Question 1

One of the economic changes that has most dramatically reshaped the world is:

Accepted Answer

A)  the rapid growth of China's economy.
B)  the rapid decline of Haiti's economy.
C)  the unemployment rate declining in the U.S.by 40 percent.
D)  the rapid growth of Italy's economy.E) All of the above
F) B) and D)

Question 2

An example of a good or service that would not count in the U.S.GDP would be:

Accepted Answer

A)  a t-shirt made by The Gap in Cambodia.
B)  a t-shirt made by Organi-tee in Oregon.
C)  a TV made by Toshiba in Georgia.
D)  a bottle of water made by Poland Springs in Maine.E) A) and D)
F) A) and B)

Question 3

The value of net exports is:

Accepted Answer

A)  exports minus imports.
B)  imports minus exports.
C)  exports plus imports.
D)  (exports plus imports) minus tariffs.E) A) and D)
F) A) and C)

Question 4

The many goods and services that are sold below the radar,outside of official records take place in the:

Accepted Answer

A)  underground economy.
B)  soft market.
C)  illegal economy.
D)  None of these statements is true.E) B) and C)
F) B) and D)

Question 5

A good that would be counted as consumption in GDP would be:

Accepted Answer

A)  the Subway sandwich Tony ate for lunch.
B)  the $10 Tony received after winning a bet with his friend.
C)  the $50 in wages Tony received that day from working all afternoon.
D)  All of these would be counted as consumption in GDP.E) C) and D)
F) B) and C)

Question 6

U.S.Gross National Product includes:

Accepted Answer

A)  goods produced by foreign firms on U.S.soil.
B)  goods produced by U.S.firms on foreign soil.
C)  goods produced by foreign firms on foreign soil.
D)  None of these statements is true.E) B) and C)
F) None of the above

Question 7

A major category of economic activity that is not counted as part of GDP is:

Accepted Answer

A)  home production.
B)  the underground economy.
C)  nonmarket externalities such as environmental degradation.
D)  All of these are not included in GDP.E) C) and D)
F) B) and C)

Question 8

The goods and services that count toward GDP are:

Accepted Answer

A)  defined in terms of the location of production,not the citizenship of the producer.
B)  anything produced within a country's borders,regardless of who owns it.
C)  things made in one country,even if the majority of it is owned by someone else.
D)  All of these statements are true.E) A) and D)
F) A) and C)

Question 9

Net exports will be negative if:

Accepted Answer

A)  imports exceed exports.
B)  exports exceed imports.
C)  it is a closed economy.
D)  it is an open economy.E) C) and D)
F) None of the above

Question 10

An example of a good or service that would count in the U.S.GDP would be:

Accepted Answer

A)  a bag of coffee made in Vermont by Green Mountain Coffee Roasters.
B)  a bag of coffee made in Colombia by Dunkin' Donuts.
C)  a bag of coffee made in Canada by Starbucks.
D)  All of these would count in U.S.GDP.E) B) and C)
F) A) and B)

Question 11

If Italy's real GDP fell from $2.2 trillion one year to $1.9 trillion the next,the annual growth rate would be:

Accepted Answer

A)  -13.6 percent.
B)  -15.8 percent.
C)  13.6 percent.
D)  15.8 percent.E) All of the above
F) B) and C)

Question 12

The four components that make up GDP are:

Accepted Answer

A)  C,I,G,and NX.
B)  C,I,G,and EX.
C)  K,I,G,and NX.
D)  C,Im,G,and EX.E) B) and D)
F) B) and C)

Question 13

If U.S.real GDP grew from $12 trillion one year to $12.7 trillion the next,the annual growth rate would be:

Accepted Answer

A)  5.8 percent.
B)  94.4 percent.
C)  105.8 percent.
D)  5.5 percent.E) None of the above
F) All of the above

Question 14

Clarence is a Japanese citizen working for Toyota at the manufacturing plant located in Tennessee.Clarence's work will contribute toward:

Accepted Answer

A)  U.S.GDP since the location of the plant is in the U.S.
B)  Japan's GDP since he's a Japanese citizen.
C)  Japan's GDP since it's a Japanese firm.
D)  both the U.S.and Japan's GDP.E) A) and B)
F) A) and C)

Question 15

Which of the following is not a final good or service?

