Question 1

In the United States in 2012, consumption represented approximately

Accepted Answer

A)  60 percent of GDP. 
B)  70 percent of GDP. 
C)  80 percent of GDP. 
D)  90 percent of GDP. 
A)  60 percent of GDP. 
B)  70 percent of GDP. 
C)  80 percent of GDP. 
D)  90 percent of GDP.

Question 2

When an American household purchases a bottle of Italian wine for $100,

Accepted Answer

A)  U.S. consumption does not change, U.S. net exports decrease by $100, and U.S. GDP decreases by $100. 
B)  U.S. consumption does not change, U.S. net exports increase by $100, and U.S. GDP increases by $100. 
C)  U.S. consumption increases by $100, U.S. net exports decrease by $100, and U.S. GDP does not change. 
D)  U.S. consumption increases by $100, U.S. net exports do not change, and U.S. GDP increases by $100. 
A)  U.S. consumption does not change, U.S. net exports decrease by $100, and U.S. GDP decreases by $100. 
B)  U.S. consumption does not change, U.S. net exports increase by $100, and U.S. GDP increases by $100. 
C)  U.S. consumption increases by $100, U.S. net exports decrease by $100, and U.S. GDP does not change. 
D)  U.S. consumption increases by $100, U.S. net exports do not change, and U.S. GDP increases by $100.

Question 3

Which of the following transactions would be included in GDP for 2015?

Accepted Answer

A)  In February 2015, Amanda sells a 2009 Hyundai to Isabella. 
B)  In March 2015, Amanda buys a ticket to visit a zoo in Florida. She visits the zoo in February 2016. 
C)  In November 2015, Isabella eats onions that she harvested from her backyard garden in October 2015. 
D)  All of the above are correct. 
A)  In February 2015, Amanda sells a 2009 Hyundai to Isabella. 
B)  In March 2015, Amanda buys a ticket to visit a zoo in Florida. She visits the zoo in February 2016. 
C)  In November 2015, Isabella eats onions that she harvested from her backyard garden in October 2015. 
D)  All of the above are correct.

Question 4

Transfer payments

Accepted Answer

A)  are payments that flow from government to households. 
B)  are not made in exchange for currently produced goods or services. 
C)  alter household income, but they do not reflect the economy's production. 
D)  All of the above are correct. 
A)  are payments that flow from government to households. 
B)  are not made in exchange for currently produced goods or services. 
C)  alter household income, but they do not reflect the economy's production. 
D)  All of the above are correct.

Question 5

Retained earnings is income that

Accepted Answer

A)  households retain after paying taxes. 
B)  businesses retain after paying taxes. 
C)  corporations have earned but have not used to invest in plant, equipment, and inventories. 
D)  corporations have earned but have not paid out to their owners. 
A)  households retain after paying taxes. 
B)  businesses retain after paying taxes. 
C)  corporations have earned but have not used to invest in plant, equipment, and inventories. 
D)  corporations have earned but have not paid out to their owners.

Question 6

Which component of GDP includes spending on new structures and equipment?

Accepted Answer

The answer of Which component of GDP includes spending on...

Question 7

If nominal GDP doubles and the GDP deflator doubles, then real GDP

Accepted Answer

A)  remains constant. 
B)  doubles. 
C)  triples. 
D)  quadruples. 
A)  remains constant. 
B)  doubles. 
C)  triples. 
D)  quadruples.

Question 8

Rank the countries from highest to lowest based on underground economic activity as a percentage of GDP.

Accepted Answer

A)  Bolivia, Thailand, United States, Sweden. 
B)  Thailand, United States, Sweden, Bolivia. 
C)  United States, Bolivia, Sweden, Thailand. 
D)  Bolivia, Thailand, Sweden, United States. 
A)  Bolivia, Thailand, United States, Sweden. 
B)  Thailand, United States, Sweden, Bolivia. 
C)  United States, Bolivia, Sweden, Thailand. 
D)  Bolivia, Thailand, Sweden, United States.

Question 9

GDP includes the value of paper clips but does not also count the value of the metal used to make them.

Accepted Answer

A) True 
 B)False

Question 10

In the GDP accounts production equals

Accepted Answer

A)  income. 
B)  income + saving. 
C)  income - government expenditures. 
D)  income - imports. 
A)  income. 
B)  income + saving. 
C)  income - government expenditures. 
D)  income - imports.

Question 11

Expenditures by households on education are included in the investment component of GDP.

