Question 1

The difference between nominal gross domestic product (GDP) and real GDP is

Accepted Answer

A)   real output growth.
B)   the price level.
C)   nominal output growth.
D)   long-run trend GDP.
E)   average output growth.

Question 2

To determine a value for gross domestic product (GDP) ,you would add up the

Accepted Answer

A)   quantities of the final goods and services produced.
B)   dollar value of the final goods and services produced.
C)   dollar value of the final goods and services produced minus the dollar value of the intermediate goods and services produced.
D)   dollar value of all goods and services produced.
E)   quantities of all goods and services produced.

Question 3

The gross domestic product (GDP) deflator is a measure of

Accepted Answer

A)   price level.
B)   the growth rate of nominal GDP.
C)   the growth rate of real GDP.
D)   the growth rate of long-run trend GDP.
E)   how much the economy contracts during a recession.

Question 4

Consumption is approximately ________ of gross domestic product (GDP) .

Accepted Answer

A)   50 percent
B)   90 percent
C)   70 percent
D)   80 percent
E)   40 percent

Question 5

Company X sells paper to company Y for $100,000.Company Y uses the paper to make textbooks,selling them to consumers for $500,000.The total contribution to gross domestic product (GDP) is

Accepted Answer

A)   $500,000.
B)   $400,000.
C)   $600,000.
D)   $550,000.
E)   $450,000.

Question 6

"'One U.S.dollar is worth eighteen Mexican pesos.' That statement is part of microeconomics,because we are talking about the cost in pesos of a single good,namely a dollar." Why is this reasoning INCORRECT?

Accepted Answer

A)   An exchange of dollars for pesos is,implicitly,an exchange across international borders.Any such exchange is by definition macroeconomic.
B)   What makes the statement about dollars and pesos microeconomic is the fact that individual consumers can perform currency exchange transactions.
C)   Mexico and the United States,together with Canada,form a single trade zone,within which exchange rates between currencies are not micro- (or macro-) economically significant.
D)   A dollar is not a "single good" in the required sense.It is a medium by which goods-all goods-are exchanged,and so changes in exchange rates between the dollar and other currencies affect the prices of all goods.
E)   Microeconomics is about incomes,outputs,employment,and prices.Since an exchange rate does not fall under any of those topics,it is not part of microeconomics.

Question 7

Describe three different uses of gross domestic product (GDP),or give three different reasons to explain why it might be useful to calculate GDP.

Accepted Answer

Using the GDP,we can calculate GDP per c...

Question 8

Real gross domestic product (GDP) can be calculated as

Accepted Answer

A)   (nominal GDP) * (the GDP deflator) * 100.
B)   (nominal GDP) / (the GDP deflator) * 100.
C)   (nominal GDP) - (the GDP deflator) * 100.
D)   (the GDP deflator) / (nominal GDP) *100.
E)   (nominal GDP) * (the long-run trend growth rate of GDP) * 100.

Question 9

Consider the following data to answer the following questions: 
-Although countries C and D have the same level of gross domestic product (GDP) ,country C has a level of per capita GDP that is ________ times that of country D.

Accepted Answer

A)   two
B)   three
C)   four
D)   five
E)   ten

Question 10

Economists measure the total output of an economy in order to

Accepted Answer

A)   estimate the economy's consumption of resources.
B)   measure the overall level of prices.
C)   know how to adjust gross domestic product (GDP) for inflation.
D)   prevent the appearance of business cycles.
E)   gauge the economy's overall health.

Question 11

The expansion phase of a business cycle is best described as the time

Accepted Answer

A)   elapsed from a trough to a peak.
B)   elapsed from a peak to a trough.
C)   elapsed from a peak to a peak.
D)   elapsed from a trough to a trough.
E)   spent producing above the long-run trend of GDP.

Question 12

Goods that firms repackage with other goods for sale at a later stage are

Accepted Answer

A)   inventory.
B)   final goods.
C)   intermediate goods.
D)   used goods.
E)   value-added goods.

Question 13

Consider the following data to answer the following questions: 
-Which country has the lowest average living standard?

Accepted Answer

A)   A
B)   B
C)   C
D)   D
E)   E

Question 14

Use an equation to explain how the growth of nominal gross domestic product (GDP),the growth of real GDP,and the change in price level are related.Give an example.

