Question 1

U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing services.

Accepted Answer

A) True 
 B)False

Question 2

Thomas, a U.S. citizen, works only in Canada. The value of the output he produces is

Accepted Answer

A)   included in both U.S. GDP and U.S. GNP.
B)   included in U.S. GDP, but it is not included in U.S. GNP.
C)   included in U.S. GNP, but it is not included in U.S. GDP.
D)   included in neither U.S. GDP nor U.S. GNP.

Question 3

If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real GDP?

Accepted Answer

A)   $2.5 billion.
B)   $10 billion.
C)   $40 billion.
D)   $100 billion.

Question 4

Because every transaction has a buyer and a seller,

Accepted Answer

A)   GDP is more closely associated with an economy's income than it is with an economy's expenditure.
B)   every transaction contributes equally to an economy's income and to its expenditure.
C)   the number of firms must be equal to the number of households in a simple circular-flow diagram.
D)   firms' profits are necessarily zero in a simple circular­flow diagram.

Question 5

The GDP deflator is the ratio of

Accepted Answer

A)   real GDP to nominal GDP multiplied by 100.
B)   real GDP to the inflation rate multiplied by 100.
C)   nominal GDP to real GDP multiplied by 100.
D)   nominal GDP to the inflation rate multiplied by 100.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

How is net national product NNP)  calculated?

Accepted Answer

A)   Saving is added to the total income of a nation's citizens.
B)   Saving is added to the total income earned within a nation.
C)   Depreciation losses are subtracted from the total income of a nation's citizens.
D)   Depreciation losses are subtracted from the total income earned within a nation.

Question 8

How is net national product NNP)  calculated?

Accepted Answer

A)   Saving is subtracted from the total income of a nation's citizens.
B)   Saving is added to the total income of a nation's citizens
C)   Depreciation losses are subtracted from the total income of a nation's citizens.
D)   Depreciation losses are added to the total income of a nation's citizens.

Question 9

If Brazil buys $100 million of tractors from the U.S., then U.S. net exports will decrease.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statistics is usually regarded as the best single measure of a society's economic well­being?

Accepted Answer

A)   the unemployment rate
B)   the inflation rate
C)   gross domestic product
D)   the trade deficit

Question 11

Define GDP. Remember to be specific about what it includes.

Accepted Answer

GDP is the market value of all...

Question 12

A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarters)  is are)  GDP higher?

Accepted Answer

A)   the first and the second
B)   the first but not the second
C)   the second but not the first
D)   neither the first nor the second

Question 13

A transfer payment is a payment made by

Accepted Answer

A)   consumers, but not in exchange for a tangible product.
B)   firms, but not in exchange for capital equipment.
C)   foreigners, but not in exchange for a domestically-produced good or service.
D)   government, but not in exchange for a currently produced good or service.

Question 14

Table 23-5
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015.
Prices and Quantities
 
-Refer to Table 23-5. In 2015, this country's

Accepted Answer

A)   nominal GDP was greater than real GDP, and the GDP deflator was greater than 100.
B)   nominal GDP was equal to real GDP, and the GDP deflator was equal to 100%.
C)   nominal GDP was less than real GDP, and the GDP deflator was less than 100.
D)   nominal GDP was equal to real GDP, and the GDP deflator was equal to 100.

Question 15

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

Accepted Answer

A)   $1810
B)   $2013
C)   $2315
D)   $3131

Question 16

Tim mows the yard for his neighbors. He spends $1 on gas and charges them $20 for each lawn he mows. What's the total contribution to GDP each time Tim mows a yard?

Accepted Answer

A)   $1
B)   $19
C)   $20
D)   $21

Question 17

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

Accepted Answer

A)   included in GDP whether Susan pays Speedy Lube to change it or changes it herself.
B)   included in GDP if Susan pays Speedy Lube to change it but not if she changes it herself.
C)   included in GDP if Susan changes it herself, but not if she pays Speedy Lube to change it.
D)   not included in GDP whether Susan pays Speedy lube to change it or she changes it herself.

Question 18

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 2012, this country's GDP deflator was

Accepted Answer

A)   74.2.
B)   100.0.
C)   171.4.
D)   240.0.

Question 19

Table 23-5
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015.
Prices and Quantities
 
-Refer to Table 23-5. This country's inflation rate from 2017 to 2018 was

Accepted Answer

A)   20.0%.
B)   21.8%.
C)   38.9%.
D)   28.0%.

Question 20

Darin grows and sells marijuana to Jennifer. Thomas is an organic farmer who sells broccoli to Jennifer. Marijuana is an illegal good and broccoli is a legal good. Assume that if Jennifer marries either, they give her what they use to sell her. Which of the following statements is consistent with the way GDP is computed?

Accepted Answer

A)   GDP will fall if Jennifer marries either Darin or Thomas.
B)   GDP will fall if Jennifer marries Darin but not if she marries Thomas.
C)   GDP will fall if Jennifer marries Thomas but not if she marries Darin.
D)   GDP remains the same whether Jennifer marries Darin or Thomas.

Exam 10: Measuring a Nations Income

A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarters) is are) GDP higher?

Correct Answer
verified

A transfer payment is a payment made by

Correct Answer
verified

Tim mows the yard for his neighbors. He spends $1 on gas and charges them $20 for each lawn he mows. What's the total contribution to GDP each time Tim mows a yard?

Correct Answer
verified

Because every transaction has a buyer and a seller,

Correct Answer
verified

Correct Answer
verified

The GDP deflator is the ratio of

Correct Answer
verified

How is net national product NNP) calculated?

Correct Answer
verified

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

Correct Answer
verified

How is net national product NNP) calculated?

Correct Answer
verified

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

Correct Answer
verified

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 2012, this country's GDP deflator was

Correct Answer
verified

Define GDP. Remember to be specific about what it includes.

Correct Answer
verified
GDP is the market value of all...
View Answer

Thomas, a U.S. citizen, works only in Canada. The value of the output he produces is

Correct Answer
verified

If Brazil buys $100 million of tractors from the U.S., then U.S. net exports will decrease.

Correct Answer
verified

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

Correct Answer
verified

Table 23-5 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities -Refer to Table 23-5. In 2015, this country's

Correct Answer
verified

If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real GDP?

Correct Answer
verified

Which of the following statistics is usually regarded as the best single measure of a society's economic wellbeing?

Correct Answer
verified

Table 23-5 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities -Refer to Table 23-5. This country's inflation rate from 2017 to 2018 was

Correct Answer
verified

U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing services.

Correct Answer
verified

Exam 10: Measuring a Nations Income

A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarters) is are) GDP higher?

Correct AnswerverifiedShow Answer

A transfer payment is a payment made by

Correct AnswerverifiedShow Answer

Tim mows the yard for his neighbors. He spends $1 on gas and charges them $20 for each lawn he mows. What's the total contribution to GDP each time Tim mows a yard?

Correct AnswerverifiedShow Answer

Because every transaction has a buyer and a seller,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The GDP deflator is the ratio of

Correct AnswerverifiedShow Answer

How is net national product NNP) calculated?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How is net national product NNP) calculated?

Correct AnswerverifiedShow Answer

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

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 2012, this country's GDP deflator was

Correct AnswerverifiedShow Answer

Define GDP. Remember to be specific about what it includes.

Correct AnswerverifiedGDP is the market value of all...View AnswerShow Answer

Thomas, a U.S. citizen, works only in Canada. The value of the output he produces is

Correct AnswerverifiedShow Answer

If Brazil buys $100 million of tractors from the U.S., then U.S. net exports will decrease.

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 was Crete's consumption in 2010?

Correct AnswerverifiedShow Answer

Table 23-5 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities -Refer to Table 23-5. In 2015, this country's

Correct AnswerverifiedShow Answer

If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real GDP?

Correct AnswerverifiedShow Answer

Which of the following statistics is usually regarded as the best single measure of a society's economic well­being?

Correct AnswerverifiedShow Answer

Table 23-5 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities -Refer to Table 23-5. This country's inflation rate from 2017 to 2018 was

Correct AnswerverifiedShow Answer

U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing services.

Correct AnswerverifiedShow Answer

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GDP is the market value of all...
View Answer

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verified

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Correct Answer
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Correct Answer
verified

Which of the following statistics is usually regarded as the best single measure of a society's economic wellbeing?

Correct Answer
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Correct Answer
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