Question 1

How does U.S.gross domestic product (GDP) differ from U.S.gross national product (GNP) ?

Accepted Answer

A)   GNP = GDP - losses from depreciation
B)   GNP = GDP + income earned by U.S.citizens abroad - income that foreign citizens earned in the U.S.
C)   GNP = GDP + transfer payments to households + - indirect sales taxes
D)   GNP = GDP - depreciation - retained earningsE) None of the above
F) B) and C)

Question 2

In the national income accounts,depreciation is called

Accepted Answer

A)   "consumption of fixed capital."
B)   "negative investment."
C)   "diminished value."
D)   "loss due to wear."E) A) and B)
F) A) and C)

Question 3

In a simple circular-flow diagram,households buy goods and services with the income they get from

Accepted Answer

A)   wages.
B)   rents.
C)   profits.
D)   All of the above are correct.E) All of the above
F) B) and D)

Question 4

Last quarter Newton computers produced 3,000 computers.Two thousand of these computers were sold to households,750 were sold to businesses,and 250 were added to Newton's inventory.How many of the computers should have been included in last quarter's GDP?

Accepted Answer

The answer of Last quarter Newton computers produced 3,000 computers.Two...

Question 5

Which of the following transactions would be included in GDP for 2010?

Accepted Answer

A)   In February 2010,Amanda sells a 1996 Honda Accord to Isabella.
B)   In February 2010,Amanda buys a ticket to visit a zoo in Florida.She visits the zoo in April 2011.
C)   In December 2010,Isabella eats onions that she harvested from her backyard garden in October 2010.
D)   All of the above are correct.E) B) and C)
F) B) and D)

Question 6

If total spending rises from one year to the next,then the economy must be producing a larger output of goods and services.

Accepted Answer

A) True 
 B)False

Question 7

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 8

In the economy of Ukzten in 2010,consumption was $6000,exports were $1000,GDP was $10,000,government purchases were $2000,and imports were $600.What was Ukzten's investment in 2010?

Accepted Answer

A)   $1400
B)   $1600
C)   $2400
D)   $3600E) None of the above
F) B) and C)

Question 9

A form of government spending that is not made in exchange for a currently produced good or service is called

Accepted Answer

A)   a transfer payment.
B)   consumption.
C)   investment.
D)   None of the above is correct.E) A) and B)
F) A) and C)

Question 10

GDP is a good measure of economic well-being for all purposes.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   Samantha,a Canadian citizen,grows sweet corn in Minnesota and sells it to a grocery store in Canada.
B)   Ian,an American citizen,grows peaches for his family in the back yard of their Atlanta home.
C)   Leo,an American citizen,grows marijuana in his Seattle home and sells it to his friends and neighbors.
D)   None of the above examples of production would be included in U.S.GDP.E) B) and C)
F) All of the above

Question 12

If in some year nominal GDP was $28 trillion and real GDP was $32 trillion,what was the GDP deflator ?

Accepted Answer

A)   87.5
B)   114.3
C)   400
D)   896E) All of the above
F) A) and B)

Question 13

Table 10-4
The table below reports nominal and real GDP for the U.S.from 1929 to 1932.
 
-Refer to Table 10-3.What is the GDP deflator and the inflation rate for 1932?

Accepted Answer

A)   8.09,-11.7
B)   8.09.16,-13.3
C)   1236.46,11.7
D)   1236.46,13.3E) B) and C)
F) A) and D)

Question 14

Which of the following is not included in U.S.GDP?

Accepted Answer

A)   additions of newly produced output to inventory
B)   production of U.S citizens working in foreign countries.
C)   the estimated rental value of owner-occupied housing
D)   the value of food purchased from a grocery store to make meals at home without payE) B) and D)
F) B) and C)

Question 15

Table 10-1
The table below contains data for Bahkan for the year 2010.
 
