Question 1

Suppose nominal GDP in Greece decreased by 5% in 2018. Given this information, we know with certainty that

Accepted Answer

A)  the aggregate price level in Greece decreased in 2018. 
B)  real GDP in Greece decreased in 2018. 
C)  both the aggregate price level AND real GDP decreased in Greece in 2018. 
D)  more information is needed to answer this question. 
A)  the aggregate price level in Greece decreased in 2018. 
B)  real GDP in Greece decreased in 2018. 
C)  both the aggregate price level AND real GDP decreased in Greece in 2018. 
D)  more information is needed to answer this question.

Question 2

GDP is a

Accepted Answer

A)  stock because it measures income for the entire country. 
B)  stock because it measures wealth at a distinct point in time. 
C)  flow because dollar values are used. 
D)  flow because it measures income over a period of time. 
A)  stock because it measures income for the entire country. 
B)  stock because it measures wealth at a distinct point in time. 
C)  flow because dollar values are used. 
D)  flow because it measures income over a period of time.

Question 3

If Jack refinished his basement himself, the value of his work

Accepted Answer

A)  is not included in Gross Domestic Product (GDP). 
B)  is included in Gross Domestic Product (GDP). 
C)  is only included in Gross Domestic Product (GDP) if he uses U.S. made components. 
D)  is included in the next year's Gross Domestic Product (GDP). 
A)  is not included in Gross Domestic Product (GDP). 
B)  is included in Gross Domestic Product (GDP). 
C)  is only included in Gross Domestic Product (GDP) if he uses U.S. made components. 
D)  is included in the next year's Gross Domestic Product (GDP).

Question 4

Which of the following would be included in the calculation of Gross Domestic Product (GDP)?

Accepted Answer

A)  the value of transfer payments 
B)  the value of the sale of a used guitar 
C)  the value of the sale of 100 shares of Facebook stock 
D)  the value of spending on a truck 
A)  the value of transfer payments 
B)  the value of the sale of a used guitar 
C)  the value of the sale of 100 shares of Facebook stock 
D)  the value of spending on a truck

Question 5

"If we sum up all factor payments, we will get gross domestic income." Do you agree or disagree with this statement? Why?

Accepted Answer

Disagree. The sum of all facto

Question 6

Durable consumer goods are goods that

Accepted Answer

A)  last for more than three years. 
B)  last for more than one year. 
C)  are used up within three years. 
D)  are used up within one year. 
A)  last for more than three years. 
B)  last for more than one year. 
C)  are used up within three years. 
D)  are used up within one year.

Question 7

In calculating GDP, your tuition expenditures at college are classified as

Accepted Answer

A)  consumer expenditures on services. 
B)  consumer expenditures on goods. 
C)  consumer expenditures on durable goods. 
D)  investment spending. 
A)  consumer expenditures on services. 
B)  consumer expenditures on goods. 
C)  consumer expenditures on durable goods. 
D)  investment spending.

Question 8

National income is $500, corporate taxes are $20, Social Security contributions are $60, retained earnings are $10, personal taxes are $100, and transfer payments are $80. Disposable income is

Accepted Answer

A)  $510. 
B)  $450. 
C)  $410. 
D)  $390. 
A)  $510. 
B)  $450. 
C)  $410. 
D)  $390.

Question 9

The amount of income received by households prior to the payment of personal income taxes is called

Accepted Answer

A)  disposable wages. 
B)  personal income. 
C)  national income. 
D)  net domestic product. 
A)  disposable wages. 
B)  personal income. 
C)  national income. 
D)  net domestic product.

Question 10

How can we compare standards of living across countries?

Accepted Answer

It is difficult to compare standards of

Question 11

An example of a durable good is

Accepted Answer

A)  a candy bar purchased at a grocery store. 
B)  a refrigerator. 
C)  a three-year contract of an Internet service. 
D)  a bottle of old wine. 
A)  a candy bar purchased at a grocery store. 
B)  a refrigerator. 
C)  a three-year contract of an Internet service. 
D)  a bottle of old wine.

Question 12

Suppose Gross Domestic Product (GDP) figures were changed to reflect household production. How would the size of household production relative to Gross Domestic Product (GDP) have changed over the last fifty years?

Accepted Answer

The relative size of household productio

Question 13

Suppose Country A and Country B each have the same real Gross Domestic Product (GDP), equal to $440 billion. Country A has 100 million people and Country B has 175 million people. In this situation, per capita real Gross Domestic Product (GDP) is

Accepted Answer

A)  the same in both countries. 
B)  higher in Country A. 
C)  higher in Country B. 
D)  an irrelevant factor. 
A)  the same in both countries. 
B)  higher in Country A. 
C)  higher in Country B. 
D)  an irrelevant factor.

