Question 1

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 2

Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?

Accepted Answer

A)   Why do prices in general rise by more in some countries than in others?
B)   Why do wages differ across industries?
C)   Why do national production and income increase in some periods and not in others?
D)   How rapidly is GDP currently increasing?

Question 3

In the economy of Ukzten in 2010,exports were $500,GDP was $6400,government purchases were $1500,imports were $600,and investment was $2000.What was Ukzten's consumption in 2010?

Accepted Answer

A)   $1800
B)   $2800
C)   $3000
D)   $4000

Question 4

Periods during which real GDP rises are called recessions.

Accepted Answer

A) True 
 B)False

Question 5

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009.It also reported a GDP deflator of 100 in 2010 and 105 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.

Question 6

Most goods and services produced at home

Accepted Answer

A)   and most goods and services produced illegally are included in GDP.
B)   are included in GDP while most goods and services produced illegally are excluded from GDP.
C)   are excluded from GDP while most goods and services produced illegally are included in GDP
D)   and most goods and services produced illegally are excluded from GDP.

Question 7

Which of the following is not an example of a durable good?

Accepted Answer

A)   a refrigerator
B)   an automobile
C)   a business suit
D)   a furnace

Question 8

Suppose there are only two firms in an economy: Rolling Rawhide produces rawhide and sells it to Chewy Chomp,Inc. ,which uses the rawhide to produce and sell dog chews.With each $2 of rawhide that it buys from Rolling Rawhide,Chewy Chomp,Inc.produces a dog chew and sells it for $5.Neither firm had any inventory at the beginning of 2008.During that year,Rolling Rawhide produced enough rawhide for 1000 dog chews.Chewy Chomp,Inc.bought 75% of that rawhide for $1500 and promised to buy the remaining 25% for $500 in 2009.Chewy Chomp,Inc.produced 750 dog chews during 2008 and sold each one during that year for $5.What was the economy's GDP for 2008?

Accepted Answer

A)   $3750
B)   $4250
C)   $5250
D)   $5750

Question 9

Real GDP per person tells us the income and expenditure of the average person in the economy.

Accepted Answer

A) True 
 B)False

Question 10

An American retailer purchased 100 pairs of shoes from a company in Denmark in the second quarter of 2010 but does not sell them to a consumer until the third quarter of 2010.Which of the following components of U.S.GDP is affected by this transaction in the third quarter of 2010?

Accepted Answer

A)   consumption,investment and imports
B)   only consumption and investment
C)   only consumption and imports
D)   only investment and imports

Question 11

Table 10-7
The table below contains data for the country of Togogo.The base year is 1974.
 
-Refer to Table 10-7.From 1976 to 1977,

Accepted Answer

A)   inflation was 33.3% and output grew at a rate of 20%.
B)   inflation was 33.3% and output grew at a rate of 60%.
C)   inflation was 50% and output grew at a rate of 20%.
D)   inflation was 50% and output grew at a rate of 60%.

Question 12

Both the value of hamburgers sold by a restaurant and the value of the beef it used to make these hamburgers are included in GDP.

Accepted Answer

A) True 
 B)False

Question 13

In 2009,U.S.GDP was almost

Accepted Answer

A)   $3 trillion.
B)   $7 trillion.
C)   $10 trillion.
D)   $14 trillion.

Question 14

Since it is counted as investment,why doesn't the purchase of earthmoving equipment from China by a U.S.corporation increase U.S.GDP?

Accepted Answer

The purchase of foreign equipment is cou...

Question 15

The inflation rate is the

Accepted Answer

A)   absolute change in real GDP from one period to another.
B)   percentage change in real GDP from one period to another.
C)   absolute change in the price level from one period to another.
D)   percentage change in the price level from one period to another.

Question 16

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Accepted Answer

A) True 
 B)False

Question 17

What three types of goods are included in investment spending?

Accepted Answer

capital equipment,in...

Question 18

Which of the following domestically produced items is not included in GDP?

Accepted Answer

A)   a bottle of shampoo
B)   a hairdryer
C)   a haircut
D)   All of the above are included in GDP.

Question 19

JR sells RV's.In 2010 she added $400,000 to her inventory.$100,000 of this addition was from used RV's she purchased while the remaining $300,000 was from her purchases of newly manufactured RV's.How much of JR's inventory is included in 2010 GDP?

Accepted Answer

A)   $0
B)   $100,000
C)   $300,000
D)   $400,000

Question 20

The purchase of rice produced this period is included in GDP if the rice is

Accepted Answer

A)   used in a meal a restaurant sells during the same period they buy the rice.
B)   purchased by a family who uses it to make tuna casserole for its supper.
C)   purchased by a frozen food company to increase its inventory.
D)   B and C are correct.

