Question 1

Most goods whose purchases are included in the investment component of GDP are used to produce other goods.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following values would be included in U.S.GDP for 2009?

Accepted Answer

A)   the rent that Sean,an American citizen,would have paid on his home in New York in 2009 had he not owned that home
B)   the rent that John,an American citizen,paid on his apartment in San Francisco in 2009
C)   the value of the legal services provided by Juan,an attorney and a Mexican citizen,who lived in Houston and practiced law there in 2009
D)   All of the above would be included in U.S.GDP for 2009.E) A) and B)
F) C) and D)

Question 3

The government of a country,which has adopted American GDP accounting conventions,reported that seasonally adjusted GDP in quarter 3 was $12 billion at an annual rate.This means that the seasonally-adjusted market value of all final goods and services produced within this country in quarter 3 was

Accepted Answer

A)   $3 billion.
B)   $4 billion.
C)   $12 billion.
D)   $48 billion.E) None of the above
F) A) and C)

Question 4

According to the circular-flow diagram GDP

Accepted Answer

A)   can be computed as the total income paid by firms or as expenditures on final goods and services.
B)   can be computed as the total income paid by firms,but not as expenditures on final goods and services.
C)   can be computed as expenditures on final goods and services,but not as the total income paid by firms.
D)   cannot be computed as either total income paid by firms or expenditures on final goods and services.E) A) and C)
F) B) and C)

Question 5

If the U.S.government reports that GDP in the third quarter was $14 trillion at an annual rate,then the amount of income and expenditure during quarter three was $4 trillion.

Accepted Answer

A) True 
 B)False

Question 6

During a presidential campaign,the incumbent argues that he should be reelected because nominal GDP grew by 12 percent during his 4-year term in office.You know that population grew by 4 percent over the period and that the GDP deflator increased by 6 percent during the past 4 years.You should conclude that real GDP per person

Accepted Answer

A)   grew by more than 12 percent.
B)   grew,but by less than 12 percent.
C)   was unchanged.
D)   decreased.E) B) and C)
F) C) and D)

Question 7

A transfer payment is a payment made by

Accepted Answer

A)   consumers,but not in exchange for a tangible product.
B)   firms,but not in exchange for capital equipment.
C)   foreigners,but not in exchange for a domestically-produced good or service.
D)   government,but not in exchange for a currently produced good or service.E) C) and D)
F) B) and C)

Question 8

Suppose an economy produces only iPhones and bananas.In 2010,1000 iPhones are sold at $300 each and 5000 pounds of bananas are sold at $3 per pound.In 2009,the base year,iPhones sold at $400 each and bananas sold at $2 per pound.For 2010,

Accepted Answer

A)   nominal GDP is $315,000,real GDP is $410,000,and the GDP deflator is 76.83.
B)   nominal GDP is $410,000,real GDP is $315,000,and the GDP deflator is 130.16.
C)   nominal GDP is $315,000,real GDP is $410,000,and the GDP deflator is 130.16.
D)   nominal GDP is $410,000,real GDP is $315,000,and the GDP deflator is 76.83.E) A) and B)
F) A) and D)

Question 9

Which of the following is included in the consumption component of U.S.GDP?

Accepted Answer

A)   purchases of staplers,paper clips,and pens by U.S.business firms
B)   purchases of natural gas by U.S.households
C)   purchases of newly constructed homes by U.S.households
D)   All of the above are correct.E) None of the above
F) A) and D)

Question 10

When an American doctor opens a practice in Bermuda,his production there is part of U.S.GNP.

Accepted Answer

A) True 
 B)False

Question 11

Over time,people have come to rely more on market-produced goods and services and less on goods and services they produce for themselves.For example,busy people with high incomes,rather than cleaning their own houses,hire people to clean their houses.By itself,this change has

Accepted Answer

A)   caused measured GDP to fall.
B)   not caused any change in measured GDP.
C)   caused measured GDP to rise.
D)   probably changed measured GDP,but in an uncertain direction;the direction of the change depends on the difference in the quality of the cleaning that has resulted.E) A) and B)
F) A) and C)

Question 12

What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

Accepted Answer

A)   capital
B)   consumption
C)   investment
D)   costsE) C) and D)
F) None of the above

Question 13

Consumption consists of spending by households on goods and services,with the exception of

Accepted Answer

A)   purchases of intangible services.
B)   purchases of durable goods.
C)   purchases of new houses.
D)   spending on education.E) B) and D)
F) All of the above

Question 14

If nominal GDP is $12,000 and the GDP deflator is 80,then real GDP is $15,000.

Accepted Answer

A) True 
 B)False

Question 15

Table 10-1
The table below contains data for Bahkan for the year 2010.
 
-Refer to Table 10-1.Net national product for Bahkan in 2010 is

Accepted Answer

A)   $96
B)   $104
C)   $106
D)   $116E) A) and D)
F) None of the above

Question 16

For the purpose of calculating GDP,investment is spending on

Accepted Answer

A)   stocks,bonds,and other financial assets.
B)   real estate and financial assets such as stocks and bonds.
C)   capital equipment,inventories,and structures,including household purchases of new housing.
D)   capital equipment,inventories,and structures,excluding household purchases of new housing.E) None of the above
F) B) and C)

Question 17

Which of the following is included in GDP?

Accepted Answer

A)   the market value of rental housing services,but not the market value of owner-occupied housing services.
B)   the market value of owner-occupied housing services,but not the market value of rental housing services
C)   both the market value of rental housing services and the market value of owner-occupied housing services
D)   neither the market value of owner-occupied housing services nor the market value of rental housing services.E) A) and B)
F) A) and C)

Question 18

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 2011? Show your work.

