Question 1

Which of the following is an example of a 'transfer payment'?

Accepted Answer

A)  A teacher's pay being transferred electronically from the government to the teacher 
B)  An unemployment benefit 
C)  Interest repayments on a loan 
D)  The purchase of a new government office block 
A)  A teacher's pay being transferred electronically from the government to the teacher 
B)  An unemployment benefit 
C)  Interest repayments on a loan 
D)  The purchase of a new government office block

Question 2

For how long does a patent give a firm the exclusive legal right to a product in Australia?

Accepted Answer

A)  10 years 
B)  17 years 
C)  20 years 
D)  50 years 
A)  10 years 
B)  17 years 
C)  20 years 
D)  50 years

Question 3

If GDP is currently $13 trillion and is growing at a rate of 2.6% per year,how long will it take GDP to reach $26 trillion?

Accepted Answer

A)  About 15 years 
B)  About 17 years 
C)  About 27 years 
D)  About 30 years 
A)  About 15 years 
B)  About 17 years 
C)  About 27 years 
D)  About 30 years

Question 4

The size of the underground economy as a percentage of GDP is larger in Australia than in poorer countries such as Peru.

Accepted Answer

A) True 
 B)False

Question 5

When production in an economy grows more quickly than the population in that economy,which of the following must be occurring?

Accepted Answer

A)  Real GDP is falling. 
B)  Incomes are growing at a slower rate than the population. 
C)  Real GDP per capita is rising. 
D)  Living standards are falling. 
A)  Real GDP is falling. 
B)  Incomes are growing at a slower rate than the population. 
C)  Real GDP per capita is rising. 
D)  Living standards are falling.

Question 6

Fees that Australian universities receive from overseas students studying in Australia are not included as part of GDP but are included as part of Gross National Income (GNI),as GNI includes flows of funds from overseas.

Accepted Answer

A) True 
 B)False

Question 7

The drawback to calculating real GDP using base year prices is that

Accepted Answer

A)  real GDP in one year is not comparable to real GDP in another year. 
B)  relative prices change over time and these are not reflected in base year prices, which distorts GDP. 
C)  relative prices change over time and these changes are reflected in base year prices. 
D)  quality changes are reflected in base year prices. 
A)  real GDP in one year is not comparable to real GDP in another year. 
B)  relative prices change over time and these are not reflected in base year prices, which distorts GDP. 
C)  relative prices change over time and these changes are reflected in base year prices. 
D)  quality changes are reflected in base year prices.

Question 8

Give reasons why measured GDP does not reflect total production in an economy.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The measure of GDP leaves out production

Question 9

Starting at point E in the following diagram,identify which combinations of points illustrate technological change.Give a brief explanation to support your answer.   _____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The movement from E to B to D in the dia

Question 10

If the GDP deflator rises from 185 to 190,what is the percentage increase in the price level between the two years?

Accepted Answer

A)  270% 
B)  50% 
C)  5% 
D)  2.7% 
A)  270% 
B)  50% 
C)  5% 
D)  2.7%

Question 11

According to 'new growth theory',the market will lead firms to accumulate the efficient level of knowledge capital.

Accepted Answer

A) True 
 B)False

Question 12

Technological change causes a movement along a per-worker production function.

Accepted Answer

A) True 
 B)False

Question 13

To calculate GDP using the value-added method,we add up

Accepted Answer

A)  the market value of final goods and services produced during a particular period. 
B)  only the value added by the underground economy. 
C)  the value added by each firm involved in the production of final goods and services. 
D)  the market value of intermediate goods and services produced during a particular period. 
A)  the market value of final goods and services produced during a particular period. 
B)  only the value added by the underground economy. 
C)  the value added by each firm involved in the production of final goods and services. 
D)  the market value of intermediate goods and services produced during a particular period.

Question 14

The ________ is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100.

Accepted Answer

A)  GNI; real GDP; nominal GDP 
B)  GDP deflator; real GDP; nominal GDP 
C)  GDP deflator; nominal GDP; real GDP 
D)  GNI; nominal GDP; real GDP 
A)  GNI; real GDP; nominal GDP 
B)  GDP deflator; real GDP; nominal GDP 
C)  GDP deflator; nominal GDP; real GDP 
D)  GNI; nominal GDP; real GDP

Question 15

Refer to Figure 13.1 for the following questions.
Figure 13.1  
-The movement from A to B to C in Figure 13.1 illustrates

Accepted Answer

A)  an improvement in technology. 
B)  a decline in capital per worker. 
C)  diminishing returns to capital. 
D)  diminishing returns to labour. 
A)  an improvement in technology. 
B)  a decline in capital per worker. 
C)  diminishing returns to capital. 
D)  diminishing returns to labour.

Question 16

Over the past 100 years,economic growth has ________ health,and health has ________ economic growth.