Accepted Answer

A) True 
 B)False

Question 12

If someone in the United States buys a surfboard produced in Australia, then that purchase is included in both the consumption component of U.S. GDP and the net exports component of U.S. GDP.

Accepted Answer

A) True 
 B)False

Question 13

The investment component of GDP refers to financial investment in stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 14

In 2012, GDP per person in the United States was almost

Accepted Answer

A)  $14,000. 
B)  $36,000. 
C)  $46,000 
D)  $50,000 
A)  $14,000. 
B)  $36,000. 
C)  $46,000 
D)  $50,000

Question 15

How frequently is U.S. GDP reported? Is GDP adjusted for seasonality?

Accepted Answer

GDP is reported ever

Question 16

Which of the following is included in GDP?

Accepted Answer

A)  the market value of rental housing services, but not the market value of owner-occupied housing services. 
B)  the market value of owner-occupied housing services, but not the market value of rental housing services 
C)  both the market value of rental housing services and the market value of owner-occupied housing services 
D)  neither the market value of owner-occupied housing services nor the market value of rental housing services. 
A)  the market value of rental housing services, but not the market value of owner-occupied housing services. 
B)  the market value of owner-occupied housing services, but not the market value of rental housing services 
C)  both the market value of rental housing services and the market value of owner-occupied housing services 
D)  neither the market value of owner-occupied housing services nor the market value of rental housing services.

Question 17

GDP is the market value of all final goods and services produced within a country in a given period of time.

Accepted Answer

A) True 
 B)False

Question 18

Write the formula for calculating a country's inflation rate using the GDP deflator.

Accepted Answer

The answer of Write the formula for calculating a country's...

Question 19

In the equation Y = C + I + G + NX,

Accepted Answer

A)  Y represents the economy's total expenditure. 
B)  C represents household expenditures on services and durable goods. 
C)  all of the variables are always positive numbers. 
D)  All of the above are correct. 
A)  Y represents the economy's total expenditure. 
B)  C represents household expenditures on services and durable goods. 
C)  all of the variables are always positive numbers. 
D)  All of the above are correct.

Question 20

The GDP deflator can be used to take inflation out of nominal GDP.

Accepted Answer

A) True 
 B)False

In the United States in 2012, consumption represented approximately

When an American household purchases a bottle of Italian wine for $100,

Which of the following transactions would be included in GDP for 2015?

Transfer payments

Retained earnings is income that

Which component of GDP includes spending on new structures and equipment?

If nominal GDP doubles and the GDP deflator doubles, then real GDP

Rank the countries from highest to lowest based on underground economic activity as a percentage of GDP.

GDP includes the value of paper clips but does not also count the value of the metal used to make them.

In the GDP accounts production equals

Expenditures by households on education are included in the investment component of GDP.

If someone in the United States buys a surfboard produced in Australia, then that purchase is included in both the consumption component of U.S. GDP and the net exports component of U.S. GDP.

The investment component of GDP refers to financial investment in stocks and bonds.

In 2012, GDP per person in the United States was almost

How frequently is U.S. GDP reported? Is GDP adjusted for seasonality?

Which of the following is included in GDP?

GDP is the market value of all final goods and services produced within a country in a given period of time.

Write the formula for calculating a country's inflation rate using the GDP deflator.

In the equation Y = C + I + G + NX,

The GDP deflator can be used to take inflation out of nominal GDP.

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

In the United States in 2012, consumption represented approximately

When an American household purchases a bottle of Italian wine for $100,

Which of the following transactions would be included in GDP for 2015?

Transfer payments

Retained earnings is income that

Which component of GDP includes spending on new structures and equipment?

If nominal GDP doubles and the GDP deflator doubles, then real GDP

Rank the countries from highest to lowest based on underground economic activity as a percentage of GDP.

GDP includes the value of paper clips but does not also count the value of the metal used to make them.

In the GDP accounts production equals

Expenditures by households on education are included in the investment component of GDP.

If someone in the United States buys a surfboard produced in Australia, then that purchase is included in both the consumption component of U.S. GDP and the net exports component of U.S. GDP.

The investment component of GDP refers to financial investment in stocks and bonds.

In 2012, GDP per person in the United States was almost

How frequently is U.S. GDP reported? Is GDP adjusted for seasonality?

Which of the following is included in GDP?

GDP is the market value of all final goods and services produced within a country in a given period of time.

Write the formula for calculating a country's inflation rate using the GDP deflator.

In the equation Y = C + I + G + NX,

The GDP deflator can be used to take inflation out of nominal GDP.

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