Question 1

The growth of international trade for the United States has been enhanced by:

Accepted Answer

A)   An increase in trade barriers.
B)   Improved communication and transportation technologies.
C)   A decline in the government and services sectors.
D)   An increase in domestic manufacturing.

Question 2

U.S.net exports are:

Accepted Answer

A)   Equal to the value of exports minus the value of imports.
B)   Positive if the U.S.imports more than it exports.
C)   A larger portion of GDP than investment.
D)   Always equal to zero.

Question 3

Which of the following statements is true concerning income inequality?

Accepted Answer

A)   Income is distributed equally in poor countries.
B)   Rich countries have greater income inequality than poor countries.
C)   The government has no mechanism for altering income inequality.
D)   A free market economy produces an unequal distribution of income.

Question 4

The manufacturing share of output has increased in the United States since World War II.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following countries currently has the largest GDP?

Accepted Answer

A)   Japan.
B)   China.
C)   Britain.
D)   United States.

Question 6

Ceteris paribus GDP most closely measures:

Accepted Answer

A)   Output per worker.
B)   A summary of the world's output.
C)   The total value of all final goods and services produced within a nation's borders in a given year.
D)   The rate of change in capital stock.

Question 7

Externalities are costs or benefits of a market activity borne by a third party.

Accepted Answer

A) True 
 B)False

Question 8

U.S.GDP for 2012 was approximately:

Accepted Answer

A)   $11 trillion.
B)   $100 billion.
C)   $15 trillion.
D)   $20 trillion.

Question 9

To compare the standard of living of one country to another,economists use:

Accepted Answer

A)   Per capita GDP.
B)   Real GDP.
C)   Nominal GDP.
D)   Output per worker.

Question 10

The reason that U.S.productivity is so high is because the United States has more natural resources and a larger population than any other country in the world.

Accepted Answer

A) True 
 B)False

Question 11

U.S.corporations account for the majority of output in the country even though proprietorships outnumber corporations.

Accepted Answer

A) True 
 B)False

Question 12

The inflation-adjusted value of final goods and services produced in the United States measures:

Accepted Answer

A)   Nominal GDP.
B)   Real GDP.
C)   Per capita GDP.
D)   GDP per worker.

Question 13

Suppose during a year an economy produces $6 trillion of consumer goods,$1 trillion of investment goods,$2 trillion in government services,and has $3 trillion of exports and $2 trillion of imports.GDP would be:

Accepted Answer

A)   $8 trillion.
B)   $10 trillion.
C)   $12 trillion.
D)   $14 trillion.

Question 14

Which of the following is an example of investment,as a component of GDP?

Accepted Answer

A)   The purchase of a truck by a delivery company.
B)   The purchase of Ford stock by an individual saving for retirement.
C)   The purchase of land by an individual.
D)   The purchase of bridges and dams by the government.

Question 15

Suppose during a year an economy produces $10 trillion of consumer goods,$4 trillion of investment goods,$6 trillion in government services,and has $4 trillion of exports and $5 trillion of imports.GDP would be:

Accepted Answer

A)   $19 trillion.
B)   $21 trillion.
C)   $24 trillion.
D)   $29 trillion.

Question 16

As a portion of GDP,government purchases include:

Accepted Answer

A)   Food stamps.
B)   National defense expenditures.
C)   Unemployment benefits.
D)   Welfare checks.

Question 17

The decline in employment in the farm sector in the U.S.during the 1900s can be attributed primarily to:

Accepted Answer

A)   New technology that made it possible to grow more food with fewer workers.
B)   An increase in the importance of the manufacturing sector.
C)   Competition from imported agricultural products.
D)   A decline in the amount of food consumption per person.

Question 18

Why is using real GDP a better measurement of GDP than using nominal GDP?

Accepted Answer

GDP is based on both physical output and...

Question 19

Currently,the U.S.economy is best described as:

Accepted Answer

A)   A service economy.
B)   A manufacturing economy.
C)   An agricultural economy.
D)   A government economy.

Question 20

Productivity measures:

Accepted Answer

A)   Output per worker.
B)   The dollar value of investment.
C)   Final goods minus intermediate goods.
D)   The total amount of goods produced in the United States.

Exam 2: The US Economy

The manufacturing share of output has increased in the United States since World War II.

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U.S.GDP for 2012 was approximately:

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As a portion of GDP,government purchases include:

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Which of the following is an example of investment,as a component of GDP?

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Productivity measures:

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Suppose during a year an economy produces $6 trillion of consumer goods,$1 trillion of investment goods,$2 trillion in government services,and has $3 trillion of exports and $2 trillion of imports.GDP would be:

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The growth of international trade for the United States has been enhanced by:

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Which of the following statements is true concerning income inequality?

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The decline in employment in the farm sector in the U.S.during the 1900s can be attributed primarily to:

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Ceteris paribus GDP most closely measures:

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U.S.corporations account for the majority of output in the country even though proprietorships outnumber corporations.

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The reason that U.S.productivity is so high is because the United States has more natural resources and a larger population than any other country in the world.

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Suppose during a year an economy produces $10 trillion of consumer goods,$4 trillion of investment goods,$6 trillion in government services,and has $4 trillion of exports and $5 trillion of imports.GDP would be:

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U.S.net exports are:

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Currently,the U.S.economy is best described as:

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Which of the following countries currently has the largest GDP?

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Externalities are costs or benefits of a market activity borne by a third party.

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The inflation-adjusted value of final goods and services produced in the United States measures:

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To compare the standard of living of one country to another,economists use:

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Why is using real GDP a better measurement of GDP than using nominal GDP?

Correct AnswerverifiedGDP is based on both physical output and...View AnswerShow Answer

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GDP is based on both physical output and...
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