 1 8 } \
\hline \text { Nominal GDP } & \$ 10000 & \$ 15000 \
\hline \text { Real GDP } & \$ 9500 & \$ 10500 \
\hline
\end{array}$$ _____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

To calculate the rate of change of price

Question 6

Government spending on transfer payments is included in government purchases when calculating GDP,because it results in the production of new goods and services.

Accepted Answer

A) True 
 B)False

Question 7

In Figure 13.1,more capital per hour worked is shown by the movement from

Accepted Answer

A)  B to D. 
B)  A to B. 
C)  B to E. 
D)  B to A. 
A)  B to D. 
B)  A to B. 
C)  B to E. 
D)  B to A.

Question 8

How is the economic growth rate calculated?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

This is the rate of change in real GDP f

Question 9

What is a 'final good'?

Accepted Answer

A)  A good not used as an input in the production process 
B)  A natural resource used to produce a good 
C)  A good purchased as an input in the production process 
D)  A good used in the production of another good 
A)  A good not used as an input in the production process 
B)  A natural resource used to produce a good 
C)  A good purchased as an input in the production process 
D)  A good used in the production of another good

Question 10

Do countries produce more or less pollution as GDP grows?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

There is no definitive answer,and the an

Question 11

The Australian Bureau of Statistics divides its statistics on GDP into four major categories.List the categories of expenditures and describe each.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The largest category of expenditure is '

Question 12

GDP is not a perfect measure of well-being because

Accepted Answer

A)  the value of leisure is included in GDP. 
B)  GDP is not adjusted for the effects of pollution. 
C)  GDP is adjusted for changes in crime. 
D)  GDP is adjusted for increases in drug addiction. 
A)  the value of leisure is included in GDP. 
B)  GDP is not adjusted for the effects of pollution. 
C)  GDP is adjusted for changes in crime. 
D)  GDP is adjusted for increases in drug addiction.

Question 13

Explain the difference between 'gross domestic product' and 'gross national income.'
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Gross domestic product is the market val

Question 14

Which of the following is not included in the measurement of the net exports component of GDP?

Accepted Answer

A)  The purchase of a Mercedes-Benz from Germany by an Australian citizen 
B)  The sale of financial services by an Australian bank to an overseas company 
C)  The sale of sheep to Egypt 
D)  The sale of Australian shares to an overseas firm 
A)  The purchase of a Mercedes-Benz from Germany by an Australian citizen 
B)  The sale of financial services by an Australian bank to an overseas company 
C)  The sale of sheep to Egypt 
D)  The sale of Australian shares to an overseas firm

Question 15

If nominal GDP is less than real GDP,then the GDP deflator will be less than 100.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following describes the Soviet Union's economy between 1950 and the 1980s?

Accepted Answer

A)  The Soviet economy grew rapidly due to an increase in capital per worker. 
B)  The Soviet economy increased capital per worker very slowly from 1950 through 1980. 
C)  The Soviet economy grew slowly because of the slow rate of technological change. 
D)  The Soviet economy grew because it added labour through immigration-its policy in the 1950s. 
A)  The Soviet economy grew rapidly due to an increase in capital per worker. 
B)  The Soviet economy increased capital per worker very slowly from 1950 through 1980. 
C)  The Soviet economy grew slowly because of the slow rate of technological change. 
D)  The Soviet economy grew because it added labour through immigration-its policy in the 1950s.

Question 17

'Household production' refers to

Accepted Answer

A)  the manufacturing of durable household products. 
B)  the home building sector of the economy. 
C)  home-based craft businesses. 
D)  goods and services people produce for themselves. 
A)  the manufacturing of durable household products. 
B)  the home building sector of the economy. 
C)  home-based craft businesses. 
D)  goods and services people produce for themselves.

Question 18

When measuring real GDP,what does the term 'chain volume measures' refer to?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

This refers to the method of calculating

Question 19

If Anton sells his 2004 Honda Accord for $5 500 in 2018,the sale of his car contributes $5 500 to GDP in 2018.

Accepted Answer

A) True 
 B)False

Question 20

Workers in ________ countries have ________ to work with than do workers in low income countries.

Accepted Answer

A)  high income; less physical capital 
B)  high income; more physical capital 
C)  high income; more labour 
D)  low income; less labour 
A)  high income; less physical capital 
B)  high income; more physical capital 
C)  high income; more labour 
D)  low income; less labour

If GDP grows at a rate of 2.8% per year,approximately how long will it take for GDP to double in size?

The 'rule of 70' states that

The circular-flow diagram shows that

Macroeconomics involves the economic issues of

Using the information in the following table,calculate the rate of increase in the price level from 2017 to 2018.Use the percentage change in the GDP deflator. Nominal GDP \ 10000 \ 15000 Real GDP \ 9500 \ 10500 _ _

Government spending on transfer payments is included in government purchases when calculating GDP,because it results in the production of new goods and services.

In Figure 13.1,more capital per hour worked is shown by the movement from

How is the economic growth rate calculated? _ _

What is a 'final good'?

Do countries produce more or less pollution as GDP grows? _ _

The Australian Bureau of Statistics divides its statistics on GDP into four major categories.List the categories of expenditures and describe each. _ _

GDP is not a perfect measure of well-being because

Explain the difference between 'gross domestic product' and 'gross national income.' _ _

Which of the following is not included in the measurement of the net exports component of GDP?

If nominal GDP is less than real GDP,then the GDP deflator will be less than 100.

Which of the following describes the Soviet Union's economy between 1950 and the 1980s?

'Household production' refers to

When measuring real GDP,what does the term 'chain volume measures' refer to? _ _

If Anton sells his 2004 Honda Accord for $5 500 in 2018,the sale of his car contributes $5 500 to GDP in 2018.

Workers in countries have to work with than do workers in low income countries.

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

Filters

Exam 13: Gdp: Measuring Total Production, income and Economic Growth

If GDP grows at a rate of 2.8% per year,approximately how long will it take for GDP to double in size?

The 'rule of 70' states that

The circular-flow diagram shows that

Macroeconomics involves the economic issues of

Government spending on transfer payments is included in government purchases when calculating GDP,because it results in the production of new goods and services.

In Figure 13.1,more capital per hour worked is shown by the movement from

How is the economic growth rate calculated? _____________________________________________________________________________________________ _____________________________________________________________________________________________

What is a 'final good'?

Do countries produce more or less pollution as GDP grows? _____________________________________________________________________________________________ _____________________________________________________________________________________________

GDP is not a perfect measure of well-being because

Explain the difference between 'gross domestic product' and 'gross national income.' _____________________________________________________________________________________________ _____________________________________________________________________________________________

Which of the following is not included in the measurement of the net exports component of GDP?

If nominal GDP is less than real GDP,then the GDP deflator will be less than 100.

Which of the following describes the Soviet Union's economy between 1950 and the 1980s?

'Household production' refers to

When measuring real GDP,what does the term 'chain volume measures' refer to? _____________________________________________________________________________________________ _____________________________________________________________________________________________

If Anton sells his 2004 Honda Accord for $5 500 in 2018,the sale of his car contributes $5 500 to GDP in 2018.

Workers in ________ countries have ________ to work with than do workers in low income countries.

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

Filters

How is the economic growth rate calculated? _ _

Do countries produce more or less pollution as GDP grows? _ _

Explain the difference between 'gross domestic product' and 'gross national income.' _ _

When measuring real GDP,what does the term 'chain volume measures' refer to? _ _

Workers in countries have to work with than do workers in low income countries.