Question 1

Sam, an American citizen, prepares meals for his family at home. Ellen, a Canadian citizen, commutes to the U.S. to help prepare meals at a restaurant in Idaho. Whose value of services preparing meals is included in U.S. GDP?

Accepted Answer

A)  Sam's and Ellen's. 
B)  Sam's but not Ellen's. 
C)  Ellen's but not Sam's. 
D)  Neither Sam's nor Ellen's.

Question 2

In the economy of Talikastan in 2015, consumption was $3000, exports were $400, GDP was $5000, imports were $500, and investment was $1400. What were Talikastan's government purchases in 2015?

Accepted Answer

A)  $60 
B)  $500 
C)  $700 
D)  $1500

Question 3

In 2009, the level of U.S. real GDP was close to four times its 1965 level.

Accepted Answer

A) True 
 B)False

Question 4

The government's purchases of goods but not its purchases of services are included in GDP.

Accepted Answer

A) True 
 B)False

Question 5

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

Accepted Answer

A) True 
 B)False

Question 6

The residents of country A earn $500 million of income from abroad. Residents of other countries earn $200 million in country A. These earnings are accounted for in country A's

Accepted Answer

A)  GNP which is larger than GDP in country A. 
B)  GNP which is smaller than GDP in country A. 
C)  GDP which is larger than GNP in country A. 
D)  GDP which is smaller than GNP in country A.

Question 7

If real GDP and the GDP deflator both rise, then it must be that nominal GDP rose.

Accepted Answer

A) True 
 B)False

Question 8

In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were $1700, imports were $400, and investment was $1800. What was Talikastan's consumption in 2015?

Accepted Answer

A)  $2000 
B)  $2800 
C)  $3000 
D)  $3800

Question 9

In the economy of Talikastan in 2015, consumption was $600, exports were $300, GDP was $1300, government purchases were $250, and investment was $300. What were Talikastan's imports in 2015?

Accepted Answer

A)  -$150 
B)  -$200 
C)  $200 
D)  $150

Question 10

New home construction is included in the consumption component of GDP.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following always uses prices and quantities from the same period?

Accepted Answer

A)  both nominal and real GDP. 
B)  nominal GDP but not real GDP. 
C)  real GDP but not nominal GDP. 
D)  neither nominal or real GDP.

Question 12

Which of the following statements regarding GDP is correct?

Accepted Answer

A)  GDP includes factory production, but not any harm that may be inflicted on the environment. 
B)  GDP accounts for all activities taking place outside markets. 
C)  GDP provides detailed information about the distribution of income. 
D)  GDP is a good measure of economic well-being for all purposes.

Question 13

Table 23-2
The table below contains data for country A for the year 2010.
 
-Refer to Table 23-2. What were country A's exports in 2010?

Accepted Answer

A)  -$32 
B)  $32 
C)  $88 
D)  $120

Question 14

In 2012, U.S. GDP was almost

Accepted Answer

A)  $16 trillion. 
B)  $12 trillion. 
C)  $15 trillion. 
D)  $14 trillion.

Question 15

Foreign countries buy $1.2 trillion of U.S. goods and services. U.S. residents purchase $1.8 trillion of foreign goods and services. What is net exports?

Accepted Answer

The answer of Foreign countries buy $1.2 trillion of U.S....

Question 16

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. In 2010, this country's real GDP was

Accepted Answer

A)  $620. 
B)  $260. 
C)  $400. 
D)  $630.

Question 17

Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage.

Accepted Answer

The answer of Explain the pattern seen between GDP per...

Question 18

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

Accepted Answer

A)  purchases of staplers, paper clips, and pens by U.S. business firms 
B)  purchases of natural gas by U.S. households 
C)  purchases of newly constructed homes by U.S. households 
D)  All of the above are correct.

Question 19

Real GDP is the yearly production of final goods and services valued at

Accepted Answer

A)  current prices. 
B)  constant prices. 
C)  expected future prices. 
D)  the ratio of current prices to constant prices.

Question 20

Table 23-10
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2015 .
 
-Refer to Table 23-10. What was this country's GDP deflator in 2017?

Accepted Answer

A)  123.4 
B)  116.7 
C)  120.0 
D)  None of the above is correct.

Exam 10: Measuring a Nations Income

Sam, an American citizen, prepares meals for his family at home. Ellen, a Canadian citizen, commutes to the U.S. to help prepare meals at a restaurant in Idaho. Whose value of services preparing meals is included in U.S. GDP?

In the economy of Talikastan in 2015, consumption was $3000, exports were $400, GDP was $5000, imports were $500, and investment was $1400. What were Talikastan's government purchases in 2015?

In 2009, the level of U.S. real GDP was close to four times its 1965 level.

The government's purchases of goods but not its purchases of services are included in GDP.

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

The residents of country A earn $500 million of income from abroad. Residents of other countries earn $200 million in country A. These earnings are accounted for in country A's

If real GDP and the GDP deflator both rise, then it must be that nominal GDP rose.

In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were $1700, imports were $400, and investment was $1800. What was Talikastan's consumption in 2015?

In the economy of Talikastan in 2015, consumption was $600, exports were $300, GDP was $1300, government purchases were $250, and investment was $300. What were Talikastan's imports in 2015?

New home construction is included in the consumption component of GDP.

Which of the following always uses prices and quantities from the same period?

Which of the following statements regarding GDP is correct?

Table 23-2 The table below contains data for country A for the year 2010. -Refer to Table 23-2. What were country A's exports in 2010?

In 2012, U.S. GDP was almost

Foreign countries buy $1.2 trillion of U.S. goods and services. U.S. residents purchase $1.8 trillion of foreign goods and services. What is net exports?

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. In 2010, this country's real GDP was

Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage.

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

Real GDP is the yearly production of final goods and services valued at

Table 23-10 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2015 . -Refer to Table 23-10. What was this country's GDP deflator in 2017?