Question 1

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 net exports in 2010?

Accepted Answer

A)   -$32
B)   $32
C)   $88
D)   $120E) A) and C)
F) A) and B)

Question 2

At a rummage sale,you buy two old books and an old rocking chair;your spending on these items is not included in current GDP.

Accepted Answer

A) True 
 B)False

Question 3

In order to include many different goods and services in an aggregate measure,GDP is computed using,primarily,

Accepted Answer

A)   values of goods and services based on surveys of consumers.
B)   market prices.
C)   quantities purchased by a typical urban household.
D)   profits from producing goods and services.E) B) and C)
F) B) and D)

Question 4

Which of the following statements about recessions is true?

Accepted Answer

A)   An old rule of thumb defining recession is two consecutive quarters of falling nominal GDP.
B)   Recessions occur at regular intervals and last standard amounts of time.
C)   There is no ironclad rule for the declaration of recessions.
D)   Recessions are associated with low unemployment and high income.E) B) and C)
F) C) and D)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not an example of a nondurable good?

Accepted Answer

A)   a loaf of bread
B)   a pair of jeans
C)   a microwave
D)   a pound of baconE) B) and D)
F) A) and B)

Question 7

A professional gambler moves from a state where gambling is illegal to a state where gambling is legal.Most of his income was,and continues to be,from gambling.His move

Accepted Answer

A)   raises GDP.
B)   decreases GDP.
C)   doesn't change GDP because gambling is never included in GDP.
D)   doesn't change GDP because in either case his income is included.E) C) and D)
F) All of the above

Question 8

In the circular flow diagram what are the three types of payments from firms to factors of production? Is the sum of these payments greater than,less than,or equal to GDP?

Accepted Answer

Wages,rents,and prof...

Question 9

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

Question 10

GDP is not a perfect measure of well-being;for example,

Accepted Answer

A)   GDP incorporates a large number of non-market goods and services that are of little value to society.
B)   GDP places too much emphasis on the value of leisure.
C)   GDP fails to account for the quality of the environment.
D)   All of the above are correct.E) A) and C)
F) All of the above

Question 11

When economists refer to intangible items,they are referring to such things as

Accepted Answer

A)   illegal goods,and the value of such items is included in GDP.
B)   illegal goods,and the value of such items is excluded from GDP.
C)   hair styling and dental care,and the value of such items is included in GDP.
D)   hair styling and dental care,and the value of such items is excluded from GDP.E) None of the above
F) All of the above

Question 12

Nominal GDP is $12 trillion and real GDP is $15 trillion.What is the GDP deflator? Show your work.

Accepted Answer

The GDP Deflator = 1...

Question 13

In 2009,Corny Company grows and sells $2 million worth of corn to Tasty Cereal Company,which makes corn flakes.Tasty Cereal Company produces $6 million worth of corn flakes in 2009,with sales to households during the year of $4.5 million.The unsold $1.5 million worth of corn flakes remains in Tasty Cereal Company's inventory at the end of 2009.The transactions just described contribute how much to GDP for 2009?

Accepted Answer

A)   $4.5 million
B)   $6 million
C)   $6.5 million
D)   $8 millionE) None of the above
F) A) and B)

Question 14

GDP does not reflect

Accepted Answer

A)   the value of leisure.
B)   the value of goods and services produced at home.
C)   the quality of the environment.
D)   All of the above are correct.E) A) and C)
F) All of the above

Question 15

The consumption component of GDP includes spending on

Accepted Answer

A)   durable goods and nondurable goods,but not spending on services.
B)   durable goods and services,but not spending on nondurable goods.
C)   nondurable goods and services,but not spending on durable goods.
D)   durable goods,nondurable goods,and services.E) A) and D)
F) A) and B)

Question 16

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) B) and C)
F) None of the above

Question 17

Table 10-6
The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009.
Prices and Quantities
 
-Refer to Table 10-6.This country's inflation rate from 2008 to 2009 was

Accepted Answer

A)   -25%.
B)   25%.
C)   33.3%.
D)   100%.E) None of the above
F) A) and B)

Question 18

How is net national product (NNP) calculated?

Accepted Answer

A)   Saving is subtracted from the total income of a nation's citizens.
B)   Saving is added to the total income of a nation's citizens
C)   Depreciation losses are subtracted from the total income of a nation's citizens.
D)   Depreciation losses are added to the total income of a nation's citizens.E) All of the above
F) B) and C)

Question 19

The U.S.buys $500 billion of goods and $250 billion of services from foreign countries.Foreign countries buy $250 billion of goods and $300 billion of services from the U.S.What is net exports?

Accepted Answer

The answer of The U.S.buys $500 billion of goods and...

Question 20

The residents of country A earn $500 million of income from abroad.Residents of other countries earn $200 million in country A.These earnings are accounted for in country A's

Accepted Answer

A)   GNP which is larger than GDP in country A.
B)   GNP which is smaller than GDP in country A.
C)   GDP which is larger than GNP in country A.
D)   GDP which is smaller than GNP in country A.E) A) and B)
F) B) and D)

Exam 23: Measuring a Nations Income

The residents of country A earn $500 million of income from abroad.Residents of other countries earn $200 million in country A.These earnings are accounted for in country A's

Correct Answer
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Correct Answer
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Correct Answer
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The U.S.buys $500 billion of goods and $250 billion of services from foreign countries.Foreign countries buy $250 billion of goods and $300 billion of services from the U.S.What is net exports?

Correct Answer
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In the circular flow diagram what are the three types of payments from firms to factors of production? Is the sum of these payments greater than,less than,or equal to GDP?

Correct Answer
verified
Wages,rents,and prof...
View Answer

Table 10-6 The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009. Prices and Quantities -Refer to Table 10-6.This country's inflation rate from 2008 to 2009 was

Correct Answer
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Which of the following statements about recessions is true?

Correct Answer
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When economists refer to intangible items,they are referring to such things as

Correct Answer
verified

GDP does not reflect

Correct Answer
verified

The consumption component of GDP includes spending on

Correct Answer
verified

How is net national product (NNP) calculated?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

A professional gambler moves from a state where gambling is illegal to a state where gambling is legal.Most of his income was,and continues to be,from gambling.His move

Correct Answer
verified

In order to include many different goods and services in an aggregate measure,GDP is computed using,primarily,

Correct Answer
verified

Nominal GDP is $12 trillion and real GDP is $15 trillion.What is the GDP deflator? Show your work.

Correct Answer
verified
The GDP Deflator = 1...
View 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 net exports in 2010?

Correct Answer
verified

Which of the following is not an example of a nondurable good?

Correct Answer
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At a rummage sale,you buy two old books and an old rocking chair;your spending on these items is not included in current GDP.

Correct Answer
verified

GDP is not a perfect measure of well-being;for example,

Correct Answer
verified

Exam 23: Measuring a Nations Income

The residents of country A earn $500 million of income from abroad.Residents of other countries earn $200 million in country A.These earnings are accounted for in country A's

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The U.S.buys $500 billion of goods and $250 billion of services from foreign countries.Foreign countries buy $250 billion of goods and $300 billion of services from the U.S.What is net exports?

Correct AnswerverifiedShow Answer

In the circular flow diagram what are the three types of payments from firms to factors of production? Is the sum of these payments greater than,less than,or equal to GDP?

Correct AnswerverifiedWages,rents,and prof...View AnswerShow Answer

Table 10-6 The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009. Prices and Quantities -Refer to Table 10-6.This country's inflation rate from 2008 to 2009 was

Correct AnswerverifiedShow Answer

Which of the following statements about recessions is true?

Correct AnswerverifiedShow Answer

When economists refer to intangible items,they are referring to such things as

Correct AnswerverifiedShow Answer

GDP does not reflect

Correct AnswerverifiedShow Answer

The consumption component of GDP includes spending on

Correct AnswerverifiedShow Answer

How is net national product (NNP) calculated?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A professional gambler moves from a state where gambling is illegal to a state where gambling is legal.Most of his income was,and continues to be,from gambling.His move

Correct AnswerverifiedShow Answer

In order to include many different goods and services in an aggregate measure,GDP is computed using,primarily,

Correct AnswerverifiedShow Answer

Nominal GDP is $12 trillion and real GDP is $15 trillion.What is the GDP deflator? Show your work.

Correct AnswerverifiedThe GDP Deflator = 1...View AnswerShow 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 net exports in 2010?

Correct AnswerverifiedShow Answer

Which of the following is not an example of a nondurable good?

Correct AnswerverifiedShow Answer

At a rummage sale,you buy two old books and an old rocking chair;your spending on these items is not included in current GDP.

Correct AnswerverifiedShow Answer

GDP is not a perfect measure of well-being;for example,

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Wages,rents,and prof...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The GDP Deflator = 1...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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