Exam 23: Measuring a Nations Income

Which of the following is not an example of a durable good?

Correct Answer
verified

Which of the following domestically produced items is not included in GDP?

Correct Answer
verified

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Correct Answer
verified

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009.It also reported a GDP deflator of 100 in 2010 and 105 in 2009.Between 2009 and 2010,

Correct Answer
verified

In the economy of Ukzten in 2010,exports were $500,GDP was $6400,government purchases were $1500,imports were $600,and investment was $2000.What was Ukzten's consumption in 2010?

Correct Answer
verified

JR sells RV's.In 2010 she added $400,000 to her inventory.$100,000 of this addition was from used RV's she purchased while the remaining $300,000 was from her purchases of newly manufactured RV's.How much of JR's inventory is included in 2010 GDP?

Correct Answer
verified

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

Correct Answer
verified

The purchase of rice produced this period is included in GDP if the rice is

Correct Answer
verified

An American retailer purchased 100 pairs of shoes from a company in Denmark in the second quarter of 2010 but does not sell them to a consumer until the third quarter of 2010.Which of the following components of U.S.GDP is affected by this transaction in the third quarter of 2010?

Correct Answer
verified

Correct Answer
verified

The inflation rate is the

Correct Answer
verified

Both the value of hamburgers sold by a restaurant and the value of the beef it used to make these hamburgers are included in GDP.

Correct Answer
verified

Real GDP per person tells us the income and expenditure of the average person in the economy.

Correct Answer
verified

Most goods and services produced at home

Correct Answer
verified

Periods during which real GDP rises are called recessions.

Correct Answer
verified

What three types of goods are included in investment spending?

Correct Answer
verified
capital equipment,in...
View Answer

In 2009,U.S.GDP was almost

Correct Answer
verified

Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?

Correct Answer
verified

Table 10-7 The table below contains data for the country of Togogo.The base year is 1974. -Refer to Table 10-7.From 1976 to 1977,

Correct Answer
verified

Since it is counted as investment,why doesn't the purchase of earthmoving equipment from China by a U.S.corporation increase U.S.GDP?

Correct Answer
verified
The purchase of foreign equipment is cou...
View Answer

Exam 23: Measuring a Nations Income

Which of the following is not an example of a durable good?

Correct AnswerverifiedShow Answer

Which of the following domestically produced items is not included in GDP?

Correct AnswerverifiedShow Answer

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Correct AnswerverifiedShow Answer

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009.It also reported a GDP deflator of 100 in 2010 and 105 in 2009.Between 2009 and 2010,

Correct AnswerverifiedShow Answer

In the economy of Ukzten in 2010,exports were $500,GDP was $6400,government purchases were $1500,imports were $600,and investment was $2000.What was Ukzten's consumption in 2010?

Correct AnswerverifiedShow Answer

JR sells RV's.In 2010 she added $400,000 to her inventory.$100,000 of this addition was from used RV's she purchased while the remaining $300,000 was from her purchases of newly manufactured RV's.How much of JR's inventory is included in 2010 GDP?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The purchase of rice produced this period is included in GDP if the rice is

Correct AnswerverifiedShow Answer

An American retailer purchased 100 pairs of shoes from a company in Denmark in the second quarter of 2010 but does not sell them to a consumer until the third quarter of 2010.Which of the following components of U.S.GDP is affected by this transaction in the third quarter of 2010?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The inflation rate is the

Correct AnswerverifiedShow Answer

Both the value of hamburgers sold by a restaurant and the value of the beef it used to make these hamburgers are included in GDP.

Correct AnswerverifiedShow Answer

Real GDP per person tells us the income and expenditure of the average person in the economy.

Correct AnswerverifiedShow Answer

Most goods and services produced at home

Correct AnswerverifiedShow Answer

Periods during which real GDP rises are called recessions.

Correct AnswerverifiedShow Answer

What three types of goods are included in investment spending?

Correct Answerverifiedcapital equipment,in...View AnswerShow Answer

In 2009,U.S.GDP was almost

Correct AnswerverifiedShow Answer

Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?

Correct AnswerverifiedShow Answer

Table 10-7 The table below contains data for the country of Togogo.The base year is 1974. -Refer to Table 10-7.From 1976 to 1977,

Correct AnswerverifiedShow Answer

Since it is counted as investment,why doesn't the purchase of earthmoving equipment from China by a U.S.corporation increase U.S.GDP?

Correct AnswerverifiedThe purchase of foreign equipment is cou...View AnswerShow Answer

Correct Answer
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verified
capital equipment,in...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The purchase of foreign equipment is cou...
View Answer