Question 1

If the price of a Blu-Ray Disc player is three times the price of an MP3 player,then a Blue-Ray Disc player contributes

Accepted Answer

A)   more than three times as much to GDP as does a MP3 player.
B)   less than three times as much to GDP as does a MP3 player.
C)   exactly three times as much to GDP as does a MP3 player.
D)   None of the above is necessarily correct.E) None of the above
F) B) and C)

Question 2

An economy recently reported nominal GDP of 3 trillion euro and a GDP deflator of 200.What was real GDP?

Accepted Answer

A)   1.5 trillion euro,and real GDP is a better gauge of economic activity than nominal GDP.
B)   1.5 trillion euro,but nominal GDP is a better gauge of economic activity than real GDP.
C)   6 trillion euro,and real GDP is a better gauge of economic activity than nominal GDP.
D)   6 trillion euro,but nominal GDP is a better gauge of economic activity than real GDP.E) A) and B)
F) All of the above

Question 3

Table 23-1
The country of Batavia produces only chocolates and watches.Below is a table with recent information on Batavia production and prices.The base year is 2009.
Prices and Quantities
 
-Refer to Table 23-1.
What was nominal GDP,real GDP,and the GDP deflator for 2010? Show your work.

Accepted Answer

Nominal GDP was $5x100 + $60x1...

Question 4

Table 10-6
The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009.
Prices and Quantities
 
-Refer to Table 10-6.From 2010 to 2011,this country's output grew

Accepted Answer

A)   12.5%.
B)   14.3%.
C)   48.1%.
D)   155.6%.E) B) and D)
F) A) and C)

Question 5

Rank the countries from highest to lowest based on underground economic activity as a percentage of GDP.

Accepted Answer

A)   Bolivia,Thailand,United States,Sweden.
B)   Thailand,United States,Sweden,Bolivia.
C)   United States,Bolivia,Sweden,Thailand.
D)   Bolivia,Thailand,Sweden,United States.E) A) and C)
F) All of the above

Question 6

An American soldier stationed in North Carolina receives a paycheck from the federal government for $300,which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market.As a result,U.S.GDP increases by

Accepted Answer

A)   $200.
B)   $300.
C)   $500.
D)   $600.E) None of the above
F) A) and D)

Question 7

Which government entity computes U.S.GDP every three months?

Accepted Answer

A)   the Council of Economic Advisers
B)   the Department of Commerce
C)   the Department of Treasury
D)   the Federal ReserveE) None of the above
F) A) and B)

Question 8

The GDP deflator can be used to take inflation out of nominal GDP.

Accepted Answer

A) True 
 B)False

Question 9

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

Accepted Answer

A) True 
 B)False

Question 10

If a good produced this quarter goes into inventory,then it is included in this period's GDP.If it is sold in the next quarter,it will have no effect on GDP.

Accepted Answer

A) True 
 B)False

Question 11

In early2010 Molly paid $200,000 for a house built in 2000.She spent $30,000 on new materials to remodel the house.Although Molly lived in the house after she remodeled it,its rental value rose.Which of the following contributed to real GDP in 2010?

Accepted Answer

A)   the price of the house,the cost of remodeling materials,the increase in rental value
B)   the price of the house and the cost of remodeling materials,but not the increase in rental value
C)   the costs of the remodeling materials and the increase in rent,but not the price of the house
D)   None of the above are correct.E) B) and C)
F) B) and D)

Question 12

GDP adds together many different kinds of products into a single measure of the value of economic activity by using market prices.

Accepted Answer

A) True 
 B)False

Question 13

Household spending on education is included in

Accepted Answer

A)   consumption,although it might be argued that it would fit better in investment.
B)   investment,although it might be argued that it would fit better in consumption.
C)   government spending,based on the fact that most higher-education students attend publicly-supported colleges and universities.
D)   None of the above is correct;in general,household spending on services is not included in any component of GDP.E) A) and D)
F) All of the above

Question 14

Which of the following statistics is usually regarded as the best single measure of a society's economic well-being?

