Question 1

Which of the following correctly orders U.S. income measures from largest to smallest?

Accepted Answer

A)   disposable personal income, gross national product, national income, net national product, personal income
B)   personal income, net national product, national income, gross national product, disposable personal income
C)   gross national product, net national product, national income, personal income, disposable personal income
D)   disposable personal income, personal income, national income, net national product, gross national productE) None of the above
F) C) and D)

Question 2

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 rate of inflation for 2012.

Accepted Answer

The answer of Table 23-12
A country produces only ice cream...

Question 3

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

Question 4

Figure 23-2. 
-Refer to Figure 23-2. List the locations associated with the flow of inputs and outputs.

Accepted Answer

The answer of Figure 23-2. 
-Refer to Figure 23-2. List...

Question 5

Macroeconomics is the study of the economy as a whole.

Accepted Answer

A) True 
 B)False

Question 6

The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.

Accepted Answer

A) True 
 B)False

Question 7

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 1931?

Accepted Answer

A)   -6.93%. Real GDP is a better gauge of economic well-being than nominal GDP.
B)   -6.93%. Nominal GDP is a better gauge of economic well-being than real GDP.
C)   -6.49%. Real GDP is a better gauge of economic well-being than nominal GDP.
D)   -6.49%. Nominal GDP is a better gauge of economic well-being than real GDP.E) A) and C)
F) A) and B)

Question 8

AA Appliances sells refrigerators. In 2015 it added $100,000 to its inventory. $10,000 of this addition was from used refrigerators, and the remaining $90,000 was from their purchases of newly manufactured refrigerators. How much of AA's inventory is included in 2015 GDP?

Accepted Answer

A)   $0
B)   $10,000
C)   $90,000
D)   $100,000E) A) and B)
F) A) and C)

Question 9

A dairy buys $50,000 worth of milk and spend $5,000 on cartons and utilities. It sells the cartons of milk to a grocery store for $60,000 that then sells all of the cartons to consumers for $65,000. How much do these actions add to GDP?

Accepted Answer

A)   $55,000
B)   $65,000
C)   $120,000
D)   None of the above are correct.E) A) and B)
F) B) and D)

Question 10

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

Question 11

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) A) and C)

Question 12

A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarters)  doesdo)  these transactions raise investment?

Accepted Answer

A)   the first and the second
B)   the first but not the second
C)   the second but not the first
D)   neither the first nor the secondE) A) and C)
F) B) and D)

Question 13

U.S. GDP excludes the production of most illegal goods.

Accepted Answer

A) True 
 B)False

Question 14

During the third quarter of this year a firm produces consumer goods and adds some of those goods to its inventory. During the fourth quarter of this year, the firm sells the goods at a retail outlet, with the result that the value of its inventory at the end of the fourth quarter is smaller than the value of its inventory at the end of the third quarter. These actions affect which components)  of fourth-quarter GDP?

Accepted Answer

A)   they increase consumption and have no effect on investment
B)   they increase consumption and decrease investment
C)   they have no effect on either consumption or investment
D)   they have no effect on consumption and decrease investmentE) C) and D)
F) B) and D)

Question 15

Suppose that twenty-five years ago a country had nominal GDP of $1,000, a GDP deflator of 200, and a population of 100. Today it has nominal GDP of $3,000, a GDP deflator of 400, and population of 150. What happened to the real GDP per person?

Accepted Answer

A)   It more than doubled.
B)   It increased, but it less than doubled.
C)   It was unchanged.
D)   It decreased.E) B) and D)
F) B) and C)

Question 16

A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009. It also reported a GDP deflator of 85 in 2010 and 100 in 2009. Between 2009 and 2010,

Accepted Answer

A)   real output and the price level both rose.
B)   real output rose and the price level fell.
C)   real output fell and the price level rose.
D)   real output and the price level both fell.E) A) and B)
F) None of the above

Question 17

A transfer payment is

Accepted Answer

A)   a payment for moving expenses a worker receives when he or she is transferred by an employer to a new location.
B)   a payment that is automatically transferred from your bank account to pay a bill or some other obligation.
C)   a form of government spending that is not made in exchange for a currently produced good or service.
D)   the benefit that a person receives from an expenditure by government minus the taxes that were collected by government to fund that expenditure.E) A) and D)
F) C) and D)

Question 18

Nominal GDP is $15 trillion and real GDP is $10 trillion. What is the GDP deflator? Show your work.

Accepted Answer

The GDP Deflator = N...

Question 19

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

Accepted Answer

A)   spending on new business equipment such as power tools and spending on stocks and bonds
B)   spending on new business equipment such as power tools but not spending on stocks and bonds
C)   spending on stocks and bonds but not spending on new business equipment such as power tools
D)   neither spending on new business equipment such as power tools nor spending on stocks and bondsE) A) and C)
F) B) and C)

Question 20

Which of the following is an example of depreciation?

Accepted Answer

A)   falling stock prices
B)   the retirement of several employees
C)   computers becoming obsolete
D)   All of the above are examples of depreciation.E) B) and D)
F) A) and D)

Exam 10: Measuring a Nations Income

U.S. GDP excludes the production of most illegal goods.

Correct Answer
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Correct Answer
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A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarters) doesdo) these transactions raise investment?

Correct Answer
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A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009. It also reported a GDP deflator of 85 in 2010 and 100 in 2009. Between 2009 and 2010,

Correct Answer
verified

Which of the following correctly orders U.S. income measures from largest to smallest?

Correct Answer
verified

Nominal GDP is $15 trillion and real GDP is $10 trillion. What is the GDP deflator? Show your work.

Correct Answer
verified
The GDP Deflator = N...
View 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 1931?

Correct Answer
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Which of the following is included in the investment component of GDP?

Correct Answer
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Suppose that twenty-five years ago a country had nominal GDP of $1,000, a GDP deflator of 200, and a population of 100. Today it has nominal GDP of $3,000, a GDP deflator of 400, and population of 150. What happened to the real GDP per person?

Correct Answer
verified

AA Appliances sells refrigerators. In 2015 it added $100,000 to its inventory. $10,000 of this addition was from used refrigerators, and the remaining $90,000 was from their purchases of newly manufactured refrigerators. How much of AA's inventory is included in 2015 GDP?

Correct Answer
verified

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

Correct Answer
verified

Which of the following is an example of depreciation?

Correct Answer
verified

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

Correct Answer
verified

The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.

Correct Answer
verified

A transfer payment is

Correct Answer
verified

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 Answer
verified

Macroeconomics is the study of the economy as a whole.

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 rate of inflation for 2012.

Correct Answer
verified

Figure 23-2. -Refer to Figure 23-2. List the locations associated with the flow of inputs and outputs.

Correct Answer
verified

A dairy buys $50,000 worth of milk and spend $5,000 on cartons and utilities. It sells the cartons of milk to a grocery store for $60,000 that then sells all of the cartons to consumers for $65,000. How much do these actions add to GDP?

Correct Answer
verified

Exam 10: Measuring a Nations Income

U.S. GDP excludes the production of most illegal goods.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarters) doesdo) these transactions raise investment?

Correct AnswerverifiedShow Answer

A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009. It also reported a GDP deflator of 85 in 2010 and 100 in 2009. Between 2009 and 2010,

Correct AnswerverifiedShow Answer

Which of the following correctly orders U.S. income measures from largest to smallest?

Correct AnswerverifiedShow Answer

Nominal GDP is $15 trillion and real GDP is $10 trillion. What is the GDP deflator? Show your work.

Correct AnswerverifiedThe GDP Deflator = N...View AnswerShow 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 1931?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose that twenty-five years ago a country had nominal GDP of $1,000, a GDP deflator of 200, and a population of 100. Today it has nominal GDP of $3,000, a GDP deflator of 400, and population of 150. What happened to the real GDP per person?

Correct AnswerverifiedShow Answer

AA Appliances sells refrigerators. In 2015 it added $100,000 to its inventory. $10,000 of this addition was from used refrigerators, and the remaining $90,000 was from their purchases of newly manufactured refrigerators. How much of AA's inventory is included in 2015 GDP?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is an example of depreciation?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.

Correct AnswerverifiedShow Answer

A transfer payment is

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

Macroeconomics is the study of the economy as a whole.

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 rate of inflation for 2012.

Correct AnswerverifiedShow Answer

Figure 23-2. -Refer to Figure 23-2. List the locations associated with the flow of inputs and outputs.

Correct AnswerverifiedShow Answer

A dairy buys $50,000 worth of milk and spend $5,000 on cartons and utilities. It sells the cartons of milk to a grocery store for $60,000 that then sells all of the cartons to consumers for $65,000. How much do these actions add to GDP?

Correct AnswerverifiedShow Answer

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The GDP Deflator = N...
View Answer

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