Question 1

The 'underground economy' is also referred to as the

Accepted Answer

A)  informal sector. 
B)  formal sector. 
C)  halfway economy. 
D)  net domestic product economy. 
A)  informal sector. 
B)  formal sector. 
C)  halfway economy. 
D)  net domestic product economy.

Question 2

If,as economist Alwyn Young has suggested,high economic growth rates in Singapore are not a result of technological progress,how are growth rates in Singapore expected to change over time?

Accepted Answer

A)  Without technological progress, the high growth rates cannot be sustained. 
B)  As long as the labour force participation rate is rising, growth can still continue, despite a lack of technological progress. 
C)  As long as the amount of capital per hour worked continues to expand, the growth rate in Singapore will continue to rise at an increasing rate. 
D)  Agricultural workers will continue to expand their productivity, thereby allowing Singapore to achieve growth rates above those of higher-income countries. 
A)  Without technological progress, the high growth rates cannot be sustained. 
B)  As long as the labour force participation rate is rising, growth can still continue, despite a lack of technological progress. 
C)  As long as the amount of capital per hour worked continues to expand, the growth rate in Singapore will continue to rise at an increasing rate. 
D)  Agricultural workers will continue to expand their productivity, thereby allowing Singapore to achieve growth rates above those of higher-income countries.

Question 3

If,between 2003 and 2013,the economy's real GDP grew from $20 billion to $40 billion,what was the average annual growth rate in the economy?

Accepted Answer

A)  3 per cent 
B)  7 per cent 
C)  20 per cent 
D)  100 per cent 
A)  3 per cent 
B)  7 per cent 
C)  20 per cent 
D)  100 per cent

Question 4

Under what circumstances would the GDP deflator be less than 100 after the base year?

Accepted Answer

A)  The GDP deflator will be less than 100 if there has been inflation relative to the base year. 
B)  The GDP deflator will be less than 100 if there has been inflation of less than 2 per cent per year relative to the base year. 
C)  The GDP deflator will be less than 100 if there has been deflation relative to the base year. 
D)  There are no circumstances under which the GDP deflator could be less than 100. 
A)  The GDP deflator will be less than 100 if there has been inflation relative to the base year. 
B)  The GDP deflator will be less than 100 if there has been inflation of less than 2 per cent per year relative to the base year. 
C)  The GDP deflator will be less than 100 if there has been deflation relative to the base year. 
D)  There are no circumstances under which the GDP deflator could be less than 100.

Question 5

The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked,holding ________ constant.

Accepted Answer

A)  labour; real GDP; technology 
B)  capital; real GDP; technology 
C)  labour; capital; real GDP 
D)  capital; labour; real GDP 
A)  labour; real GDP; technology 
B)  capital; real GDP; technology 
C)  labour; capital; real GDP 
D)  capital; labour; real GDP

Question 6

Use production functions from the economic growth model to explain why the United States of America grew at a much faster rate than the Soviet Union in the latter half of the 20th century.

Accepted Answer

@#IMG-DLM& The Soviet Union's strategy to increase

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

Using the points on the following diagram,identify which combinations of these points illustrate diminishing returns to capital.Give a brief explanation to support your answer.

Accepted Answer

The movement from A to B to C shows dimi

Question 9

A 'transfer payment' is a payment by the government to an individual for

Accepted Answer

A)  a service, such as a payment to hospital nurses and school teachers. 
B)  an investment good. 
C)  a consumption good. 
D)  which the government does not receive a good or service in return. 
A)  a service, such as a payment to hospital nurses and school teachers. 
B)  an investment good. 
C)  a consumption good. 
D)  which the government does not receive a good or service in return.

Question 10

Refer to Table 12.1 for the following questions.
Table 12.1 A very simple economy producing three goods: movies, burgers and bikes.  
-Refer to Table 12.1.What is real GDP in 2013,using 2008 as the base year?

Accepted Answer

A)  $3320 
B)  $3690 
C)  $6360 
D)  $7035 
A)  $3320 
B)  $3690 
C)  $6360 
D)  $7035

Question 11

What factors determine labour productivity?

Accepted Answer

The quantity of capital per ho

Question 12

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

Accepted Answer

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

Question 13

'Long-term economic growth' is a term used to describe

Accepted Answer

A)  falling unemployment rates over time. 
B)  the rising price level over time. 
C)  more rapid growth in the population than in real output. 
D)  the increasing trend in real GDP per capita. 
A)  falling unemployment rates over time. 
B)  the rising price level over time. 
C)  more rapid growth in the population than in real output. 
D)  the increasing trend in real GDP per capita.

