Question 1

The inflation-adjusted value of final goods and services produced in the United States measures:

Accepted Answer

A)   Nominal GDP.
B)   Real GDP.
C)   Per capita GDP.
D)   GDP per worker.

Question 2

Why is using real GDP a better measurement of GDP than using nominal GDP?

Accepted Answer

GDP is based on both physical output and...

Question 3

U.S.GDP for 2012 was approximately:

Accepted Answer

A)   $11 trillion.
B)   $100 billion.
C)   $15 trillion.
D)   $20 trillion.

Question 4

Ceteris paribus GDP most closely measures:

Accepted Answer

A)   Output per worker.
B)   A summary of the world's output.
C)   The total value of all final goods and services produced within a nation's borders in a given year.
D)   The rate of change in capital stock.

Question 5

U.S.net exports are:

Accepted Answer

A)   Equal to the value of exports minus the value of imports.
B)   Positive if the U.S.imports more than it exports.
C)   A larger portion of GDP than investment.
D)   Always equal to zero.

Question 6

Which of the following countries currently has the largest GDP?

Accepted Answer

A)   Japan.
B)   China.
C)   Britain.
D)   United States.

Question 7

Externalities are costs or benefits of a market activity borne by a third party.

Accepted Answer

A) True 
 B)False

Question 8

Productivity measures:

Accepted Answer

A)   Output per worker.
B)   The dollar value of investment.
C)   Final goods minus intermediate goods.
D)   The total amount of goods produced in the United States.

Question 9

As a portion of GDP,government purchases include:

Accepted Answer

A)   Food stamps.
B)   National defense expenditures.
C)   Unemployment benefits.
D)   Welfare checks.

Question 10

Suppose during a year an economy produces $10 trillion of consumer goods,$4 trillion of investment goods,$6 trillion in government services,and has $4 trillion of exports and $5 trillion of imports.GDP would be:

Accepted Answer

A)   $19 trillion.
B)   $21 trillion.
C)   $24 trillion.
D)   $29 trillion.

Question 11

The growth of international trade for the United States has been enhanced by:

Accepted Answer

A)   An increase in trade barriers.
B)   Improved communication and transportation technologies.
C)   A decline in the government and services sectors.
D)   An increase in domestic manufacturing.

Question 12

To compare the standard of living of one country to another,economists use:

Accepted Answer

A)   Per capita GDP.
B)   Real GDP.
C)   Nominal GDP.
D)   Output per worker.

Question 13

U.S.corporations account for the majority of output in the country even though proprietorships outnumber corporations.

Accepted Answer

A) True 
 B)False

Question 14

The manufacturing share of output has increased in the United States since World War II.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an example of investment,as a component of GDP?

Accepted Answer

A)   The purchase of a truck by a delivery company.
B)   The purchase of Ford stock by an individual saving for retirement.
C)   The purchase of land by an individual.
D)   The purchase of bridges and dams by the government.

Question 16

The decline in employment in the farm sector in the U.S.during the 1900s can be attributed primarily to:

Accepted Answer

A)   New technology that made it possible to grow more food with fewer workers.
B)   An increase in the importance of the manufacturing sector.
C)   Competition from imported agricultural products.
D)   A decline in the amount of food consumption per person.

Question 17

The reason that U.S.productivity is so high is because the United States has more natural resources and a larger population than any other country in the world.

Accepted Answer

A) True 
 B)False

Question 18

Suppose during a year an economy produces $6 trillion of consumer goods,$1 trillion of investment goods,$2 trillion in government services,and has $3 trillion of exports and $2 trillion of imports.GDP would be:

Accepted Answer

A)   $8 trillion.
B)   $10 trillion.
C)   $12 trillion.
D)   $14 trillion.

Question 19

Currently,the U.S.economy is best described as:

Accepted Answer

A)   A service economy.
B)   A manufacturing economy.
C)   An agricultural economy.
D)   A government economy.

Question 20

Which of the following statements is true concerning income inequality?

Accepted Answer

A)   Income is distributed equally in poor countries.
B)   Rich countries have greater income inequality than poor countries.
C)   The government has no mechanism for altering income inequality.
D)   A free market economy produces an unequal distribution of income.

Exam 2: The US Economy

Suppose during a year an economy produces $6 trillion of consumer goods,$1 trillion of investment goods,$2 trillion in government services,and has $3 trillion of exports and $2 trillion of imports.GDP would be:

Correct AnswerverifiedShow Answer

The decline in employment in the farm sector in the U.S.during the 1900s can be attributed primarily to:

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Which of the following is an example of investment,as a component of GDP?

Correct AnswerverifiedShow Answer

To compare the standard of living of one country to another,economists use:

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Suppose during a year an economy produces $10 trillion of consumer goods,$4 trillion of investment goods,$6 trillion in government services,and has $4 trillion of exports and $5 trillion of imports.GDP would be:

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U.S.GDP for 2012 was approximately:

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As a portion of GDP,government purchases include:

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Productivity measures:

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Which of the following countries currently has the largest GDP?

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Why is using real GDP a better measurement of GDP than using nominal GDP?

Correct AnswerverifiedGDP is based on both physical output and...View AnswerShow Answer

Which of the following statements is true concerning income inequality?

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U.S.corporations account for the majority of output in the country even though proprietorships outnumber corporations.

Correct AnswerverifiedShow Answer

The growth of international trade for the United States has been enhanced by:

Correct AnswerverifiedShow Answer

Currently,the U.S.economy is best described as:

Correct AnswerverifiedShow Answer

The manufacturing share of output has increased in the United States since World War II.

Correct AnswerverifiedShow Answer

U.S.net exports are:

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The reason that U.S.productivity is so high is because the United States has more natural resources and a larger population than any other country in the world.

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The inflation-adjusted value of final goods and services produced in the United States measures:

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Externalities are costs or benefits of a market activity borne by a third party.

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Ceteris paribus GDP most closely measures:

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GDP is based on both physical output and...
View Answer

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