Question 1

​Exhibit 11-1
 
-Refer to Exhibit 11-1. What conclusion regarding exports and imports can be arrived at looking at the data provided?

Accepted Answer

A) ​Exports exceeded imports. 
B) ​Imports exceeded exports. 
C) ​Exports equaled imports. 
D) ​Data insufficient to arrive at any conclusion. 
A) ​Exports exceeded imports. 
B) ​Imports exceeded exports. 
C) ​Exports equaled imports. 
D) ​Data insufficient to arrive at any conclusion.

Question 2

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 3

If nominal GDP in 2011 is greater than nominal GDP in 2010, the economy's real output of goods and services must have risen.

Accepted Answer

A) True 
 B)False

Question 4

GDP excludes:

Accepted Answer

A) ​business purchases of investment goods, such as factories. 
B) ​government purchases of military equipment. 
C) ​the building of a new apartment complex. 
D) ​none of the above. 
A) ​business purchases of investment goods, such as factories. 
B) ​government purchases of military equipment. 
C) ​the building of a new apartment complex. 
D) ​none of the above.

Question 5

The formula for calculating real GDP = (price index/nominal GDP)   100.

Accepted Answer

A) True 
 B)False

Question 6

Why has nominal GDP increased historically more rapidly than real GDP in the United States?

Accepted Answer

A) ​because of inflation 
B) ​because of deflation 
C) ​because of statistical discrepancies 
D) ​because of high interest rates 
A) ​because of inflation 
B) ​because of deflation 
C) ​because of statistical discrepancies 
D) ​because of high interest rates

Question 7

​Exhibit 11-1
 
-Refer to Exhibit 11-1. Government purchases (G) for the year in question is:

Accepted Answer

A) ​$1,350 billion. 
B) ​$3,400 billion. 
C) ​$2,100 billion. 
D) ​$2,550 billion. 
A) ​$1,350 billion. 
B) ​$3,400 billion. 
C) ​$2,100 billion. 
D) ​$2,550 billion.

Question 8

National income:

Accepted Answer

A) ​is a measure of the income earned by owners of resources used in making final goods and services. 
B) ​is a measure of the income received by persons after taxes. 
C) ​equals aggregate income minus the statistical discrepancy. 
D) ​equals GDP minus depreciation. 
A) ​is a measure of the income earned by owners of resources used in making final goods and services. 
B) ​is a measure of the income received by persons after taxes. 
C) ​equals aggregate income minus the statistical discrepancy. 
D) ​equals GDP minus depreciation.

Question 9

Which of the following is not considered part of the services category under the expenditure approach to GDP accounting?

Accepted Answer

A) ​sporting events 
B) ​haircuts 
C) ​commercial airline transportation 
D) ​privately owned jets 
A) ​sporting events 
B) ​haircuts 
C) ​commercial airline transportation 
D) ​privately owned jets

Question 10

When you buy a pickup truck to use at home, it is included in the investment component of GDP.

Accepted Answer

A) True 
 B)False

Question 11

GDP is:

Accepted Answer

A) ​the total value of all consumer expenditures within a given period. 
B) ​national income after taxes. 
C) ​the total value of all final goods and services plus intermediate goods and services produced domestically within a given period. 
D) ​the value of all final goods and services produced domestically within a given period. 
A) ​the total value of all consumer expenditures within a given period. 
B) ​national income after taxes. 
C) ​the total value of all final goods and services plus intermediate goods and services produced domestically within a given period. 
D) ​the value of all final goods and services produced domestically within a given period.

Question 12

In 2011, U.S. GDP totaled approximately:

Accepted Answer

A) ​$2.1 trillion 
B) ​$2.8 trillion 
C) ​$10.7 trillion 
D) ​$15.0 trillion 
A) ​$2.1 trillion 
B) ​$2.8 trillion 
C) ​$10.7 trillion 
D) ​$15.0 trillion

Question 13

Fixed investment includes all of the following except:

Accepted Answer

A) ​all purchases by businesses that add to their inventories. 
B) ​all spending on capital goods. 
C) ​all spending on producer goods. 
D) ​all spending on goods that increase future production capabilities. 
A) ​all purchases by businesses that add to their inventories. 
B) ​all spending on capital goods. 
C) ​all spending on producer goods. 
D) ​all spending on goods that increase future production capabilities.

Question 14

Which of the following is included in GDP?

Accepted Answer

A) ​a U.S.company purchasing stock of a foreign company 
B) ​a foreign company purchasing stock of a U.S.company 
C) ​a U.S.company purchasing stock of another U.S.company 
D) ​None of the above. 
A) ​a U.S.company purchasing stock of a foreign company 
B) ​a foreign company purchasing stock of a U.S.company 
C) ​a U.S.company purchasing stock of another U.S.company 
D) ​None of the above.

Question 15

The main difference between GDP and GNP is that GNP excludes:

Accepted Answer

A) ​net income of foreigners. 
B) ​consumption of fixed capital. 
C) ​transfer payments. 
D) ​government purchases. 
A) ​net income of foreigners. 
B) ​consumption of fixed capital. 
C) ​transfer payments. 
D) ​government purchases.

Question 16

Differentiate between personal income and disposable personal income.

Accepted Answer

Personal income measures the a

Question 17

GDP that has been adjusted for changes in the price level is called:

Accepted Answer

A) ​nominal GDP. 
B) ​real GDP. 
C) ​personal income. 
D) ​net GDP. 
A) ​nominal GDP. 
B) ​real GDP. 
C) ​personal income. 
D) ​net GDP.

Question 18

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 19

Which category of consumption spending tends to be the most stable over the business cycle?

Accepted Answer

A) ​Nondurable consumer goods. 
B) ​Durable consumer goods. 
C) ​Services. 
D) ​all of these categories of consumer spending are highly unstable over the business cycle. 
A) ​Nondurable consumer goods. 
B) ​Durable consumer goods. 
C) ​Services. 
D) ​all of these categories of consumer spending are highly unstable over the business cycle.

Question 20

Which of the following is not a subcategory of consumption spending?

Accepted Answer

A) ​consumer services 
B) ​consumer investment 
C) ​consumer durable goods 
D) ​consumer nondurable goods 
A) ​consumer services 
B) ​consumer investment 
C) ​consumer durable goods 
D) ​consumer nondurable goods

Exam 11: The Firm: Production and Costs

​Exhibit 11-1 -Refer to Exhibit 11-1. What conclusion regarding exports and imports can be arrived at looking at the data provided?

Depreciation is:

If nominal GDP in 2011 is greater than nominal GDP in 2010, the economy's real output of goods and services must have risen.

GDP excludes:

The formula for calculating real GDP = (price index/nominal GDP) 100.

Why has nominal GDP increased historically more rapidly than real GDP in the United States?

​Exhibit 11-1 -Refer to Exhibit 11-1. Government purchases (G) for the year in question is:

National income:

Which of the following is not considered part of the services category under the expenditure approach to GDP accounting?

When you buy a pickup truck to use at home, it is included in the investment component of GDP.

GDP is:

In 2011, U.S. GDP totaled approximately:

Fixed investment includes all of the following except:

Which of the following is included in GDP?

The main difference between GDP and GNP is that GNP excludes:

Differentiate between personal income and disposable personal income.

GDP that has been adjusted for changes in the price level is called:

Which of the following are not included in GDP?

Which category of consumption spending tends to be the most stable over the business cycle?

Which of the following is not a subcategory of consumption spending?

The Role and Method of Economics

Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Market in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Filters

Exhibit 11-1 -Refer to Exhibit 11-1. What conclusion regarding exports and imports can be arrived at looking at the data provided?

Exhibit 11-1 -Refer to Exhibit 11-1. Government purchases (G) for the year in question is: