Question 1

"The amount of new stocks and bonds issued in a year adds to the country's GDP." Is this assertion correct or incorrect? Explain your answer.

Accepted Answer

The assertion is incorrect.Stocks and bo

Question 2

A recession runs from the

Accepted Answer

A) peak of the business cycle to its trough. 
B) peak of the business cycle to a recovery. 
C) expansion of a business cycle to its peak. 
D) trough of a business cycle to its peak. 
E) trough of a business cycle to its expansion. 
A) peak of the business cycle to its trough. 
B) peak of the business cycle to a recovery. 
C) expansion of a business cycle to its peak. 
D) trough of a business cycle to its peak. 
E) trough of a business cycle to its expansion.

Question 3

Total expenditure in the United States is equal to consumption expenditure plus investment

Accepted Answer

A) plus government expenditure on goods and services plus imports of goods and services. 
B) minus government expenditure on goods and services minus imports of goods and services. 
C) plus government expenditure on goods and services plus exports of goods and services. 
D) plus government expenditure on goods and services plus exports of goods and services minus imports of goods and services. 
E) plus government expenditure on goods and services plus exports of goods and services plus imports of goods and services. 
A) plus government expenditure on goods and services plus imports of goods and services. 
B) minus government expenditure on goods and services minus imports of goods and services. 
C) plus government expenditure on goods and services plus exports of goods and services. 
D) plus government expenditure on goods and services plus exports of goods and services minus imports of goods and services. 
E) plus government expenditure on goods and services plus exports of goods and services plus imports of goods and services.

Question 4

The circular flow shows that GDP measures
I.total income.
Ii.total expenditures.
Iii.price changes.

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) i and ii 
E) i,ii,and iii 
A) i only 
B) ii only 
C) iii only 
D) i and ii 
E) i,ii,and iii

Question 5

What is the Human Development Index?

Accepted Answer

The Human Development Index,or HDI,has b

Question 6

Babysitting services the oldest son provides his parents

Accepted Answer

A) counts as nominal GDP but not real GDP. 
B) counts as real GDP but not nominal GDP. 
C) counts as real GDP and nominal GDP. 
D) does not count as real GDP nor nominal GDP. 
E) counts in both real and nominal GDP only if the son is not paid. 
A) counts as nominal GDP but not real GDP. 
B) counts as real GDP but not nominal GDP. 
C) counts as real GDP and nominal GDP. 
D) does not count as real GDP nor nominal GDP. 
E) counts in both real and nominal GDP only if the son is not paid.

Question 7

The income approach to measuring GDP is based on summing

Accepted Answer

A) the production of each industry. 
B) wages,interest,rent,and profits. 
C) the values of final goods,intermediate goods and services,used goods,and financial assets. 
D) consumption expenditure,investment,government expenditures on goods and services,and net exports of goods and services. 
E) consumption expenditure and wages. 
A) the production of each industry. 
B) wages,interest,rent,and profits. 
C) the values of final goods,intermediate goods and services,used goods,and financial assets. 
D) consumption expenditure,investment,government expenditures on goods and services,and net exports of goods and services. 
E) consumption expenditure and wages.

Question 8

-The table above gives the production and prices for a small nation that produces only bread and soda.The base year is 2009.What is nominal GDP in 2009?

Accepted Answer

A) $410 
B) $450 
C) $900 
D) $550 
E) $460 
A) $410 
B) $450 
C) $900 
D) $550 
E) $460

Question 9

In the years after 1998,the most severe recession occurred during

Accepted Answer

A) 1998. 
B) 2000-2001. 
C) 2008-2009. 
D) 1999-2001. 
E) 2005. 
A) 1998. 
B) 2000-2001. 
C) 2008-2009. 
D) 1999-2001. 
E) 2005.

Question 10

When calculating GDP,purchases of used goods are

Accepted Answer

A) included at the original price. 
B) included by taking the original price and subtracting the (current)used price. 
C) included at the (current)used price. 
D) not included. 
E) included at the original price minus any depreciation. 
A) included at the original price. 
B) included by taking the original price and subtracting the (current)used price. 
C) included at the (current)used price. 
D) not included. 
E) included at the original price minus any depreciation.

Question 11

Which of the following would NOT be directly included in the U.S.GDP in 2010?

Accepted Answer

A) the market value of restaurant meals sold in 2010 
B) the market value of the jet fuel bought by Delta to use for its flights in 2010 
C) the value of the automobiles produced in 2010 at the Toyota plant located in Georgetown,Kentucky 
D) legal services provided to first time home buyers during 2010 
E) the purchase of a new home in Atlanta,Georgia in 2010 
A) the market value of restaurant meals sold in 2010 
B) the market value of the jet fuel bought by Delta to use for its flights in 2010 
C) the value of the automobiles produced in 2010 at the Toyota plant located in Georgetown,Kentucky 
D) legal services provided to first time home buyers during 2010 
E) the purchase of a new home in Atlanta,Georgia in 2010

Question 12

The purchase of 500 shares of Honda stock by the California State Employees' Pension fund

Accepted Answer

A) is counted as consumption expenditure. 
B) is not counted as part of GDP. 
C) is counted as investment in the GDP accounts. 
D) is counted as part of export expenditure in the GDP accounts because Honda is a foreign firm. 
E) is counted as part of import expenditure in the GDP accounts because Honda is a foreign firm. 
A) is counted as consumption expenditure. 
B) is not counted as part of GDP. 
C) is counted as investment in the GDP accounts. 
D) is counted as part of export expenditure in the GDP accounts because Honda is a foreign firm. 
E) is counted as part of import expenditure in the GDP accounts because Honda is a foreign firm.