Question 14

The largest component of GDP in Australia,as measured by the expenditure method,is

Accepted Answer

A)  net exports. 
B)  consumption expenditure. 
C)  government expenditure. 
D)  investment expenditure. 
A)  net exports. 
B)  consumption expenditure. 
C)  government expenditure. 
D)  investment expenditure.

Question 15

'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 16

The only way the standard of living of the average person in a country can increase is by increasing ________ faster than ________.

Accepted Answer

A)  production; population 
B)  income; population 
C)  population; production 
D)  population; income 
A)  production; population 
B)  income; population 
C)  population; production 
D)  population; income

Question 17

In the circular flow,________ supply the factors of production,and ________ goods and services.

Accepted Answer

A)  households; sell 
B)  households; buy 
C)  firms; sell 
D)  firms; buy 
A)  households; sell 
B)  households; buy 
C)  firms; sell 
D)  firms; buy

Question 18

If GDP grows at a rate of 3 per cent 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)  35 years 
A)  12 years 
B)  21 years 
C)  23 years 
D)  35 years

Question 19

Do countries produce more or less pollution as GDP grows?

Accepted Answer

There is no definitive answer,and the an

Question 20

If you buy shares,the dollar value is

Accepted Answer

A)  included in GDP under investment. 
B)  not included in GDP. 
C)  included in GDP under consumer expenditure. 
D)  included in GDP as a business expense. 
A)  included in GDP under investment. 
B)  not included in GDP. 
C)  included in GDP under consumer expenditure. 
D)  included in GDP as a business expense.

The 'underground economy' is also referred to as the

If,as economist Alwyn Young has suggested,high economic growth rates in Singapore are not a result of technological progress,how are growth rates in Singapore expected to change over time?

If,between 2003 and 2013,the economy's real GDP grew from $20 billion to $40 billion,what was the average annual growth rate in the economy?

Under what circumstances would the GDP deflator be less than 100 after the base year?

The per-worker production function shows the relationship between per hour worked and per hour worked,holding constant.

Use production functions from the economic growth model to explain why the United States of America grew at a much faster rate than the Soviet Union in the latter half of the 20th century.

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

Using the points on the following diagram,identify which combinations of these points illustrate diminishing returns to capital.Give a brief explanation to support your answer.

A 'transfer payment' is a payment by the government to an individual for

Refer to Table 12.1 for the following questions. Table 12.1 A very simple economy producing three goods: movies, burgers and bikes. -Refer to Table 12.1.What is real GDP in 2013,using 2008 as the base year?

What factors determine labour productivity?

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

'Long-term economic growth' is a term used to describe

The largest component of GDP in Australia,as measured by the expenditure method,is

'Household production' refers to

The only way the standard of living of the average person in a country can increase is by increasing faster than .

In the circular flow, supply the factors of production,and goods and services.

If GDP grows at a rate of 3 per cent per year,approximately how long will it take for GDP to double in size?

Do countries produce more or less pollution as GDP grows?

If you buy shares,the dollar value is

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 12: GDP: Measuring Total Production and Income

The 'underground economy' is also referred to as the

If,as economist Alwyn Young has suggested,high economic growth rates in Singapore are not a result of technological progress,how are growth rates in Singapore expected to change over time?

If,between 2003 and 2013,the economy's real GDP grew from $20 billion to $40 billion,what was the average annual growth rate in the economy?

Under what circumstances would the GDP deflator be less than 100 after the base year?

The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked,holding ________ constant.

Use production functions from the economic growth model to explain why the United States of America grew at a much faster rate than the Soviet Union in the latter half of the 20th century.

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

Using the points on the following diagram,identify which combinations of these points illustrate diminishing returns to capital.Give a brief explanation to support your answer.

A 'transfer payment' is a payment by the government to an individual for

Refer to Table 12.1 for the following questions. Table 12.1 A very simple economy producing three goods: movies, burgers and bikes. -Refer to Table 12.1.What is real GDP in 2013,using 2008 as the base year?

What factors determine labour productivity?

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

'Long-term economic growth' is a term used to describe

The largest component of GDP in Australia,as measured by the expenditure method,is

'Household production' refers to

The only way the standard of living of the average person in a country can increase is by increasing ________ faster than ________.

In the circular flow,________ supply the factors of production,and ________ goods and services.

If GDP grows at a rate of 3 per cent per year,approximately how long will it take for GDP to double in size?

Do countries produce more or less pollution as GDP grows?

If you buy shares,the dollar value is

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

The per-worker production function shows the relationship between per hour worked and per hour worked,holding constant.

The only way the standard of living of the average person in a country can increase is by increasing faster than .

In the circular flow, supply the factors of production,and goods and services.