Question 1

On the basis of the information presented in the table below, which presents the correct ordering of real GDP per person from highest to lowest?

Accepted Answer

A)   Atlantis, Merpois, Bensalem
B)   Bensalem, Atlantis, Merpois
C)   Atlantis, Bensalem, Merpois
D)   Bensalem, Merpois, AtlantisE) A) and B)
F) A) and C)

Question 2

Underground economic activity as a percentage of GDP was highest in

Accepted Answer

A)   Bolivia.
B)   Mexico.
C)   Australia.
D)   the United States.E) All of the above
F) A) and C)

Question 3

For an economy as a whole, income must exceed expenditure.

Accepted Answer

A) True 
 B)False

Question 4

Figure 23-1. 
-Refer to Figure 23-1. Which of the following pairs correctly identify W and Y?

Accepted Answer

A)   markets for factors of production and markets for goods and services
B)   firms and households
C)   expenditures and income
D)   consumption and investmentE) A) and B)
F) A) and C)

Question 5

A country reported nominal GDP of $200 billion in 2010 and $180 billion in 2009. It also reported a GDP deflator of 125 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.E) B) and C)
F) B) and D)

Question 6

A U.S.-owned automobile factory uses $50 million worth of materials produced in the U.S. and $10 million worth of material purchased from foreign countries to produce $100 million of automobiles. $70 million worth of these automobiles are purchased by U.S. consumers, $25 million are sold in foreign countries, and $5 million are added to inventory. How much of this production is included in U.S. GDP? By how much do these transactions alone affect U.S. net exports?

Accepted Answer

$90 million is inclu...

Question 7

In a simple circular-flow diagram,

Accepted Answer

A)   households spend all of their income.
B)   all goods and services are bought by households.
C)   expenditures flow through the markets for goods and services, while income flows through the markets for the factors of production.
D)   All of the above are correct.E) A) and B)
F) B) and D)

Question 8

Table 23-10
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2015 .
 
-Refer to Table 23-10. What was this country's real GDP in 2016?

Accepted Answer

A)   $10,575
B)   $11,250
C)   $10,950
D)   $12,550E) A) and C)
F) None of the above

Question 9

Which of the following is not a question addressed by macroeconomists?

Accepted Answer

A)   Why is average income high in some nations but low in others?
B)   What, if anything, can the government do to promote growth in incomes, low inflation, and stable employment?
C)   What is the impact of foreign competition on the U.S. auto industry?
D)   Why do production and employment expand in some years and contract in others?E) B) and C)
F) A) and D)

Question 10

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 11

Figure 23-2. 
-Refer to Figure 23-2. List the locations associated with the flow of inputs and outputs.

Accepted Answer

The answer of Figure 23-2. 
-Refer to Figure 23-2. List...

Question 12

Which of the following items is counted as part of government purchases?

Accepted Answer

A)   The federal government pays the salary of a Navy officer.
B)   The state of Nevada pays a private firm to repair a Nevada state highway.
C)   The city of Las Vegas, Nevada pays a private firm to collect garbage in that city.
D)   All of the above are correct.E) None of the above
F) A) and C)

Question 13

Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?

Accepted Answer

A)   Unemployment rate falls from 7.5 percent to 7.3 percent.
B)   Real GDP falls by 0.4 percent in the third quarter.
C)   Inflation was 2.4 percent last year.
D)   The price of gasoline rises due to rising oil prices.E) A) and D)
F) A) and C)

Question 14

A country's real GDP rose from $500 to $530 while its nominal GDP rose from $600 to $700. What was this country's inflation rate?

Accepted Answer

A)   16.7%.
B)   10.0%.
C)   15.0%.
D)   -9.1%.E) B) and D)
F) C) and D)

Question 15

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) All of the above
F) A) and B)

Question 16

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

Accepted Answer

A) True 
 B)False

Question 17

Identify the largest and smallest components of GDP.

Accepted Answer

Consumption is the l...

Question 18

International data on GDP and socioeconomic variables

Accepted Answer

A)   are inconclusive about the relationship between GDP and the economic well-being of citizens.
B)   suggest that poor nations actually might enjoy a higher standard of living than do rich nations.
C)   leave no doubt that a nation's GDP is closely associated with its citizens' standard of living.
D)   indicate that there are few real differences in living standards around the world, in spite of the large differences in GDP between nations.E) A) and C)
F) A) and B)

Question 19

What three types of goods are included in investment spending?

Accepted Answer

capital equipment, i...

Question 20

Table 23-10
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2015 .
 
-Refer to Table 23-10. In which year was this country's real GDP highest?

Accepted Answer

A)   2014
B)   2015
C)   2016
D)   2017E) B) and C)
F) A) and B)

Exam 5: Measuring a Nations Income

For an economy as a whole, income must exceed expenditure.

Correct Answer
verified

Underground economic activity as a percentage of GDP was highest in

Correct Answer
verified

A country's real GDP rose from $500 to $530 while its nominal GDP rose from $600 to $700. What was this country's inflation rate?

Correct Answer
verified

What three types of goods are included in investment spending?

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

On the basis of the information presented in the table below, which presents the correct ordering of real GDP per person from highest to lowest?

Correct Answer
verified

Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?

Correct Answer
verified

Correct Answer
verified
$90 million is inclu...
View Answer

International data on GDP and socioeconomic variables

Correct Answer
verified

A country reported nominal GDP of $200 billion in 2010 and $180 billion in 2009. It also reported a GDP deflator of 125 in 2010 and 105 in 2009. Between 2009 and 2010,

Correct Answer
verified

Identify the largest and smallest components of GDP.

Correct Answer
verified
Consumption is the l...
View Answer

Figure 23-1. -Refer to Figure 23-1. Which of the following pairs correctly identify W and Y?

Correct Answer
verified

Table 23-10 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2015 . -Refer to Table 23-10. What was this country's real GDP in 2016?

Correct Answer
verified

Figure 23-2. -Refer to Figure 23-2. List the locations associated with the flow of inputs and outputs.

Correct Answer
verified

In a simple circular-flow diagram,

Correct Answer
verified

Which of the following items is counted as part of government purchases?

Correct Answer
verified

Correct Answer
verified

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

Correct Answer
verified

Table 23-10 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2015 . -Refer to Table 23-10. In which year was this country's real GDP highest?

Correct Answer
verified

Which of the following is not a question addressed by macroeconomists?

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

Exam 5: Measuring a Nations Income

For an economy as a whole, income must exceed expenditure.

Correct AnswerverifiedShow Answer

Underground economic activity as a percentage of GDP was highest in

Correct AnswerverifiedShow Answer

A country's real GDP rose from $500 to $530 while its nominal GDP rose from $600 to $700. What was this country's inflation rate?

Correct AnswerverifiedShow Answer

What three types of goods are included in investment spending?

Correct Answerverifiedcapital equipment, i...View AnswerShow Answer

On the basis of the information presented in the table below, which presents the correct ordering of real GDP per person from highest to lowest?

Correct AnswerverifiedShow Answer

Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?

Correct AnswerverifiedShow Answer

Correct Answerverified$90 million is inclu...View AnswerShow Answer

International data on GDP and socioeconomic variables

Correct AnswerverifiedShow Answer

A country reported nominal GDP of $200 billion in 2010 and $180 billion in 2009. It also reported a GDP deflator of 125 in 2010 and 105 in 2009. Between 2009 and 2010,

Correct AnswerverifiedShow Answer

Identify the largest and smallest components of GDP.

Correct AnswerverifiedConsumption is the l...View AnswerShow Answer

Figure 23-1. -Refer to Figure 23-1. Which of the following pairs correctly identify W and Y?

Correct AnswerverifiedShow Answer

Table 23-10 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2015 . -Refer to Table 23-10. What was this country's real GDP in 2016?

Correct AnswerverifiedShow Answer

Figure 23-2. -Refer to Figure 23-2. List the locations associated with the flow of inputs and outputs.

Correct AnswerverifiedShow Answer

In a simple circular-flow diagram,

Correct AnswerverifiedShow Answer

Which of the following items is counted as part of government purchases?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

Correct AnswerverifiedShow Answer

Table 23-10 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2015 . -Refer to Table 23-10. In which year was this country's real GDP highest?

Correct AnswerverifiedShow Answer

Which of the following is not a question addressed by macroeconomists?

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

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capital equipment, i...
View Answer

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$90 million is inclu...
View Answer

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Correct Answer
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Consumption is the l...
View Answer

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