Question 13

What is the difference between real and nominal GDP,and why do economists make this distinction?

Accepted Answer

Real GDP is a measure of the final goods

Question 14

Explain how GDP is measured according to the expenditure and income approaches.

Accepted Answer

GDP can be measured using the expenditur

Question 15

The following table reports transactions that occurred in Whoville.Nominal GDP in Whoville is ________.

Accepted Answer

A) $320 
B) $545 
C) $120 
D) $395 
E) $195 
A) $320 
B) $545 
C) $120 
D) $395 
E) $195

Question 16

Define and discuss GDP.

Accepted Answer

GDP is the market value of all final goo

Question 17

To calculate GDP using the income approach,one of the adjustments made to net domestic product at factor cost is to

Accepted Answer

A) add depreciation. 
B) add investment. 
C) subtract investment. 
D) add consumption expenditure. 
E) subtract indirect taxes less subsidies. 
A) add depreciation. 
B) add investment. 
C) subtract investment. 
D) add consumption expenditure. 
E) subtract indirect taxes less subsidies.

Question 18

-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 2013 is equal to

Accepted Answer

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

Question 19

An increase in nominal GDP could result from an increase in
I.production.
Ii.prices.
Iii.subsidies.

Accepted Answer

A) i only 
B) ii only 
C) i and ii 
D) i and iii 
E) i,ii,and iii 
A) i only 
B) ii only 
C) i and ii 
D) i and iii 
E) i,ii,and iii

Question 20

Net exports of goods and services are defined as the

Accepted Answer

A) value of the goods we sell to foreigners. 
B) income we receive from selling goods to foreigners. 
C) value of exports minus the value of imports. 
D) value of exports minus the income we receive from foreigners. 
E) value of exports plus the income we receive from foreigners. 
A) value of the goods we sell to foreigners. 
B) income we receive from selling goods to foreigners. 
C) value of exports minus the value of imports. 
D) value of exports minus the income we receive from foreigners. 
E) value of exports plus the income we receive from foreigners.

"The amount of new stocks and bonds issued in a year adds to the country's GDP." Is this assertion correct or incorrect? Explain your answer.

A recession runs from the

Total expenditure in the United States is equal to consumption expenditure plus investment

The circular flow shows that GDP measures I.total income. Ii.total expenditures. Iii.price changes.

What is the Human Development Index?

Babysitting services the oldest son provides his parents

The income approach to measuring GDP is based on summing

-The table above gives the production and prices for a small nation that produces only bread and soda.The base year is 2009.What is nominal GDP in 2009?

In the years after 1998,the most severe recession occurred during

When calculating GDP,purchases of used goods are

Which of the following would NOT be directly included in the U.S.GDP in 2010?

The purchase of 500 shares of Honda stock by the California State Employees' Pension fund

What is the difference between real and nominal GDP,and why do economists make this distinction?

Explain how GDP is measured according to the expenditure and income approaches.

The following table reports transactions that occurred in Whoville.Nominal GDP in Whoville is ________.

Define and discuss GDP.

To calculate GDP using the income approach,one of the adjustments made to net domestic product at factor cost is to

-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 2013 is equal to

An increase in nominal GDP could result from an increase in I.production. Ii.prices. Iii.subsidies.

Net exports of goods and services are defined as the

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

"The amount of new stocks and bonds issued in a year adds to the country's GDP." Is this assertion correct or incorrect? Explain your answer.

A recession runs from the

Total expenditure in the United States is equal to consumption expenditure plus investment

The circular flow shows that GDP measures I.total income. Ii.total expenditures. Iii.price changes.

What is the Human Development Index?

Babysitting services the oldest son provides his parents

The income approach to measuring GDP is based on summing

-The table above gives the production and prices for a small nation that produces only bread and soda.The base year is 2009.What is nominal GDP in 2009?

In the years after 1998,the most severe recession occurred during

When calculating GDP,purchases of used goods are

Which of the following would NOT be directly included in the U.S.GDP in 2010?

The purchase of 500 shares of Honda stock by the California State Employees' Pension fund

What is the difference between real and nominal GDP,and why do economists make this distinction?

Explain how GDP is measured according to the expenditure and income approaches.

The following table reports transactions that occurred in Whoville.Nominal GDP in Whoville is ________.

Define and discuss GDP.

To calculate GDP using the income approach,one of the adjustments made to net domestic product at factor cost is to

-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 2013 is equal to

An increase in nominal GDP could result from an increase in I.production. Ii.prices. Iii.subsidies.

Net exports of goods and services are defined as the

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