Question 1

In 2012, U.S. net exports were

Accepted Answer

A)  positive and about 3.5 percent the size of GDP. 
B)  positive and about 6 percent the size of GDP. 
C)  negative and about 3.5 percent the size of GDP. 
D)  negative and about 6 percent the size of GDP. 
A)  positive and about 3.5 percent the size of GDP. 
B)  positive and about 6 percent the size of GDP. 
C)  negative and about 3.5 percent the size of GDP. 
D)  negative and about 6 percent the size of GDP.

Question 2

Which of the following transactions adds to U.S. GDP for 2015?

Accepted Answer

A)  In 2015, Frank's Feta manufactures 2000 pounds of cheese that will eventually be sold to grocery stores. The 2000 pounds of cheese remains in Frank's inventory at the end of 2015. 
B)  An Irish marketing consultant works in Richmond during the summer of 2015 and earns $45,000 during that time. 
C)  When Len and Mika were both single, they lived in separate apartments and each paid $700 in rent. Len and Mika got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,500 per month. 
D)  All of the above transactions add to U.S. GDP for 2015. 
A)  In 2015, Frank's Feta manufactures 2000 pounds of cheese that will eventually be sold to grocery stores. The 2000 pounds of cheese remains in Frank's inventory at the end of 2015. 
B)  An Irish marketing consultant works in Richmond during the summer of 2015 and earns $45,000 during that time. 
C)  When Len and Mika were both single, they lived in separate apartments and each paid $700 in rent. Len and Mika got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,500 per month. 
D)  All of the above transactions add to U.S. GDP for 2015.

Question 3

Figure 23-1.  
-Refer to Figure 23-1. Which of the following pairs correctly identify X and Z?

Accepted Answer

A)  markets for factors of production and markets for goods and services 
B)  firms and households 
C)  GDP deflator and CPI 
D)  flow of dollars and flow of inputs and outputs 
A)  markets for factors of production and markets for goods and services 
B)  firms and households 
C)  GDP deflator and CPI 
D)  flow of dollars and flow of inputs and outputs

Question 4

Changes in the GDP deflator reflect only changes in the prices of goods and services.

Accepted Answer

A) True 
 B)False

Question 5

Suppose an economy produces only cheese and fish. In 2010, 20 units of cheese are sold at $5 each and 8 units of fish are sold at $50 each. In 2009, the base year, the price of cheese was $10 per unit and the price of fish was $75 per unit. For 2010,

Accepted Answer

A)  nominal GDP is $500, real GDP is $800, and the GDP deflator is 62.5. 
B)  nominal GDP is $500, real GDP is $800, and the GDP deflator is 160. 
C)  nominal GDP is $800, real GDP is $500, and the GDP deflator is 62.5. 
D)  nominal GDP is $800, real GDP is $500, and the GDP deflator is 160. 
A)  nominal GDP is $500, real GDP is $800, and the GDP deflator is 62.5. 
B)  nominal GDP is $500, real GDP is $800, and the GDP deflator is 160. 
C)  nominal GDP is $800, real GDP is $500, and the GDP deflator is 62.5. 
D)  nominal GDP is $800, real GDP is $500, and the GDP deflator is 160.

Question 6

Table 23-7
The table below contains data for the country of Togogo. The base year is 1974.
  
-Refer to Table 23-7. From 1976 to 1977,

Accepted Answer

A)  inflation was 33.3% and output grew at a rate of 20%. 
B)  inflation was 33.3% and output grew at a rate of 60%. 
C)  inflation was 50% and output grew at a rate of 20%. 
D)  inflation was 50% and output grew at a rate of 60%. 
A)  inflation was 33.3% and output grew at a rate of 20%. 
B)  inflation was 33.3% and output grew at a rate of 60%. 
C)  inflation was 50% and output grew at a rate of 20%. 
D)  inflation was 50% and output grew at a rate of 60%.

Question 7

Suppose that over the last twenty-five years a country's nominal GDP grew to three times its former size. In the meantime, population grew by 40 percent and prices rose by 100 percent. What happened to real GDP per person?

Accepted Answer

A)  It more than doubled. 
B)  It increased, but it less than doubled. 
C)  It was unchanged. 
D)  It decreased. 
A)  It more than doubled. 
B)  It increased, but it less than doubled. 
C)  It was unchanged. 
D)  It decreased.

Question 8

The term economists use to describe a situation in which the economy's overall price level is rising is

Accepted Answer

A)  growth. 
B)  inflation. 
C)  recession. 
D)  expansion. 
A)  growth. 
B)  inflation. 
C)  recession. 
D)  expansion.

Question 9

All of the following are examples of a nondurable good except

Accepted Answer

A)  a pencil. 
B)  one gallon of gasoline. 
C)  a queen-size bed. 
D)  a pair of shoes. 
A)  a pencil. 
B)  one gallon of gasoline. 
C)  a queen-size bed. 
D)  a pair of shoes.

Question 10

Suppose an economy's production consists only of corn and soybeans. In 2010, 20 bushels of corn are sold at $4 per bushel and 10 bushels of soybeans are sold at $2 per bushel. In 2009, the price of corn was $2 per bushel and the price of soybeans was $1 per bushel. Using 2009 as the base year, it follows that, for 2010,

Accepted Answer

A)  nominal GDP is $50, real GDP is $100, and the GDP deflator is 50. 
B)  nominal GDP is $50, real GDP is $100, and the GDP deflator is 200. 
C)  nominal GDP is $100, real GDP is $50, and the GDP deflator is 50. 
D)  nominal GDP is $100, real GDP is $50, and the GDP deflator is 200. 
A)  nominal GDP is $50, real GDP is $100, and the GDP deflator is 50. 
B)  nominal GDP is $50, real GDP is $100, and the GDP deflator is 200. 
C)  nominal GDP is $100, real GDP is $50, and the GDP deflator is 50. 
D)  nominal GDP is $100, real GDP is $50, and the GDP deflator is 200.

Question 11

In 2009, government purchases was the largest component of U.S. GDP.

Accepted Answer

A) True 
 B)False

Question 12

A steel company sells some steel to a bicycle company for $150. The bicycle company uses the steel to produce a bicycle, which it sells for $250. Taken together, these two transactions contribute

Accepted Answer

A)  $150 to GDP. 
B)  $250 to GDP. 
C)  between $250 and $400 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle. 
D)  $400 to GDP. 
A)  $150 to GDP. 
B)  $250 to GDP. 
C)  between $250 and $400 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle. 
D)  $400 to GDP.

Question 13

Calculate the inflation rate for a country where the GDP deflator rises from 120 to 165.

Accepted Answer

The answer of Calculate the inflation rate for a country...

Question 14

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 15

GDP excludes most of two types of production. List one.

Accepted Answer

GDP excludes most items that a

Question 16

Suppose an economy produces only eggs and ham. In 2009, 100 dozen eggs are sold at $3 per dozen and 50 pounds of ham sold at $4 per pound. In 2010, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound. For 2009,

Accepted Answer

A)  nominal GDP is $400, real GDP is $500, and the GDP deflator is 80. 
B)  nominal GDP is $400, real GDP is $500, and the GDP deflator is 125. 
C)  nominal GDP is $500, real GDP is $400, and the GDP deflator is 80. 
D)  nominal GDP is $500, real GDP is $400, and the GDP deflator is 125. 
A)  nominal GDP is $400, real GDP is $500, and the GDP deflator is 80. 
B)  nominal GDP is $400, real GDP is $500, and the GDP deflator is 125. 
C)  nominal GDP is $500, real GDP is $400, and the GDP deflator is 80. 
D)  nominal GDP is $500, real GDP is $400, and the GDP deflator is 125.

Question 17

The U.S. buys $500 billion of goods and $250 billion of services from foreign countries. Foreign countries buy $250 billion of goods and $300 billion of services from the U.S. What is net exports?

Accepted Answer

The answer of The U.S. buys $500 billion of goods...

Question 18

Household spending on education is counted in which component or subcomponent of GDP?

Accepted Answer

A)  consumption of durable goods 
B)  consumption of nondurable goods 
C)  consumption of services 
D)  investment 
A)  consumption of durable goods 
B)  consumption of nondurable goods 
C)  consumption of services 
D)  investment

Question 19

A U.S. grocery chain purchases olive oil from Tunisia and sells it to U.S. consumers. In which of the following is this transaction included?

Accepted Answer

A)  U.S. consumption and U.S. imports 
B)  U.S. consumption but not U.S. imports 
C)  U.S. imports but not U.S. consumption 
D)  neither U.S. consumption nor U.S. imports 
A)  U.S. consumption and U.S. imports 
B)  U.S. consumption but not U.S. imports 
C)  U.S. imports but not U.S. consumption 
D)  neither U.S. consumption nor U.S. imports

Question 20

The GDP deflator for years subsequent to the base year measures the change in

Accepted Answer

A)  nominal GDP from the base year that cannot be attributable to a change in real GDP. 
B)  real GDP from the base year that cannot be attributable to a change in nominal GDP. 
C)  nominal GDP from the base year that cannot be attributable to a change in prices. 
D)  real GDP from the base year that cannot be attributable to a change in prices. 
A)  nominal GDP from the base year that cannot be attributable to a change in real GDP. 
B)  real GDP from the base year that cannot be attributable to a change in nominal GDP. 
C)  nominal GDP from the base year that cannot be attributable to a change in prices. 
D)  real GDP from the base year that cannot be attributable to a change in prices.

Exam 10: Measuring a Nations Income

In 2012, U.S. net exports were

Which of the following transactions adds to U.S. GDP for 2015?

Figure 23-1. -Refer to Figure 23-1. Which of the following pairs correctly identify X and Z?

Changes in the GDP deflator reflect only changes in the prices of goods and services.

Suppose an economy produces only cheese and fish. In 2010, 20 units of cheese are sold at $5 each and 8 units of fish are sold at $50 each. In 2009, the base year, the price of cheese was $10 per unit and the price of fish was $75 per unit. For 2010,

Table 23-7 The table below contains data for the country of Togogo. The base year is 1974. -Refer to Table 23-7. From 1976 to 1977,

Suppose that over the last twenty-five years a country's nominal GDP grew to three times its former size. In the meantime, population grew by 40 percent and prices rose by 100 percent. What happened to real GDP per person?

The term economists use to describe a situation in which the economy's overall price level is rising is

All of the following are examples of a nondurable good except

In 2009, government purchases was the largest component of U.S. GDP.

A steel company sells some steel to a bicycle company for $150. The bicycle company uses the steel to produce a bicycle, which it sells for $250. Taken together, these two transactions contribute

Calculate the inflation rate for a country where the GDP deflator rises from 120 to 165.

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

GDP excludes most of two types of production. List one.

Suppose an economy produces only eggs and ham. In 2009, 100 dozen eggs are sold at $3 per dozen and 50 pounds of ham sold at $4 per pound. In 2010, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound. For 2009,

The U.S. buys $500 billion of goods and $250 billion of services from foreign countries. Foreign countries buy $250 billion of goods and $300 billion of services from the U.S. What is net exports?

Household spending on education is counted in which component or subcomponent of GDP?

A U.S. grocery chain purchases olive oil from Tunisia and sells it to U.S. consumers. In which of the following is this transaction included?

The GDP deflator for years subsequent to the base year measures the change in

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

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 Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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