Question 1

Net exports equals

Accepted Answer

A)   exports divided by imports.
B)   the sum of exports and imports.
C)   exports minus imports.
D)   exports during the year.
E)   none of the above

Question 2

Real GDP is the value of all __________ goods and services produced in a given year in __________ prices.

Accepted Answer

A)   intermediate;that year's
B)   intermediate;base-year
C)   final;that year's
D)   final;base-year

Question 3

GDP can rise as a result of a rise in __________________,and Real GDP can rise as a result of a rise in _______________________.

Accepted Answer

A)   prices or output;prices only.
B)   prices only;prices or output.
C)   prices or output;output only.
D)   prices or output;prices or output.

Question 4

Draw an appropriate diagram to represent the business cycle and label each of the five phases.Provide a brief description of each phase.

Accepted Answer

The five phases of the business cycle ar...

Question 5

Exhibit 7-2
 
-Refer to Exhibit 7-2.GDP in 2012 is

Accepted Answer

A)   $49.
B)   $51.
C)   $86.
D)   $92.
E)   not possible to calculate without the CPI.

Question 6

The largest component of national income in the United States is

Accepted Answer

A)   rental income.
B)   proprietors' income.
C)   compensation of employees.
D)   corporate profits.
E)   net interest.

Question 7

Business firms make which of the following two types of investment?

Accepted Answer

A)   foreign investment and domestic investment
B)   fixed investment and capital investment
C)   investment in stocks and investment in bonds
D)   investment in new capital goods and investment in used capital goods to replace "worn-out" capital goods
E)   fixed investment and inventory investment

Question 8

In the survey of Harvard University students noted in the text,the majority of students chose to

Accepted Answer

A)   be poorer in absolute terms,as long as they could be richer in relative terms.
B)   be richer in absolute terms,even though they would be poorer in relative terms.
C)   move into a poorer neighborhood even if they were relatively rich.
D)   move into a richer neighborhood even if they were relatively poor.

Question 9

In the United States,the largest expenditure component in GDP is

Accepted Answer

A)   gross private domestic investment.
B)   government purchases of goods and services.
C)   consumption expenditures.
D)   net exports.
E)   none of the above

Question 10

An example of income "earned-but-not-received" is corporate dividends.

Accepted Answer

A) True 
 B)False

Question 11

Personal income is

Accepted Answer

A)   equal to GDP.
B)   that portion of national income that can be used for consumption and saving.
C)   the sum of all payments to suppliers of the factors of production.
D)   the amount of income that individuals actually receive.
E)   another term for disposable income.

Question 12

Describe the three different reasons that investment can rise.Explain how one of these three changes could be undesireable in terms of promoting the economic health and strength of the economy.

Accepted Answer

Investment can rise as a result of: (1)a...

Question 13

Which of the following would not be included in the measurement of GDP?

Accepted Answer

A)   a bill from a car mechanic
B)   wages of a card dealer working in a Las Vegas casino
C)   commissions of a stockbroker
D)   the increased value of shares of stock
E)   c and d

Question 14

Net exports must always be a positive amount.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following does GDP omit?

Accepted Answer

A)   Jack purchases $2,300 worth of stock in company X.
B)   Bob mows his lawn and washes and irons his shirts.
C)   Helen receives $4,000 a year in Social Security payments.
D)   a and b
E)   a,b,and c

Question 16

Which of the following statements is true?

Accepted Answer

A)   Another name for capital consumption allowance is depreciation.
B)   When there are two consecutive quarterly declines in Real GDP the economy is said to be in recession (based on the standard definition) .
C)   The expansion of a business cycle refers to increases in Real GDP beyond the recovery.
D)   a and b
E)   a,b,and c

Question 17

Suppose the total market value of all final goods and services produced this year in economy X is $4 million.Of the $4 million worth of goods,$3 million is sold and $1 million is held in inventory.For this year,the GDP for economy X is

Accepted Answer

A)   $4 million.
B)   $3 million.
C)   $1 million.
D)   $7 million.
E)   none of the above

Question 18

What is the proper sequence of the phases of a business cycle?

Accepted Answer

A)   peak,contraction,trough,expansion,recovery
B)   peak,contraction,recovery,trough,expansion
C)   peak,contraction,trough,recovery,expansion
D)   contraction,peak,trough,recovery,expansion
E)   recovery,trough,peak,expansion,contraction

Exam 7: Macroeconomic Measurements, Gdp and Real Gdp

Draw an appropriate diagram to represent the business cycle and label each of the five phases.Provide a brief description of each phase.

Correct Answer
verified
The five phases of the business cycle ar...
View Answer

What is the proper sequence of the phases of a business cycle?

Correct Answer
verified

In the United States,the largest expenditure component in GDP is

Correct Answer
verified

Describe the three different reasons that investment can rise.Explain how one of these three changes could be undesireable in terms of promoting the economic health and strength of the economy.

Correct Answer
verified
Investment can rise as a result of: (1)a...
View Answer

The largest component of national income in the United States is

Correct Answer
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Which of the following would not be included in the measurement of GDP?

Correct Answer
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Real GDP is the value of all goods and services produced in a given year in prices.

Correct Answer
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Net exports equals

Correct Answer
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Net exports must always be a positive amount.

Correct Answer
verified

An example of income "earned-but-not-received" is corporate dividends.

Correct Answer
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Exhibit 7-2 -Refer to Exhibit 7-2.GDP in 2012 is

Correct Answer
verified

Which of the following statements is true?

Correct Answer
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Which of the following does GDP omit?

Correct Answer
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GDP can rise as a result of a rise in ,and Real GDP can rise as a result of a rise in _____.

Correct Answer
verified

Suppose the total market value of all final goods and services produced this year in economy X is $4 million.Of the $4 million worth of goods,$3 million is sold and $1 million is held in inventory.For this year,the GDP for economy X is

Correct Answer
verified

In the survey of Harvard University students noted in the text,the majority of students chose to

Correct Answer
verified

Personal income is

Correct Answer
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Business firms make which of the following two types of investment?

Correct Answer
verified

Exam 7: Macroeconomic Measurements, Gdp and Real Gdp

Draw an appropriate diagram to represent the business cycle and label each of the five phases.Provide a brief description of each phase.

Correct AnswerverifiedThe five phases of the business cycle ar...View AnswerShow Answer

What is the proper sequence of the phases of a business cycle?

Correct AnswerverifiedShow Answer

In the United States,the largest expenditure component in GDP is

Correct AnswerverifiedShow Answer

Describe the three different reasons that investment can rise.Explain how one of these three changes could be undesireable in terms of promoting the economic health and strength of the economy.

Correct AnswerverifiedInvestment can rise as a result of: (1)a...View AnswerShow Answer

The largest component of national income in the United States is

Correct AnswerverifiedShow Answer

Which of the following would not be included in the measurement of GDP?

Correct AnswerverifiedShow Answer

Real GDP is the value of all __________ goods and services produced in a given year in __________ prices.

Correct AnswerverifiedShow Answer

Net exports equals

Correct AnswerverifiedShow Answer

Net exports must always be a positive amount.

Correct AnswerverifiedShow Answer

An example of income "earned-but-not-received" is corporate dividends.

Correct AnswerverifiedShow Answer

Exhibit 7-2 -Refer to Exhibit 7-2.GDP in 2012 is

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Which of the following does GDP omit?

Correct AnswerverifiedShow Answer

GDP can rise as a result of a rise in __________________,and Real GDP can rise as a result of a rise in _______________________.

Correct AnswerverifiedShow Answer

Suppose the total market value of all final goods and services produced this year in economy X is $4 million.Of the $4 million worth of goods,$3 million is sold and $1 million is held in inventory.For this year,the GDP for economy X is

Correct AnswerverifiedShow Answer

In the survey of Harvard University students noted in the text,the majority of students chose to

Correct AnswerverifiedShow Answer

Personal income is

Correct AnswerverifiedShow Answer

Business firms make which of the following two types of investment?

Correct AnswerverifiedShow Answer

Correct Answer
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The five phases of the business cycle ar...
View Answer

Correct Answer
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Correct Answer
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Investment can rise as a result of: (1)a...
View Answer

Correct Answer
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Correct Answer
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Real GDP is the value of all goods and services produced in a given year in prices.

Correct Answer
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Correct Answer
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GDP can rise as a result of a rise in ,and Real GDP can rise as a result of a rise in _____.

Correct Answer
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