Question 1

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 nominal GDP in 2014?

Accepted Answer

A)   $9,500
B)   $10,000
C)   $10,200
D)   $10,500E) C) and D)
F) None of the above

Question 2

Alexandria, a British citizen, owns and manages a fish and chips shop in Washington, D.C.
She buys fresh food produced by U.S. workers, pays utilities to a U.S. company, and employs only U.S. citizens. What part, if any, of the restaurant's production is included in U.S. GDP? What part, if any, of the restaurant's production is included in U.S. GNP?

Accepted Answer

All of the output is included ...

Question 3

Suppose that an economy produces 30,000 units of good A which sells at $3 a unit and 60,000 units of good B which sells at $2 per unit. Production of good A contributes

Accepted Answer

A)   1/2 times as much to GDP as the production of good B.
B)   3/2 times as much to GDP as the production of good B.
C)   3/4 times as much to GDP as the production of good B.
D)   4/3 times as much to GDP as production of good B.E) A) and D)
F) B) and C)

Question 4

A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The oranges produced by the farmer are called

Accepted Answer

A)   inventory goods.
B)   transitory goods.
C)   final goods.
D)   intermediate goods.E) A) and B)
F) A) and C)

Question 5

Unemployment compensation is

Accepted Answer

A)   part of GDP because it represents income.
B)   part of GDP because the recipients must have worked in the past to qualify.
C)   not part of GDP because it is a transfer payment.
D)   not part of GDP because the payments reduce business profits.E) B) and C)
F) All of the above

Question 6

In the actual economy, goods and services are purchased by

Accepted Answer

A)   households, but not firms or the government.
B)   households and firms, but not the government.
C)   households and the government, but not firms.
D)   households, firms, and the government.E) None of the above
F) B) and D)

Question 7

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) None of the above
F) B) and C)

Question 8

Calculate the inflation rate for a country where the GDP deflator rises from 120 to 165.

Accepted Answer

The answer of Calculate the inflation rate for a country...

Question 9

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

Question 10

Which of the following is not correct?

Accepted Answer

A)   GNP equals net national product plus losses from depreciation.
B)   For most countries, including the United States, GDP and GNP are nearly the same.
C)   GDP and GNP typically move in opposite directions.
D)   Personal income equals disposable personal income plus personal taxes plus certain nontax payments.E) C) and D)
F) B) and C)

Question 11

For the economy as a whole,

Accepted Answer

A)   income must be greater than expenditure.
B)   unemployment must rise when GDP rises.
C)   expenditure must equal income.
D)   consumption must be greater than investment.E) None of the above
F) A) and D)

Question 12

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

Question 13

GDP can measure either the total income of everyone in the economy or the total expenditure on the economy's output of goods and services, but GDP cannot measure both at the same time.

Accepted Answer

A) True 
 B)False

Question 14

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 D)
F) None of the above

Question 15

When an Egyptian firm purchases a cement mixer from Slovakia,

Accepted Answer

A)   Egyptian investment does not change, Egyptian net exports decrease, Egyptian GDP decreases, Slovakian net exports increase, and Slovakian GDP increases.
B)   Egyptian investment increases, Egyptian net exports decrease, Egyptian GDP is unaffected, Slovakian net exports increase, and Slovakian GDP increases.
C)   Egyptian investment decreases, Egyptian net exports increase, Egyptian GDP is unaffected, Slovakian net exports decrease, and Slovakian GDP decreases.
D)   Egyptian investment increases, Egyptian net exports do not change, Egyptian GDP increases, Slovakian net exports do not change, and Slovakian GDP is unaffected.E) A) and B)
F) All of the above

Question 16

Which of the following transactions would be included in GDP for 2015?

Accepted Answer

A)   In February 2015, Amanda sells a 2009 Hyundai to Isabella.
B)   In March 2015, Amanda buys a ticket to visit a zoo in Florida. She visits the zoo in February 2016.
C)   In November 2015, Isabella eats onions that she harvested from her backyard garden in October 2015.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 17

Expenditures by households on education are included in the investment component of GDP.

Accepted Answer

A) True 
 B)False

Question 18

Identify the immediate effect of each of the following events on U.S. GDP and its components.
a. James receives a Social Security check.
b. John buys an Italian sports car.
c. Henry buys domestically produced tools for his construction company.

Accepted Answer

a. Since this is a transfer payment, the...

Question 19

Net exports equal

Accepted Answer

A)   exports plus imports.
B)   imports minus exports.
C)   Y - (C + I + G) .
D)   Y - (C - I - G) .E) C) and D)
F) A) and B)

Question 20

A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP

Accepted Answer

A)   increases by $40.
B)   increases by $220.
C)   increases by $280.
D)   increases by $1500.E) B) and C)
F) A) and D)

Exam 23: Measuring a Nations Income

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 nominal GDP in 2014?

Correct Answer
verified

Correct Answer
verified
All of the output is included ...
View Answer

Calculate the inflation rate for a country where the GDP deflator rises from 120 to 165.

Correct Answer
verified

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 Answer
verified

Unemployment compensation is

Correct Answer
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For the economy as a whole,

Correct Answer
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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

Which of the following is not correct?

Correct Answer
verified

Identify the immediate effect of each of the following events on U.S. GDP and its components. a. James receives a Social Security check. b. John buys an Italian sports car. c. Henry buys domestically produced tools for his construction company.

Correct Answer
verified
a. Since this is a transfer payment, the...
View Answer

Changes in real GDP reflect

Correct Answer
verified

A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The oranges produced by the farmer are called

Correct Answer
verified

Expenditures by households on education are included in the investment component of GDP.

Correct Answer
verified

Suppose that an economy produces 30,000 units of good A which sells at $3 a unit and 60,000 units of good B which sells at $2 per unit. Production of good A contributes

Correct Answer
verified

Net exports equal

Correct Answer
verified

When an Egyptian firm purchases a cement mixer from Slovakia,

Correct Answer
verified

According to the circular-flow diagram GDP

Correct Answer
verified

In the actual economy, goods and services are purchased by

Correct Answer
verified

A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP

Correct Answer
verified

Which of the following transactions would be included in GDP for 2015?

Correct Answer
verified

GDP can measure either the total income of everyone in the economy or the total expenditure on the economy's output of goods and services, but GDP cannot measure both at the same time.

Correct Answer
verified

Exam 23: Measuring a Nations Income

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 nominal GDP in 2014?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAll of the output is included ...View AnswerShow Answer

Calculate the inflation rate for a country where the GDP deflator rises from 120 to 165.

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

Unemployment compensation is

Correct AnswerverifiedShow Answer

For the economy as a whole,

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

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Identify the immediate effect of each of the following events on U.S. GDP and its components. a. James receives a Social Security check. b. John buys an Italian sports car. c. Henry buys domestically produced tools for his construction company.

Correct Answerverifieda. Since this is a transfer payment, the...View AnswerShow Answer

Changes in real GDP reflect

Correct AnswerverifiedShow Answer

A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The oranges produced by the farmer are called

Correct AnswerverifiedShow Answer

Expenditures by households on education are included in the investment component of GDP.

Correct AnswerverifiedShow Answer

Suppose that an economy produces 30,000 units of good A which sells at $3 a unit and 60,000 units of good B which sells at $2 per unit. Production of good A contributes

Correct AnswerverifiedShow Answer

Net exports equal

Correct AnswerverifiedShow Answer

When an Egyptian firm purchases a cement mixer from Slovakia,

Correct AnswerverifiedShow Answer

According to the circular-flow diagram GDP

Correct AnswerverifiedShow Answer

In the actual economy, goods and services are purchased by

Correct AnswerverifiedShow Answer

A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP

Correct AnswerverifiedShow Answer

Which of the following transactions would be included in GDP for 2015?

Correct AnswerverifiedShow Answer

GDP can measure either the total income of everyone in the economy or the total expenditure on the economy's output of goods and services, but GDP cannot measure both at the same time.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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verified
All of the output is included ...
View Answer

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a. Since this is a transfer payment, the...
View Answer

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