Accepted Answer

A)   the unemployment rate
B)   the inflation rate
C)   gross domestic product
D)   the trade deficitE) All of the above
F) B) and C)

Question 15

GDP is the most closely watched economic statistic because it is thought to be the best single measure of a society's economic well-being.

Accepted Answer

A) True 
 B)False

Question 16

During the current quarter,a firm produces consumer goods and adds some of those goods to its inventory rather than selling them.The value of the goods added to inventory is

Accepted Answer

A)   not included in the current quarter GDP.
B)   included in the current quarter GDP as investment.
C)   included in the current quarter GDP as consumption.
D)   included in the current quarter GDP as a statistical discrepancy.E) B) and C)
F) A) and B)

Question 17

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 was the growth rate of real GDP for 1930?

Accepted Answer

A)   -8.62%.Real GDP is a better gauge of economic well-being than nominal GDP.
B)   -8.62%.Nominal GDP is a better gauge of economic well-being than real GDP.
C)   -9.43%.Real GDP is a better gauge of economic well-being than nominal GDP.
D)   -9.43%.Nominal GDP is a better gauge of economic well-being than real GDP.E) None of the above
F) B) and D)

Question 18

Alexandria,a British citizen,owns and manages a fish and chips shop in Washington,D.C.
She buys fresh food produced by U.S.workers,pays utilities to a U.S.company,and employs only U.S.citizens.What part,if any,of the restaurant's production is included in U.S.GDP? What part,if any,of the restaurant's production is included in U.S.GNP?

Accepted Answer

All of the output is included ...

Question 19

Identify the immediate effect of each of the following events on U.S.GDP and its components.
a.James receives a Social Security check.
b.John buys an Italian sports car.
c.Henry buys domestically produced tools for his construction company.

Accepted Answer

a.Since this is a transfer payment,there...

Question 20

The information for 2008 in millions in the table below was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of real GDP per person from highest to lowest?

Accepted Answer

A)   Japan,Germany,United States
B)   Japan,United States,Germany
C)   Germany,United States,Japan
D)   United States,Japan,GermanyE) B) and C)
F) None of the above

Exam 23: Measuring a Nations Income

Identify the immediate effect of each of the following events on U.S.GDP and its components. a.James receives a Social Security check. b.John buys an Italian sports car. c.Henry buys domestically produced tools for his construction company.

Correct Answer
verified
a.Since this is a transfer payment,there...
View Answer

Table 10-6 The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009. Prices and Quantities -Refer to Table 10-6.From 2010 to 2011,this country's output grew

Correct Answer
verified

Which of the following statistics is usually regarded as the best single measure of a society's economic well-being?

Correct Answer
verified

The GDP deflator can be used to take inflation out of nominal GDP.

Correct Answer
verified

During the current quarter,a firm produces consumer goods and adds some of those goods to its inventory rather than selling them.The value of the goods added to inventory is

Correct Answer
verified

Rank the countries from highest to lowest based on underground economic activity as a percentage of GDP.

Correct Answer
verified

An American soldier stationed in North Carolina receives a paycheck from the federal government for $300,which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market.As a result,U.S.GDP increases by

Correct Answer
verified

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

Correct Answer
verified

Correct Answer
verified
All of the output is included ...
View 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 was the growth rate of real GDP for 1930?

Correct Answer
verified

Household spending on education is included in

Correct Answer
verified

If a good produced this quarter goes into inventory,then it is included in this period's GDP.If it is sold in the next quarter,it will have no effect on GDP.

Correct Answer
verified

An economy recently reported nominal GDP of 3 trillion euro and a GDP deflator of 200.What was real GDP?

Correct Answer
verified

Which government entity computes U.S.GDP every three months?

Correct Answer
verified

GDP adds together many different kinds of products into a single measure of the value of economic activity by using market prices.

Correct Answer
verified

The information for 2008 in millions in the table below was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of real GDP per person from highest to lowest?

Correct Answer
verified

In early2010 Molly paid $200,000 for a house built in 2000.She spent $30,000 on new materials to remodel the house.Although Molly lived in the house after she remodeled it,its rental value rose.Which of the following contributed to real GDP in 2010?

Correct Answer
verified

GDP is the most closely watched economic statistic because it is thought to be the best single measure of a society's economic well-being.

Correct Answer
verified

Table 23-1 The country of Batavia produces only chocolates and watches.Below is a table with recent information on Batavia production and prices.The base year is 2009. Prices and Quantities -Refer to Table 23-1. What was nominal GDP,real GDP,and the GDP deflator for 2010? Show your work.

Correct Answer
verified
Nominal GDP was $5x100 + $60x1...
View Answer

If the price of a Blu-Ray Disc player is three times the price of an MP3 player,then a Blue-Ray Disc player contributes

Correct Answer
verified

Exam 23: Measuring a Nations Income

Identify the immediate effect of each of the following events on U.S.GDP and its components. a.James receives a Social Security check. b.John buys an Italian sports car. c.Henry buys domestically produced tools for his construction company.

Correct Answerverifieda.Since this is a transfer payment,there...View AnswerShow Answer

Table 10-6 The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009. Prices and Quantities -Refer to Table 10-6.From 2010 to 2011,this country's output grew

Correct AnswerverifiedShow Answer

Which of the following statistics is usually regarded as the best single measure of a society's economic well-being?

Correct AnswerverifiedShow Answer

The GDP deflator can be used to take inflation out of nominal GDP.

Correct AnswerverifiedShow Answer

During the current quarter,a firm produces consumer goods and adds some of those goods to its inventory rather than selling them.The value of the goods added to inventory is

Correct AnswerverifiedShow Answer

Rank the countries from highest to lowest based on underground economic activity as a percentage of GDP.

Correct AnswerverifiedShow Answer

An American soldier stationed in North Carolina receives a paycheck from the federal government for $300,which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market.As a result,U.S.GDP increases by

Correct AnswerverifiedShow Answer

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAll of the output is included ...View AnswerShow 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 was the growth rate of real GDP for 1930?

Correct AnswerverifiedShow Answer

Household spending on education is included in

Correct AnswerverifiedShow Answer

If a good produced this quarter goes into inventory,then it is included in this period's GDP.If it is sold in the next quarter,it will have no effect on GDP.

Correct AnswerverifiedShow Answer

An economy recently reported nominal GDP of 3 trillion euro and a GDP deflator of 200.What was real GDP?

Correct AnswerverifiedShow Answer

Which government entity computes U.S.GDP every three months?

Correct AnswerverifiedShow Answer

GDP adds together many different kinds of products into a single measure of the value of economic activity by using market prices.

Correct AnswerverifiedShow Answer

The information for 2008 in millions in the table below was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of real GDP per person from highest to lowest?

Correct AnswerverifiedShow Answer

In early2010 Molly paid $200,000 for a house built in 2000.She spent $30,000 on new materials to remodel the house.Although Molly lived in the house after she remodeled it,its rental value rose.Which of the following contributed to real GDP in 2010?

Correct AnswerverifiedShow Answer

GDP is the most closely watched economic statistic because it is thought to be the best single measure of a society's economic well-being.

Correct AnswerverifiedShow Answer

Table 23-1 The country of Batavia produces only chocolates and watches.Below is a table with recent information on Batavia production and prices.The base year is 2009. Prices and Quantities -Refer to Table 23-1. What was nominal GDP,real GDP,and the GDP deflator for 2010? Show your work.

Correct AnswerverifiedNominal GDP was $5x100 + $60x1...View AnswerShow Answer

If the price of a Blu-Ray Disc player is three times the price of an MP3 player,then a Blue-Ray Disc player contributes

Correct AnswerverifiedShow Answer

Correct Answer
verified
a.Since this is a transfer payment,there...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
All of the output is included ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Nominal GDP was $5x100 + $60x1...
View Answer

Correct Answer
verified