Question 1

Which of the following is not considered investment in the national income accounts?

Accepted Answer

A) ​The purchase of a drill press by XYZ company. 
B) ​Construction of a new housing project. 
C) ​The accumulation of inventories on a grocer's shelves. 
D) ​The purchase of 1000 shares of IBM stock. 
A) ​The purchase of a drill press by XYZ company. 
B) ​Construction of a new housing project. 
C) ​The accumulation of inventories on a grocer's shelves. 
D) ​The purchase of 1000 shares of IBM stock.

Question 2

The most volatile GDP category under the expenditure approach is:

Accepted Answer

A) ​wages and salaries. 
B) ​investment. 
C) ​consumption. 
D) ​government purchases. 
A) ​wages and salaries. 
B) ​investment. 
C) ​consumption. 
D) ​government purchases.

Question 3

The GDP deflator:

Accepted Answer

A) ​takes government purchases into account, unlike the CPI. 
B) ​takes business investment purchases into account, unlike the CPI. 
C) ​is generally used to adjust nominal GDP to calculate real GDP. 
D) ​All of the above are true. 
A) ​takes government purchases into account, unlike the CPI. 
B) ​takes business investment purchases into account, unlike the CPI. 
C) ​is generally used to adjust nominal GDP to calculate real GDP. 
D) ​All of the above are true.

Question 4

Gross national product is equal to:

Accepted Answer

A) ​gross domestic product. 
B) ​net national product plus depreciation. 
C) ​national income plus net personal income. 
D) ​none of the above 
A) ​gross domestic product. 
B) ​net national product plus depreciation. 
C) ​national income plus net personal income. 
D) ​none of the above

Question 5

If the GDP deflator increases from one year to the next, it can be concluded that the economy has experienced:

Accepted Answer

A) ​growth. 
B) ​stagnation. 
C) ​stagflation. 
D) ​inflation. 
A) ​growth. 
B) ​stagnation. 
C) ​stagflation. 
D) ​inflation.

Question 6

If a nation's imports exceed its exports:

Accepted Answer

A) ​net exports will be positive. 
B) ​GDP will be less than the sum of consumption, investment, and government purchases. 
C) ​GDP will be greater than the sum of consumption, investment, and government purchases. 
D) ​none of the above apply. 
A) ​net exports will be positive. 
B) ​GDP will be less than the sum of consumption, investment, and government purchases. 
C) ​GDP will be greater than the sum of consumption, investment, and government purchases. 
D) ​none of the above apply.

Question 7

Consumption is the purchase of goods and services by:

Accepted Answer

A) ​households. 
B) ​government. 
C) ​business firms. 
D) ​foreign buyers. 
A) ​households. 
B) ​government. 
C) ​business firms. 
D) ​foreign buyers.

Which of the following is not considered investment in the national income accounts?

The most volatile GDP category under the expenditure approach is:

The GDP deflator:

Gross national product is equal to:

If the GDP deflator increases from one year to the next, it can be concluded that the economy has experienced:

If a nation's imports exceed its exports:

Consumption is the purchase of goods and services by:

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

Exam 11: The Firm: Production and Costs

Which of the following is not considered investment in the national income accounts?

The most volatile GDP category under the expenditure approach is:

The GDP deflator:

Gross national product is equal to:

If the GDP deflator increases from one year to the next, it can be concluded that the economy has experienced:

If a nation's imports exceed its exports:

Consumption is the purchase of goods and services by:

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