Question 1

If a firm produces a good and then adds it to its inventory rather than selling it, for the purposes of GDP accounting the firm is considered to have "purchased" the good so it will count as part of that period's investment expenditures.

Accepted Answer

A) True 
 B)False

Question 2

Changes in real GDP reflect

Accepted Answer

A)   only changes in prices.
B)   only changes in the amounts being produced.
C)   both changes in prices and changes in the amounts being produced.
D)   neither changes in prices nor changes in the amounts being produced.E) B) and C)
F) A) and D)

Question 3

Write the formula for calculating a GDP deflator using only nominal and real GDP.

Accepted Answer

The answer of Write the formula for calculating a GDP...

Question 4

The statistical discrepancy that regularly arises in national income accounting refers to the slight difference between

Accepted Answer

A)   personal income and personal disposable income.
B)   estimates of GDP and actual GDP.
C)   the income and expenditure approaches to the calculation of GDP.
D)   the quarterly and annual approaches to the calculation of GDP.E) A) and C)
F) A) and B)

Question 5

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 6

Table 23-12
A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year.
 
-Refer to Table 23-12. Calculate real and nominal GDP for the year 2013.

Accepted Answer

Nominal GD...

Question 7

The U.S. government pays an economist at the U.S. Department of Commerce $100,000 in salary in 2013. The economist then retires. In 2014, the government pays him $60,000 in Social Security benefits. Which of the following is correct?

Accepted Answer

A)   The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is included in 2014 GDP as government purchases.
B)   The 2013 payment is included in 2013 GDP as government purchases, but the 2014 payment is not included in 2014 GDP.
C)   The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is included in 2014 GDP as government transfer payments.
D)   The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is allocated to previous years' GDP according to the amount of work performed by the economist each year.E) C) and D)
F) A) and B)

Question 8

Table 23-1
The table below contains data for Chereaux for the year 2015.
 
-Refer to Table 23-1. The market value of all final goods and services produced within Chereaux in 2015 is

Accepted Answer

A)   $214.
B)   $200.
C)   $204.
D)   $230.E) B) and D)
F) B) and C)

Question 9

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) A) and C)
F) B) and C)

Question 10

If total spending rises from one year to the next, then

Accepted Answer

A)   the economy must be producing a larger output of goods and services.
B)   goods and services must be selling at higher prices.
C)   either the economy must be producing a larger output of goods and services, or goods and services must be selling at higher prices, or both.
D)   employment or productivity must be rising.E) A) and C)
F) None of the above

Question 11

If you buy a burger and fries at your favorite fast food restaurant,

Accepted Answer

A)   then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant.
B)   then GDP will be higher, but consumption spending will be unchanged.
C)   then GDP will be unchanged, but consumption spending will be higher.
D)   then both GDP and consumption spending will be higher.E) B) and C)
F) C) and D)

Question 12

A U.S.-owned car factory in Mexico produces $5 million of cars. $2.5 million of these cars are sold in Mexico and the other $2.5 million are sold in the U.S. In both cases $1 million of the value of the cars was due to U.S-owned equipment located in Mexico and U.S. managers working in Mexico. How much did this production contribute to U.S. GDP?

Accepted Answer

A)   $0
B)   $1 million
C)   $2 million
D)   None of the above are correctE) All of the above
F) C) and D)

Question 13

In the economy of Talikastan in 2015, consumption was $800, GDP was $2000, government purchases were $400, and investment was $600. What were Talikastan's net exports in 2015?

Accepted Answer

A)   -$200
B)   $200
C)   $1800
D)   Net exports cannot be calculated from the information given.E) All of the above
F) B) and D)

Question 14

Which of the following is not a question that macroeconomists address?

Accepted Answer

A)   Why is average income high in some countries while it is low in others?
B)   Why does the price of oil rise when war erupts in the Middle East?
C)   Why do production and employment expand in some years and contract in others?
D)   Why do prices rise rapidly in some periods of time while they are more stable in other periods?E) A) and D)
F) All of the above

Question 15

Which of the following is a way to compute GDP?

Accepted Answer

A)   total income earned.
B)   total expenditures on final goods.
C)   add up the market values of all final goods and services.
D)   All of the above are correct.E) B) and D)
F) B) and C)

Question 16

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.E) B) and D)
F) All of the above

Question 17

A consumer buys toys made in China. The value of the toys is included only in the net exports component of GDP.

Accepted Answer

A) True 
 B)False

Question 18

For an economy as a whole,

Accepted Answer

A)   the market value of production must equal expenditure.
B)   investment must equal the value of stocks and bonds purchased.
C)   wages must equal income.
D)   consumption must equal saving.E) A) and D)
F) B) and C)

Question 19

GDP is equal to

Accepted Answer

A)   the market value of all final goods and services produced within a country in a given period of time.
B)   Y.
C)   C + I + G + NX.
D)   All of the above are correct.E) None of the above
F) B) and D)

Question 20

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 C)
F) B) and C)

Exam 10: Measuring a Nations Income

The U.S. government pays an economist at the U.S. Department of Commerce $100,000 in salary in 2013. The economist then retires. In 2014, the government pays him $60,000 in Social Security benefits. Which of the following is correct?

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

Table 23-12 A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-12. Calculate real and nominal GDP for the year 2013.

Correct Answer
verified
Nominal GD...
View Answer

A consumer buys toys made in China. The value of the toys is included only in the net exports component of GDP.

Correct Answer
verified

For an economy as a whole,

Correct Answer
verified

Changes in real GDP reflect

Correct Answer
verified

In the economy of Talikastan in 2015, consumption was $800, GDP was $2000, government purchases were $400, and investment was $600. What were Talikastan's net exports in 2015?

Correct Answer
verified

Table 23-1 The table below contains data for Chereaux for the year 2015. -Refer to Table 23-1. The market value of all final goods and services produced within Chereaux in 2015 is

Correct Answer
verified

Which of the following is a way to compute GDP?

Correct Answer
verified

GDP is equal to

Correct Answer
verified

If you buy a burger and fries at your favorite fast food restaurant,

Correct Answer
verified

If a firm produces a good and then adds it to its inventory rather than selling it, for the purposes of GDP accounting the firm is considered to have "purchased" the good so it will count as part of that period's investment expenditures.

Correct Answer
verified

Which of the following is not a question that macroeconomists address?

Correct Answer
verified

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

Correct Answer
verified

Write the formula for calculating a GDP deflator using only nominal and real GDP.

Correct Answer
verified

If total spending rises from one year to the next, then

Correct Answer
verified

Correct Answer
verified

The statistical discrepancy that regularly arises in national income accounting refers to the slight difference between

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

Exam 10: Measuring a Nations Income

The U.S. government pays an economist at the U.S. Department of Commerce $100,000 in salary in 2013. The economist then retires. In 2014, the government pays him $60,000 in Social Security benefits. Which of the following is correct?

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

Table 23-12 A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-12. Calculate real and nominal GDP for the year 2013.

Correct AnswerverifiedNominal GD...View AnswerShow Answer

A consumer buys toys made in China. The value of the toys is included only in the net exports component of GDP.

Correct AnswerverifiedShow Answer

For an economy as a whole,

Correct AnswerverifiedShow Answer

Changes in real GDP reflect

Correct AnswerverifiedShow Answer

In the economy of Talikastan in 2015, consumption was $800, GDP was $2000, government purchases were $400, and investment was $600. What were Talikastan's net exports in 2015?

Correct AnswerverifiedShow Answer

Table 23-1 The table below contains data for Chereaux for the year 2015. -Refer to Table 23-1. The market value of all final goods and services produced within Chereaux in 2015 is

Correct AnswerverifiedShow Answer

Which of the following is a way to compute GDP?

Correct AnswerverifiedShow Answer

GDP is equal to

Correct AnswerverifiedShow Answer

If you buy a burger and fries at your favorite fast food restaurant,

Correct AnswerverifiedShow Answer

If a firm produces a good and then adds it to its inventory rather than selling it, for the purposes of GDP accounting the firm is considered to have "purchased" the good so it will count as part of that period's investment expenditures.

Correct AnswerverifiedShow Answer

Which of the following is not a question that macroeconomists address?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Write the formula for calculating a GDP deflator using only nominal and real GDP.

Correct AnswerverifiedShow Answer

If total spending rises from one year to the next, then

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The statistical discrepancy that regularly arises in national income accounting refers to the slight difference between

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

Correct Answer
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Nominal GD...
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$90 million is inclu...
View Answer