Question 1

For economists trying to determine peoples' preferences,observing how people act is more important than what people say in surveys.

Accepted Answer

A) True 
 B)False

Question 2

Compensation of employees is the largest spending component of GDP.

Accepted Answer

A) True 
 B)False

Question 3

Exhibit 7-5
 
-Refer to Exhibit 7-5. What was Country Z's economic growth rate between year 2 and year 3?

Accepted Answer

A)   -3.0%
B)   2.6%
C)   14.0%
D)   -2.2%

Question 4

Exhibit 7-1
 
-Refer to Exhibit 7-1.Which of the following summations represents GDP using the expenditure approach?

Accepted Answer

A)   $4,150 + $751 + $850 + $300
B)   $4,150 + $751 + $850 - $331 + $300
C)   $4,150 + $751 + $850 + $331 + $300
D)   $4,150 + $751 + $850 + $331 + $300 - $320
E)   $4,150 + $751 + $850 + $331 + $300 - $320 + $111

Question 5

Suppose there are five goods in the economy,A-E.The current-year quantity of each is 10A,20B,30C,40D,and 50E.Current-year prices are $1 for each unit of A,$2 for each unit of B,$3 for each unit of C,$4 for each unit of D,and $5 for each unit of E.Base-year prices are $1 for each good.Real GDP in the current year equals _________ and GDP equals _________.

Accepted Answer

A)   $550; $150
B)   $130; $530
C)   $150; $550
D)   $530; $130
E)   none of the above

Question 6

Gross Domestic Product (GDP) is the total market value of all

Accepted Answer

A)   final goods and services produced annually within a country's borders.
B)   final and intermediate goods and services produced annually within a country's borders.
C)   intermediate goods and services produced annually within a country's borders.
D)   final goods and services produced every month within a country's borders.

Question 7

Exhibit 7-1
 
-Refer to Exhibit 7-1.What is the value of national income?

Accepted Answer

A)   $4,351
B)   $4,252
C)   $4,403
D)   $2,996
E)   $4,542

Question 8

Which of the following would definitely not be included in the measurement of GDP?

Accepted Answer

A)   value of the services of a painter who paints your garage
B)   value of the services of a person who mows his or her own lawn
C)   value of the services of a maid who cleans your house
D)   value of the services of a plumber who fixes your kitchen sink

Question 9

In the United States,which is the largest dollar figure?

Accepted Answer

A)   national income
B)   gross domestic product
C)   net domestic product
D)   personal income

Question 10

Net domestic product (NDP)is the total value of new goods available in the economy after worn out capital goods have been replaced.

Accepted Answer

A) True 
 B)False

Question 11

Exhibit 7-3
 
-Refer to Exhibit 7-3. Investment is equal to

Accepted Answer

A)   $850.
B)   $1,250.
C)   $200.
D)   $2,200.
E)   $1,050.

Question 12

The standard definition of "recession" is

Accepted Answer

A)   a period of a positive frictional unemployment rate.
B)   two consecutive quarters of falling Real GDP.
C)   the lowest point in a business cycle.
D)   a period of negative inflation.

Question 13

Gross Domestic Product is computed by using

Accepted Answer

A)   base-year prices.
B)   wholesale prices.
C)   previous-year prices.
D)   current-year prices.

Question 14

In 1950,the country with the highest per capita GDP was

Accepted Answer

A)   Switzerland.
B)   New Zealand.
C)   the United States.
D)   Venezuela.
E)   the Netherlands.

Question 15

Draw an appropriate diagram to represent the business cycle and label each of the five phases.Provide a brief description of each phase.

Accepted Answer

The five phases of the business cycle ar...

Question 16

Suppose that net exports are -$300 billion and exports are $500 billion. Imports equals

Accepted Answer

A)   $800 billion.
B)   $400 billion.
C)   $200 billion.
D)   -$200 billion.
E)   There is not enough information to answer this question.

Question 17

Which of the following would not be included in the measurement of GDP?

Accepted Answer

A)   a bill from a car mechanic
B)   wages of a card dealer working in a Las Vegas casino
C)   commissions of a stockbroker
D)   the increased value of shares of stock
E)   c and d

Question 18

Net interest is the interest paid out by US households and government minus the interest income they received.

Accepted Answer

A) True 
 B)False

Question 19

Is it possible for a country with a relatively large GDP to have a relatively small per-capita GDP?

Accepted Answer

A)   Yes, since the country with a relatively large GDP could have a relatively large population.
B)   No, since countries with a relatively large GDP (such as the United States and Japan)  also have relatively high per-capita GDP.
C)   Yes, but only under the condition that the country "produces" relatively more "bads" than other countries.
D)   Yes, since government transfer payments may be exorbitantly high in the country with the relatively high GDP.
E)   There is not enough information to answer this question.

Question 20

Exhibit 7-1
 
-Refer to Exhibit 7-1.What is the value of personal income?

Accepted Answer

A)   $4,252
B)   $4,388
C)   $5,072
D)   $3,996
E)   $4,207

Exam 7: Macroeconomic Measurements: GDP and Real GDP

Correct Answer
verified

Exhibit 7-5 -Refer to Exhibit 7-5. What was Country Z's economic growth rate between year 2 and year 3?

Correct Answer
verified

Gross Domestic Product (GDP) is the total market value of all

Correct Answer
verified

For economists trying to determine peoples' preferences,observing how people act is more important than what people say in surveys.

Correct Answer
verified

Compensation of employees is the largest spending component of GDP.

Correct Answer
verified

Exhibit 7-1 -Refer to Exhibit 7-1.What is the value of personal income?

Correct Answer
verified

Which of the following would not be included in the measurement of GDP?

Correct Answer
verified

The standard definition of "recession" is

Correct Answer
verified

Exhibit 7-1 -Refer to Exhibit 7-1.Which of the following summations represents GDP using the expenditure approach?

Correct Answer
verified

Suppose that net exports are -$300 billion and exports are $500 billion. Imports equals

Correct Answer
verified

Net domestic product (NDP)is the total value of new goods available in the economy after worn out capital goods have been replaced.

Correct Answer
verified

Exhibit 7-1 -Refer to Exhibit 7-1.What is the value of national income?

Correct Answer
verified

Exhibit 7-3 -Refer to Exhibit 7-3. Investment is equal to

Correct Answer
verified

Is it possible for a country with a relatively large GDP to have a relatively small per-capita GDP?

Correct Answer
verified

Which of the following would definitely not be included in the measurement of GDP?

Correct Answer
verified

In the United States,which is the largest dollar figure?

Correct Answer
verified

Draw an appropriate diagram to represent the business cycle and label each of the five phases.Provide a brief description of each phase.

Correct Answer
verified
The five phases of the business cycle ar...
View Answer

In 1950,the country with the highest per capita GDP was

Correct Answer
verified

Net interest is the interest paid out by US households and government minus the interest income they received.

Correct Answer
verified

Gross Domestic Product is computed by using

Correct Answer
verified

Exam 7: Macroeconomic Measurements: GDP and Real GDP

Correct AnswerverifiedShow Answer

Exhibit 7-5 -Refer to Exhibit 7-5. What was Country Z's economic growth rate between year 2 and year 3?

Correct AnswerverifiedShow Answer

Gross Domestic Product (GDP) is the total market value of all

Correct AnswerverifiedShow Answer

For economists trying to determine peoples' preferences,observing how people act is more important than what people say in surveys.

Correct AnswerverifiedShow Answer

Compensation of employees is the largest spending component of GDP.

Correct AnswerverifiedShow Answer

Exhibit 7-1 -Refer to Exhibit 7-1.What is the value of personal income?

Correct AnswerverifiedShow Answer

Which of the following would not be included in the measurement of GDP?

Correct AnswerverifiedShow Answer

The standard definition of "recession" is

Correct AnswerverifiedShow Answer

Exhibit 7-1 -Refer to Exhibit 7-1.Which of the following summations represents GDP using the expenditure approach?

Correct AnswerverifiedShow Answer

Suppose that net exports are -$300 billion and exports are $500 billion. Imports equals

Correct AnswerverifiedShow Answer

Net domestic product (NDP)is the total value of new goods available in the economy after worn out capital goods have been replaced.

Correct AnswerverifiedShow Answer

Exhibit 7-1 -Refer to Exhibit 7-1.What is the value of national income?

Correct AnswerverifiedShow Answer

Exhibit 7-3 -Refer to Exhibit 7-3. Investment is equal to

Correct AnswerverifiedShow Answer

Is it possible for a country with a relatively large GDP to have a relatively small per-capita GDP?

Correct AnswerverifiedShow Answer

Which of the following would definitely not be included in the measurement of GDP?

Correct AnswerverifiedShow Answer

In the United States,which is the largest dollar figure?

Correct AnswerverifiedShow Answer

Draw an appropriate diagram to represent the business cycle and label each of the five phases.Provide a brief description of each phase.

Correct AnswerverifiedThe five phases of the business cycle ar...View AnswerShow Answer

In 1950,the country with the highest per capita GDP was

Correct AnswerverifiedShow Answer

Net interest is the interest paid out by US households and government minus the interest income they received.

Correct AnswerverifiedShow Answer

Gross Domestic Product is computed by using

Correct AnswerverifiedShow Answer

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verified
The five phases of the business cycle ar...
View Answer

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