Question 1

What is a business cycle? What are its phases and turning points?

Accepted Answer

A business cycle is the periodic but irr

Question 2

Which of the following is a final good or service?

Accepted Answer

A) tires purchased by Ford for use on one of their SUVs 
B) the new economics textbook you are using 
C) the hair gels used by a hair stylist at the local hair salon 
D) the butter used by a chef to make butter cream frosting 
E) the taco shells purchased by Taco Bell for use in their tacos 
A) tires purchased by Ford for use on one of their SUVs 
B) the new economics textbook you are using 
C) the hair gels used by a hair stylist at the local hair salon 
D) the butter used by a chef to make butter cream frosting 
E) the taco shells purchased by Taco Bell for use in their tacos

Question 3

When Jamie purchases a classic 1968 Plymouth Cuda convertible from Shane,GDP

Accepted Answer

A) does not change,because the car was not produced this year. 
B) increases,because the car is a durable good and increases consumption. 
C) increases,because the car is a durable good and increases investment. 
D) does not change,because Jamie did not buy the car from a dealership. 
E) increases,because this expenditure decreases saving. 
A) does not change,because the car was not produced this year. 
B) increases,because the car is a durable good and increases consumption. 
C) increases,because the car is a durable good and increases investment. 
D) does not change,because Jamie did not buy the car from a dealership. 
E) increases,because this expenditure decreases saving.

Question 4

A recession conventionally is defined as a decrease in

Accepted Answer

A) real GDP that lasts for at least six months. 
B) the growth rate of real GDP that lasts for at least six months. 
C) potential GDP that lasts for at least six months. 
D) real GDP that lasts for at least three months. 
E) the inflation rate that lasts for at least six months. 
A) real GDP that lasts for at least six months. 
B) the growth rate of real GDP that lasts for at least six months. 
C) potential GDP that lasts for at least six months. 
D) real GDP that lasts for at least three months. 
E) the inflation rate that lasts for at least six months.

Question 5

When the value of nominal GDP increases from one year to the next,we know that one or two things must have happened during that time:

Accepted Answer

A) The nation produced fewer goods and services and/or prices fell for goods and services. 
B) Consumption expenditure increased and/or corporate profits increased. 
C) Investment increased and/or payments to employees increased. 
D) The nation produced more goods and services and/or prices rose for goods and services. 
E) the value of real GDP must have increased and/or the price level must have decreased. 
A) The nation produced fewer goods and services and/or prices fell for goods and services. 
B) Consumption expenditure increased and/or corporate profits increased. 
C) Investment increased and/or payments to employees increased. 
D) The nation produced more goods and services and/or prices rose for goods and services. 
E) the value of real GDP must have increased and/or the price level must have decreased.

Question 6

In a small country,using prices of 2012,GDP in 2012 was $100 and GDP in 2013 was $110.Using prices of 2013,GDP in 2012 was $200 and GDP in 2013 was $210.The country's BEA will calculate ________ percent as the growth in real GDP between those years.

Accepted Answer

A) 10 
B) 5 
C) 15 
D) 7.5 
E) None of the above answers is correct. 
A) 10 
B) 5 
C) 15 
D) 7.5 
E) None of the above answers is correct.

Question 7

Which of the following would be included in Germany's GNP?

Accepted Answer

A) the production of BMWs (made by a German-based company)in South Carolina 
B) the production of Michelin tires made in Germany by a French company and then sold directly to French consumers 
C) the production of BMWs in Germany 
D) the production of Michelin tires made in France by a French company and then sold to BMW in Germany for use in BMW cars 
E) Answers A and C are correct. 
A) the production of BMWs (made by a German-based company)in South Carolina 
B) the production of Michelin tires made in Germany by a French company and then sold directly to French consumers 
C) the production of BMWs in Germany 
D) the production of Michelin tires made in France by a French company and then sold to BMW in Germany for use in BMW cars 
E) Answers A and C are correct.

Question 8

Last year in Candamica,consumption expenditure was $20 billion,interest,rent,and profit were $2.5 billion,government expenditure on goods and services was $7 billion,net exports of goods and services was $5 billion,and investment was $2 billion.Hence total expenditure was

Accepted Answer

A) $24.5 billion. 
B) $34.5 billion. 
C) $36.5 billion. 
D) $34 billion. 
E) undetermined without information about imports. 
A) $24.5 billion. 
B) $34.5 billion. 
C) $36.5 billion. 
D) $34 billion. 
E) undetermined without information about imports.

Question 9

Which of the following is NOT part of the business cycle?

Accepted Answer

A) recession 
B) peak 
C) inflation 
D) trough 
E) expansion 
A) recession 
B) peak 
C) inflation 
D) trough 
E) expansion

Question 10

The underground economy

Accepted Answer

A) is measured by government officials through tax returns. 
B) is difficult to describe but easy to measure. 
C) includes production that uses illegal workers who are paid less than minimum wage. 
D) includes mining production. 
E) is estimated by the government and the estimate is part of official GDP. 
A) is measured by government officials through tax returns. 
B) is difficult to describe but easy to measure. 
C) includes production that uses illegal workers who are paid less than minimum wage. 
D) includes mining production. 
E) is estimated by the government and the estimate is part of official GDP.

Question 11

The income approach measures GDP by summing

Accepted Answer

A) C + I + G + NX. 
B) the total production of all final goods and services produced in a year within a country's borders. 
C) the wealth of households,business and government. 
D) the incomes paid households for the resources they own. 
E) Both answers A and D are correct. 
A) C + I + G + NX. 
B) the total production of all final goods and services produced in a year within a country's borders. 
C) the wealth of households,business and government. 
D) the incomes paid households for the resources they own. 
E) Both answers A and D are correct.

Question 12

Net exports of goods and services increase when

Accepted Answer

A) exports of goods and services decrease and imports of goods and services do not change. 
B) consumption expenditure increases. 
C) exports of goods and services increase and imports of goods and services do not change. 
D) consumption expenditure decreases. 
E) imports of goods and services increase and exports of goods and services do not change. 
A) exports of goods and services decrease and imports of goods and services do not change. 
B) consumption expenditure increases. 
C) exports of goods and services increase and imports of goods and services do not change. 
D) consumption expenditure decreases. 
E) imports of goods and services increase and exports of goods and services do not change.

Question 13

If you make dinner for yourself,

Accepted Answer

A) the market value of your dinner is added to GDP. 
B) your service in preparing the meal is valued at a cook's wage and added to GDP. 
C) none of what you bought to prepare for dinner is included in GDP. 
D) only the market value of ingredients that you purchased this year is added to GDP. 
E) the difference between the cost of the ingredients that you purchased this year and the market value of the dinner is added to GDP. 
A) the market value of your dinner is added to GDP. 
B) your service in preparing the meal is valued at a cook's wage and added to GDP. 
C) none of what you bought to prepare for dinner is included in GDP. 
D) only the market value of ingredients that you purchased this year is added to GDP. 
E) the difference between the cost of the ingredients that you purchased this year and the market value of the dinner is added to GDP.

Question 14

If you buy a five-year-old TV from a friend,the amount you paid for the TV is

Accepted Answer

A) always added to consumption expenditures but not investment. 
B) always added to investment but not consumption. 
C) not included in this year's GDP. 
D) added to investment if the TV is expected to last more than 5 additional years and added to consumption if the TV is expected to last less than 5 additional years. 
E) included in this year's GDP only if the TV set was manufactured in the United States. 
A) always added to consumption expenditures but not investment. 
B) always added to investment but not consumption. 
C) not included in this year's GDP. 
D) added to investment if the TV is expected to last more than 5 additional years and added to consumption if the TV is expected to last less than 5 additional years. 
E) included in this year's GDP only if the TV set was manufactured in the United States.

Question 15

Are stocks and bonds considered part of the investment component of GDP?

Accepted Answer

No,stocks and bonds are not part of the

Question 16

The NBER describes a recession as

Accepted Answer

A) "a period of significant decline in total output,income,employment,and trade,usually lasting from six months to a year." 
B) "a decrease in real GDP for two successive quarters." 
C) "a decrease in potential GDP for at least six months." 
D) "a decrease in the standard of living for at least one year." 
E) "a one year period with increases in the unemployment rate." 
A) "a period of significant decline in total output,income,employment,and trade,usually lasting from six months to a year." 
B) "a decrease in real GDP for two successive quarters." 
C) "a decrease in potential GDP for at least six months." 
D) "a decrease in the standard of living for at least one year." 
E) "a one year period with increases in the unemployment rate."

Question 17

The business cycle describes

Accepted Answer

A) the change in potential GDP over time. 
B) the change in the standard of living across countries. 
C) the behavior of real GDP over time. 
D) the behavior of nominal GDP over time. 
E) the behavior of GNP over time. 
A) the change in potential GDP over time. 
B) the change in the standard of living across countries. 
C) the behavior of real GDP over time. 
D) the behavior of nominal GDP over time. 
E) the behavior of GNP over time.

Question 18

The base year is 2012.A country only produces Blu-ray players.The price of a Blu-ray player in 2012 was $100.The price of a Blu-ray player was $90 in 2013.The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units.Real GDP in 2012 equals

Accepted Answer

A) $900,000. 
B) $945,000. 
C) $1,000,000. 
D) $1,050,000. 
E) an amount that cannot be determined without information about real GDP in 2007. 
A) $900,000. 
B) $945,000. 
C) $1,000,000. 
D) $1,050,000. 
E) an amount that cannot be determined without information about real GDP in 2007.

Question 19

GDP is best defined as the ________ in a given time period.

Accepted Answer

A) number of goods and services produced within a country 
B) number of final goods and services produced within a country 
C) market value of the final goods and services produced within a country 
D) market value of the final goods and services consumed by a nation's citizens 
E) market value of all the goods and services produced within a country 
A) number of goods and services produced within a country 
B) number of final goods and services produced within a country 
C) market value of the final goods and services produced within a country 
D) market value of the final goods and services consumed by a nation's citizens 
E) market value of all the goods and services produced within a country

Question 20

The sum of the components of incomes is called

Accepted Answer

A) net domestic product at market prices. 
B) gross domestic product at market prices. 
C) gross domestic product at factor cost. 
D) net domestic product at factor cost. 
E) GNP. 
A) net domestic product at market prices. 
B) gross domestic product at market prices. 
C) gross domestic product at factor cost. 
D) net domestic product at factor cost. 
E) GNP.

What is a business cycle? What are its phases and turning points?

Which of the following is a final good or service?

When Jamie purchases a classic 1968 Plymouth Cuda convertible from Shane,GDP

A recession conventionally is defined as a decrease in

When the value of nominal GDP increases from one year to the next,we know that one or two things must have happened during that time:

In a small country,using prices of 2012,GDP in 2012 was $100 and GDP in 2013 was $110.Using prices of 2013,GDP in 2012 was $200 and GDP in 2013 was $210.The country's BEA will calculate ________ percent as the growth in real GDP between those years.

Which of the following would be included in Germany's GNP?

Last year in Candamica,consumption expenditure was $20 billion,interest,rent,and profit were $2.5 billion,government expenditure on goods and services was $7 billion,net exports of goods and services was $5 billion,and investment was $2 billion.Hence total expenditure was

Which of the following is NOT part of the business cycle?

The underground economy

The income approach measures GDP by summing

Net exports of goods and services increase when

If you make dinner for yourself,

If you buy a five-year-old TV from a friend,the amount you paid for the TV is

Are stocks and bonds considered part of the investment component of GDP?

The NBER describes a recession as

The business cycle describes

The base year is 2012.A country only produces Blu-ray players.The price of a Blu-ray player in 2012 was $100.The price of a Blu-ray player was $90 in 2013.The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units.Real GDP in 2012 equals

GDP is best defined as the ________ in a given time period.

The sum of the components of incomes is called

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

What is a business cycle? What are its phases and turning points?

Which of the following is a final good or service?

When Jamie purchases a classic 1968 Plymouth Cuda convertible from Shane,GDP

A recession conventionally is defined as a decrease in

When the value of nominal GDP increases from one year to the next,we know that one or two things must have happened during that time:

In a small country,using prices of 2012,GDP in 2012 was $100 and GDP in 2013 was $110.Using prices of 2013,GDP in 2012 was $200 and GDP in 2013 was $210.The country's BEA will calculate ________ percent as the growth in real GDP between those years.

Which of the following would be included in Germany's GNP?

Last year in Candamica,consumption expenditure was $20 billion,interest,rent,and profit were $2.5 billion,government expenditure on goods and services was $7 billion,net exports of goods and services was $5 billion,and investment was $2 billion.Hence total expenditure was

Which of the following is NOT part of the business cycle?

The underground economy

The income approach measures GDP by summing

Net exports of goods and services increase when

If you make dinner for yourself,

If you buy a five-year-old TV from a friend,the amount you paid for the TV is

Are stocks and bonds considered part of the investment component of GDP?

The NBER describes a recession as

The business cycle describes

The base year is 2012.A country only produces Blu-ray players.The price of a Blu-ray player in 2012 was $100.The price of a Blu-ray player was $90 in 2013.The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units.Real GDP in 2012 equals

GDP is best defined as the ________ in a given time period.

The sum of the components of incomes is called

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