Accepted Answer

A)  improved; worsened 
B)  improved; improved 
C)  worsened; improved 
D)  worsened; worsened 
A)  improved; worsened 
B)  improved; improved 
C)  worsened; improved 
D)  worsened; worsened

Question 17

Gross domestic product is the total market value of all

Accepted Answer

A)  intermediate and final goods and services produced in a time period within a country. 
B)  final goods and services produced in a time period within a country. 
C)  goods but not services produced in a time period within a country. 
D)  final goods and services produced in a time period by citizens of a country, both within the country and by its citizens working overseas. 
A)  intermediate and final goods and services produced in a time period within a country. 
B)  final goods and services produced in a time period within a country. 
C)  goods but not services produced in a time period within a country. 
D)  final goods and services produced in a time period by citizens of a country, both within the country and by its citizens working overseas.

Question 18

The components of the expenditure method of measuring GDP include all of the following except

Accepted Answer

A)  net exports. 
B)  changes in stocks of inventories. 
C)  government purchases. 
D)  unpaid household work. 
A)  net exports. 
B)  changes in stocks of inventories. 
C)  government purchases. 
D)  unpaid household work.

Question 19

Which of the following is true about technological change?

Accepted Answer

A)  It will shift down the per-worker production function. 
B)  It will shift up the per-worker production function. 
C)  It will move the economy to a point beneath the per-worker production function. 
D)  It will move the economy along a given per-worker production function. 
A)  It will shift down the per-worker production function. 
B)  It will shift up the per-worker production function. 
C)  It will move the economy to a point beneath the per-worker production function. 
D)  It will move the economy along a given per-worker production function.

Question 20

Which of the following is true about 'new growth theory'?

Accepted Answer

A)  It states that the rate of technological change is determined outside the working of the market system. 
B)  It does not adequately explain the factors that determine productivity. 
C)  It states that the rate of technological change is unaffected by economic incentives. 
D)  It states that the rate of technological change is caused by economic incentives. 
A)  It states that the rate of technological change is determined outside the working of the market system. 
B)  It does not adequately explain the factors that determine productivity. 
C)  It states that the rate of technological change is unaffected by economic incentives. 
D)  It states that the rate of technological change is caused by economic incentives.

Which of the following is an example of a 'transfer payment'?

For how long does a patent give a firm the exclusive legal right to a product in Australia?

If GDP is currently $13 trillion and is growing at a rate of 2.6% per year,how long will it take GDP to reach $26 trillion?

The size of the underground economy as a percentage of GDP is larger in Australia than in poorer countries such as Peru.

When production in an economy grows more quickly than the population in that economy,which of the following must be occurring?

Fees that Australian universities receive from overseas students studying in Australia are not included as part of GDP but are included as part of Gross National Income (GNI),as GNI includes flows of funds from overseas.

The drawback to calculating real GDP using base year prices is that

Give reasons why measured GDP does not reflect total production in an economy. _ _

Starting at point E in the following diagram,identify which combinations of points illustrate technological change.Give a brief explanation to support your answer. _ _

If the GDP deflator rises from 185 to 190,what is the percentage increase in the price level between the two years?

According to 'new growth theory',the market will lead firms to accumulate the efficient level of knowledge capital.

Technological change causes a movement along a per-worker production function.

To calculate GDP using the value-added method,we add up

The is a measure of the price level and is calculated by dividing by and multiplying by 100.

Refer to Figure 13.1 for the following questions. Figure 13.1 -The movement from A to B to C in Figure 13.1 illustrates

Over the past 100 years,economic growth has health,and health has economic growth.

Gross domestic product is the total market value of all

The components of the expenditure method of measuring GDP include all of the following except

Which of the following is true about technological change?

Which of the following is true about 'new growth theory'?

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

Which of the following is an example of a 'transfer payment'?

For how long does a patent give a firm the exclusive legal right to a product in Australia?

If GDP is currently $13 trillion and is growing at a rate of 2.6% per year,how long will it take GDP to reach $26 trillion?

The size of the underground economy as a percentage of GDP is larger in Australia than in poorer countries such as Peru.

When production in an economy grows more quickly than the population in that economy,which of the following must be occurring?

Fees that Australian universities receive from overseas students studying in Australia are not included as part of GDP but are included as part of Gross National Income (GNI),as GNI includes flows of funds from overseas.

The drawback to calculating real GDP using base year prices is that

Give reasons why measured GDP does not reflect total production in an economy. _____________________________________________________________________________________________ _____________________________________________________________________________________________

If the GDP deflator rises from 185 to 190,what is the percentage increase in the price level between the two years?

According to 'new growth theory',the market will lead firms to accumulate the efficient level of knowledge capital.

Technological change causes a movement along a per-worker production function.

To calculate GDP using the value-added method,we add up

The ________ is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100.

Refer to Figure 13.1 for the following questions. Figure 13.1 -The movement from A to B to C in Figure 13.1 illustrates

Over the past 100 years,economic growth has ________ health,and health has ________ economic growth.

Gross domestic product is the total market value of all

The components of the expenditure method of measuring GDP include all of the following except

Which of the following is true about technological change?

Which of the following is true about 'new growth theory'?

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

Give reasons why measured GDP does not reflect total production in an economy. _ _

The is a measure of the price level and is calculated by dividing by and multiplying by 100.

Over the past 100 years,economic growth has health,and health has economic growth.