Accepted Answer

Nominal GDP was $6x80 + $65x12...

Question 19

If in some year real GDP was $25 billion and the GDP deflator was 68,what was nominal GDP?

Accepted Answer

A)   $2.72 billion
B)   $17 billion
C)   $36.8 billion
D)   $43 billionE) A) and D)
F) All of the above

Question 20

Nominal GDP is $15 trillion and real GDP is $10 trillion.What is the GDP deflator? Show your work.

Accepted Answer

The GDP Deflator = N...

Exam 23: Measuring a Nations Income

Over time,people have come to rely more on market-produced goods and services and less on goods and services they produce for themselves.For example,busy people with high incomes,rather than cleaning their own houses,hire people to clean their houses.By itself,this change has

Correct Answer
verified

Most goods whose purchases are included in the investment component of GDP are used to produce other goods.

Correct Answer
verified

The government of a country,which has adopted American GDP accounting conventions,reported that seasonally adjusted GDP in quarter 3 was $12 billion at an annual rate.This means that the seasonally-adjusted market value of all final goods and services produced within this country in quarter 3 was

Correct Answer
verified

Consumption consists of spending by households on goods and services,with the exception of

Correct Answer
verified

If nominal GDP is $12,000 and the GDP deflator is 80,then real GDP is $15,000.

Correct Answer
verified

Suppose an economy produces only iPhones and bananas.In 2010,1000 iPhones are sold at $300 each and 5000 pounds of bananas are sold at $3 per pound.In 2009,the base year,iPhones sold at $400 each and bananas sold at $2 per pound.For 2010,

Correct Answer
verified

Table 10-1 The table below contains data for Bahkan for the year 2010. -Refer to Table 10-1.Net national product for Bahkan in 2010 is

Correct Answer
verified

What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

Correct Answer
verified

If in some year real GDP was $25 billion and the GDP deflator was 68,what was nominal GDP?

Correct Answer
verified

Which of the following values would be included in U.S.GDP for 2009?

Correct Answer
verified

A transfer payment is a payment made by

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 2011? Show your work.

Correct Answer
verified
Nominal GDP was $6x80 + $65x12...
View Answer

Which of the following is included in the consumption component of U.S.GDP?

Correct Answer
verified

Correct Answer
verified

For the purpose of calculating GDP,investment is spending on

Correct Answer
verified

According to the circular-flow diagram GDP

Correct Answer
verified

Which of the following is included in GDP?

Correct Answer
verified

When an American doctor opens a practice in Bermuda,his production there is part of U.S.GNP.

Correct Answer
verified

If the U.S.government reports that GDP in the third quarter was $14 trillion at an annual rate,then the amount of income and expenditure during quarter three was $4 trillion.

Correct Answer
verified

Nominal GDP is $15 trillion and real GDP is $10 trillion.What is the GDP deflator? Show your work.

Correct Answer
verified
The GDP Deflator = N...
View Answer

Exam 23: Measuring a Nations Income

Over time,people have come to rely more on market-produced goods and services and less on goods and services they produce for themselves.For example,busy people with high incomes,rather than cleaning their own houses,hire people to clean their houses.By itself,this change has

Correct AnswerverifiedShow Answer

Most goods whose purchases are included in the investment component of GDP are used to produce other goods.

Correct AnswerverifiedShow Answer

The government of a country,which has adopted American GDP accounting conventions,reported that seasonally adjusted GDP in quarter 3 was $12 billion at an annual rate.This means that the seasonally-adjusted market value of all final goods and services produced within this country in quarter 3 was

Correct AnswerverifiedShow Answer

Consumption consists of spending by households on goods and services,with the exception of

Correct AnswerverifiedShow Answer

If nominal GDP is $12,000 and the GDP deflator is 80,then real GDP is $15,000.

Correct AnswerverifiedShow Answer

Suppose an economy produces only iPhones and bananas.In 2010,1000 iPhones are sold at $300 each and 5000 pounds of bananas are sold at $3 per pound.In 2009,the base year,iPhones sold at $400 each and bananas sold at $2 per pound.For 2010,

Correct AnswerverifiedShow Answer

Table 10-1 The table below contains data for Bahkan for the year 2010. -Refer to Table 10-1.Net national product for Bahkan in 2010 is

Correct AnswerverifiedShow Answer

What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

Correct AnswerverifiedShow Answer

If in some year real GDP was $25 billion and the GDP deflator was 68,what was nominal GDP?

Correct AnswerverifiedShow Answer

Which of the following values would be included in U.S.GDP for 2009?

Correct AnswerverifiedShow Answer

A transfer payment is a payment made by

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 2011? Show your work.

Correct AnswerverifiedNominal GDP was $6x80 + $65x12...View AnswerShow Answer

Which of the following is included in the consumption component of U.S.GDP?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For the purpose of calculating GDP,investment is spending on

Correct AnswerverifiedShow Answer

According to the circular-flow diagram GDP

Correct AnswerverifiedShow Answer

Which of the following is included in GDP?

Correct AnswerverifiedShow Answer

When an American doctor opens a practice in Bermuda,his production there is part of U.S.GNP.

Correct AnswerverifiedShow Answer

If the U.S.government reports that GDP in the third quarter was $14 trillion at an annual rate,then the amount of income and expenditure during quarter three was $4 trillion.

Correct AnswerverifiedShow Answer

Nominal GDP is $15 trillion and real GDP is $10 trillion.What is the GDP deflator? Show your work.

Correct AnswerverifiedThe GDP Deflator = N...View AnswerShow Answer

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Nominal GDP was $6x80 + $65x12...
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The GDP Deflator = N...
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