Question 1

Investment includes

Accepted Answer

A) GM's purchase of robotic machinery. 
B) student purchases of laptops. 
C) Wal-Mart's purchase of health insurance for its workers. 
D) the New York City Library's purchase of new books. 
E) wages paid to military personnel. 
A) GM's purchase of robotic machinery. 
B) student purchases of laptops. 
C) Wal-Mart's purchase of health insurance for its workers. 
D) the New York City Library's purchase of new books. 
E) wages paid to military personnel.

Question 2

-Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above.Between 2012 and 2013,which grew more rapidly,nominal GDP or real GDP?

Accepted Answer

A) Nominal GDP grew more rapidly. 
B) Real GDP grew more rapidly. 
C) Both grew at the same rate. 
D) Because real GDP and nominal GDP use different prices,it is not possible to determine which grew most rapidly. 
E) More information is needed to determine which grew more rapidly. 
A) Nominal GDP grew more rapidly. 
B) Real GDP grew more rapidly. 
C) Both grew at the same rate. 
D) Because real GDP and nominal GDP use different prices,it is not possible to determine which grew most rapidly. 
E) More information is needed to determine which grew more rapidly.

Question 3

The Great Moderation describes the period

Accepted Answer

A) of relatively steady growth in real GDP between 1991 and 2008. 
B) of relatively steady growth in real GDP after the year 2000. 
C) between 2000 and 2008 when potential GDP did not increase. 
D) between 1990 and 2005 when real GDP grew significantly more slowly than did potential GDP. 
E) of very slow growth in real GDP after 1990. 
A) of relatively steady growth in real GDP between 1991 and 2008. 
B) of relatively steady growth in real GDP after the year 2000. 
C) between 2000 and 2008 when potential GDP did not increase. 
D) between 1990 and 2005 when real GDP grew significantly more slowly than did potential GDP. 
E) of very slow growth in real GDP after 1990.

Question 4

Which of the following is NOT part of the income used in the income approach to measuring GDP?

Accepted Answer

A) wages 
B) rent 
C) interest 
D) taxes paid by persons 
E) profit 
A) wages 
B) rent 
C) interest 
D) taxes paid by persons 
E) profit

Question 5

Leisure time

Accepted Answer

A) is less valuable to us than the wage we earn for working. 
B) has steadily decreased over the years. 
C) is not valued as part of GDP. 
D) is not an economic good. 
E) is included in GDP and has become an increasingly large part of GDP. 
A) is less valuable to us than the wage we earn for working. 
B) has steadily decreased over the years. 
C) is not valued as part of GDP. 
D) is not an economic good. 
E) is included in GDP and has become an increasingly large part of GDP.

Question 6

If you sell your textbook to your friend this year,does the sale count in this year's GDP?

Accepted Answer

No,the sale would not count in this year

Question 7

-Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above.The base year is 2012.Nominal GDP in 2012 is equal to

Accepted Answer

A) $500. 
B) $625. 
C) $640. 
D) $800. 
E) $100. 
A) $500. 
B) $625. 
C) $640. 
D) $800. 
E) $100.

Question 8

Net exports of goods and services is equal to the value of

Accepted Answer

A) exports plus the value of imports. 
B) imports minus the value of exports. 
C) domestic consumption minus the value of imports. 
D) exports minus the value of imports. 
E) domestic consumption minus the value of exports. 
A) exports plus the value of imports. 
B) imports minus the value of exports. 
C) domestic consumption minus the value of imports. 
D) exports minus the value of imports. 
E) domestic consumption minus the value of exports.

Question 9

Assume a small nation has the following statistics: its consumption expenditure is $15 million,investment is $2 million,government expenditure on goods and services is $1 million,exports of goods and services to foreigners is $1 million,and imports of goods and services from foreigners is $1.5 million.Calculate this nation's GDP.

Accepted Answer

The nation's GDP equals the sum of consu

Question 10

Real GDP measures the value of goods and services produced in a given year valued using

Accepted Answer

A) base year prices. 
B) prices that prevail the same year. 
C) no prices. 
D) future prices. 
E) real rather than nominal prices. 
A) base year prices. 
B) prices that prevail the same year. 
C) no prices. 
D) future prices. 
E) real rather than nominal prices.

Question 11

Consumption expenditure includes spending

Accepted Answer

A) on intermediate goods and services by firms. 
B) on office supplies by firms. 
C) by households. 
D) by households and spending on office supplies by firms. 
E) by governments when they are buying goods and services that consumers also buy. 
A) on intermediate goods and services by firms. 
B) on office supplies by firms. 
C) by households. 
D) by households and spending on office supplies by firms. 
E) by governments when they are buying goods and services that consumers also buy.

Question 12

Economists define investment to include purchases of

Accepted Answer

A) capital goods and inventories. 
B) capital goods,household durable goods,and inventories. 
C) capital goods,such as tools,instruments,and buildings. 
D) capital goods,equity stocks,and bonds. 
E) capital goods,equity stocks,and inventories. 
A) capital goods and inventories. 
B) capital goods,household durable goods,and inventories. 
C) capital goods,such as tools,instruments,and buildings. 
D) capital goods,equity stocks,and bonds. 
E) capital goods,equity stocks,and inventories.

Question 13

The sum of all the income categories listed in the National Income and Product Accounts adds up to

Accepted Answer

A) gross domestic product. 
B) net national product. 
C) disposable income after taxes. 
D) net domestic product at factor cost. 
E) gross national product. 
A) gross domestic product. 
B) net national product. 
C) disposable income after taxes. 
D) net domestic product at factor cost. 
E) gross national product.

Question 14

Real GDP is the value of final goods and services produced in a year

Accepted Answer

A) expressed in the prices of that same year. 
B) during a recession. 
C) minus depreciation. 
D) expressed in the prices of a base year. 
E) minus the value of all the intermediate goods produced. 
A) expressed in the prices of that same year. 
B) during a recession. 
C) minus depreciation. 
D) expressed in the prices of a base year. 
E) minus the value of all the intermediate goods produced.

Question 15

-Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above.The base year is 2012.Real GDP in 2012 is equal to

Accepted Answer

A) $800. 
B) $640. 
C) $625. 
D) $500. 
E) $200. 
A) $800. 
B) $640. 
C) $625. 
D) $500. 
E) $200.

Question 16

The category of "rent" in the income approach to GDP

Accepted Answer

A) includes the money paid to rent apartments only. 
B) includes the money paid to rent machinery only. 
C) includes the money paid to use land and other rented inputs. 
D) does not have any connection to owner-occupied housing. 
E) includes only the imputed rent for owner-occupied housing. 
A) includes the money paid to rent apartments only. 
B) includes the money paid to rent machinery only. 
C) includes the money paid to use land and other rented inputs. 
D) does not have any connection to owner-occupied housing. 
E) includes only the imputed rent for owner-occupied housing.

Question 17

In 2009 in the United States,consumption expenditure was $9,996 billion,investment was $1,559 billion,government expenditures on goods and services were $2,927 billion,and total exports were $1,492 billion.GDP equaled

Accepted Answer

A) $12,641 billion. 
B) $10,120 billion. 
C) $11,488 billion. 
D) $14,415 billion. 
E) some amount,but there is not enough information given to calculate GDP. 
A) $12,641 billion. 
B) $10,120 billion. 
C) $11,488 billion. 
D) $14,415 billion. 
E) some amount,but there is not enough information given to calculate GDP.

Question 18

Investment is the expenditure done by

Accepted Answer

A) savers. 
B) firms. 
C) governments. 
D) the rest of the world. 
E) Both answers A and B are correct. 
A) savers. 
B) firms. 
C) governments. 
D) the rest of the world. 
E) Both answers A and B are correct.

Question 19

A new technology is discovered which results in all new cars producing 50 percent less pollution.Which of the following is true?

Accepted Answer

A) GDP will increase to reflect the fact that the air we breathe is cleaner. 
B) GDP will increase if there is an increase in the production cost and price of the car. 
C) GDP increases anytime pollution is reduced. 
D) GDP will decrease. 
E) Real GDP increases because the air is cleaner,but nominal GDP does not change since air is free. 
A) GDP will increase to reflect the fact that the air we breathe is cleaner. 
B) GDP will increase if there is an increase in the production cost and price of the car. 
C) GDP increases anytime pollution is reduced. 
D) GDP will decrease. 
E) Real GDP increases because the air is cleaner,but nominal GDP does not change since air is free.

Question 20

Can nominal GDP ever be less than real GDP?

Accepted Answer

Yes,nominal GDP can be less than real GD

Investment includes

-Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above.Between 2012 and 2013,which grew more rapidly,nominal GDP or real GDP?

The Great Moderation describes the period

Which of the following is NOT part of the income used in the income approach to measuring GDP?

Leisure time

If you sell your textbook to your friend this year,does the sale count in this year's GDP?

-Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above.The base year is 2012.Nominal GDP in 2012 is equal to

Net exports of goods and services is equal to the value of

Real GDP measures the value of goods and services produced in a given year valued using

Consumption expenditure includes spending

Economists define investment to include purchases of

The sum of all the income categories listed in the National Income and Product Accounts adds up to

Real GDP is the value of final goods and services produced in a year

-Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above.The base year is 2012.Real GDP in 2012 is equal to

The category of "rent" in the income approach to GDP

In 2009 in the United States,consumption expenditure was $9,996 billion,investment was $1,559 billion,government expenditures on goods and services were $2,927 billion,and total exports were $1,492 billion.GDP equaled

Investment is the expenditure done by

A new technology is discovered which results in all new cars producing 50 percent less pollution.Which of the following is true?

Can nominal GDP ever be less than real GDP?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 14: Gdp: a Measure of Total Production and Income

Investment includes

-Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above.Between 2012 and 2013,which grew more rapidly,nominal GDP or real GDP?

The Great Moderation describes the period

Which of the following is NOT part of the income used in the income approach to measuring GDP?

Leisure time

If you sell your textbook to your friend this year,does the sale count in this year's GDP?

-Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above.The base year is 2012.Nominal GDP in 2012 is equal to

Net exports of goods and services is equal to the value of

Real GDP measures the value of goods and services produced in a given year valued using

Consumption expenditure includes spending

Economists define investment to include purchases of

The sum of all the income categories listed in the National Income and Product Accounts adds up to

Real GDP is the value of final goods and services produced in a year

-Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above.The base year is 2012.Real GDP in 2012 is equal to

The category of "rent" in the income approach to GDP

In 2009 in the United States,consumption expenditure was $9,996 billion,investment was $1,559 billion,government expenditures on goods and services were $2,927 billion,and total exports were $1,492 billion.GDP equaled

Investment is the expenditure done by

A new technology is discovered which results in all new cars producing 50 percent less pollution.Which of the following is true?

Can nominal GDP ever be less than real GDP?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters