Question 1

The basic tools of supply and demand are central to microeconomic analysis but are of little use to macroeconomics.

Accepted Answer

A) True 
 B)False

Question 2

Identify which of the following are included in the government purchases component of GDP.the salary paid to a state court judge unemployment insurance benefits the payment made by the federal government for a jet fighter social security payments a county builds a jail building

Accepted Answer

The following are included in

Question 3

Identify the largest and smallest components of GDP.

Accepted Answer

Consumption is the l

Question 4

Jackie, a Canadian citizen, works only in the United States. The value of the output she produces is

Accepted Answer

A)  included in both U.S. GDP and U.S. GNP. 
B)  included in U.S. GDP, but it is not included in U.S. GNP. 
C)  included in U.S. GNP, but it is not included in U.S. GDP. 
D)  included in neither U.S. GDP nor U.S. GNP. 
A)  included in both U.S. GDP and U.S. GNP. 
B)  included in U.S. GDP, but it is not included in U.S. GNP. 
C)  included in U.S. GNP, but it is not included in U.S. GDP. 
D)  included in neither U.S. GDP nor U.S. GNP.

Question 5

Which of the following statements about GDP is correct?

Accepted Answer

A)  GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy's output of goods and services. 
B)  Money continuously flows from households to firms and then back to households, and GDP measures this flow of money. 
C)  GDP is generally regarded as the best single measure of a society's economic well­being. 
D)  All of the above are correct. 
A)  GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy's output of goods and services. 
B)  Money continuously flows from households to firms and then back to households, and GDP measures this flow of money. 
C)  GDP is generally regarded as the best single measure of a society's economic well­being. 
D)  All of the above are correct.

Question 6

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 7

Define gross domestic product.

Accepted Answer

The market value of all final

Question 8

Which of the following correctly lists what is included in the consumption component of GDP?

Accepted Answer

A)  household purchases of services and household purchases of nondurable goods but not any household purchases of durable goods 
B)  household purchases of nondurable goods and durable goods other than residential construction but not household purchases of services 
C)  household purchases of services, nondurable goods, and all durable goods 
D)  household purchases of services, nondurable goods, and durable goods other than residential construction 
A)  household purchases of services and household purchases of nondurable goods but not any household purchases of durable goods 
B)  household purchases of nondurable goods and durable goods other than residential construction but not household purchases of services 
C)  household purchases of services, nondurable goods, and all durable goods 
D)  household purchases of services, nondurable goods, and durable goods other than residential construction

Question 9

One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second bag of flour is sold for $1 to a grocery store who sells it to a consumer for $2.00. Taking these four transactions into account, what is the effect on GDP?

Accepted Answer

A)  GDP increases by $3.00. 
B)  GDP increases by $5.00. 
C)  GDP increases by $6.00. 
D)  GDP increases by $7.00. 
A)  GDP increases by $3.00. 
B)  GDP increases by $5.00. 
C)  GDP increases by $6.00. 
D)  GDP increases by $7.00.

Question 10

Which of the following is included in the calculation of GDP?

Accepted Answer

A)  The purchase of tutoring services from a tutor who holds citizenship outside the country but resides within the country. 
B)  The purchase of a new edition of a foreign textbook that was produced in a different nation. 
C)  The purchase of ink and paper supplies by a textbook company for the production of new textbooks. 
D)  The purchase of a used textbook from a friend who took the same class last year. 
A)  The purchase of tutoring services from a tutor who holds citizenship outside the country but resides within the country. 
B)  The purchase of a new edition of a foreign textbook that was produced in a different nation. 
C)  The purchase of ink and paper supplies by a textbook company for the production of new textbooks. 
D)  The purchase of a used textbook from a friend who took the same class last year.

Question 11

Joe and Jim purchase vegetables at a grocery store, but Jim also grows vegetables in his back yard. Regarding these two practices, which of the following statements is correct?

Accepted Answer

A)  Only Joe's grocery store purchases are included in GDP. 
B)  Only Joe's and Jim's grocery store purchases are included in GDP. 
C)  Joe's and Jim's grocery store purchases are included in GDP. The vegetables from Jim's backyard garden are included at their market value. 
D)  Joe's and Jim's grocery store purchases are included in GDP. The vegetables from Jim's backyard garden are included at their market value, if Jim provides this information. 
A)  Only Joe's grocery store purchases are included in GDP. 
B)  Only Joe's and Jim's grocery store purchases are included in GDP. 
C)  Joe's and Jim's grocery store purchases are included in GDP. The vegetables from Jim's backyard garden are included at their market value. 
D)  Joe's and Jim's grocery store purchases are included in GDP. The vegetables from Jim's backyard garden are included at their market value, if Jim provides this information.

Question 12

The consumption component of GDP includes spending on

Accepted Answer

A)  durable goods and nondurable goods, but not spending on services. 
B)  durable goods and services, but not spending on nondurable goods. 
C)  nondurable goods and services, but not spending on durable goods. 
D)  durable goods, nondurable goods, and services. 
A)  durable goods and nondurable goods, but not spending on services. 
B)  durable goods and services, but not spending on nondurable goods. 
C)  nondurable goods and services, but not spending on durable goods. 
D)  durable goods, nondurable goods, and services.

Question 13

For the economy as a whole,

Accepted Answer

A)  income must be greater than expenditure. 
B)  unemployment must rise when GDP rises. 
C)  expenditure must equal income. 
D)  consumption must be greater than investment. 
A)  income must be greater than expenditure. 
B)  unemployment must rise when GDP rises. 
C)  expenditure must equal income. 
D)  consumption must be greater than investment.

Question 14

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 15

If net exports is a negative number for a particular year, then

Accepted Answer

A)  the value of firms' inventories declined over the course of the year. 
B)  consumption exceeded the sum of investment and government purchases during the year. 
C)  the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year. 
D)  the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year. 
A)  the value of firms' inventories declined over the course of the year. 
B)  consumption exceeded the sum of investment and government purchases during the year. 
C)  the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year. 
D)  the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.

Question 16

Changes in the GDP deflator reflect

Accepted Answer

A)  only changes in prices. 
B)  only changes in the amounts being produced. 
C)  both changes in prices and changes in the amounts being produced. 
D)  neither changes in prices nor changes in the amounts being produced. 
A)  only changes in prices. 
B)  only changes in the amounts being produced. 
C)  both changes in prices and changes in the amounts being produced. 
D)  neither changes in prices nor changes in the amounts being produced.

Question 17

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. This country's inflation rate from 2012 to 2013 was

Accepted Answer

A)  35.6%. 
B)  25.8%. 
C)  34.8%. 
D)  100.0%. 
A)  35.6%. 
B)  25.8%. 
C)  34.8%. 
D)  100.0%.

Question 18

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 19

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

Accepted Answer

A)  In 2015, Ann sells a car that she bought in 2011 to Bill for $7,000. 
B)  An American management consultant works in Canada during the summer of 2015 and earns the equivalent of $40,000 during that time. 
C)  When Ken and Kim were both single, they lived in separate apartments and each paid $800 in rent. Ken and Kim got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,700 per month. 
D)  None of the above transactions adds to U.S. GDP for 2015. 
A)  In 2015, Ann sells a car that she bought in 2011 to Bill for $7,000. 
B)  An American management consultant works in Canada during the summer of 2015 and earns the equivalent of $40,000 during that time. 
C)  When Ken and Kim were both single, they lived in separate apartments and each paid $800 in rent. Ken and Kim got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,700 per month. 
D)  None of the above transactions adds to U.S. GDP for 2015.

Question 20

Which of the following examples of production of goods and services would be included in U.S. GDP?

Accepted Answer

A)  Sally, a Canadian citizen, works on a drilling crew in North Dakota for Northland Gas Services, and Northland sells the natural gas to a utility company in Canada. 
B)  Jim grows pecans for his family in the yard of their San Antonio home. 
C)  Joe grows marijuana in his Kansas City home and sells it to his friends and neighbors. 
D)  None of the above examples of production would be included in U.S. GDP. 
A)  Sally, a Canadian citizen, works on a drilling crew in North Dakota for Northland Gas Services, and Northland sells the natural gas to a utility company in Canada. 
B)  Jim grows pecans for his family in the yard of their San Antonio home. 
C)  Joe grows marijuana in his Kansas City home and sells it to his friends and neighbors. 
D)  None of the above examples of production would be included in U.S. GDP.

Exam 10: Measuring a Nations Income

The basic tools of supply and demand are central to microeconomic analysis but are of little use to macroeconomics.

Identify which of the following are included in the government purchases component of GDP.the salary paid to a state court judge unemployment insurance benefits the payment made by the federal government for a jet fighter social security payments a county builds a jail building

Identify the largest and smallest components of GDP.

Jackie, a Canadian citizen, works only in the United States. The value of the output she produces is

Which of the following statements about GDP is correct?

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

Define gross domestic product.

Which of the following correctly lists what is included in the consumption component of GDP?

One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second bag of flour is sold for $1 to a grocery store who sells it to a consumer for $2.00. Taking these four transactions into account, what is the effect on GDP?

Which of the following is included in the calculation of GDP?

Joe and Jim purchase vegetables at a grocery store, but Jim also grows vegetables in his back yard. Regarding these two practices, which of the following statements is correct?

The consumption component of GDP includes spending on

For the economy as a whole,

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

If net exports is a negative number for a particular year, then

Changes in the GDP deflator reflect

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. This country's inflation rate from 2012 to 2013 was

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,

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

Which of the following examples of production of goods and services would be included in U.S. GDP?

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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