Question 1

GDP calculations account for:

Accepted Answer

A)  medical services. 
B)  leisure. 
C)  pollution. 
D)  the distribution of income. 
A)  medical services. 
B)  leisure. 
C)  pollution. 
D)  the distribution of income.

Question 2

Final goods are goods:

Accepted Answer

A)  used to produce other goods. 
B)  consumed or held in personal inventories. 
C)  used up in the production process. 
D)  that cannot be exported. 
A)  used to produce other goods. 
B)  consumed or held in personal inventories. 
C)  used up in the production process. 
D)  that cannot be exported.

Question 3

The growth rate of GDP tells how rapidly the country's level of _____ is rising or falling over time.

Accepted Answer

A)  spending 
B)  trade activity 
C)  investment 
D)  production 
A)  spending 
B)  trade activity 
C)  investment 
D)  production

Question 4

GDP per capita is GDP divided by:

Accepted Answer

A)  population. 
B)  the price level. 
C)  the inflation rate. 
D)  the unemployment rate. 
A)  population. 
B)  the price level. 
C)  the inflation rate. 
D)  the unemployment rate.

Question 5

Which of these goods is an intermediate good that would NOT be counted in GDP in the year it is produced?

Accepted Answer

A)  a tractor 
B)  wood used for making furniture 
C)  an oven for installation in a bakery 
D)  flour sold in a grocery store 
A)  a tractor 
B)  wood used for making furniture 
C)  an oven for installation in a bakery 
D)  flour sold in a grocery store

Question 6

Which transaction will be included in GDP?

Accepted Answer

A)  the purchase of a used bicycle on Ebay 
B)  the purchase of a home built in 1957 
C)  the purchase of a real estate agent's services 
D)  the purchase of 1,000 shares of IBM stock 
A)  the purchase of a used bicycle on Ebay 
B)  the purchase of a home built in 1957 
C)  the purchase of a real estate agent's services 
D)  the purchase of 1,000 shares of IBM stock

Question 7

If a country's GDP per capita rises,this means that:

Accepted Answer

A)  everyone in the country has less wealth. 
B)  the country has fewer poor people. 
C)  some people in the country have more wealth. 
D)  everyone in the country has more wealth. 
A)  everyone in the country has less wealth. 
B)  the country has fewer poor people. 
C)  some people in the country have more wealth. 
D)  everyone in the country has more wealth.

Question 8

In calculating GDP with the national spending approach,the total value of exports is subtracted from the sum of all other spending components.

Accepted Answer

A) True 
 B)False

Question 9

Tim buys a house from Betty in 2011 for $200,000.Betty receives $185,000 and $15,000 goes to Mary,the real-estate agent.Betty originally purchased the house in 2007 for $240,000.What value is added to GDP in 2011 for this transaction?

Accepted Answer

A)  -$40,000 
B)  $15,000 
C)  $185,000 
D)  $200,000 
A)  -$40,000 
B)  $15,000 
C)  $185,000 
D)  $200,000

Question 10

Which of the following is the best measure of a country's standard of living?

Accepted Answer

A)  nominal GDP 
B)  real GDP 
C)  nominal GDP per capita 
D)  real GDP per capita 
A)  nominal GDP 
B)  real GDP 
C)  nominal GDP per capita 
D)  real GDP per capita

Question 11

A recession is a significant,widespread decline in real income and employment.

Accepted Answer

A) True 
 B)False

Question 12

Imagine that Jack and Jill buy $500 worth of milk and $200 worth of crayons and coloring books each year for use in their day-care business.Jack and Jill also hire a day-care attendant at a salary of $14,000 per year.If Jack and Jill sell $100,000 worth of day care to parents each year,what is the contribution to GDP by Jack and Jill's Day Care?

Accepted Answer

A)  $700 
B)  $100,000 
C)  $100,700 
D)  $114,700 
A)  $700 
B)  $100,000 
C)  $100,700 
D)  $114,700

Question 13

Real GDP is calculated using the same prices in all years.

Accepted Answer

A) True 
 B)False

Question 14

Nonpriced production is not included in GDP because these activities do not contribute to economic activity.

Accepted Answer

A) True 
 B)False

Question 15

Real GDP is equal to nominal GDP adjusted for changes in prices over time.

Accepted Answer

A) True 
 B)False

Question 16

Programmers produce a large amount of software on an unpaid,open-source basis.As a result:

Accepted Answer

A)  GDP double-counts some software production. 
B)  GDP undercounts some software production. 
C)  no software should be counted in GDP. 
D)  GDP is a good measure of software productivity. 
A)  GDP double-counts some software production. 
B)  GDP undercounts some software production. 
C)  no software should be counted in GDP. 
D)  GDP is a good measure of software productivity.

Question 17

How often is GDP reported for the U.S.economy?

Accepted Answer

A)  weekly 
B)  monthly 
C)  quarterly 
D)  annually 
A)  weekly 
B)  monthly 
C)  quarterly 
D)  annually

Question 18

Nominal GDP always grows faster than real GDP.

Accepted Answer

A) True 
 B)False

Question 19

A worker who opts for more leisure time in the future will cause GDP to fall.

Accepted Answer

A) True 
 B)False

Question 20

GNP is the market value of all final goods and services produced:

Accepted Answer

A)  within a country's borders in a year. 
B)  within a country's borders over time. 
C)  by a country's permanent residents within the country's borders in a year. 
D)  by a country's permanent residents,wherever they are located,in a year. 
A)  within a country's borders in a year. 
B)  within a country's borders over time. 
C)  by a country's permanent residents within the country's borders in a year. 
D)  by a country's permanent residents,wherever they are located,in a year.

GDP calculations account for:

Final goods are goods:

The growth rate of GDP tells how rapidly the country's level of _____ is rising or falling over time.

GDP per capita is GDP divided by:

Which of these goods is an intermediate good that would NOT be counted in GDP in the year it is produced?

Which transaction will be included in GDP?

If a country's GDP per capita rises,this means that:

In calculating GDP with the national spending approach,the total value of exports is subtracted from the sum of all other spending components.

Tim buys a house from Betty in 2011 for $200,000.Betty receives $185,000 and $15,000 goes to Mary,the real-estate agent.Betty originally purchased the house in 2007 for $240,000.What value is added to GDP in 2011 for this transaction?

Which of the following is the best measure of a country's standard of living?

A recession is a significant,widespread decline in real income and employment.

Real GDP is calculated using the same prices in all years.

Nonpriced production is not included in GDP because these activities do not contribute to economic activity.

Real GDP is equal to nominal GDP adjusted for changes in prices over time.

Programmers produce a large amount of software on an unpaid,open-source basis.As a result:

How often is GDP reported for the U.S.economy?

Nominal GDP always grows faster than real GDP.

A worker who opts for more leisure time in the future will cause GDP to fall.

GNP is the market value of all final goods and services produced:

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters

Exam 6: GDP and the Measurement of Progress

GDP calculations account for:

Final goods are goods:

The growth rate of GDP tells how rapidly the country's level of _____ is rising or falling over time.

GDP per capita is GDP divided by:

Which of these goods is an intermediate good that would NOT be counted in GDP in the year it is produced?

Which transaction will be included in GDP?

If a country's GDP per capita rises,this means that:

In calculating GDP with the national spending approach,the total value of exports is subtracted from the sum of all other spending components.

Tim buys a house from Betty in 2011 for $200,000.Betty receives $185,000 and $15,000 goes to Mary,the real-estate agent.Betty originally purchased the house in 2007 for $240,000.What value is added to GDP in 2011 for this transaction?

Which of the following is the best measure of a country's standard of living?

A recession is a significant,widespread decline in real income and employment.

Real GDP is calculated using the same prices in all years.

Nonpriced production is not included in GDP because these activities do not contribute to economic activity.

Real GDP is equal to nominal GDP adjusted for changes in prices over time.

Programmers produce a large amount of software on an unpaid,open-source basis.As a result:

How often is GDP reported for the U.S.economy?

Nominal GDP always grows faster than real GDP.

A worker who opts for more leisure time in the future will cause GDP to fall.

GNP is the market value of all final goods and services produced:

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters