Question 1

Which of the following is included in the investment component of GDP?

Accepted Answer

A)   Elaine pays her college tuition bill.
B)   John's law firm buys him a new computer.
C)   Laura buys a bond that McDonald's sells to raise funds.
D)   All of the above are correct.E) None of the above
F) C) and D)

Question 2

In the economy of Talikastan in 2015, consumption was $3000, exports were $400, GDP was $5000, imports were $500, and investment was $1400. What were Talikastan's government purchases in 2015?

Accepted Answer

A)   $60
B)   $500
C)   $700
D)   $1500E) A) and D)
F) B) and C)

Question 3

If in some year nominal GDP was $10 trillion and real GDP was $4 trillion, what was the GDP deflator?

Accepted Answer

A)   25.
B)   40.
C)   250.
D)   400.E) A) and D)
F) None of the above

Question 4

A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10. Smith's Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP?

Accepted Answer

A)   $22.50
B)   $29.50
C)   $21.50
D)   $31.50E) A) and B)
F) A) and C)

Question 5

The government computes measures of income other than GDP because these other measures usually tell different stories about overall economic conditions.

Accepted Answer

A) True 
 B)False

Question 6

Table 23-3
The table below contains data for the country of Crete for the year 2010.
 
-Refer to Table 23-3. What were Crete's net exports in 2010?

Accepted Answer

A)   -$217
B)   -$88
C)   $88
D)   $217E) A) and D)
F) A) and C)

Question 7

In the United States in 2012, purchases of capital equipment, inventories, and structures represented approximately

Accepted Answer

A)   3 percent of GDP.
B)   7 percent of GDP.
C)   13 percent of GDP.
D)   15 percent of GDP.E) All of the above
F) A) and B)

Question 8

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 C)

Question 9

Table 23-11
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 23-11.
What was nominal GDP, real GDP, and the GDP deflator for 2009? Show your work.

Accepted Answer

Nominal GDP was $5x90 + $50x15...

Question 10

A macroeconomist is interested in

Accepted Answer

A)   explaining how changes in sellers' behavior affect prices of a particular good.
B)   explaining price changes in a particular market.
C)   explaining why the unemployment rate is higher.
D)   All of the above are correct.E) B) and D)
F) None of the above

Question 11

In the economy of Talikastan in 2015, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $1800, and imports were $1200. What was Talikastan's investment in 2015?

Accepted Answer

A)   $0
B)   $1200
C)   $2400
D)   $5600E) A) and D)
F) A) and B)

Question 12

Which of the following subcomponents of GDP can be either positive or negative?

Accepted Answer

A)   inventory investment
B)   exports
C)   government purchases
D)   All of the above are correct.E) None of the above
F) B) and C)

Question 13

Table 23-11
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 23-11.
What was the inflation rate for 2011? Show your work.

Accepted Answer

For 2010 the GDP Deflator was 112. Nomin...

Question 14

In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were $1700, imports were $400, and investment was $1800. What was Talikastan's consumption in 2015?

Accepted Answer

A)   $2000
B)   $2800
C)   $3000
D)   $3800E) C) and D)
F) B) and D)

Question 15

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 16

GDP is used as the basic measure of a society's economic well-being. A better measure of the economic well-being of individuals in society is

Accepted Answer

A)   saving per person.
B)   GDP per person.
C)   government expenditures per person.
D)   investment per business firm.E) A) and B)
F) B) and D)

Question 17

Which of the following items is included in GDP?

Accepted Answer

A)   the sale of stocks and bonds
B)   the sale of used goods
C)   the sale of services such as those performed by a doctor
D)   All of the above are included in GDP.E) A) and C)
F) A) and B)

Question 18

Which of the following is not a correct statement about the growth of real GDP in the U.S. economy?

Accepted Answer

A)   Real GDP in 2009 was almost four times its 1965 level.
B)   Growth was steady between 1965 and 2009.
C)   Continued growth in real GDP enables the typical American to enjoy greater economic prosperity than his or her parents and grandparents did.
D)   The output of goods and services produced grew on average about 3 percent per year between 1965 and 2009.E) A) and D)
F) B) and D)

Question 19

National income is defined as

Accepted Answer

A)   the total income of a nation's permanent residents minus losses from depreciation.
B)   the income that households and noncorporate businesses receive.
C)   the total income earned by a nation's permanent residents in the production of goods and services.
D)   the income that households and noncorporate businesses have left after satisfying all their obligations to the government.E) None of the above
F) B) and C)

Question 20

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

Accepted Answer

A)   final goods and services that are purchased by the U.S. federal government
B)   intermediate goods that are produced in the U.S. but that are unsold at the end of the GDP accounting period
C)   goods and services produced by foreign citizens working in the U.S.
D)   All of the above are included in U.S. GDP.E) None of the above
F) B) and D)

Exam 5: Measuring a Nations Income

Which of the following is not a correct statement about the growth of real GDP in the U.S. economy?

Correct AnswerverifiedShow Answer

In the economy of Talikastan in 2015, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $1800, and imports were $1200. What was Talikastan's investment in 2015?

Correct AnswerverifiedShow Answer

The government computes measures of income other than GDP because these other measures usually tell different stories about overall economic conditions.

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

Table 23-11 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 23-11. What was the inflation rate for 2011? Show your work.

Correct AnswerverifiedFor 2010 the GDP Deflator was 112. Nomin...View AnswerShow 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

A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10. Smith's Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP?

Correct AnswerverifiedShow Answer

Which of the following is included in the investment component of GDP?

Correct AnswerverifiedShow Answer

If in some year nominal GDP was $10 trillion and real GDP was $4 trillion, what was the GDP deflator?

Correct AnswerverifiedShow Answer

Table 23-11 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 23-11. What was nominal GDP, real GDP, and the GDP deflator for 2009? Show your work.

Correct AnswerverifiedNominal GDP was $5x90 + $50x15...View AnswerShow Answer

National income is defined as

Correct AnswerverifiedShow Answer

In the economy of Talikastan in 2015, consumption was $3000, exports were $400, GDP was $5000, imports were $500, and investment was $1400. What were Talikastan's government purchases in 2015?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the United States in 2012, purchases of capital equipment, inventories, and structures represented approximately

Correct AnswerverifiedShow Answer

Table 23-3 The table below contains data for the country of Crete for the year 2010. -Refer to Table 23-3. What were Crete's net exports in 2010?

Correct AnswerverifiedShow Answer

Which of the following items is included in GDP?

Correct AnswerverifiedShow Answer

GDP is used as the basic measure of a society's economic well-being. A better measure of the economic well-being of individuals in society is

Correct AnswerverifiedShow Answer

Which of the following subcomponents of GDP can be either positive or negative?

Correct AnswerverifiedShow Answer

In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were $1700, imports were $400, and investment was $1800. What was Talikastan's consumption in 2015?

Correct AnswerverifiedShow Answer

A macroeconomist is interested in

Correct AnswerverifiedShow Answer

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For 2010 the GDP Deflator was 112. Nomin...
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Nominal GDP was $5x90 + $50x15...
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