Question 1

-The above table gives data for a hypothetical nation. Gross domestic product is

Accepted Answer

A)   $4,049 billion.
B)   $4,079 billion.
C)   $4,054 billion.
D)   $4,339 billion.

Question 2

Which of the following are equal to one another?
I. aggregate production
II. aggregate expenditure
III. aggregate income

Accepted Answer

A)   I equals II, but not III.
B)   I equals III, but not II.
C)   II equals III, but not I.
D)   I equals II equals III.

Question 3

-Using the data in the above table, gross domestic product as calculated by the income approach equals

Accepted Answer

A)   $2,333.
B)   $2,592.
C)   $2,925.
D)   $2,205.

Question 4

Intermediate goods and services are one of the largest components of the expenditure approach to measuring GDP.

Accepted Answer

A) True 
 B)False

Question 5

-Using the above figure, during which of the following periods does the price of crude oil have a downward trend?

Accepted Answer

A)   May to July
B)   May to November
C)   July to October
D)   October to December

Question 6

The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called

Accepted Answer

A)   real GDP.
B)   nominal GDP.
C)   actual GDP.
D)   potential GDP.

Question 7

An indirect tax is exemplified by

Accepted Answer

A)   an income tax.
B)   a sales tax.
C)   a subsidy.
D)   None of the above answers is correct.

Question 8

Two methods of measuring GDP are

Accepted Answer

A)   the income approach and the expenditure approach.
B)   the income approach and the receipts approach.
C)   the goods approach and the services approach.
D)   the saving approach and the investment approach.

Question 9

What term is used to describe the lowest point of a business cycle?

Accepted Answer

A)   peak
B)   trough
C)   expansion
D)   recession

Question 10

-Using the information in the table above, depreciation equals

Accepted Answer

A)   -$90 billion.
B)   $90 billion.
C)   -$70 billion.
D)   some amount that cannot be determined.

Question 11

Explain the business cycle by describing the phases and turning points.

Accepted Answer

The business cycle has two phases, the e...

Question 12

An indirect tax is a tax paid by consumers

Accepted Answer

A)   to a state or local government.
B)   when they purchase goods and services.
C)   on unearned income (as opposed to wages and salaries) .
D)   that is a percentage of the value of their real property.

Question 13

How does the income approach measure GDP?

Accepted Answer

The incomes approach adds the compensati...

Question 14

In any year, real GDP

Accepted Answer

A)   must always be less than potential GDP.
B)   might be greater or less than potential GDP.
C)   will be greater than potential GDP if the inflation rate is positive.
D)   always equals potential GDP.

Question 15

Transfer payments

Accepted Answer

A)   are included in the government expenditure category in gross domestic product.
B)   refer to all payments made to households by governments.
C)   refer to payments made by the government that are not made to purchase a good or service.
D)   are made by households to firms in exchange for goods and services.

Exam 4: Measuring Gdp and Economic Growth

How does the income approach measure GDP?

Correct Answer
verified
The incomes approach adds the compensati...
View Answer

-Using the information in the table above, depreciation equals

Correct Answer
verified

Transfer payments

Correct Answer
verified

The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called

Correct Answer
verified

An indirect tax is exemplified by

Correct Answer
verified

-Using the data in the above table, gross domestic product as calculated by the income approach equals

Correct Answer
verified

-Using the above figure, during which of the following periods does the price of crude oil have a downward trend?

Correct Answer
verified

Intermediate goods and services are one of the largest components of the expenditure approach to measuring GDP.

Correct Answer
verified

What term is used to describe the lowest point of a business cycle?

Correct Answer
verified

Explain the business cycle by describing the phases and turning points.

Correct Answer
verified
The business cycle has two phases, the e...
View Answer

Two methods of measuring GDP are

Correct Answer
verified

Which of the following are equal to one another? I. aggregate production II. aggregate expenditure III. aggregate income

Correct Answer
verified

-The above table gives data for a hypothetical nation. Gross domestic product is

Correct Answer
verified

An indirect tax is a tax paid by consumers

Correct Answer
verified

In any year, real GDP

Correct Answer
verified

Exam 4: Measuring Gdp and Economic Growth

How does the income approach measure GDP?

Correct AnswerverifiedThe incomes approach adds the compensati...View AnswerShow Answer

-Using the information in the table above, depreciation equals

Correct AnswerverifiedShow Answer

Transfer payments

Correct AnswerverifiedShow Answer

The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called

Correct AnswerverifiedShow Answer

An indirect tax is exemplified by

Correct AnswerverifiedShow Answer

-Using the data in the above table, gross domestic product as calculated by the income approach equals

Correct AnswerverifiedShow Answer

-Using the above figure, during which of the following periods does the price of crude oil have a downward trend?

Correct AnswerverifiedShow Answer

Intermediate goods and services are one of the largest components of the expenditure approach to measuring GDP.

Correct AnswerverifiedShow Answer

What term is used to describe the lowest point of a business cycle?

Correct AnswerverifiedShow Answer

Explain the business cycle by describing the phases and turning points.

Correct AnswerverifiedThe business cycle has two phases, the e...View AnswerShow Answer

Two methods of measuring GDP are

Correct AnswerverifiedShow Answer

Which of the following are equal to one another? I. aggregate production II. aggregate expenditure III. aggregate income

Correct AnswerverifiedShow Answer

-The above table gives data for a hypothetical nation. Gross domestic product is

Correct AnswerverifiedShow Answer

An indirect tax is a tax paid by consumers

Correct AnswerverifiedShow Answer

In any year, real GDP

Correct AnswerverifiedShow Answer

Correct Answer
verified
The incomes approach adds the compensati...
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
The business cycle has two phases, the e...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified