Question 1

Which of the following is included in the consumption component of GDP?

Accepted Answer

A)   household purchases of appliances.
B)   household purchases of medical care.
C)   household purchases of food.
D)   All of the above are included in the consumption component of GDP.

Question 2

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. In which year was this country's nominal GDP highest?

Accepted Answer

A)   2014
B)   2015
C)   2016
D)   2017

Question 3

Which of the following transactions is not included in GDP?

Accepted Answer

A)   oranges sold to households by a grocer.
B)   orange juice sold by a restaurant to its diners.
C)   oranges sold by a farmer to a grocery store.
D)   All of the above are included in GDP.

Question 4

Consumption is $5.5 trillion, investment is $1 trillion, government expenditures are $1.5 trillion, transfer payments are $.5 trillion, exports are $.75 trillion and imports are $1.25 trillion. What is GDP?

Accepted Answer

GDP = C + I + G + NX = $5.5 tr...

Question 5

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

Accepted Answer

A)   $6359
B)   $7136
C)   $7253
D)   $8147

Question 6

Estimates of the values of which of the following non-market goods or services are included in GDP?

Accepted Answer

A)   the value of unpaid housework
B)   the value of services provided by major household appliances purchased in a previous period
C)   the estimated rental value of owner-occupied homes
D)   All of the above are included in GDP.

Question 7

Table 23-4
The table below reports nominal and real GDP for the U.S. from 1929 to 1932. 
-Refer to Table 23-4. What are the GDP deflator and the inflation rate for 1932?

Accepted Answer

A)   8.09, -11.7
B)   8.09.16, -13.3
C)   1236.46, 11.7
D)   1236.46, 13.3

Question 8

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 nominal GDP was

Accepted Answer

A)   $260.
B)   $440.
C)   $620.
D)   $760.

Question 9

You find that your paycheck for the year is higher this year than last. Does that mean that your real income has increased? Explain carefully.

Accepted Answer

Real income is nominal income adjusted f...

Question 10

GDP is equal to

Accepted Answer

A)   the market value of all final goods and services produced within a country in a given period of time.
B)   Y.
C)   C + I + G + NX.
D)   All of the above are correct.

Question 11

Janet bought flour and used it to bake bread she ate. ABC Bakery bought flour which it used to bake bread that customers purchased. In which case will the flour be counted as a final good?

Accepted Answer

A)   Janet's purchase and ABC Bakery's purchase.
B)   ABC Bakery's purchase but not Janet's purchase.
C)   Janet's purchase but not ABC Bakery's purchase.
D)   Neither Janet's purchase nor ABC Bakery's purchase.

Question 12

Macroeconomics is the study of the economy as a whole.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 2013, this country's GDP deflator was

Accepted Answer

A)   1.0.
B)   100.0.
C)   171.4.
D)   240.0.

Question 15

Expenditures on a nation's domestic production

Accepted Answer

A)   are less than its domestic production.
B)   are equal to its domestic production.
C)   are greater than its domestic production.
D)   could be less than, equal to, or greater than its domestic production.

Question 16

Which of the following statements about nominal GDP and real GDP is correct?

Accepted Answer

A)   Nominal GDP is a better gauge of economic well-being than real GDP.
B)   Real GDP is a better gauge of economic well-being than nominal GDP.
C)   Real GDP and nominal GDP are equally good measures of economic well-being.
D)   Neither nominal nor real GDP provide a measure of economic well-being.

Question 17

In 2012, U.S. GDP was almost

Accepted Answer

A)   $16 trillion.
B)   $12 trillion.
C)   $15 trillion.
D)   $14 trillion.

Question 18

An economy's income is the same as its expenditure because every transaction has a buyer and a seller.

Accepted Answer

A) True 
 B)False

Question 19

National income is defined as

Accepted Answer

A)   the total income of a nation's permanent residents minus losses from depreciation.
B)   the income that households and noncorporate businesses receive.
C)   the total income earned by a nation's permanent residents in the production of goods and services.
D)   the income that households and noncorporate businesses have left after satisfying all their obligations to the government.

Question 20

Identify which of the following are included in the government purchases component of GDP.the salary paid to a state court judge unemployment insurance benefits the payment made by the federal government for a jet fighter social security payments a county builds a jail building

Accepted Answer

The following are included in ...

Exam 23: Measuring a Nations Income

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

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Table 23-4 The table below reports nominal and real GDP for the U.S. from 1929 to 1932. -Refer to Table 23-4. What are the GDP deflator and the inflation rate for 1932?

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Macroeconomics is the study of the economy as a whole.

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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 2010, this country's nominal GDP was

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Identify which of the following are included in the government purchases component of GDP.the salary paid to a state court judge unemployment insurance benefits the payment made by the federal government for a jet fighter social security payments a county builds a jail building

Correct AnswerverifiedThe following are included in ...View AnswerShow Answer

You find that your paycheck for the year is higher this year than last. Does that mean that your real income has increased? Explain carefully.

Correct AnswerverifiedReal income is nominal income adjusted f...View AnswerShow Answer

In 2012, U.S. GDP was almost

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Expenditures on a nation's domestic production

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Which of the following statements about nominal GDP and real GDP is correct?

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Which of the following is included in the consumption component of GDP?

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Which of the following transactions is not included in GDP?

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Estimates of the values of which of the following non-market goods or services are included in GDP?

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Consumption is $5.5 trillion, investment is $1 trillion, government expenditures are $1.5 trillion, transfer payments are $.5 trillion, exports are $.75 trillion and imports are $1.25 trillion. What is GDP?

Correct AnswerverifiedGDP = C + I + G + NX = $5.5 tr...View AnswerShow 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 2013, this country's GDP deflator was

Correct AnswerverifiedShow Answer

National income is defined as

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GDP is equal to

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

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An economy's income is the same as its expenditure because every transaction has a buyer and a seller.

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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. In which year was this country's nominal GDP highest?

Correct AnswerverifiedShow Answer

Janet bought flour and used it to bake bread she ate. ABC Bakery bought flour which it used to bake bread that customers purchased. In which case will the flour be counted as a final good?

Correct AnswerverifiedShow Answer

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The following are included in ...
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Real income is nominal income adjusted f...
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GDP = C + I + G + NX = $5.5 tr...
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