Question 14

Which of the following would NOT be included in a nation's Gross Domestic Product (GDP)?

Accepted Answer

A)  The government purchases 100 new trucks for the Army. 
B)  The inventory of paper towels goes up. 
C)  A landlord rents an apartment. 
D)  In a poker game a student wins $500 that he does not report as income. 
A)  The government purchases 100 new trucks for the Army. 
B)  The inventory of paper towels goes up. 
C)  A landlord rents an apartment. 
D)  In a poker game a student wins $500 that he does not report as income.

Question 15

Mental or physical labor or help purchased by consumers is a(n)

Accepted Answer

A)  durable consumer good. 
B)  nondurable consumer good. 
C)  service. 
D)  investment. 
A)  durable consumer good. 
B)  nondurable consumer good. 
C)  service. 
D)  investment.

Question 16

Given the following data, calculate the GDP. wages = $500 government spending = $2,500 private investment = $2,100
Rent = $100 consumer spending = $7,800 net exports = $400

Accepted Answer

A)  GDP = $11,400 
B)  GDP = $12,000 
C)  GDP = $12,800 
D)  GDP = $13,000 
A)  GDP = $11,400 
B)  GDP = $12,000 
C)  GDP = $12,800 
D)  GDP = $13,000

Question 17

Gross domestic product is

Accepted Answer

A)  NDP plus net exports. 
B)  NDP plus taxes. 
C)  NDP plus depreciation. 
D)  NDP less changes in inventories. 
A)  NDP plus net exports. 
B)  NDP plus taxes. 
C)  NDP plus depreciation. 
D)  NDP less changes in inventories.

Question 18

-Refer to the above table (figures in billions). Between 2014 and 2015 real GDP

Accepted Answer

A)  increased by $191.7 billion. 
B)  increased by $1.76 billion. 
C)  increased by $176.17 billion. 
D)  increased by $360.5 billion. 
A)  increased by $191.7 billion. 
B)  increased by $1.76 billion. 
C)  increased by $176.17 billion. 
D)  increased by $360.5 billion.

Question 19

To find the U.S. dollar equivalent of a given amount of Mexican pesos, you would have to know

Accepted Answer

A)  per capita GDP in Mexico. 
B)  per capita GDP in the United States. 
C)  per capita GDP in both the United States and Mexico. 
D)  the foreign exchange rate between dollars and pesos. 
A)  per capita GDP in Mexico. 
B)  per capita GDP in the United States. 
C)  per capita GDP in both the United States and Mexico. 
D)  the foreign exchange rate between dollars and pesos.

Question 20

Gross Domestic Product (GDP) exceeds net domestic product by an amount equal to

Accepted Answer

A)  indirect business taxes. 
B)  corporate profits plus personal taxes. 
C)  the capital consumption allowance (depreciation). 
D)  transfer payments minus personal taxes. 
A)  indirect business taxes. 
B)  corporate profits plus personal taxes. 
C)  the capital consumption allowance (depreciation). 
D)  transfer payments minus personal taxes.

Exam 8: Measuring the Economys Performance

Suppose nominal GDP in Greece decreased by 5% in 2018. Given this information, we know with certainty that

GDP is a

If Jack refinished his basement himself, the value of his work

Which of the following would be included in the calculation of Gross Domestic Product (GDP)?

"If we sum up all factor payments, we will get gross domestic income." Do you agree or disagree with this statement? Why?

Durable consumer goods are goods that

In calculating GDP, your tuition expenditures at college are classified as

National income is $500, corporate taxes are $20, Social Security contributions are $60, retained earnings are $10, personal taxes are $100, and transfer payments are $80. Disposable income is

The amount of income received by households prior to the payment of personal income taxes is called

How can we compare standards of living across countries?

An example of a durable good is

Suppose Gross Domestic Product (GDP) figures were changed to reflect household production. How would the size of household production relative to Gross Domestic Product (GDP) have changed over the last fifty years?

Suppose Country A and Country B each have the same real Gross Domestic Product (GDP), equal to $440 billion. Country A has 100 million people and Country B has 175 million people. In this situation, per capita real Gross Domestic Product (GDP) is

Which of the following would NOT be included in a nation's Gross Domestic Product (GDP)?

Mental or physical labor or help purchased by consumers is a(n)

Given the following data, calculate the GDP. wages = $500 government spending = $2,500 private investment = $2,100 Rent = $100 consumer spending = $7,800 net exports = $400

Gross domestic product is

-Refer to the above table (figures in billions). Between 2014 and 2015 real GDP

To find the U.S. dollar equivalent of a given amount of Mexican pesos, you would have to know

Gross Domestic Product (GDP) exceeds net domestic product by an amount equal to

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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