Question 1

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

Accepted Answer

GDP is the market value of all...

Question 2

If consumption is $7000, exports are $600, government purchases are $2000, government transfers are $900, imports are $800, and investment is $1000, then GDP is $9,800.

Accepted Answer

A) True 
 B)False

Question 3

In 2015, the level of U.S. real GDP was more than four times its 1965 level.

Accepted Answer

A) True 
 B)False  True

Question 4

Table 23-4
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2015.
​
​
  ​
-Refer to Table 23-4. This country's inflation rate from 2016 to 2017 was

Accepted Answer

A)  25.0%.
B)  23.1%.
C)  26.1%.
D)  18.8%.E) A) and B)
F) C) and D)

Question 5

Macroeconomics is the study of the economy as a whole.

Accepted Answer

A) True 
 B)False

Question 6

What measure of GDP shows the value of goods and services produced if we valued these good and services at the prices that prevailed in some specific year in the past?

Accepted Answer

The answer of What measure of GDP shows the value...

Question 7

​Since transfer payments by government are not associated with the production of goods and services, they are not included in GDP.

Accepted Answer

A) True 
 B)False

Question 8

Typically in countries with lower levels of real GDP person, a smaller percentage of the population is literate.

Accepted Answer

A) True 
 B)False

Question 9

For the economy as a whole, how does income compare to expenditures? Explain.

Accepted Answer

For the economy as a whole inc...

Question 10

Real GDP per person tells us the income and expenditure of the average person in the economy.

Accepted Answer

A) True 
 B)False

Question 11

When real GDP increases, this implies that the production of goods and services has risen.
​

Accepted Answer

A) True 
 B)False

Question 12

International data on GDP and socioeconomic variables

Accepted Answer

A)  are inconclusive about the relationship between GDP and the economic well-being of citizens.
B)  suggest that poor nations actually might enjoy a higher standard of living than do rich nations.
C)  leave no doubt that a nation's GDP is closely associated with its citizens' standard of living.
D)  indicate that there are few real differences in living standards around the world, in spite of the large differences in GDP between nations.E) C) and D)
F) All of the above

Question 13

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 14

When an American doctor opens a practice in Bermuda, his production there is part of U.S. GDP.

Accepted Answer

A) True 
 B)False  False

Question 15

GDP is the market value of all final goods and services produced within a country in a given period of time.

Accepted Answer

A) True 
 B)False

Question 16

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 ...

Question 17

GDP per person tells us the income and expenditure of the

Accepted Answer

A)  richest person in the economy.
B)  poorest person in the economy.
C)  average person in the economy.
D)  entire economy.E) All of the above
F) C) and D)

Question 18

A company sells titanium to a bicycle company for $300. The bicycle company uses the titanium to produce a bicycle, which it sells for $400. Taken together, these two transactions contribute

Accepted Answer

A)  $300 to GDP.
B)  $400 to GDP.
C)  between $400 and $700 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle.
D)  $100 to GDP.E) All of the above
F) C) and D)

Question 19

Which headline is more closely related to a microeconomics study than to a macroeconomics one?

Accepted Answer

A)  Unemployment rate falls from 7.5% to 7.3%.
B)  Real GDP falls by 0.4 percent in the third quarter.
C)  Inflation was 2.4 percent last year.
D)  The price of gasoline rises due to rising oil prices.E) A) and B)
F) None of the above

Question 20

U.S. GDP includes estimates of the value of items that are produced and consumed at home, such as housework and car maintenance.

Accepted Answer

A) True 
 B)False  False

Exam 23: Measuring a Nations Income

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

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

If consumption is $7000, exports are $600, government purchases are $2000, government transfers are $900, imports are $800, and investment is $1000, then GDP is $9,800.

Correct AnswerverifiedShow Answer

In 2015, the level of U.S. real GDP was more than four times its 1965 level.

Correct AnswerverifiedTrue

Table 23-4 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2015. ​ ​ ​ -Refer to Table 23-4. This country's inflation rate from 2016 to 2017 was

Correct AnswerverifiedShow Answer

Macroeconomics is the study of the economy as a whole.

Correct AnswerverifiedShow Answer

What measure of GDP shows the value of goods and services produced if we valued these good and services at the prices that prevailed in some specific year in the past?

Correct AnswerverifiedShow Answer

​Since transfer payments by government are not associated with the production of goods and services, they are not included in GDP.

Correct AnswerverifiedShow Answer

Typically in countries with lower levels of real GDP person, a smaller percentage of the population is literate.

Correct AnswerverifiedShow Answer

For the economy as a whole, how does income compare to expenditures? Explain.

Correct AnswerverifiedFor the economy as a whole inc...View AnswerShow Answer

Real GDP per person tells us the income and expenditure of the average person in the economy.

Correct AnswerverifiedShow Answer

When real GDP increases, this implies that the production of goods and services has risen. ​

Correct AnswerverifiedShow Answer

International data on GDP and socioeconomic variables

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When an American doctor opens a practice in Bermuda, his production there is part of U.S. GDP.

Correct AnswerverifiedFalse

GDP is the market value of all final goods and services produced within a country in a given period of time.

Correct AnswerverifiedShow Answer

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

GDP per person tells us the income and expenditure of the

Correct AnswerverifiedShow Answer

A company sells titanium to a bicycle company for $300. The bicycle company uses the titanium to produce a bicycle, which it sells for $400. Taken together, these two transactions contribute

Correct AnswerverifiedShow Answer

Which headline is more closely related to a microeconomics study than to a macroeconomics one?

Correct AnswerverifiedShow Answer

U.S. GDP includes estimates of the value of items that are produced and consumed at home, such as housework and car maintenance.

Correct AnswerverifiedFalse

Correct Answer
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GDP is the market value of all...
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True

Table 23-4 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2015. -Refer to Table 23-4. This country's inflation rate from 2016 to 2017 was

Correct Answer
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Since transfer payments by government are not associated with the production of goods and services, they are not included in GDP.

Correct Answer
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Correct Answer
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For the economy as a whole inc...
View Answer

Correct Answer
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When real GDP increases, this implies that the production of goods and services has risen.

Correct Answer
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Correct Answer
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False

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The following are included in ...
View Answer

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False