Question 1

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 2

Total income from the domestic production of final goods and services equals

Accepted Answer

A)   only household expenditures for these goods.
B)   only household and business expenditures for these goods.
C)   only household and government expenditures for these goods.
D)   the expenditures for these goods whoever buys them.E) A) and D)
F) All of the above

Question 3

Which of the following correctly lists what is included in the consumption component of GDP?

Accepted Answer

A)   household purchases of services and household purchases of nondurable goods but not any household purchases of durable goods
B)   household purchases of nondurable goods and durable goods other than residential construction but not household purchases of services
C)   household purchases of services, nondurable goods, and all durable goods
D)   household purchases of services, nondurable goods, and durable goods other than residential constructionE) C) and D)
F) B) and D)

Question 4

The value of the housing services provided by the economy's owner-occupied houses is

Accepted Answer

A)   included in GDP, and the estimated rental values of the houses are used to place a value on these housing services.
B)   included in GDP, and the actual mortgage payments made on the houses are used to estimate the value of these rental services.
C)   excluded from GDP since these services are not sold in any market.
D)   excluded from GDP since the value of these housing services cannot be estimated with any degree of precision.E) B) and D)
F) C) and D)

Question 5

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

Accepted Answer

A)   $553
B)   $1198
C)   $1975
D)   $2752E) A) and B)
F) All of the above

Question 6

Which of the following is included in government purchases?

Accepted Answer

A)   unemployment benefits a state pays
B)   Social Security payments the U.S. government makes
C)   the services of a U.S. government attorney valued at the cost of her salary
D)   All of the above are correct.E) A) and D)
F) A) and B)

Question 7

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.E) C) and D)
F) None of the above

Question 8

Otherwise legal transactions that go unreported or unrecorded are called

Accepted Answer

A)   the underground economy.
B)   the shadow economy.
C)   the informal economy.
D)   All of the above are correct.E) A) and C)
F) All of the above

Question 9

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. In 2015, this country's

Accepted Answer

A)   nominal GDP was greater than real GDP, and the GDP deflator was greater than 100.
B)   nominal GDP was equal to real GDP, and the GDP deflator was equal to 100%.
C)   nominal GDP was less than real GDP, and the GDP deflator was less than 100.
D)   nominal GDP was equal to real GDP, and the GDP deflator was equal to 100.E) None of the above
F) A) and B)

Question 10

Consumption consists of spending by households on goods and services, with the exception of

Accepted Answer

A)   purchases of intangible services.
B)   purchases of durable goods.
C)   purchases of new houses.
D)   spending on education.E) B) and C)
F) A) and D)

Question 11

The GDP deflator can be used to take inflation out of nominal GDP.

Accepted Answer

A) True 
 B)False

Question 12

The percentage change in the price level from one period to another is called

Accepted Answer

A)   the growth rate.
B)   the inflation rate.
C)   the GDP deflator.
D)   the unemployment rate.E) A) and B)
F) All of the above

Question 13

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

Question 14

Which of the following domestically produced items is not included in GDP?

Accepted Answer

A)   a bottle of shampoo
B)   a hairdryer
C)   a haircut
D)   All of the above are included in GDP.E) A) and B)
F) A) and D)

Question 15

When a U.S. citizen buys $500 of Chinese-made parts for a motorcycle,

Accepted Answer

A)   U.S. consumption falls by $500, U.S. net exports decline by $500, and U.S. GDP declines by $1000.
B)   U.S. consumption does not change, U.S. net exports decline by $500, and U.S. GDP declines by $500.
C)   U.S. consumption increases by $500, U.S. net exports remain the same, and U.S. GDP increases by $500.
D)   U.S. consumption increases by $500, U.S. net exports decline by $500, and U.S. GDP remains the same.E) None of the above
F) A) and B)

Question 16

GDP

Accepted Answer

A)   is used to monitor the performance of the overall economy but is not the single best measure of a society's economic well-being.
B)   is used to monitor the performance of the overall economy and is the single best measure of a society's economic well-being.
C)   is not used to monitor the performance of the overall economy but is the single best measure of a society's economic well-being.
D)   is not used to monitor the performance of the overall economy and is not the single best measure of a society's economic well­being.E) All of the above
F) A) and C)

Question 17

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

Accepted Answer

A)   $4623
B)   $5731
C)   $6037
D)   $6839E) A) and B)
F) A) and D)

Question 18

What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

Accepted Answer

A)   capital
B)   consumption
C)   investment
D)   costsE) A) and C)
F) B) and C)

Question 19

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) C) and D)
F) A) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 15: Measuring a Nations Income

GDP

Correct AnswerverifiedShow Answer

The value of the housing services provided by the economy's owner-occupied houses is

Correct AnswerverifiedShow Answer

Which of the following domestically produced items is not included in GDP?

Correct AnswerverifiedShow Answer

The percentage change in the price level from one period to another is called

Correct AnswerverifiedShow Answer

What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

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 was Crete's GDP in 2010?

Correct AnswerverifiedShow Answer

Otherwise legal transactions that go unreported or unrecorded are called

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The GDP deflator can be used to take inflation out of nominal GDP.

Correct AnswerverifiedShow Answer

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 23-3 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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is included in government purchases?

Correct AnswerverifiedShow Answer

Consumption consists of spending by households on goods and services, with the exception of

Correct AnswerverifiedShow Answer

When a U.S. citizen buys $500 of Chinese-made parts for a motorcycle,

Correct AnswerverifiedShow Answer

Total income from the domestic production of final goods and services equals

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. In 2015, this country's

Correct AnswerverifiedShow Answer

Which of the following correctly lists what is included in the consumption component of GDP?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
GDP = C + I + G + NX = $5.5 tr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified