Question 1

Which of the following items is included in GDP?

Accepted Answer

A)  the sale of stocks and bonds 
B)  the sale of used goods 
C)  the sale of services such as those performed by a doctor 
D)  All of the above are included in GDP. 
A)  the sale of stocks and bonds 
B)  the sale of used goods 
C)  the sale of services such as those performed by a doctor 
D)  All of the above are included in GDP.

Question 2

Table 23-11
The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009.
Prices and Quantities
  
-Refer to Table 23-11.
What was the inflation rate for 2011? Show your work.

Accepted Answer

For 2010 the GDP Deflator was 112. Nomin

Question 3

Which of the following is not a correct statement about the growth of real GDP in the U.S. economy?

Accepted Answer

A)  Real GDP in 2009 was almost four times its 1965 level. 
B)  Growth was steady between 1965 and 2009. 
C)  Continued growth in real GDP enables the typical American to enjoy greater economic prosperity than his or her parents and grandparents did. 
D)  The output of goods and services produced grew on average about 3 percent per year between 1965 and 2009. 
A)  Real GDP in 2009 was almost four times its 1965 level. 
B)  Growth was steady between 1965 and 2009. 
C)  Continued growth in real GDP enables the typical American to enjoy greater economic prosperity than his or her parents and grandparents did. 
D)  The output of goods and services produced grew on average about 3 percent per year between 1965 and 2009.

Question 4

Table 23-11
The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009.
Prices and Quantities
  
-Refer to Table 23-11.
What was nominal GDP, real GDP, and the GDP deflator for 2009? Show your work.

Accepted Answer

Nominal GDP was $5x90 + $50x15

Question 5

In the economy of Talikastan in 2015, consumption was $3000, exports were $400, GDP was $5000, imports were $500, and investment was $1400. What were Talikastan's government purchases in 2015?

Accepted Answer

A)  $60 
B)  $500 
C)  $700 
D)  $1500 
A)  $60 
B)  $500 
C)  $700 
D)  $1500

Question 6

A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10. Smith's Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP?

Accepted Answer

A)  $22.50 
B)  $29.50 
C)  $21.50 
D)  $31.50 
A)  $22.50 
B)  $29.50 
C)  $21.50 
D)  $31.50

Question 7

In the United States in 2012, purchases of capital equipment, inventories, and structures represented approximately

Accepted Answer

A)  3 percent of GDP. 
B)  7 percent of GDP. 
C)  13 percent of GDP. 
D)  15 percent of GDP. 
A)  3 percent of GDP. 
B)  7 percent of GDP. 
C)  13 percent of GDP. 
D)  15 percent of GDP.

Question 8

A macroeconomist is interested in

Accepted Answer

A)  explaining how changes in sellers' behavior affect prices of a particular good. 
B)  explaining price changes in a particular market. 
C)  explaining why the unemployment rate is higher. 
D)  All of the above are correct. 
A)  explaining how changes in sellers' behavior affect prices of a particular good. 
B)  explaining price changes in a particular market. 
C)  explaining why the unemployment rate is higher. 
D)  All of the above are correct.

Question 9

Table 23-3
The table below contains data for the country of Crete for the year 2010.
  
-Refer to Table 23-3. What were Crete's net exports in 2010?

Accepted Answer

A)  -$217 
B)  -$88 
C)  $88 
D)  $217 
A)  -$217 
B)  -$88 
C)  $88 
D)  $217

Question 10

In the economy of Talikastan in 2015, consumption was $800, GDP was $2000, government purchases were $400, and investment was $600. What were Talikastan's net exports in 2015?

Accepted Answer

A)  -$200 
B)  $200 
C)  $1800 
D)  Net exports cannot be calculated from the information given. 
A)  -$200 
B)  $200 
C)  $1800 
D)  Net exports cannot be calculated from the information given.

Question 11

Which of the following is included in the investment component of GDP?

Accepted Answer

A)  Elaine pays her college tuition bill. 
B)  John's law firm buys him a new computer. 
C)  Laura buys a bond that McDonald's sells to raise funds. 
D)  All of the above are correct. 
A)  Elaine pays her college tuition bill. 
B)  John's law firm buys him a new computer. 
C)  Laura buys a bond that McDonald's sells to raise funds. 
D)  All of the above are correct.

Question 12

Which of the following subcomponents of GDP can be either positive or negative?

Accepted Answer

A)  inventory investment 
B)  exports 
C)  government purchases 
D)  All of the above are correct. 
A)  inventory investment 
B)  exports 
C)  government purchases 
D)  All of the above are correct.

Question 13

Which of the following items is included in U.S. GDP?

Accepted Answer

A)  final goods and services that are purchased by the U.S. federal government 
B)  intermediate goods that are produced in the U.S. but that are unsold at the end of the GDP accounting period 
C)  goods and services produced by foreign citizens working in the U.S. 
D)  All of the above are included in U.S. GDP. 
A)  final goods and services that are purchased by the U.S. federal government 
B)  intermediate goods that are produced in the U.S. but that are unsold at the end of the GDP accounting period 
C)  goods and services produced by foreign citizens working in the U.S. 
D)  All of the above are included in U.S. GDP.

Question 14

In the economy of Talikastan in 2015, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $1800, and imports were $1200. What was Talikastan's investment in 2015?

Accepted Answer

A)  $0 
B)  $1200 
C)  $2400 
D)  $5600 
A)  $0 
B)  $1200 
C)  $2400 
D)  $5600

Question 15

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

Accepted Answer

A) True 
 B)False

Question 16

In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were $1700, imports were $400, and investment was $1800. What was Talikastan's consumption in 2015?

Accepted Answer

A)  $2000 
B)  $2800 
C)  $3000 
D)  $3800 
A)  $2000 
B)  $2800 
C)  $3000 
D)  $3800

Question 17

The government computes measures of income other than GDP because these other measures usually tell different stories about overall economic conditions.

Accepted Answer

A) True 
 B)False

Question 18

National income is defined as

Accepted Answer

A)  the total income of a nation's permanent residents minus losses from depreciation. 
B)  the income that households and noncorporate businesses receive. 
C)  the total income earned by a nation's permanent residents in the production of goods and services. 
D)  the income that households and noncorporate businesses have left after satisfying all their obligations to the government. 
A)  the total income of a nation's permanent residents minus losses from depreciation. 
B)  the income that households and noncorporate businesses receive. 
C)  the total income earned by a nation's permanent residents in the production of goods and services. 
D)  the income that households and noncorporate businesses have left after satisfying all their obligations to the government.

Question 19

GDP is used as the basic measure of a society's economic well-being. A better measure of the economic well-being of individuals in society is

Accepted Answer

A)  saving per person. 
B)  GDP per person. 
C)  government expenditures per person. 
D)  investment per business firm. 
A)  saving per person. 
B)  GDP per person. 
C)  government expenditures per person. 
D)  investment per business firm.

Question 20

If in some year nominal GDP was $10 trillion and real GDP was $4 trillion, what was the GDP deflator?

Accepted Answer

A)  25. 
B)  40. 
C)  250. 
D)  400. 
A)  25. 
B)  40. 
C)  250. 
D)  400.

Which of the following items is included in GDP?

Table 23-11 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-11. What was the inflation rate for 2011? Show your work.

Which of the following is not a correct statement about the growth of real GDP in the U.S. economy?

Table 23-11 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-11. What was nominal GDP, real GDP, and the GDP deflator for 2009? Show your work.

In the economy of Talikastan in 2015, consumption was $3000, exports were $400, GDP was $5000, imports were $500, and investment was $1400. What were Talikastan's government purchases in 2015?

A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10. Smith's Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP?

In the United States in 2012, purchases of capital equipment, inventories, and structures represented approximately

A macroeconomist is interested in

Table 23-3 The table below contains data for the country of Crete for the year 2010. -Refer to Table 23-3. What were Crete's net exports in 2010?

In the economy of Talikastan in 2015, consumption was $800, GDP was $2000, government purchases were $400, and investment was $600. What were Talikastan's net exports in 2015?

Which of the following is included in the investment component of GDP?

Which of the following subcomponents of GDP can be either positive or negative?

Which of the following items is included in U.S. GDP?

In the economy of Talikastan in 2015, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $1800, and imports were $1200. What was Talikastan's investment in 2015?

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were $1700, imports were $400, and investment was $1800. What was Talikastan's consumption in 2015?

The government computes measures of income other than GDP because these other measures usually tell different stories about overall economic conditions.

National income is defined as

GDP is used as the basic measure of a society's economic well-being. A better measure of the economic well-being of individuals in society is

If in some year nominal GDP was $10 trillion and real GDP was $4 trillion, what was the GDP deflator?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Exam 5: Measuring a Nations Income

Which of the following items is included in GDP?

Table 23-11 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-11. What was the inflation rate for 2011? Show your work.

Which of the following is not a correct statement about the growth of real GDP in the U.S. economy?

Table 23-11 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-11. What was nominal GDP, real GDP, and the GDP deflator for 2009? Show your work.

In the economy of Talikastan in 2015, consumption was $3000, exports were $400, GDP was $5000, imports were $500, and investment was $1400. What were Talikastan's government purchases in 2015?

A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10. Smith's Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP?

In the United States in 2012, purchases of capital equipment, inventories, and structures represented approximately

A macroeconomist is interested in

Table 23-3 The table below contains data for the country of Crete for the year 2010. -Refer to Table 23-3. What were Crete's net exports in 2010?

In the economy of Talikastan in 2015, consumption was $800, GDP was $2000, government purchases were $400, and investment was $600. What were Talikastan's net exports in 2015?

Which of the following is included in the investment component of GDP?

Which of the following subcomponents of GDP can be either positive or negative?

Which of the following items is included in U.S. GDP?

In the economy of Talikastan in 2015, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $1800, and imports were $1200. What was Talikastan's investment in 2015?

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were $1700, imports were $400, and investment was $1800. What was Talikastan's consumption in 2015?

The government computes measures of income other than GDP because these other measures usually tell different stories about overall economic conditions.

National income is defined as

GDP is used as the basic measure of a society's economic well-being. A better measure of the economic well-being of individuals in society is

If in some year nominal GDP was $10 trillion and real GDP was $4 trillion, what was the GDP deflator?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters