Question 1

'Labour productivity' will increase if the ________ increases and ________.

Accepted Answer

A)  quantity of capital per hour worked; technological change occurs 
B)  quantity of labour per unit of capital; technological change occurs 
C)  quantity of capital per hour worked; immigration increases while capital is fixed 
D)  quantity of labour per unit of capital; immigration increases while capital is fixed 
A)  quantity of capital per hour worked; technological change occurs 
B)  quantity of labour per unit of capital; technological change occurs 
C)  quantity of capital per hour worked; immigration increases while capital is fixed 
D)  quantity of labour per unit of capital; immigration increases while capital is fixed

Question 2

Which of the following is considered a 'durable good'?

Accepted Answer

A)  Medical care 
B)  Clothing 
C)  Food 
D)  A washing machine 
A)  Medical care 
B)  Clothing 
C)  Food 
D)  A washing machine

Question 3

An example of a 'final good' would be

Accepted Answer

A)  the soy milk sold to Starbucks. 
B)  the whipped cream sold to Starbucks. 
C)  a soy latte drink sold by Starbucks to a student. 
D)  the coffee beans sold to Starbucks. 
A)  the soy milk sold to Starbucks. 
B)  the whipped cream sold to Starbucks. 
C)  a soy latte drink sold by Starbucks to a student. 
D)  the coffee beans sold to Starbucks.

Question 4

Which component of investment spending was the largest in Australia in 2015/16?

Accepted Answer

A)  Non-dwelling construction 
B)  Dwellings 
C)  Machinery and equipment 
D)  Change in inventories 
A)  Non-dwelling construction 
B)  Dwellings 
C)  Machinery and equipment 
D)  Change in inventories

Question 5

Nominal GDP is GDP measured in current prices and can be smaller than real GDP.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is most likely to be able to sustain economic growth in an economy?

Accepted Answer

A)  Sustained increases in the labour force participation rate 
B)  Technological change 
C)  Increases in capital per hour worked 
D)  The accumulation of economic resources 
A)  Sustained increases in the labour force participation rate 
B)  Technological change 
C)  Increases in capital per hour worked 
D)  The accumulation of economic resources

Question 7

If an increase in crime causes people to spend money on police and security systems,GDP will rise.

Accepted Answer

A) True 
 B)False

Question 8

According to Joseph Schumpeter,which of the factors of production is central to economic growth?

Accepted Answer

A)  Land 
B)  Labour 
C)  Natural resources 
D)  The entrepreneur 
A)  Land 
B)  Labour 
C)  Natural resources 
D)  The entrepreneur

Question 9

In an 'underground economy',the production of goods and services are

Accepted Answer

A)  not measured nor included in GDP. 
B)  not measured but are included in GDP. 
C)  measured and included in GDP. 
D)  usually too insignificant to be included in GDP. 
A)  not measured nor included in GDP. 
B)  not measured but are included in GDP. 
C)  measured and included in GDP. 
D)  usually too insignificant to be included in GDP.

Question 10

Which of the following transactions would be included in the official calculation of GDP?

Accepted Answer

A)  A student buys a used textbook at the bookshop 
B)  Bridgestone sells $2 million worth of tyres to General Motors Holden 
C)  You buy a new SmartPhone 
D)  You illegally download music off the Internet to put on your iPod 
A)  A student buys a used textbook at the bookshop 
B)  Bridgestone sells $2 million worth of tyres to General Motors Holden 
C)  You buy a new SmartPhone 
D)  You illegally download music off the Internet to put on your iPod

Question 11

If nominal GDP falls,we can say that

Accepted Answer

A)  production has risen and prices remain constant. 
B)  prices have risen and production remains constant. 
C)  production has fallen, or prices have fallen, or both have fallen. 
D)  production has fallen and prices have risen. 
A)  production has risen and prices remain constant. 
B)  prices have risen and production remains constant. 
C)  production has fallen, or prices have fallen, or both have fallen. 
D)  production has fallen and prices have risen.

Question 12

Suggest two policies the government could pursue to help increase the accumulation of knowledge.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Any two of the following three explanati

Question 13

What is usually the smallest component of spending in GDP in Australia?

Accepted Answer

A)  Consumption spending 
B)  Net export spending 
C)  Government spending 
D)  Investment spending 
A)  Consumption spending 
B)  Net export spending 
C)  Government spending 
D)  Investment spending

Question 14

Outline the various actions the government sector could take to promote growth.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The government should secure private pro

Question 15

In a small economy,consumption spending in 2018 is $6 000,government spending is $1 200,gross investment is $1 500,exports are $2 000,and imports are $1 000.What is gross domestic product in 2018?

Accepted Answer

A)  $9 700 
B)  $9 800 
C)  $10 800 
D)  $11 700 
A)  $9 700 
B)  $9 800 
C)  $10 800 
D)  $11 700

Question 16

Which of the following would not be included in the expenditure category called 'investment'?

Accepted Answer

A)  Spending on new houses 
B)  The purchase of shares in a company 
C)  The purchase of a photocopy machine by the Commonwealth Bank 
D)  Cars held in inventory by a local Ford car dealer 
A)  Spending on new houses 
B)  The purchase of shares in a company 
C)  The purchase of a photocopy machine by the Commonwealth Bank 
D)  Cars held in inventory by a local Ford car dealer

Question 17

Potential GDP in Australia

Accepted Answer

A)  does not change much over time. 
B)  grows as the economy grows. 
C)  changes over the business cycle. 
D)  declines over time. 
A)  does not change much over time. 
B)  grows as the economy grows. 
C)  changes over the business cycle. 
D)  declines over time.

Question 18

When the capital stock per hour worked

Accepted Answer

A)  increases, labour productivity in increases. 
B)  increases, labour productivity falls, as workers are being replaced with capital and machinery. 
C)  decreases, labour productivity increases. 
D)  increases, capital productivity increases. 
A)  increases, labour productivity in increases. 
B)  increases, labour productivity falls, as workers are being replaced with capital and machinery. 
C)  decreases, labour productivity increases. 
D)  increases, capital productivity increases.

Question 19

Your friend owns an ice cream stand which he works by himself.He produces about 25 ice creams per hour.He wants to be able to produce twice as many ice creams per hour so he buys a second machine.He notices that he can only produce 10 more ice creams an hour.He jokes that he could have doubled his output with the second machine if he only had four hands.Using your knowledge of the production process,explain to your friend what you think has happened when he added more capital to his production process.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The second machine does not add as much

Question 20

Gross domestic product in the economy is measured by the

Accepted Answer

A)  total number of goods and services produced in the economy. 
B)  market value of all final goods and services produced in the economy. 
C)  total number of goods produced in the economy. 
D)  total number of services produced in the economy. 
A)  total number of goods and services produced in the economy. 
B)  market value of all final goods and services produced in the economy. 
C)  total number of goods produced in the economy. 
D)  total number of services produced in the economy.

'Labour productivity' will increase if the increases and .

Which of the following is considered a 'durable good'?

An example of a 'final good' would be

Which component of investment spending was the largest in Australia in 2015/16?

Nominal GDP is GDP measured in current prices and can be smaller than real GDP.

Which of the following is most likely to be able to sustain economic growth in an economy?

If an increase in crime causes people to spend money on police and security systems,GDP will rise.

According to Joseph Schumpeter,which of the factors of production is central to economic growth?

In an 'underground economy',the production of goods and services are

Which of the following transactions would be included in the official calculation of GDP?

If nominal GDP falls,we can say that

Suggest two policies the government could pursue to help increase the accumulation of knowledge. _ _

What is usually the smallest component of spending in GDP in Australia?

Outline the various actions the government sector could take to promote growth. _ _

In a small economy,consumption spending in 2018 is $6 000,government spending is $1 200,gross investment is $1 500,exports are $2 000,and imports are $1 000.What is gross domestic product in 2018?

Which of the following would not be included in the expenditure category called 'investment'?

Potential GDP in Australia

When the capital stock per hour worked

Gross domestic product in the economy is measured by the

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

'Labour productivity' will increase if the ________ increases and ________.

Which of the following is considered a 'durable good'?

An example of a 'final good' would be

Which component of investment spending was the largest in Australia in 2015/16?

Nominal GDP is GDP measured in current prices and can be smaller than real GDP.

Which of the following is most likely to be able to sustain economic growth in an economy?

If an increase in crime causes people to spend money on police and security systems,GDP will rise.

According to Joseph Schumpeter,which of the factors of production is central to economic growth?

In an 'underground economy',the production of goods and services are

Which of the following transactions would be included in the official calculation of GDP?

If nominal GDP falls,we can say that

Suggest two policies the government could pursue to help increase the accumulation of knowledge. _____________________________________________________________________________________________ _____________________________________________________________________________________________

What is usually the smallest component of spending in GDP in Australia?

Outline the various actions the government sector could take to promote growth. _____________________________________________________________________________________________ _____________________________________________________________________________________________

In a small economy,consumption spending in 2018 is $6 000,government spending is $1 200,gross investment is $1 500,exports are $2 000,and imports are $1 000.What is gross domestic product in 2018?

Which of the following would not be included in the expenditure category called 'investment'?

Potential GDP in Australia

When the capital stock per hour worked

Gross domestic product in the economy is measured by the

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

'Labour productivity' will increase if the increases and .

Suggest two policies the government could pursue to help increase the accumulation of knowledge. _ _

Outline the various actions the government sector could take to promote growth. _ _