Question 1

Changes in the GDP deflator 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 D)
F) All of the above

Question 2

GDP excludes most of two types of production. List one.

Accepted Answer

GDP excludes most items that a...

Question 3

Macroeconomic statistics include GDP, the inflation rate, the unemployment rate, retail sales, and the trade deficit.

Accepted Answer

A) True 
 B)False

Question 4

Sam, an American citizen, prepares meals for his family at home. Ellen, a Canadian citizen, commutes to the U.S. to help prepare meals at a restaurant in Idaho. Whose value of services preparing meals is included in U.S. GDP?

Accepted Answer

A)   Sam's and Ellen's.
B)   Sam's but not Ellen's.
C)   Ellen's but not Sam's.
D)   Neither Sam's nor Ellen's.E) C) and D)
F) A) and C)

Question 5

Table 23-2
The table below contains data for country A for the year 2010.
 
-Refer to Table 23-2. What were country A's exports in 2010?

Accepted Answer

A)   -$32
B)   $32
C)   $88
D)   $120E) A) and B)
F) A) and C)

Question 6

Table 23-6
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013.
 
-Refer to Table 23-6. In 2010, this country's real GDP was

Accepted Answer

A)   $620.
B)   $260.
C)   $400.
D)   $630.E) None of the above
F) A) and C)

Question 7

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

Question 8

The underground economy

Accepted Answer

A)   excludes the amount of criminal activity in an economy.
B)   is larger for developed nations than developing nations when measured as a percent of GDP.
C)   includes otherwise legal transactions that go unreported or unrecorded.
D)   in the United States is insignificant is size when compared to the official measure of GDP.E) A) and B)
F) C) and D)

Question 9

A painter pays $500 for paint he uses to repaint a house. He then presents a bill for $1200 that covers his time and expenses to the homeowner. How much do these transactions add to GDP?

Accepted Answer

A)   $500
B)   $700
C)   $1200
D)   $1700E) B) and D)
F) B) and C)

Question 10

Table 23-7
The table below contains data for the country of Togogo. The base year is 1974.
 
-Refer to Table 23-7. From 1976 to 1977,

Accepted Answer

A)   inflation was 33.3% and output grew at a rate of 20%.
B)   inflation was 33.3% and output grew at a rate of 60%.
C)   inflation was 50% and output grew at a rate of 20%.
D)   inflation was 50% and output grew at a rate of 60%.E) A) and D)
F) None of the above

Question 11

Gross domestic product measures

Accepted Answer

A)   income and expenditures.
B)   income but not expenditures.
C)   expenditures but not income.
D)   neither income nor expenditures.E) None of the above
F) C) and D)

Question 12

Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

Accepted Answer

The answer of Calculate GDP for an economy with exports...

Question 13

Which of the following is a way to compute GDP?

Accepted Answer

A)   add up the wages paid to all workers
B)   add up the quantities of all final goods and services
C)   add up the market values of all final goods and services
D)   add up the difference between the market values of all final goods and services and then subtract the costs of producing those goods and servicesE) A) and B)
F) B) and D)

Question 14

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 C)
F) None of the above

Question 15

Changes in nominal 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) A) and B)
F) All of the above

Question 16

A Mexican oil field service company works on oil rigs in the U.S. The value of the company's services produced by Mexican citizens and the equipment they own is included in

Accepted Answer

A)   Mexican GNP and U.S. GNP.
B)   Mexican GDP and U.S. GNP.
C)   Mexican GNP and U.S. GDP.
D)   Mexican GDP and U.S. GDP.E) A) and C)
F) A) and B)

Question 17

Recessions are associated with lower incomes, rising unemployment, and falling profits.

Accepted Answer

A) True 
 B)False

Question 18

Jennifer lives in a home that was newly constructed in 2011 for which she paid $240,000. In 2014 she sold the house for $260,000. Which of the following statements is correct regarding the sale of the house?

Accepted Answer

A)   The 2014 sale increased 2014 GDP by $260,000 and had no effect on 2011 GDP.
B)   The 2014 sale increased 2014 GDP by $20,000 and had no effect on 2011 GDP.
C)   The 2014 sale increased 2014 GDP by $260,000; furthermore, the 2014 sale caused 2011 GDP to be revised upward by $20,000.
D)   The 2014 sale affected neither 2014 GDP nor 2011 GDP.E) B) and C)
F) C) and D)

Question 19

A U.S.-owned automobile factory uses $100,000 worth of parts purchased from foreign countries along with U.S. inputs to produce 30 cars worth $20,000 each. Twenty of these cars are sold and 10 are left in inventory. How much did these actions add to GDP?

Accepted Answer

A)   $300,000
B)   $500,000
C)   $600,000
D)   $700,000E) B) and C)
F) B) and D)

Question 20

An identity is an equation that

Accepted Answer

A)   describes an equilibrium.
B)   pertains to macroeconomics, not to microeconomics.
C)   must be true because of how the variables in the equation are defined.
D)   involves final goods, not intermediate goods.E) B) and C)
F) A) and C)

Exam 15: Measuring a Nations Income

Jennifer lives in a home that was newly constructed in 2011 for which she paid $240,000. In 2014 she sold the house for $260,000. Which of the following statements is correct regarding the sale of the house?

Correct AnswerverifiedShow Answer

The underground economy

Correct AnswerverifiedShow Answer

GDP excludes most of two types of production. List one.

Correct AnswerverifiedGDP excludes most items that a...View AnswerShow Answer

Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

Correct AnswerverifiedShow Answer

Sam, an American citizen, prepares meals for his family at home. Ellen, a Canadian citizen, commutes to the U.S. to help prepare meals at a restaurant in Idaho. Whose value of services preparing meals is included in U.S. GDP?

Correct AnswerverifiedShow Answer

Changes in the GDP deflator reflect

Correct AnswerverifiedShow Answer

An identity is an equation that

Correct AnswerverifiedShow Answer

Table 23-2 The table below contains data for country A for the year 2010. -Refer to Table 23-2. What were country A's exports in 2010?

Correct AnswerverifiedShow Answer

Table 23-7 The table below contains data for the country of Togogo. The base year is 1974. -Refer to Table 23-7. From 1976 to 1977,

Correct AnswerverifiedShow Answer

Recessions are associated with lower incomes, rising unemployment, and falling profits.

Correct AnswerverifiedShow Answer

Which of the following is a way to compute GDP?

Correct AnswerverifiedShow Answer

A painter pays $500 for paint he uses to repaint a house. He then presents a bill for $1200 that covers his time and expenses to the homeowner. How much do these transactions add to GDP?

Correct AnswerverifiedShow Answer

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. In 2010, this country's real GDP was

Correct AnswerverifiedShow Answer

A Mexican oil field service company works on oil rigs in the U.S. The value of the company's services produced by Mexican citizens and the equipment they own is included in

Correct AnswerverifiedShow Answer

Changes in nominal GDP reflect

Correct AnswerverifiedShow Answer

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

Gross domestic product measures

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

Macroeconomic statistics include GDP, the inflation rate, the unemployment rate, retail sales, and the trade deficit.

Correct AnswerverifiedShow Answer

A U.S.-owned automobile factory uses $100,000 worth of parts purchased from foreign countries along with U.S. inputs to produce 30 cars worth $20,000 each. Twenty of these cars are sold and 10 are left in inventory. How much did these actions add to GDP?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
GDP excludes most items that a...
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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified