Question 1

The information below for 2008 in millions was reported by the World Bank. On the basis of this information, which list below contains the correct ordering of GDP per person from highest to lowest?

Accepted Answer

A)   Ghana, Kenya, Tanzania
B)   Ghana, Tanzania, Kenya
C)   Kenya, Tanzania, Ghana
D)   Kenya, Ghana, TanzaniaE) B) and D)
F) B) and C)

Question 2

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

Accepted Answer

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

Question 3

Table 23-1
The table below contains data for Chereaux for the year 2015. 
-Refer to Table 23-1. Disposable personal income for Chereaux in 2015 is

Accepted Answer

A)   $190.
B)   $211.
C)   $130.
D)   $141.E) B) and D)
F) None of the above

Question 4

Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

Accepted Answer

The answer of Calculate GDP for an economy with exports...

Question 5

Real GDP is a better gauge of economic well-being than is nominal GDP.

Accepted Answer

A) True 
 B)False

Question 6

The U.S. government pays an economist at the U.S. Department of Commerce $100,000 in salary in 2013. The economist then retires. In 2014, the government pays him $60,000 in Social Security benefits. Which of the following is correct?

Accepted Answer

A)   The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is included in 2014 GDP as government purchases.
B)   The 2013 payment is included in 2013 GDP as government purchases, but the 2014 payment is not included in 2014 GDP.
C)   The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is included in 2014 GDP as government transfer payments.
D)   The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is allocated to previous years' GDP according to the amount of work performed by the economist each year.E) C) and D)
F) B) and D)

Question 7

Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?

Accepted Answer

A)   Unemployment rate falls from 7.5 percent to 7.3 percent.
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) All of the above

Question 8

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.E) A) and D)
F) All of the above

Question 9

Disposable personal income is the income that

Accepted Answer

A)   households have left after paying taxes and non-tax payments to the government.
B)   businesses have left after paying taxes and non-tax payments to the government.
C)   households and noncorporate businesses have left after paying taxes and non-tax payments to the government.
D)   households and businesses have left after paying taxes and non-tax payments to the government.E) B) and D)
F) A) and B)

Question 10

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.E) A) and B)
F) None of the above

Question 11

If nominal GDP is $10 trillion and real GDP is $12 trillion, then the GDP deflator is

Accepted Answer

A)   83.33, and this indicates that the price level has decreased by 16.67 percent since the base year.
B)   83.33, and this indicates that the price level has increased by 83.33 percent since the base year.
C)   120, and this indicates that the price level has increased by 20 percent since the base year.
D)   120, and this indicates that the price level has increased by 120 percent since the base year.E) B) and D)
F) A) and B)

Question 12

In the United States in 2012, purchases of capital equipment, inventories, and structures represented approximately

Accepted Answer

A)   3 percent of GDP.
B)   7 percent of GDP.
C)   13 percent of GDP.
D)   15 percent of GDP.E) A) and B)
F) A) and C)

Question 13

On the basis of the information presented in the table below, which presents the correct ordering of real GDP per person from highest to lowest?

Accepted Answer

A)   Atlantis, Merpois, Bensalem
B)   Bensalem, Atlantis, Merpois
C)   Atlantis, Bensalem, Merpois
D)   Bensalem, Merpois, AtlantisE) B) and D)
F) A) and C)

Question 14

A U.S. grocery chain purchases olive oil from Tunisia and sells it to U.S. consumers. In which of the following is this transaction included?

Accepted Answer

A)   U.S. consumption and U.S. imports
B)   U.S. consumption but not U.S. imports
C)   U.S. imports but not U.S. consumption
D)   neither U.S. consumption nor U.S. importsE) B) and C)
F) A) and D)

Question 15

Table 23-12
A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. 
-Refer to Table 23-12. Calculate the GDP deflator for 2012 and 2013.

Accepted Answer

GDP deflator is 127....

Question 16

Which of the following is not a question that macroeconomists address?

Accepted Answer

A)   Why is average income high in some countries while it is low in others?
B)   Why does the price of oil rise when war erupts in the Middle East?
C)   Why do production and employment expand in some years and contract in others?
D)   Why do prices rise rapidly in some periods of time while they are more stable in other periods?E) A) and D)
F) A) and C)

Question 17

A statistical discrepancy

Accepted Answer

A)   exists because data sources are not perfect, so measures of expenditures and income are not equal.
B)   insures that GDP will approximately equal GNP.
C)   explains the close association between GDP and quality of life measures such as literacy and life expectancy.
D)   explains the inadequacy of GDP in capturing the value of leisure and the value of a clean environment.E) All of the above
F) A) and D)

Question 18

The Patersons bought a home that was newly constructed in 2007 for $275,000. They sold the home in 2015 for $255,000. Which of the following statements is correct regarding the sale of the house?

Accepted Answer

A)   The 2015 sale increased 2015 GDP by $255,000 and had no effect on 2007 GDP.
B)   The 2015 sale reduced 2015 GDP by $20,000 and had no effect on 2007 GDP.
C)   The 2015 sale increased 2015 GDP by $255,000; and caused 2007 GDP to be revised downward by $20,000.
D)   The 2015 sale affected neither 2007 GDP nor 2015 GDP.E) A) and B)
F) None of the above

Question 19

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.E) All of the above
F) B) and C)

Question 20

In years of economic contraction, firms throughout the economy increase their production of goods and services, employment rises, and jobs are easy to find.

Accepted Answer

A) True 
 B)False

Exam 23: Measuring a Nations Income

Real GDP is a better gauge of economic well-being than is nominal GDP.

Correct Answer
verified

In the United States in 2012, purchases of capital equipment, inventories, and structures represented approximately

Correct Answer
verified

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

Correct Answer
verified

Which of the following is not a question that macroeconomists address?

Correct Answer
verified

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

Correct Answer
verified

The U.S. government pays an economist at the U.S. Department of Commerce $100,000 in salary in 2013. The economist then retires. In 2014, the government pays him $60,000 in Social Security benefits. Which of the following is correct?

Correct Answer
verified

Correct Answer
verified

The information below for 2008 in millions was reported by the World Bank. On the basis of this information, which list below contains the correct ordering of GDP per person from highest to lowest?

Correct Answer
verified

In years of economic contraction, firms throughout the economy increase their production of goods and services, employment rises, and jobs are easy to find.

Correct Answer
verified

On the basis of the information presented in the table below, which presents the correct ordering of real GDP per person from highest to lowest?

Correct Answer
verified

Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?

Correct Answer
verified

A U.S. grocery chain purchases olive oil from Tunisia and sells it to U.S. consumers. In which of the following is this transaction included?

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

Disposable personal income is the income that

Correct Answer
verified

The Patersons bought a home that was newly constructed in 2007 for $275,000. They sold the home in 2015 for $255,000. Which of the following statements is correct regarding the sale of the house?

Correct Answer
verified

A statistical discrepancy

Correct Answer
verified

Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

Correct Answer
verified

Table 23-12 A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-12. Calculate the GDP deflator for 2012 and 2013.

Correct Answer
verified
GDP deflator is 127....
View Answer

If nominal GDP is $10 trillion and real GDP is $12 trillion, then the GDP deflator is

Correct Answer
verified

Table 23-1 The table below contains data for Chereaux for the year 2015. -Refer to Table 23-1. Disposable personal income for Chereaux in 2015 is

Correct Answer
verified

Exam 23: Measuring a Nations Income

Real GDP is a better gauge of economic well-being than is nominal GDP.

Correct AnswerverifiedShow Answer

In the United States in 2012, purchases of capital equipment, inventories, and structures represented approximately

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not a question that macroeconomists address?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The U.S. government pays an economist at the U.S. Department of Commerce $100,000 in salary in 2013. The economist then retires. In 2014, the government pays him $60,000 in Social Security benefits. Which of the following is correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The information below for 2008 in millions was reported by the World Bank. On the basis of this information, which list below contains the correct ordering of GDP per person from highest to lowest?

Correct AnswerverifiedShow Answer

In years of economic contraction, firms throughout the economy increase their production of goods and services, employment rises, and jobs are easy to find.

Correct AnswerverifiedShow Answer

On the basis of the information presented in the table below, which presents the correct ordering of real GDP per person from highest to lowest?

Correct AnswerverifiedShow Answer

Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?

Correct AnswerverifiedShow Answer

A U.S. grocery chain purchases olive oil from Tunisia and sells it to U.S. consumers. In which of the following is this transaction included?

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

Disposable personal income is the income that

Correct AnswerverifiedShow Answer

The Patersons bought a home that was newly constructed in 2007 for $275,000. They sold the home in 2015 for $255,000. Which of the following statements is correct regarding the sale of the house?

Correct AnswerverifiedShow Answer

A statistical discrepancy

Correct AnswerverifiedShow Answer

Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

Correct AnswerverifiedShow Answer

Table 23-12 A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-12. Calculate the GDP deflator for 2012 and 2013.

Correct AnswerverifiedGDP deflator is 127....View AnswerShow Answer

If nominal GDP is $10 trillion and real GDP is $12 trillion, then the GDP deflator is

Correct AnswerverifiedShow Answer

Table 23-1 The table below contains data for Chereaux for the year 2015. -Refer to Table 23-1. Disposable personal income for Chereaux in 2015 is

Correct AnswerverifiedShow Answer

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GDP deflator is 127....
View Answer

Correct Answer
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