Question 1

If net exports is a negative number for a particular year,then

Accepted Answer

A)   the value of firms' inventories declined over the course of the year.
B)   consumption exceeded the sum of investment and government purchases during the year.
C)   the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year.
D)   the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.E) A) and B)
F) B) and C)

Question 2

Quality Motors is a Japanese-owned company that produces automobiles;all of its automobiles are produced in American plants.In 2008,Quality Motors produced $25 million worth of automobiles and sold $12 million in the U.S.and $13 million in Mexico.In addition,it sold $2 million from the previous year's inventory in the U.S.The transactions just described contribute how much to U.S.GDP for 2008?

Accepted Answer

A)   $12 million
B)   $14 million
C)   $25 million
D)   $27 millionE) A) and C)
F) A) and D)

Question 3

Which of the following is not correct?

Accepted Answer

A)   GNP equals net national product plus losses from depreciation.
B)   For most countries,including the United States,GDP and GNP are nearly the same.
C)   GDP and GNP typically move in opposite directions.
D)   Personal income equals disposable personal income plus personal taxes plus certain nontax payments.E) A) and B)
F) C) and D)

Question 4

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

Question 5

Which of the following is correct?

Accepted Answer

A)   Nominal GDP is always less than real GDP.
B)   Nominal GDP is always greater than real GDP.
C)   Nominal GDP equals real GDP in the base year.
D)   Nominal GDP equals real GDP in all years but the base year.E) A) and B)
F) None of the above

Question 6

GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because

Accepted Answer

A)   the quality of these items is not high enough to contribute value to GDP.
B)   measuring them is so difficult.
C)   the government wants to discourage the production and consumption of these items.
D)   these items are not reported on income tax forms.E) B) and C)
F) C) and D)

Question 7

George lived in a home that was newly constructed in 2005 for which he paid $200,000.In 2008 he sold the house for $225,000.Which of the following statements is correct regarding the sale of the house?

Accepted Answer

A)   The 2008 sale increased 2008 GDP by $225,000 and had no effect on 2005 GDP.
B)   The 2008 sale increased 2008 GDP by $25,000 and had no effect on 2005 GDP.
C)   The 2008 sale increased 2008 GDP by $225,000;furthermore,the 2008 sale caused 2005 GDP to be revised upward by $25,000.
D)   The 2008 sale affected neither 2008 GDP nor 2005 GDP.E) C) and D)
F) A) and B)

Question 8

Table 10-4
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 2008.
Prices and Quantities
 
-Refer to Table 10-4.In 2009,this country's

Accepted Answer

A)   real GDP was $660,and the GDP deflator was 113.4
B)   real GDP was $670,and the GDP deflator was 115.2
C)   real GDP was $660,and the GDP deflator was 115.2.
D)   real GDP was $670,and the GDP deflator was 113.4.E) B) and C)
F) A) and C)

Question 9

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 10

A Texas household receives a Social Security check for $500,which it uses to purchase a $460 television made in Korea by a Korean firm and a $40 dinner at a local restaurant.As a result,U.S.GDP

Accepted Answer

A)   does not change.
B)   increases by $40.
C)   increases by $540.
D)   increases by $1000.E) A) and B)
F) None of the above

Question 11

Table 10-1
The table below contains data for country A for the year 2010.
 
-Refer to Table 10-1.What were country A's government purchases in 2010?

Accepted Answer

A)   $553
B)   $1198
C)   $1975
D)   $2752E) A) and C)
F) C) and D)

Question 12

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 13

If in some year nominal GDP was $10 trillion and real GDP was $4 trillion,what was the GDP deflator ?

Accepted Answer

A)   25
B)   40
C)   250
D)   400E) B) and C)
F) None of the above

Question 14

Table 10-1
The table below contains data for country A for the year 2010.
 
-Refer to Table 10-1.What was country A's consumption in 2010?

Accepted Answer

A)   $2018
B)   $3010
C)   $3311
D)   $4015E) None of the above
F) C) and D)

Question 15

U.S.GDP includes the market value of rental housing,but not the market value of owner-occupied housing services.

Accepted Answer

A) True 
 B)False

Question 16

In the United States in 2009,government purchases of goods and services were

Accepted Answer

A)   larger than consumption,but smaller than investment.
B)   larger than investment,but smaller than consumption.
C)   smaller than both consumption and investment.
D)   larger than both consumption and investment.E) A) and B)
F) A) and C)

Question 17

In 2009,the level of U.S.real GDP was close to four times its 1965 level.

Accepted Answer

A) True 
 B)False

Question 18

National income differs from net national because

Accepted Answer

A)   it includes profits of corporations.
B)   of a statistical discrepancy.
C)   it includes transfer payments.
D)   it excludes depreciation.E) B) and C)
F) A) and D)

Question 19

A U.S.-owned automobile factory uses $50 million worth of materials produced in the U.S.and $10 million worth of material purchased from foreign countries to produce $100 million of automobiles.$70 million worth of these automobiles are purchased by U.S.consumers,$25 million are sold in foreign countries,and $5 million are added to inventory.How much of this production is included in U.S.GDP? By how much do these transactions alone affect U.S.net exports?

Accepted Answer

$90 million is inclu...

Question 20

If the value of an economy's imports exceeds the value of that economy's exports,then net exports is a negative number.

Accepted Answer

A) True 
 B)False

Exam 23: Measuring a Nations Income

GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because

Correct Answer
verified

Table 10-4 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 2008. Prices and Quantities -Refer to Table 10-4.In 2009,this country's

Correct Answer
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National income differs from net national because

Correct Answer
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Table 10-1 The table below contains data for country A for the year 2010. -Refer to Table 10-1.What was country A's consumption in 2010?

Correct Answer
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Which of the following is an example of depreciation?

Correct Answer
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In the United States in 2009,government purchases of goods and services were

Correct Answer
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Correct Answer
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$90 million is inclu...
View Answer

U.S.GDP includes the market value of rental housing,but not the market value of owner-occupied housing services.

Correct Answer
verified

If net exports is a negative number for a particular year,then

Correct Answer
verified

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

Correct Answer
verified

George lived in a home that was newly constructed in 2005 for which he paid $200,000.In 2008 he sold the house for $225,000.Which of the following statements is correct regarding the sale of the house?

Correct Answer
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In 2009,the level of U.S.real GDP was close to four times its 1965 level.

Correct Answer
verified

A Texas household receives a Social Security check for $500,which it uses to purchase a $460 television made in Korea by a Korean firm and a $40 dinner at a local restaurant.As a result,U.S.GDP

Correct Answer
verified

Table 10-1 The table below contains data for country A for the year 2010. -Refer to Table 10-1.What were country A's government purchases in 2010?

Correct Answer
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Which of the following is correct?

Correct Answer
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If in some year nominal GDP was $10 trillion and real GDP was $4 trillion,what was the GDP deflator ?

Correct Answer
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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 Answer
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If the value of an economy's imports exceeds the value of that economy's exports,then net exports is a negative number.

Correct Answer
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Which of the following is not correct?

Correct Answer
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Exam 23: Measuring a Nations Income

GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because

Correct AnswerverifiedShow Answer

Table 10-4 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 2008. Prices and Quantities -Refer to Table 10-4.In 2009,this country's

Correct AnswerverifiedShow Answer

National income differs from net national because

Correct AnswerverifiedShow Answer

Table 10-1 The table below contains data for country A for the year 2010. -Refer to Table 10-1.What was country A's consumption in 2010?

Correct AnswerverifiedShow Answer

Which of the following is an example of depreciation?

Correct AnswerverifiedShow Answer

In the United States in 2009,government purchases of goods and services were

Correct AnswerverifiedShow Answer

Correct Answerverified$90 million is inclu...View AnswerShow Answer

U.S.GDP includes the market value of rental housing,but not the market value of owner-occupied housing services.

Correct AnswerverifiedShow Answer

If net exports is a negative number for a particular year,then

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

George lived in a home that was newly constructed in 2005 for which he paid $200,000.In 2008 he sold the house for $225,000.Which of the following statements is correct regarding the sale of the house?

Correct AnswerverifiedShow Answer

In 2009,the level of U.S.real GDP was close to four times its 1965 level.

Correct AnswerverifiedShow Answer

A Texas household receives a Social Security check for $500,which it uses to purchase a $460 television made in Korea by a Korean firm and a $40 dinner at a local restaurant.As a result,U.S.GDP

Correct AnswerverifiedShow Answer

Table 10-1 The table below contains data for country A for the year 2010. -Refer to Table 10-1.What were country A's government purchases in 2010?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

If in some year nominal GDP was $10 trillion and real GDP was $4 trillion,what was the GDP deflator ?

Correct AnswerverifiedShow 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

If the value of an economy's imports exceeds the value of that economy's exports,then net exports is a negative number.

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

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$90 million is inclu...
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