Question 1

Which government entity computes U.S. GDP every three months?

Accepted Answer

A)   the Council of Economic Advisers
B)   the Department of Commerce
C)   the Department of Treasury
D)   the Federal ReserveE) A) and C)
F) A) and B)

Question 2

In the economy of Talikastan in 2015, exports were $200, GDP was $2000, government purchases were $200, imports were $270, and investment was $500. What was Talikastan's consumption in 2015?

Accepted Answer

A)   $830
B)   $1230
C)   $1370
D)   $1770E) B) and C)
F) A) and C)

Question 3

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

Question 4

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.

-Refer to Table 23-11.
What was nominal GDP, real GDP, and the GDP deflator for 2011? Show your work.

Accepted Answer

Nominal GDP was $6x80 + $65x12...

Question 5

Most goods whose purchases are included in the investment component of GDP are used to produce other goods in future periods.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

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 2011, this country's nominal GDP was

Accepted Answer

A)   $260.
B)   $440.
C)   $620.
D)   $760.E) B) and C)
F) A) and D) B

Question 8

Suppose the government passes a law eliminating holidays and, as a result, the production of goods and services increases because people work more days per year and thus enjoy less leisure per year) . Based on this scenario, which of the following statements is correct?

Accepted Answer

A)   GDP would definitely increase, despite the fact that GDP includes leisure.
B)   GDP would definitely increase because GDP excludes leisure.
C)   GDP could either increase or decrease because GDP includes leisure.
D)   GDP could either increase or decrease because GDP excludes leisure.E) B) and D)
F) B) and C)

Question 9

Net exports equal

Accepted Answer

A)   exports plus imports.
B)   exports minus imports.
C)   imports minus exports.
D)   GDP minus imports.E) A) and C)
F) A) and B)

Question 10

In the circular flow diagram what are the three types of payments from firms to factors of production? Is the sum of these payments greater than, less than, or equal to GDP?

Accepted Answer

Wages, rents, and pr...

Question 11

In 2009, the level of U.S. real GDP was close to four times its 1965 level.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements regarding GDP is correct?

Accepted Answer

A)   GDP includes factory production, but not any harm that may be inflicted on the environment.
B)   GDP accounts for all activities taking place outside markets.
C)   GDP provides detailed information about the distribution of income.
D)   GDP is a good measure of economic well-being for all purposes.E) A) and D)
F) A) and B)

Question 13

Between 1929 and 1933, NNP measured in current prices fell from $96 billion to $48 billion. Over the same period, the relevant price index fell from 100 to 75.
a. What was the percentage decline in nominal NNP from 1929 to1933?
b. What was the percentage decline in real NNP from 1929 to 1933? Show your work.

Accepted Answer

a. NNP measured in current prices is nominal NNP. Nominal NNP fell from $96billion to $48 billion, a decline of 50 percent.
b. Real NNP is nominal NNP divided by the price index and multiplied by 100. RealNNP in 1929 was $96 b/100) 100 = $96 b. Real NNP in 1933 was $48 b/75)100 = $64 b. Real NNP fell from $96 billion to $64 billion, a decline of 33 percent.

Question 14

Macroeconomic statistics tell us about a particular household, firm, or market.

Accepted Answer

A) True 
 B)False

Question 15

Gina, a U.S. citizen, works only in Bermuda. The value of Gina's production is included in

Accepted Answer

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

Question 16

Table 23-8
A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year.
 
-Refer to Table 23-8. In 2012, nominal GDP is

Accepted Answer

A)   $191.50, and real GDP is $170.
B)   $157, and real GDP is $170.
C)   $191.50, and real GDP is $157.
D)   $170, and real GDP is $227.50.E) None of the above
F) A) and B) A

Question 17

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 18

If real GDP is 5,100 and nominal GDP is 4,900, then the GDP deflator is

Accepted Answer

A)   104.1 so prices are higher than in the base year.
B)   104.1 so prices are lower than in the base year.
C)   96.1 so prices are higher than in the base year.
D)   96.1 so prices are lower than in the base year.E) A) and B)
F) A) and C)

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) None of the above
F) A) and D)

Question 20

The government purchases component of GDP includes salaries paid to soldiers but not Social Security benefits paid to the elderly.

Accepted Answer

A) True 
 B)False

Exam 15: Measuring a Nations Income

Which government entity computes U.S. GDP every three months?

Correct Answer
verified

In the economy of Talikastan in 2015, exports were $200, GDP was $2000, government purchases were $200, imports were $270, and investment was $500. What was Talikastan's consumption in 2015?

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

Correct Answer
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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. -Refer to Table 23-11. What was nominal GDP, real GDP, and the GDP deflator for 2011? Show your work.

Correct Answer
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Nominal GDP was $6x80 + $65x12...
View Answer

Most goods whose purchases are included in the investment component of GDP are used to produce other goods in future periods.

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

Correct Answer
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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 2011, this country's nominal GDP was

Correct Answer
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B

Suppose the government passes a law eliminating holidays and, as a result, the production of goods and services increases because people work more days per year and thus enjoy less leisure per year) . Based on this scenario, which of the following statements is correct?

Correct Answer
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Net exports equal

Correct Answer
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In the circular flow diagram what are the three types of payments from firms to factors of production? Is the sum of these payments greater than, less than, or equal to GDP?

Correct Answer
verified
Wages, rents, and pr...
View Answer

In 2009, the level of U.S. real GDP was close to four times its 1965 level.

Correct Answer
verified

Which of the following statements regarding GDP is correct?

Correct Answer
verified

Macroeconomic statistics tell us about a particular household, firm, or market.

Correct Answer
verified

Gina, a U.S. citizen, works only in Bermuda. The value of Gina's production is included in

Correct Answer
verified

Table 23-8 A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-8. In 2012, nominal GDP is

Correct Answer
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A

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

Correct Answer
verified

If real GDP is 5,100 and nominal GDP is 4,900, then the GDP deflator is

Correct Answer
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Net exports equal

Correct Answer
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The government purchases component of GDP includes salaries paid to soldiers but not Social Security benefits paid to the elderly.

Correct Answer
verified

Exam 15: Measuring a Nations Income

Which government entity computes U.S. GDP every three months?

Correct AnswerverifiedShow Answer

In the economy of Talikastan in 2015, exports were $200, GDP was $2000, government purchases were $200, imports were $270, and investment was $500. What was Talikastan's consumption in 2015?

Correct AnswerverifiedShow Answer

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

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. -Refer to Table 23-11. What was nominal GDP, real GDP, and the GDP deflator for 2011? Show your work.

Correct AnswerverifiedNominal GDP was $6x80 + $65x12...View AnswerShow Answer

Most goods whose purchases are included in the investment component of GDP are used to produce other goods in future periods.

Correct AnswerverifiedShow Answer

Which of the following is included in the investment component of 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 2011, this country's nominal GDP was

Correct AnswerverifiedB

Suppose the government passes a law eliminating holidays and, as a result, the production of goods and services increases because people work more days per year and thus enjoy less leisure per year) . Based on this scenario, which of the following statements is correct?

Correct AnswerverifiedShow Answer

Net exports equal

Correct AnswerverifiedShow Answer

In the circular flow diagram what are the three types of payments from firms to factors of production? Is the sum of these payments greater than, less than, or equal to GDP?

Correct AnswerverifiedWages, rents, and pr...View AnswerShow Answer

In 2009, the level of U.S. real GDP was close to four times its 1965 level.

Correct AnswerverifiedShow Answer

Which of the following statements regarding GDP is correct?

Correct AnswerverifiedShow Answer

Macroeconomic statistics tell us about a particular household, firm, or market.

Correct AnswerverifiedShow Answer

Gina, a U.S. citizen, works only in Bermuda. The value of Gina's production is included in

Correct AnswerverifiedShow Answer

Table 23-8 A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-8. In 2012, nominal GDP is

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

If real GDP is 5,100 and nominal GDP is 4,900, then the GDP deflator is

Correct AnswerverifiedShow Answer

Net exports equal

Correct AnswerverifiedShow Answer

The government purchases component of GDP includes salaries paid to soldiers but not Social Security benefits paid to the elderly.

Correct AnswerverifiedShow Answer

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Nominal GDP was $6x80 + $65x12...
View Answer

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B

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Wages, rents, and pr...
View Answer

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A

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