Question 1

A consumer buys toys made in China. The value of the toys is included only in the net exports component of GDP.

Accepted Answer

A) True 
 B)False

Question 2

Calculate GDP for a country with investment of $2 trillion, government purchases of $3 trillion, capital depreciation of $1.5 trillion, consumption of $10 trillion, exports of $3.4 trillion, and imports of $3.9 trillion.

Accepted Answer

The answer of Calculate GDP for a country with investment...

Question 3

Michigan Cranberry Company sold $10 million worth of cranberries it produced. In producing cranberries, it purchased $1 million dollars worth of supplies from foreign countries and paid workers who reside in Canada but commute to the U.S. $1 million. How much did these transactions add to U.S. GDP?

Accepted Answer

A)  $12 million 
B)  $11 million 
C)  $10 million 
D)  $9 million 
A)  $12 million 
B)  $11 million 
C)  $10 million 
D)  $9 million

Question 4

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

Accepted Answer

A)  included in GDP whether Susan pays Speedy Lube to change it or changes it herself. 
B)  included in GDP if Susan pays Speedy Lube to change it but not if she changes it herself. 
C)  included in GDP if Susan changes it herself, but not if she pays Speedy Lube to change it. 
D)  not included in GDP whether Susan pays Speedy lube to change it or she changes it herself. 
A)  included in GDP whether Susan pays Speedy Lube to change it or changes it herself. 
B)  included in GDP if Susan pays Speedy Lube to change it but not if she changes it herself. 
C)  included in GDP if Susan changes it herself, but not if she pays Speedy Lube to change it. 
D)  not included in GDP whether Susan pays Speedy lube to change it or she changes it herself.

Question 5

Table 23-6
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013.
  
-Refer to Table 23-6. In 2010, this country's real GDP was

Accepted Answer

A)  $620. 
B)  $260. 
C)  $400. 
D)  $630. 
A)  $620. 
B)  $260. 
C)  $400. 
D)  $630.

Question 6

GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality.

Accepted Answer

A) True 
 B)False

Question 7

Last quarter Newton computers produced 3,000 computers. Two thousand of these computers were sold to households, 750 were sold to businesses, and 250 were added to Newton's inventory. How many of the computers should have been included in last quarter's GDP?

Accepted Answer

The answer of Last quarter Newton computers produced 3,000 computers....

Question 8

The income that households and noncorporate businesses receive is called

Accepted Answer

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

Question 9

Table 23-5
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015.
Prices and Quantities
  
-Refer to Table 23-5. This country's output grew

Accepted Answer

A)  31.3% from 2015 to 2016. 
B)  42.0% from 2016 to 2017. 
C)  15.4% from 2016 to 2017. 
D)  53.6% from 2017 to 2018. 
A)  31.3% from 2015 to 2016. 
B)  42.0% from 2016 to 2017. 
C)  15.4% from 2016 to 2017. 
D)  53.6% from 2017 to 2018.

Question 10

Suppose that an economy produces 20,000 units of good A which sells at $3 a unit and 40,000 units of good B which sells at $1 per unit. Production of good A contributes

Accepted Answer

A)  1/3 times as much to GDP as the production of good B. 
B)  3/2 times as much to GDP as the production of good B. 
C)  3 times as much to GDP as the production of good B. 
D)  2/3 times as much to GDP as production of good B. 
A)  1/3 times as much to GDP as the production of good B. 
B)  3/2 times as much to GDP as the production of good B. 
C)  3 times as much to GDP as the production of good B. 
D)  2/3 times as much to GDP as production of good B.

Question 11

The basic tools of supply and demand are

Accepted Answer

A)  useful only in the analysis of economic behavior in individual markets. 
B)  useful in analyzing the overall economy, but not in analyzing individual markets. 
C)  central to microeconomic analysis, but seldom used in macroeconomic analysis. 
D)  central to macroeconomic analysis as well as to microeconomic analysis. 
A)  useful only in the analysis of economic behavior in individual markets. 
B)  useful in analyzing the overall economy, but not in analyzing individual markets. 
C)  central to microeconomic analysis, but seldom used in macroeconomic analysis. 
D)  central to macroeconomic analysis as well as to microeconomic analysis.

Question 12

In a simple circular-flow diagram, households buy goods and services with the income they get from

Accepted Answer

A)  wages. 
B)  rents. 
C)  profits. 
D)  All of the above are correct. 
A)  wages. 
B)  rents. 
C)  profits. 
D)  All of the above are correct.

Question 13

A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result,

Accepted Answer

A)  U.S. investment and GDP increase, but German GDP is unaffected. 
B)  U.S. investment and German GDP increase, but U.S. GDP is unaffected. 
C)  U.S. investment, U.S. GDP, and German GDP are unaffected because tractors are intermediate goods. 
D)  U.S. investment, U.S. GDP, and German GDP all increase. 
A)  U.S. investment and GDP increase, but German GDP is unaffected. 
B)  U.S. investment and German GDP increase, but U.S. GDP is unaffected. 
C)  U.S. investment, U.S. GDP, and German GDP are unaffected because tractors are intermediate goods. 
D)  U.S. investment, U.S. GDP, and German GDP all increase.

Question 14

Household spending on education is included in

Accepted Answer

A)  consumption, although it might be argued that it would fit better in investment. 
B)  investment, although it might be argued that it would fit better in consumption. 
C)  government spending, based on the fact that most higher-education students attend publicly-supported colleges and universities. 
D)  None of the above is correct; in general, household spending on services is not included in any component of GDP. 
A)  consumption, although it might be argued that it would fit better in investment. 
B)  investment, although it might be argued that it would fit better in consumption. 
C)  government spending, based on the fact that most higher-education students attend publicly-supported colleges and universities. 
D)  None of the above is correct; in general, household spending on services is not included in any component of GDP.

Question 15

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut. As a result,

Accepted Answer

A)  U.S. investment, GDP, and GNP all increase by the same amount. 
B)  U.S. investment increases, but GDP and GNP are unaffected by the purchase. 
C)  U.S. investment and GDP increase by the same amount, but U.S. GNP increases by a smaller amount. 
D)  U.S. investment and GNP increase by the same amount, but U.S. GDP increases by a smaller amount. 
A)  U.S. investment, GDP, and GNP all increase by the same amount. 
B)  U.S. investment increases, but GDP and GNP are unaffected by the purchase. 
C)  U.S. investment and GDP increase by the same amount, but U.S. GNP increases by a smaller amount. 
D)  U.S. investment and GNP increase by the same amount, but U.S. GDP increases by a smaller amount.

Question 16

Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

Accepted Answer

The answer of Calculate GDP for an economy with exports...

Question 17

Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage.

Accepted Answer

They are closely associated; c

Question 18

A form of government spending that is not made in exchange for a currently produced good or service is called

Accepted Answer

A)  a transfer payment. 
B)  consumption. 
C)  investment. 
D)  None of the above is correct. 
A)  a transfer payment. 
B)  consumption. 
C)  investment. 
D)  None of the above is correct.

A consumer buys toys made in China. The value of the toys is included only in the net exports component of GDP.

Calculate GDP for a country with investment of $2 trillion, government purchases of $3 trillion, capital depreciation of $1.5 trillion, consumption of $10 trillion, exports of $3.4 trillion, and imports of $3.9 trillion.

Michigan Cranberry Company sold $10 million worth of cranberries it produced. In producing cranberries, it purchased $1 million dollars worth of supplies from foreign countries and paid workers who reside in Canada but commute to the U.S. $1 million. How much did these transactions add to U.S. GDP?

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. In 2010, this country's real GDP was

GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality.

Last quarter Newton computers produced 3,000 computers. Two thousand of these computers were sold to households, 750 were sold to businesses, and 250 were added to Newton's inventory. How many of the computers should have been included in last quarter's GDP?

The income that households and noncorporate businesses receive is called

Table 23-5 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities -Refer to Table 23-5. This country's output grew

Suppose that an economy produces 20,000 units of good A which sells at $3 a unit and 40,000 units of good B which sells at $1 per unit. Production of good A contributes

The basic tools of supply and demand are

In a simple circular-flow diagram, households buy goods and services with the income they get from

A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result,

Household spending on education is included in

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut. As a result,

Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage.

A form of government spending that is not made in exchange for a currently produced good or service is called

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

A consumer buys toys made in China. The value of the toys is included only in the net exports component of GDP.

Calculate GDP for a country with investment of $2 trillion, government purchases of $3 trillion, capital depreciation of $1.5 trillion, consumption of $10 trillion, exports of $3.4 trillion, and imports of $3.9 trillion.

Michigan Cranberry Company sold $10 million worth of cranberries it produced. In producing cranberries, it purchased $1 million dollars worth of supplies from foreign countries and paid workers who reside in Canada but commute to the U.S. $1 million. How much did these transactions add to U.S. GDP?

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. In 2010, this country's real GDP was

GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality.

Last quarter Newton computers produced 3,000 computers. Two thousand of these computers were sold to households, 750 were sold to businesses, and 250 were added to Newton's inventory. How many of the computers should have been included in last quarter's GDP?

The income that households and noncorporate businesses receive is called

Table 23-5 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities -Refer to Table 23-5. This country's output grew

Suppose that an economy produces 20,000 units of good A which sells at $3 a unit and 40,000 units of good B which sells at $1 per unit. Production of good A contributes

The basic tools of supply and demand are

In a simple circular-flow diagram, households buy goods and services with the income they get from

A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result,

Household spending on education is included in

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut. As a result,

Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage.

A form of government spending that is not made in exchange for a currently produced good or service is called

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