Question 1

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009. It also reported a GDP deflator of 100 in 2010 and 105 in 2009. Between 2009 and 2010,

Accepted Answer

A)  real output and the price level both rose.
B)  real output rose and the price level fell.
C)  real output fell and the price level rose.
D)  real output and the price level both fell.E) A) and C)
F) None of the above

Question 2

Table 10-1
The table below contains data for country A for the year 2010.   Household purchases of durable goods $1293 Household purchases of nondurable goods $1717 Household purchases of services $301 Household purchases of new housing $704 Purchases of capital equipment $310 Inventory changes $374 Purchases of new structures $611 Depreciation $117 Salaries of government workers $1422 Government expenditures on public works $553 Transfer payments $777 Foreign purchases of domestically produced goods $88 Domestic purchases of foreign goods $120\begin{array}{|l|l|}\hline 	ext { Household purchases of durable goods } & \$ 1293 \\hline 	ext { Household purchases of nondurable goods } & \$ 1717 \\hline 	ext { Household purchases of services } & \$ 301 \\hline 	ext { Household purchases of new housing } & \$ 704 \\hline 	ext { Purchases of capital equipment } & \$ 310 \\hline 	ext { Inventory changes } & \$ 374 \\hline 	ext { Purchases of new structures } & \$ 611 \\hline 	ext { Depreciation } & \$ 117 \\hline 	ext { Salaries of government workers } & \$ 1422 \\hline 	ext { Government expenditures on public works } & \$ 553 \\hline 	ext { Transfer payments } & \$ 777 \\hline 	ext { Foreign purchases of domestically produced goods } & \$ 88 \\hline 	ext { Domestic purchases of foreign goods } & \$ 120 \\hline\end{array} Household purchases of durable goods  Household purchases of nondurable goods  Household purchases of services  Household purchases of new housing  Purchases of capital equipment  Inventory changes  Purchases of new structures  Depreciation  Salaries of government workers  Government expenditures on public works  Transfer payments  Foreign purchases of domestically produced goods  Domestic purchases of foreign goods ​$1293$1717$301$704$310$374$611$117$1422$553$777$88$120​​

-Refer to Table 10-1. What was country A's consumption in 2010?

Accepted Answer

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

Question 3

A country reported nominal GDP of $200 billion in 2010 and $180 billion in 2009. It also reported a GDP deflator of 125 in 2010 and 105 in 2009. Between 2009 and 2010,

Accepted Answer

A)  real output and the price level both rose.
B)  real output rose and the price level fell.
C)  real output fell and the price level rose.
D)  real output and the price level both fell.E) A) and C)
F) All of the above

Question 4

Which of the following is included in the consumption component of GDP?

Accepted Answer

A)  household purchases of appliances.
B)  household purchases of medical care.
C)  household purchases of food.
D)  All of the above are included in the consumption component of GDP.E) A) and C)
F) None of the above

Question 5

When an American doctor opens a practice in Bermuda, his production there is part of U.S. GNP.

Accepted Answer

A) True 
 B)False

Question 6

GDP is equal to

Accepted Answer

A)  the market value of all final goods and services produced within a country in a given period of time.
B)  Y.
C)  C + I + G + NX.
D)  All of the above are correct.E) C) and D)
F) A) and D)

Question 7

Spots, Inc. produces ink and sells it to Write on Target, which makes pens. The ink produced by Spots, Inc. is called

Accepted Answer

A)  an inventory good.
B)  a transitory good.
C)  a final good.
D)  an intermediate good.E) None of the above
F) All of the above

Question 8

Grapes are considered intermediate goods

Accepted Answer

A)  whether the purchaser uses them to make wine to sell or eats them.
B)  if the purchaser uses them to make wine to sell others but not if the purchaser eats them.
C)  if the purchaser eats them, but not if the purchaser uses to them to make wine to sell.
D)  None of the above is correct.E) B) and C)
F) A) and D)

Question 9

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

Accepted Answer

A)  included in GDP whether Susan pays Speedy Lube to change it or changes it herself.
B)  included in GDP if Susan pays Speedy Lube to change it but not if she changes it herself.
C)  included in GDP if Susan changes it herself, but not if she pays Speedy Lube to change it.
D)  not included in GDP whether Susan pays Speedy lube to change it or she changes it herself.E) B) and C)
F) All of the above

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The investment component of GDP refers to financial investment in stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 12

U.S. GDP and U.S. GNP are related as follows:

Accepted Answer

A)  GNP = GDP + Value of exported goods - Value of imported goods.
B)  GNP = GDP - Value of exported goods + Value of imported goods.
C)  GNP = GDP + Income earned by foreigners in the U.S. - Income earned by U.S. citizens abroad.
D)  GNP = GDP - Income earned by foreigners in the U.S. + Income earned by U.S. citizens abroad.E) A) and B)
F) A) and C)

Question 13

U.S. GDP excludes the production of most illegal goods.

Accepted Answer

A) True 
 B)False

Question 14

Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP, but the value of intermediate goods produced and not sold is included directly as part of GDP.

Accepted Answer

Intermediate goods produced and sold dur...

Question 15

Which of the following is included in the investment component of GDP?

Accepted Answer

A)  spending to build new houses
B)  spending to build new factories
C)  spending on business equipment such as welding equipment
D)  All of the above are included in the investment component of GDP.E) A) and B)
F) A) and C)

Question 16

In the equation Y = C + I + G + NX,

Accepted Answer

A)  Y represents the economy's total expenditure.
B)  C represents household expenditures on services and durable goods.
C)  all of the variables are always positive numbers.
D)  All of the above are correct.E) None of the above
F) All of the above

Question 17

Which of the following values would be included in U.S. GDP for 2009?

Accepted Answer

A)  the rent that Sean, an American citizen, would have paid on his home in New York in 2009 had he not owned that home
B)  the rent that John, an American citizen, paid on his apartment in San Francisco in 2009
C)  the value of the legal services provided by Juan, an attorney and a Mexican citizen, who lived in Houston and practiced law there in 2009
D)  All of the above would be included in U.S. GDP for 2009.E) A) and B)
F) A) and C)

Question 18

In a simple circular-flow diagram, total income and total expenditure are

Accepted Answer

A)  never equal because total income always exceeds total expenditure.
B)  seldom equal because of the ongoing changes in an economy's unemployment rate.
C)  equal only when the government purchases no goods or services.
D)  always equal because every transaction has a buyer and a seller.E) A) and B)
F) All of the above

Question 19

Gross domestic product includes all

Accepted Answer

A)  legal and illegal final goods, but it excludes all legal and illegal final services.
B)  legal and illegal final goods and all legal and illegal final services.
C)  legal final goods and services, but it excludes illegal final goods and services.
D)  legal and illegal final goods and legal final services, but it excludes illegal final services.E) All of the above
F) None of the above

Question 20

If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is $800, then consumption is $6200.

Accepted Answer

A) True 
 B)False

Exam 10: Measuring a Nations Income

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009. It also reported a GDP deflator of 100 in 2010 and 105 in 2009. Between 2009 and 2010,

Correct Answer
verified

Which of the following is included in the consumption component of GDP?

Correct Answer
verified

Gross domestic product includes all

Correct Answer
verified

Spots, Inc. produces ink and sells it to Write on Target, which makes pens. The ink produced by Spots, Inc. is called

Correct Answer
verified

Correct Answer
verified

Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP, but the value of intermediate goods produced and not sold is included directly as part of GDP.

Correct Answer
verified
Intermediate goods produced and sold dur...
View Answer

In the equation Y = C + I + G + NX,

Correct Answer
verified

Which of the following values would be included in U.S. GDP for 2009?

Correct Answer
verified

A country reported nominal GDP of $200 billion in 2010 and $180 billion in 2009. It also reported a GDP deflator of 125 in 2010 and 105 in 2009. Between 2009 and 2010,

Correct Answer
verified

U.S. GDP and U.S. GNP are related as follows:

Correct Answer
verified

When an American doctor opens a practice in Bermuda, his production there is part of U.S. GNP.

Correct Answer
verified

If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is $800, then consumption is $6200.

Correct Answer
verified

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

Correct Answer
verified

Grapes are considered intermediate goods

Correct Answer
verified

In a simple circular-flow diagram, total income and total expenditure are

Correct Answer
verified

Which of the following is included in the investment component of GDP?

Correct Answer
verified

GDP is equal to

Correct Answer
verified

U.S. GDP excludes the production of most illegal goods.

Correct Answer
verified

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

Correct Answer
verified

The investment component of GDP refers to financial investment in stocks and bonds.

Correct Answer
verified

Exam 10: Measuring a Nations Income

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009. It also reported a GDP deflator of 100 in 2010 and 105 in 2009. Between 2009 and 2010,

Correct AnswerverifiedShow Answer

Which of the following is included in the consumption component of GDP?

Correct AnswerverifiedShow Answer

Gross domestic product includes all

Correct AnswerverifiedShow Answer

Spots, Inc. produces ink and sells it to Write on Target, which makes pens. The ink produced by Spots, Inc. is called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP, but the value of intermediate goods produced and not sold is included directly as part of GDP.

Correct AnswerverifiedIntermediate goods produced and sold dur...View AnswerShow Answer

In the equation Y = C + I + G + NX,

Correct AnswerverifiedShow Answer

Which of the following values would be included in U.S. GDP for 2009?

Correct AnswerverifiedShow Answer

A country reported nominal GDP of $200 billion in 2010 and $180 billion in 2009. It also reported a GDP deflator of 125 in 2010 and 105 in 2009. Between 2009 and 2010,

Correct AnswerverifiedShow Answer

U.S. GDP and U.S. GNP are related as follows:

Correct AnswerverifiedShow Answer

When an American doctor opens a practice in Bermuda, his production there is part of U.S. GNP.

Correct AnswerverifiedShow Answer

If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is $800, then consumption is $6200.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Grapes are considered intermediate goods

Correct AnswerverifiedShow Answer

In a simple circular-flow diagram, total income and total expenditure are

Correct AnswerverifiedShow Answer

Which of the following is included in the investment component of GDP?

Correct AnswerverifiedShow Answer

GDP is equal to

Correct AnswerverifiedShow Answer

U.S. GDP excludes the production of most illegal goods.

Correct AnswerverifiedShow Answer

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

Correct AnswerverifiedShow Answer

The investment component of GDP refers to financial investment in stocks and bonds.

Correct AnswerverifiedShow Answer

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Intermediate goods produced and sold dur...
View Answer

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