Accepted Answer

A)  A gallon of milk for your breakfast cereal
B)  A notebook for your college courses
C)  The cheese on the pizza you bought from Domino's
D)  All of these are final goods or services.E) B) and C)
F) C) and D)

Question 16

The value-added approach of calculating GDP:

Accepted Answer

A)  is an alternative,and equally valid,way of avoiding the problem of double-counting.
B)  lets us break down the total value paid and see how much of it was created at each step of the production process.
C)  is especially useful when thinking about services involved in the resale of existing goods.
D)  All of these are correct.E) B) and D)
F) B) and C)

Question 17

Which approach to calculating GDP is especially useful in clarifying the resale of existing goods?

Accepted Answer

A)  The expenditure approach
B)  The income approach
C)  The value-added approach
D)  Any of these measurements will allow that kind of clarification equally well.E) B) and C)
F) None of the above

Question 18

Gross domestic product is:

Accepted Answer

A)  the sum of the market values of all final goods and services produced within a country in a given period of time.
B)  the sum of the market values of all intermediate goods and services produced within a country in a given period of time.
C)  the sum of all final goods and services produced by a country's citizens in a given period of time.
D)  the sum of the market values of all final goods and services produced by a country's citizens in a given period of time.E) All of the above
F) B) and D)

Question 19

When maximizing economic growth is a country's goal:

Accepted Answer

A)  it may work in opposition to the country's happiness in terms of satisfaction gained from leisure.
B)  it increases the correlation to the country's happiness,because more money makes people happier.
C)  it creates a perfect correlation to happiness,if the money is allocated fairly.
D)  None of these statements is true.E) None of the above
F) B) and C)

Question 20

One way to estimate GDP is:

Accepted Answer

A)  measure the total expenditure of an economy.
B)  add up all the money people spend buying final goods and services.
C)  add together the market value of all final goods and services sold in the economy.
D)  All of these are ways to measure GDP.E) All of the above
F) B) and C)

Exam 24: Measuring the Wealth of Nations

Clarence is a Japanese citizen working for Toyota at the manufacturing plant located in Tennessee.Clarence's work will contribute toward:

Correct AnswerverifiedShow Answer

An example of a good or service that would count in the U.S.GDP would be:

Correct AnswerverifiedShow Answer

One way to estimate GDP is:

Correct AnswerverifiedShow Answer

If U.S.real GDP grew from $12 trillion one year to $12.7 trillion the next,the annual growth rate would be:

Correct AnswerverifiedShow Answer

The goods and services that count toward GDP are:

Correct AnswerverifiedShow Answer

The value-added approach of calculating GDP:

Correct AnswerverifiedShow Answer

Which approach to calculating GDP is especially useful in clarifying the resale of existing goods?

Correct AnswerverifiedShow Answer

An example of a good or service that would not count in the U.S.GDP would be:

Correct AnswerverifiedShow Answer

U.S.Gross National Product includes:

Correct AnswerverifiedShow Answer

Which of the following is not a final good or service?

Correct AnswerverifiedShow Answer

One of the economic changes that has most dramatically reshaped the world is:

Correct AnswerverifiedShow Answer

When maximizing economic growth is a country's goal:

Correct AnswerverifiedShow Answer

The four components that make up GDP are:

Correct AnswerverifiedShow Answer

Net exports will be negative if:

Correct AnswerverifiedShow Answer

The value of net exports is:

Correct AnswerverifiedShow Answer

A good that would be counted as consumption in GDP would be:

Correct AnswerverifiedShow Answer

The many goods and services that are sold below the radar,outside of official records take place in the:

Correct AnswerverifiedShow Answer

If Italy's real GDP fell from $2.2 trillion one year to $1.9 trillion the next,the annual growth rate would be:

Correct AnswerverifiedShow Answer

Gross domestic product is:

Correct AnswerverifiedShow Answer

A major category of economic activity that is not counted as part of GDP is:

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

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