Question 1

As of 2009, the U.S.per capita real GDP was approximately:

Accepted Answer

A) $28,100 
B) $29,900 
C) $42,200 
D) $45,200 
E) $47,900 
A) $28,100 
B) $29,900 
C) $42,200 
D) $45,200 
E) $47,900

Question 2

How much a country's economy will produce at its potential output is also called:

Accepted Answer

A) the trough of the business cycle. 
B) its economic welfare. 
C) the trend line. 
D) the natural rate of output. 
E) the macroeconomic limit. 
A) the trough of the business cycle. 
B) its economic welfare. 
C) the trend line. 
D) the natural rate of output. 
E) the macroeconomic limit.

Question 3

Which of the following is correct?

Accepted Answer

A) An increase in the quantity of labor always leads to economic growth. 
B) Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. 
C) A decrease in the productivity of labor leads to economic growth. 
D) Japan and Hong Kong are rich in natural resources. 
A) An increase in the quantity of labor always leads to economic growth. 
B) Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. 
C) A decrease in the productivity of labor leads to economic growth. 
D) Japan and Hong Kong are rich in natural resources.

Question 4

National income is equal to:

Accepted Answer

A) GDP minus indirect business taxes, depreciation, and net income of foreigners. 
B) NNP minus indirect business taxes. 
C) wages, salaries, fringe benefits, rents, interest, and profits. 
D) all of the above 
A) GDP minus indirect business taxes, depreciation, and net income of foreigners. 
B) NNP minus indirect business taxes. 
C) wages, salaries, fringe benefits, rents, interest, and profits. 
D) all of the above

Question 5

If real GDP increased by 2% and nominal GDP increased by 2%, then output:

Accepted Answer

A) increased and the price level increased. 
B) increased and the price level decreased. 
C) increased and the price level remained unchanged. 
D) remained unchanged and the price level increased. 
A) increased and the price level increased. 
B) increased and the price level decreased. 
C) increased and the price level remained unchanged. 
D) remained unchanged and the price level increased.

Question 6

Which of the following is true?

Accepted Answer

A) Real GDP equals nominal GDP divided by the price level index, times one hundred. 
B) In periods of inflation, real GDP growth will tend to be greater than nominal GDP growth. 
C) In a country with a growing population, real GDP could be falling at the same time that real GDP per capita was rising. 
D) Marrying one's housekeeper would leave reported GDP unchanged. 
E) All of the underground economy represents income from illegal sources, such as drug dealing. 
A) Real GDP equals nominal GDP divided by the price level index, times one hundred. 
B) In periods of inflation, real GDP growth will tend to be greater than nominal GDP growth. 
C) In a country with a growing population, real GDP could be falling at the same time that real GDP per capita was rising. 
D) Marrying one's housekeeper would leave reported GDP unchanged. 
E) All of the underground economy represents income from illegal sources, such as drug dealing.

Question 7

If real GDP per capita is increasing, real output is:

Accepted Answer

A) growing less rapidly than the population. 
B) growing more rapidly than the population. 
C) growing at the same rate as the population. 
D) growing more rapidly than are prices. 
A) growing less rapidly than the population. 
B) growing more rapidly than the population. 
C) growing at the same rate as the population. 
D) growing more rapidly than are prices.

Question 8

There are several factors that nearly everyone agrees have contributed to economic growth in some or all countries.They do not include which of the following?

Accepted Answer

A) Growth in the quantity and quality of labor resources used 
B) Increase in the use of inputs provided by the land 
C) Growth in physical capital inputs 
D) Technological advances 
E) All of the above are included. 
A) Growth in the quantity and quality of labor resources used 
B) Increase in the use of inputs provided by the land 
C) Growth in physical capital inputs 
D) Technological advances 
E) All of the above are included.

Question 9

Which of the following is subtracted from gross national product to arrive at the net national product?

Accepted Answer

A) net income of foreigners 
B) depreciation 
C) indirect business taxes 
D) transfer payments 
A) net income of foreigners 
B) depreciation 
C) indirect business taxes 
D) transfer payments

Question 10

Estimates of the size of the underground economy range from:

Accepted Answer

A) 4 to 20 percent. 
B) 2 to 5 percent. 
C) 7 to 10 percent. 
D) 45 to 60 percent. 
A) 4 to 20 percent. 
B) 2 to 5 percent. 
C) 7 to 10 percent. 
D) 45 to 60 percent.

Question 11

Higher levels of savings will result in all of following except:

Accepted Answer

A) greater economic growth. 
B) higher capital formation. 
C) more consumption in the future. 
D) lower rates of investment. 
A) greater economic growth. 
B) higher capital formation. 
C) more consumption in the future. 
D) lower rates of investment.

Question 12

Which of the following are not included in GDP?

Accepted Answer

A) Transfer payments. 
B) Imports 
C) Intermediate goods. 
D) All of the above are excluded from GDP. 
A) Transfer payments. 
B) Imports 
C) Intermediate goods. 
D) All of the above are excluded from GDP.

Question 13

Depreciation is:

Accepted Answer

A) income earned but not received. 
B) an allowance for the replacement of capital. 
C) income received but not earned. 
D) an indirect business tax. 
A) income earned but not received. 
B) an allowance for the replacement of capital. 
C) income received but not earned. 
D) an indirect business tax.

Question 14

Which of the following economists is given credit for stating that "in the long run we are all dead"?

Accepted Answer

A) Milton Friedman 
B) John Maynard Keynes 
C) Robert L. Sexton 
D) Adam Smith 
A) Milton Friedman 
B) John Maynard Keynes 
C) Robert L. Sexton 
D) Adam Smith

Question 15

When real GDP declines in a particular year, nominal GDP:

Accepted Answer

A) will decline at a faster rate than real GDP if there is inflation. 
B) will decline at a slower rate than real GDP if there is inflation. 
C) may increase or decrease if there is inflation. 
D) will increase if there is deflation. 
A) will decline at a faster rate than real GDP if there is inflation. 
B) will decline at a slower rate than real GDP if there is inflation. 
C) may increase or decrease if there is inflation. 
D) will increase if there is deflation.

Question 16

Growth in a production possibilities curve diagram is shown as:

Accepted Answer

A) a movement along the curve to the southeast. 
B) a movement along the curve to the southwest. 
C) an outward shift of the curve. 
D) an inward shift of the curve. 
A) a movement along the curve to the southeast. 
B) a movement along the curve to the southwest. 
C) an outward shift of the curve. 
D) an inward shift of the curve.

Question 17

Consumption is the largest single component of GDP.In recent years it represents approximately ____ percent of GDP.

Accepted Answer

A) 54 
B) 60 
C) 70 
D) 75 
A) 54 
B) 60 
C) 70 
D) 75

Question 18

In any country, the population will generally be better off as long as the ____ over time and population ____.

Accepted Answer

A) quantity and quality of output decreases; does not increase faster than real output 
B) quantity and quality of output increases; increases faster than real output 
C) quantity and quality of output increases; does not increase faster than real output 
D) technology improves; increases faster than real output 
A) quantity and quality of output decreases; does not increase faster than real output 
B) quantity and quality of output increases; increases faster than real output 
C) quantity and quality of output increases; does not increase faster than real output 
D) technology improves; increases faster than real output

Question 19

Which of the following will not increase the rate of growth in an economy?

Accepted Answer

A) a reduction in the rate of savings 
B) an increase in the productivity of labor 
C) technological progress 
D) higher rates of investment 
A) a reduction in the rate of savings 
B) an increase in the productivity of labor 
C) technological progress 
D) higher rates of investment

Question 20

In nominal GDP rose by 10 percent and the price index increased from 100 to 105 in a given year, real GDP:

Accepted Answer

A) rose by 15 percent. 
B) rose by roughly 9.5 percent. 
C) rose by 5 percent. 
D) fell by 5 percent. 
E) rose by 50 percent. 
A) rose by 15 percent. 
B) rose by roughly 9.5 percent. 
C) rose by 5 percent. 
D) fell by 5 percent. 
E) rose by 50 percent.

As of 2009, the U.S.per capita real GDP was approximately:

How much a country's economy will produce at its potential output is also called:

Which of the following is correct?

National income is equal to:

If real GDP increased by 2% and nominal GDP increased by 2%, then output:

Which of the following is true?

If real GDP per capita is increasing, real output is:

There are several factors that nearly everyone agrees have contributed to economic growth in some or all countries.They do not include which of the following?

Which of the following is subtracted from gross national product to arrive at the net national product?

Estimates of the size of the underground economy range from:

Higher levels of savings will result in all of following except:

Which of the following are not included in GDP?

Depreciation is:

Which of the following economists is given credit for stating that "in the long run we are all dead"?

When real GDP declines in a particular year, nominal GDP:

Growth in a production possibilities curve diagram is shown as:

Consumption is the largest single component of GDP.In recent years it represents approximately ____ percent of GDP.

In any country, the population will generally be better off as long as the over time and population .

Which of the following will not increase the rate of growth in an economy?

In nominal GDP rose by 10 percent and the price index increased from 100 to 105 in a given year, real GDP:

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

Exam 12: Economic Growth

As of 2009, the U.S.per capita real GDP was approximately:

How much a country's economy will produce at its potential output is also called:

Which of the following is correct?

National income is equal to:

If real GDP increased by 2% and nominal GDP increased by 2%, then output:

Which of the following is true?

If real GDP per capita is increasing, real output is:

There are several factors that nearly everyone agrees have contributed to economic growth in some or all countries.They do not include which of the following?

Which of the following is subtracted from gross national product to arrive at the net national product?

Estimates of the size of the underground economy range from:

Higher levels of savings will result in all of following except:

Which of the following are not included in GDP?

Depreciation is:

Which of the following economists is given credit for stating that "in the long run we are all dead"?

When real GDP declines in a particular year, nominal GDP:

Growth in a production possibilities curve diagram is shown as:

Consumption is the largest single component of GDP.In recent years it represents approximately ____ percent of GDP.

In any country, the population will generally be better off as long as the ____ over time and population ____.

Which of the following will not increase the rate of growth in an economy?

In nominal GDP rose by 10 percent and the price index increased from 100 to 105 in a given year, real GDP:

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

In any country, the population will generally be better off as long as the over time and population .