Question 1

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 was the growth rate of real GDP for 1930?

Accepted Answer

A)   -8.62%. Real GDP is a better gauge of economic well-being than nominal GDP.
B)   -8.62%. Nominal GDP is a better gauge of economic well-being than real GDP.
C)   -9.43%. Real GDP is a better gauge of economic well-being than nominal GDP.
D)   -9.43%. Nominal GDP is a better gauge of economic well-being than real GDP.E) C) and D)
F) B) and D)

Question 4

Macroeconomics is the study of the economy as a whole.

Accepted Answer

A) True 
 B)False

Question 5

In computing GDP, market prices are used to value final goods and services because

Accepted Answer

A)   market prices do not change much over time, so it is easy to make comparisons between years.
B)   market prices reflect the values of goods and services.
C)   market prices reflect the quantity sold.
D)   None of the above is correct; market prices are not used in computing GDP.E) A) and B)
F) None of the above

Question 6

Suppose that an economy produces 30,000 units of good A which sells at $3 a unit and 60,000 units of good B which sells at $2 per unit. Production of good A contributes

Accepted Answer

A)   1/2 times as much to GDP as the production of good B.
B)   3/2 times as much to GDP as the production of good B.
C)   3/4 times as much to GDP as the production of good B.
D)   4/3 times as much to GDP as production of good B.E) B) and D)
F) B) and C)

Question 7

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 2016 to 2017 was

Accepted Answer

A)   25.0%.
B)   23.1%.
C)   26.1%.
D)   18.8%.E) All of the above
F) B) and C)

Question 8

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.E) C) and D)
F) B) and C)

Question 9

Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2010 Quality Motors produced $30 million worth of automobiles, with $17 million in sales to Americans, $9 million in sales to Canadians, and $4 million worth of automobiles added to Quality Motors' inventory. The transactions just described contribute how much to U.S. GDP for 2010?

Accepted Answer

A)   $17 million
B)   $21 million
C)   $26 million
D)   $30 millionE) All of the above
F) A) and D)

Question 10

An increase in nominal U.S. GDP necessarily implies that the United States is producing a larger output of goods and services.

Accepted Answer

A) True 
 B)False

Question 11

The purchase of rice produced this period is included in GDP if the rice is

Accepted Answer

A)   used in a meal a restaurant sells during the same period they buy the rice.
B)   purchased by a family who uses it to make tuna casserole for its supper.
C)   purchased by a frozen food company to increase its inventory.
D)   B and C are correct.E) A) and B)
F) B) and D)

Question 12

Which of the following examples of household spending is categorized as investment rather than consumption?

Accepted Answer

A)   expenditures on durable goods such as automobiles and refrigerators
B)   expenditures on intangibles items such as medical care
C)   expenditures on new housing
D)   All of the above are correct.E) B) and C)
F) B) and D)

Question 13

If real GDP doubles and the GDP deflator doubles, then nominal GDP

Accepted Answer

A)   remains constant.
B)   doubles.
C)   triples.
D)   quadruples.E) B) and C)
F) A) and B)

Question 14

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

Accepted Answer

A)   $1130
B)   $1601
C)   $1837
D)   $2544E) B) and D)
F) All of the above

Question 15

Table 23-7
The table below contains data for the country of Togogo. The base year is 1974.
 
-Refer to Table 23-7. From 1976 to 1977,

Accepted Answer

A)   inflation was 33.3% and output grew at a rate of 20%.
B)   inflation was 33.3% and output grew at a rate of 60%.
C)   inflation was 50% and output grew at a rate of 20%.
D)   inflation was 50% and output grew at a rate of 60%.E) C) and D)
F) B) and D)

Question 16

All of the following are examples of a nondurable good except

Accepted Answer

A)   a pencil.
B)   one gallon of gasoline.
C)   a queen-size bed.
D)   a pair of shoes.E) All of the above
F) B) and D)

Question 17

An economy recently reported nominal GDP of 3 trillion euro and a GDP deflator of 200. What was real GDP?

Accepted Answer

A)   1.5 trillion euro, and real GDP is a better gauge of economic activity than nominal GDP.
B)   1.5 trillion euro, but nominal GDP is a better gauge of economic activity than real GDP.
C)   6 trillion euro, and real GDP is a better gauge of economic activity than nominal GDP.
D)   6 trillion euro, but nominal GDP is a better gauge of economic activity than real GDP.E) A) and C)
F) A) and B)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

In the actual economy, goods and services are purchased by

Accepted Answer

A)   households, but not firms or the government.
B)   households and firms, but not the government.
C)   households and the government, but not firms.
D)   households, firms, and the government.E) B) and D)
F) C) and D)

Question 20

Consider two cars manufactured by Chevrolet in 2014. During 2014, Chevrolet sells one of the two cars to Emily for $20,000. Later in the same year, Emily sells the car to Jim for $18,000. The second automobile, with a market value of $19,000, is unsold at the end of 2014 and it remains in Chevrolet's inventory. The transactions just described contribute how much to GDP for 2014?

Accepted Answer

A)   $20,000
B)   $37,000
C)   $38,000
D)   $39,000E) A) and B)
F) None of the above

Exam 5: Measuring a Nations Income

An increase in nominal U.S. GDP necessarily implies that the United States is producing a larger output of goods and services.

Correct Answer
verified

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

Correct Answer
verified

In the actual economy, goods and services are purchased by

Correct Answer
verified

The purchase of rice produced this period is included in GDP if the rice is

Correct Answer
verified

In computing GDP, market prices are used to value final goods and services because

Correct Answer
verified

All of the following are examples of a nondurable good except

Correct Answer
verified

Macroeconomics is the study of the economy as a whole.

Correct Answer
verified

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Correct Answer
verified

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 Answer
verified

Which of the following examples of household spending is categorized as investment rather than consumption?

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 were Crete's government purchases in 2010?

Correct Answer
verified

Correct Answer
verified

Suppose that an economy produces 30,000 units of good A which sells at $3 a unit and 60,000 units of good B which sells at $2 per unit. Production of good A contributes

Correct Answer
verified

Correct Answer
verified

An economy recently reported nominal GDP of 3 trillion euro and a GDP deflator of 200. What was real GDP?

Correct Answer
verified

If real GDP doubles and the GDP deflator doubles, then nominal GDP

Correct Answer
verified

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

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 2016 to 2017 was

Correct Answer
verified

Table 23-7 The table below contains data for the country of Togogo. The base year is 1974. -Refer to Table 23-7. From 1976 to 1977,

Correct Answer
verified

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 was the growth rate of real GDP for 1930?

Correct Answer
verified

Exam 5: Measuring a Nations Income

An increase in nominal U.S. GDP necessarily implies that the United States is producing a larger output of goods and services.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the actual economy, goods and services are purchased by

Correct AnswerverifiedShow Answer

The purchase of rice produced this period is included in GDP if the rice is

Correct AnswerverifiedShow Answer

In computing GDP, market prices are used to value final goods and services because

Correct AnswerverifiedShow Answer

All of the following are examples of a nondurable good except

Correct AnswerverifiedShow Answer

Macroeconomics is the study of the economy as a whole.

Correct AnswerverifiedShow Answer

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

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

Which of the following examples of household spending is categorized as investment rather than consumption?

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 were Crete's government purchases in 2010?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose that an economy produces 30,000 units of good A which sells at $3 a unit and 60,000 units of good B which sells at $2 per unit. Production of good A contributes

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An economy recently reported nominal GDP of 3 trillion euro and a GDP deflator of 200. What was real GDP?

Correct AnswerverifiedShow Answer

If real GDP doubles and the GDP deflator doubles, then nominal GDP

Correct AnswerverifiedShow Answer

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

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 2016 to 2017 was

Correct AnswerverifiedShow Answer

Table 23-7 The table below contains data for the country of Togogo. The base year is 1974. -Refer to Table 23-7. From 1976 to 1977,

Correct AnswerverifiedShow Answer

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 was the growth rate of real GDP for 1930?

Correct AnswerverifiedShow Answer

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