Accepted Answer

The growth of nominal GDP is approximate...

Exam 19: Introduction to Macroeconomics and Gross Domestic Product

Real gross domestic product (GDP) can be calculated as

Correct Answer
verified

To determine a value for gross domestic product (GDP) ,you would add up the

Correct Answer
verified

Goods that firms repackage with other goods for sale at a later stage are

Correct Answer
verified

Consider the following data to answer the following questions: -Although countries C and D have the same level of gross domestic product (GDP) ,country C has a level of per capita GDP that is ________ times that of country D.

Correct Answer
verified

The gross domestic product (GDP) deflator is a measure of

Correct Answer
verified

"'One U.S.dollar is worth eighteen Mexican pesos.' That statement is part of microeconomics,because we are talking about the cost in pesos of a single good,namely a dollar." Why is this reasoning INCORRECT?

Correct Answer
verified

Economists measure the total output of an economy in order to

Correct Answer
verified

The difference between nominal gross domestic product (GDP) and real GDP is

Correct Answer
verified

Use an equation to explain how the growth of nominal gross domestic product (GDP),the growth of real GDP,and the change in price level are related.Give an example.

Correct Answer
verified
The growth of nominal GDP is approximate...
View Answer

Consumption is approximately ________ of gross domestic product (GDP) .

Correct Answer
verified

Company X sells paper to company Y for $100,000.Company Y uses the paper to make textbooks,selling them to consumers for $500,000.The total contribution to gross domestic product (GDP) is

Correct Answer
verified

Describe three different uses of gross domestic product (GDP),or give three different reasons to explain why it might be useful to calculate GDP.

Correct Answer
verified
Using the GDP,we can calculate GDP per c...
View Answer

The expansion phase of a business cycle is best described as the time

Correct Answer
verified

Consider the following data to answer the following questions: -Which country has the lowest average living standard?

Correct Answer
verified

Exam 19: Introduction to Macroeconomics and Gross Domestic Product

Real gross domestic product (GDP) can be calculated as

Correct AnswerverifiedShow Answer

To determine a value for gross domestic product (GDP) ,you would add up the

Correct AnswerverifiedShow Answer

Goods that firms repackage with other goods for sale at a later stage are

Correct AnswerverifiedShow Answer

Consider the following data to answer the following questions: -Although countries C and D have the same level of gross domestic product (GDP) ,country C has a level of per capita GDP that is ________ times that of country D.

Correct AnswerverifiedShow Answer

The gross domestic product (GDP) deflator is a measure of

Correct AnswerverifiedShow Answer

"'One U.S.dollar is worth eighteen Mexican pesos.' That statement is part of microeconomics,because we are talking about the cost in pesos of a single good,namely a dollar." Why is this reasoning INCORRECT?

Correct AnswerverifiedShow Answer

Economists measure the total output of an economy in order to

Correct AnswerverifiedShow Answer

The difference between nominal gross domestic product (GDP) and real GDP is

Correct AnswerverifiedShow Answer

Use an equation to explain how the growth of nominal gross domestic product (GDP),the growth of real GDP,and the change in price level are related.Give an example.

Correct AnswerverifiedThe growth of nominal GDP is approximate...View AnswerShow Answer

Consumption is approximately ________ of gross domestic product (GDP) .

Correct AnswerverifiedShow Answer

Company X sells paper to company Y for $100,000.Company Y uses the paper to make textbooks,selling them to consumers for $500,000.The total contribution to gross domestic product (GDP) is

Correct AnswerverifiedShow Answer

Describe three different uses of gross domestic product (GDP),or give three different reasons to explain why it might be useful to calculate GDP.

Correct AnswerverifiedUsing the GDP,we can calculate GDP per c...View AnswerShow Answer

The expansion phase of a business cycle is best described as the time

Correct AnswerverifiedShow Answer

Consider the following data to answer the following questions: -Which country has the lowest average living standard?

Correct AnswerverifiedShow Answer

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The growth of nominal GDP is approximate...
View Answer

Correct Answer
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Using the GDP,we can calculate GDP per c...
View Answer

Correct Answer
verified

Correct Answer
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