-Refer to Table 10-1.The market value of all final goods and services produced within Bahkan in 2010 is

Accepted Answer

A)   $95.
B)   $100.
C)   $110.
D)   $120.E) C) and D)
F) B) and C)

Question 16

We would expect a macroeconomist,as opposed to a microeconomist,to be particularly interested in

Accepted Answer

A)   explaining how economic changes affect prices of particular goods.
B)   devising policies to deal with market failures such as externalities and market power.
C)   devising policies to promote low inflation.
D)   identifying those markets that are competitive and those that are not competitive.E) A) and B)
F) A) and C)

Question 17

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

Accepted Answer

A) True 
 B)False

Question 18

In the economy of Ukzten in 2010,exports were $200,GDP was $2000,government purchases were $300,imports were $130,and investment was $400.What was Ukzten's consumption in 2010?

Accepted Answer

A)   $970
B)   $1230
C)   $1370
D)   $1630E) C) and D)
F) B) and D)

Question 19

A country reported nominal GDP of $100 billion in 2010 and $75 billion in 2009.It also reported a GDP deflator of 125 in 2010 and 120 in 2009.Between 2009 and 2010,

Accepted Answer

A)   real output and the price level both rose.
B)   real output rose and the price level fell.
C)   real output fell and the price level rose.
D)   real output and the price level both fell.E) None of the above
F) A) and C)

Question 20

If you buy a burger and fries at your favorite fast food restaurant,

Accepted Answer

A)   then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant.
B)   then GDP will be higher,but consumption spending will be unchanged.
C)   then GDP will be unchanged,but consumption spending will be higher.
D)   then both GDP and consumption spending will be higher.E) C) and D)
F) None of the above

Exam 23: Measuring a Nations Income

Which of the following is not included in U.S.GDP?

Correct AnswerverifiedShow Answer

Which of the following transactions would be included in GDP for 2010?

Correct AnswerverifiedShow Answer

We would expect a macroeconomist,as opposed to a microeconomist,to be particularly interested in

Correct AnswerverifiedShow Answer

GDP is a good measure of economic well-being for all purposes.

Correct AnswerverifiedShow Answer

In the economy of Ukzten in 2010,exports were $200,GDP was $2000,government purchases were $300,imports were $130,and investment was $400.What was Ukzten's consumption in 2010?

Correct AnswerverifiedShow Answer

How does U.S.gross domestic product (GDP) differ from U.S.gross national product (GNP) ?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Last quarter Newton computers produced 3,000 computers.Two thousand of these computers were sold to households,750 were sold to businesses,and 250 were added to Newton's inventory.How many of the computers should have been included in last quarter's GDP?

Correct AnswerverifiedShow Answer

If total spending rises from one year to the next,then the economy must be producing a larger output of goods and services.

Correct AnswerverifiedShow Answer

In a simple circular-flow diagram,households buy goods and services with the income they get from

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

Correct AnswerverifiedShow Answer

Table 10-1 The table below contains data for Bahkan for the year 2010. -Refer to Table 10-1.The market value of all final goods and services produced within Bahkan in 2010 is

Correct AnswerverifiedShow Answer

A form of government spending that is not made in exchange for a currently produced good or service is called

Correct AnswerverifiedShow Answer

Table 10-4 The table below reports nominal and real GDP for the U.S.from 1929 to 1932. -Refer to Table 10-3.What is the GDP deflator and the inflation rate for 1932?

Correct AnswerverifiedShow Answer

If you buy a burger and fries at your favorite fast food restaurant,

Correct AnswerverifiedShow Answer

In the national income accounts,depreciation is called

Correct AnswerverifiedShow Answer

In the economy of Ukzten in 2010,consumption was $6000,exports were $1000,GDP was $10,000,government purchases were $2000,and imports were $600.What was Ukzten's investment in 2010?

Correct AnswerverifiedShow Answer

A country reported nominal GDP of $100 billion in 2010 and $75 billion in 2009.It also reported a GDP deflator of 125 in 2010 and 120 in 2009.Between 2009 and 2010,

Correct AnswerverifiedShow Answer

If in some year nominal GDP was $28 trillion and real GDP was $32 trillion,what was the GDP deflator ?

Correct AnswerverifiedShow Answer

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