Question 1

Which of the following is not included in GDP?

Accepted Answer

A)   a can of bug spray
B)   the services of an exterminator
C)   the honey produced and sold by a beekeeper
D)   All of the above are included in GDP.

Question 2

Table 23-8
A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year. 
-Refer to Table 23-8. In 2012, GDP deflator is

Accepted Answer

A)   122.
B)   134.
C)   92.
D)   113.

Question 3

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.

Question 4

Which of the following is not included in U.S. GDP?

Accepted Answer

A)   additions of newly produced output to inventory
B)   production of U.S citizens working in foreign countries.
C)   the estimated rental value of owner-occupied housing
D)   the value of food purchased from a grocery store to make meals at home without pay

Question 5

Table 23-9
A country produces only ice cream and pie. 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 23-9. This country's inflation rate from 2009 to 2010 to the nearest tenth was

Accepted Answer

A)   2.9%
B)   8.8%
C)   13.3%
D)   None of the above is correct.

Question 6

Figure 23-1. 
-Refer to Figure 23-1. Which of the following correctly identifies the flow of dollars?

Accepted Answer

A)   W, X, Y and Z
B)   K, M, L and N
C)   C, K, M and D
D)   A, L, N and B

Question 7

In the United States in 2012, consumption represented approximately

Accepted Answer

A)   60 percent of GDP.
B)   70 percent of GDP.
C)   80 percent of GDP.
D)   90 percent of GDP.

Question 8

A U.S.-owned car factory in Mexico produces $5 million of cars. $2.5 million of these cars are sold in Mexico and the other $2.5 million are sold in the U.S. In both cases $1 million of the value of the cars was due to U.S-owned equipment located in Mexico and U.S. managers working in Mexico. How much did this production contribute to U.S. GDP?

Accepted Answer

A)   $0
B)   $1 million
C)   $2 million
D)   None of the above are correct

Question 9

What are transfer payments, and how do they affect the calculation of GDP?

Accepted Answer

Transfer payments are income b...

Question 10

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 11

Real GDP evaluates current production using prices that are fixed at past levels and therefore shows how the economy's overall production of goods and services changes over time.

Accepted Answer

A) True 
 B)False

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 quarter(s)  does(do)  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 second

Question 13

In the economy of Talikastan in 2015, consumption was $600, exports were $300, GDP was $1300, government purchases were $250, and investment was $300. What were Talikastan's imports in 2015?

Accepted Answer

A)   -$150
B)   -$200
C)   $200
D)   $150

Question 14

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.

Question 15

Macroeconomists study

Accepted Answer

A)   the decisions of individual households and firms.
B)   the interaction between households and firms.
C)   economy-wide phenomena.
D)   regulations imposed on firms and unions.

Question 16

Most goods and services produced at home

Accepted Answer

A)   and most goods and services produced illegally are included in GDP.
B)   are included in GDP while most goods and services produced illegally are excluded from GDP.
C)   are excluded from GDP while most goods and services produced illegally are included in GDP
D)   and most goods and services produced illegally are excluded from GDP.

Question 17

Net exports equal

Accepted Answer

A)   exports plus imports.
B)   exports minus imports.
C)   imports minus exports.
D)   GDP minus imports.

Question 18

Recently, the U.S. national income accounts have switched to calling government purchases

Accepted Answer

A)   government spending and transfer payments.
B)   transfer payments and gross investment by government.
C)   government consumption expenditure and gross investment.
D)   government wages, salaries, and investment expenditure.

Question 19

In a simple circular-flow diagram, firms use the money they get from a sale to

Accepted Answer

A)   pay wages to workers.
B)   pay rent to landlords.
C)   pay profit to the firms' owners.
D)   All of the above are correct.

Question 20

If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real GDP?

Accepted Answer

A)   $2.5 billion.
B)   $10 billion.
C)   $40 billion.
D)   $100 billion.

Exam 23: Measuring a Nations Income

If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real GDP?

Correct Answer
verified

Which of the following is not included in GDP?

Correct Answer
verified

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 quarter(s) does(do) these transactions raise investment?

Correct Answer
verified

Real GDP evaluates current production using prices that are fixed at past levels and therefore shows how the economy's overall production of goods and services changes over time.

Correct Answer
verified

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 23-8 A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-8. In 2012, GDP deflator is

Correct Answer
verified

Which of the following is not included in U.S. GDP?

Correct Answer
verified

Recently, the U.S. national income accounts have switched to calling government purchases

Correct Answer
verified

Table 23-9 A country produces only ice cream and pie. 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 23-9. This country's inflation rate from 2009 to 2010 to the nearest tenth was

Correct Answer
verified

Net exports equal

Correct Answer
verified

A transfer payment is

Correct Answer
verified

Macroeconomists study

Correct Answer
verified

Correct Answer
verified

What are transfer payments, and how do they affect the calculation of GDP?

Correct Answer
verified
Transfer payments are income b...
View Answer

In the economy of Talikastan in 2015, consumption was $600, exports were $300, GDP was $1300, government purchases were $250, and investment was $300. What were Talikastan's imports in 2015?

Correct Answer
verified

In the United States in 2012, consumption represented approximately

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

In a simple circular-flow diagram, firms use the money they get from a sale to

Correct Answer
verified

Most goods and services produced at home

Correct Answer
verified

Figure 23-1. -Refer to Figure 23-1. Which of the following correctly identifies the flow of dollars?

Correct Answer
verified

Exam 23: Measuring a Nations Income

If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real GDP?

Correct AnswerverifiedShow Answer

Which of the following is not included in GDP?

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 quarter(s) does(do) these transactions raise investment?

Correct AnswerverifiedShow Answer

Real GDP evaluates current production using prices that are fixed at past levels and therefore shows how the economy's overall production of goods and services changes over time.

Correct AnswerverifiedShow Answer

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 23-8 A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-8. In 2012, GDP deflator is

Correct AnswerverifiedShow Answer

Which of the following is not included in U.S. GDP?

Correct AnswerverifiedShow Answer

Recently, the U.S. national income accounts have switched to calling government purchases

Correct AnswerverifiedShow Answer

Table 23-9 A country produces only ice cream and pie. 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 23-9. This country's inflation rate from 2009 to 2010 to the nearest tenth was

Correct AnswerverifiedShow Answer

Net exports equal

Correct AnswerverifiedShow Answer

A transfer payment is

Correct AnswerverifiedShow Answer

Macroeconomists study

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What are transfer payments, and how do they affect the calculation of GDP?

Correct AnswerverifiedTransfer payments are income b...View AnswerShow Answer

In the economy of Talikastan in 2015, consumption was $600, exports were $300, GDP was $1300, government purchases were $250, and investment was $300. What were Talikastan's imports in 2015?

Correct AnswerverifiedShow Answer

In the United States in 2012, consumption represented approximately

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

In a simple circular-flow diagram, firms use the money they get from a sale to

Correct AnswerverifiedShow Answer

Most goods and services produced at home

Correct AnswerverifiedShow Answer

Figure 23-1. -Refer to Figure 23-1. Which of the following correctly identifies the flow of dollars?

Correct AnswerverifiedShow Answer

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Transfer payments are income b...
View Answer

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