Question 1

Tyler and Camille both live in Oklahoma. A new-car dealer in Oklahoma bought a new car from the manufacturer for $18,000 and sold it to Tyler for $22,000. Later that year, Tyler sold the car to Camille for $17,000. By how much did these transactions contribute to U.S. GDP for the year?

Accepted Answer

A)   $18,000
B)   $22,000
C)   $39,000
D)   $57,000E) All of the above
F) A) and B)

Question 2

Table 23-6
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013.
 
-Refer to Table 23-6. In 2011, this country's nominal GDP was

Accepted Answer

A)   $260.
B)   $440.
C)   $620.
D)   $760.E) None of the above
F) All of the above

Question 3

In 2014, a farmer grows and sells $3 million worth of corn to Big Flakes Cereal Company. Big Flakes Cereal Company produces $8 million worth of cereal in 2014, with sales to households during the year of $7 million. The unsold $1 million worth of cereal remains in Big Flake Cereal Company's inventory at the end of 2014. The transactions just described contribute how much to GDP for 2014?

Accepted Answer

A)   $3 million
B)   $7 million
C)   $8 million
D)   $11 millionE) None of the above
F) A) and B)

Question 4

After the terrorist attacks on September 11, 2001, governments within the United States raised expenditures to increase security at airports. These purchases of goods and services are

Accepted Answer

A)   not included in GDP since they do not represent production.
B)   not included in GDP since the government collects taxes to pay for them.
C)   included in GDP since government expenditures on goods and services are included in GDP.
D)   included in GDP only to the extent that the federal government, rather than state or local governments, paid for them.E) B) and D)
F) All of the above

Question 5

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) None of the above

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The percentage change in the price level from one period to another is called

Accepted Answer

A)   the growth rate.
B)   the inflation rate.
C)   the GDP deflator.
D)   the unemployment rate.E) None of the above
F) B) and D)

Question 8

Figure 23-1. 
-Refer to Figure 23-1. Which of the following pairs correctly identify X and Z?

Accepted Answer

A)   markets for factors of production and markets for goods and services
B)   firms and households
C)   GDP deflator and CPI
D)   flow of dollars and flow of inputs and outputsE) B) and D)
F) C) and D)

Question 9

A newspaper article informs you that most businesses reduced production in the last quarter but also sold from their inventories during the last quarter. Based on this information GDP likely

Accepted Answer

A)   increased.
B)   decreased.
C)   stayed the same.
D)   may have increased, decreased, or stayed the same.E) B) and D)
F) All of the above

Question 10

Which of the following statements about GDP is correct?

Accepted Answer

A)   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate of the economy's labor force.
B)   Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
C)   GDP is to a nation's economy as household income is to a household.
D)   All of the above are correct.E) A) and C)
F) A) and B)

Question 11

If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.

Accepted Answer

A) True 
 B)False

Question 12

In the national income accounts, depreciation is called

Accepted Answer

A)   "consumption of fixed capital."
B)   "negative investment."
C)   "diminished value."
D)   "loss due to wear."E) A) and B)
F) C) and D)

Question 13

U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does it not tell us, about the well-being of U.S. residents?

Accepted Answer

Since this is in real terms, it tells us...

Question 14

GDP per person tells us the income and expenditure of the

Accepted Answer

A)   richest person in the economy.
B)   poorest person in the economy.
C)   average person in the economy.
D)   entire economy.E) None of the above
F) All of the above

Question 15

When an Egyptian firm purchases a cement mixer from Slovakia,

Accepted Answer

A)   Egyptian investment does not change, Egyptian net exports decrease, Egyptian GDP decreases, Slovakian net exports increase, and Slovakian GDP increases.
B)   Egyptian investment increases, Egyptian net exports decrease, Egyptian GDP is unaffected, Slovakian net exports increase, and Slovakian GDP increases.
C)   Egyptian investment decreases, Egyptian net exports increase, Egyptian GDP is unaffected, Slovakian net exports decrease, and Slovakian GDP decreases.
D)   Egyptian investment increases, Egyptian net exports do not change, Egyptian GDP increases, Slovakian net exports do not change, and Slovakian GDP is unaffected.E) All of the above
F) B) and C)

Question 16

A U.S. publisher purchases new computers that were manufactured in the U.S. This purchase by itself makes

Accepted Answer

A)   a positive contribution both to investment and to GDP.
B)   a positive contribution both to consumption and to GDP.
C)   a positive contribution to GDP, but it does not affect investment or consumption.
D)   a positive contribution to investment, but it does not affect GDP.E) A) and D)
F) A) and B)

Question 17

A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The oranges produced by the farmer are called

Accepted Answer

A)   inventory goods.
B)   transitory goods.
C)   final goods.
D)   intermediate goods.E) B) and C)
F) All of the above

Question 18

Micah buys a used car for $10,000 and spends $200 on a new radio that is made in the U.S. The end result of these two transactions is

Accepted Answer

A)   U.S. consumption purchases increase by $200 and U.S. GDP increases by $200.
B)   U.S. consumption purchases increase by $200 and U.S. GDP increases by $10,000.
C)   U.S. consumption purchases increase by $10,000 and U.S. GDP increases by $10,200.
D)   U.S. consumption purchases increase by $10,200 and U.S. GDP increases by $10,200.E) A) and B)
F) B) and D)

Question 19

Table 23-11
The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009.
Prices and Quantities
 
-Refer to Table 23-11.
What was nominal GDP, real GDP, and the GDP deflator for 2008?

Accepted Answer

Nominal GDP was $4x100 + $50X1...

Question 20

Table 23-6
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013.
 
-Refer to Table 23-6. In 2013, this country's GDP deflator was

Accepted Answer

A)   1.0.
B)   100.0.
C)   171.4.
D)   240.0.E) A) and C)
F) C) and D)

Exam 5: Measuring a Nations Income

Table 23-11 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-11. What was nominal GDP, real GDP, and the GDP deflator for 2008?

Correct Answer
verified
Nominal GDP was $4x100 + $50X1...
View Answer

A U.S. publisher purchases new computers that were manufactured in the U.S. This purchase by itself makes

Correct Answer
verified

Micah buys a used car for $10,000 and spends $200 on a new radio that is made in the U.S. The end result of these two transactions is

Correct Answer
verified

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. In 2011, this country's nominal GDP was

Correct Answer
verified

The percentage change in the price level from one period to another is called

Correct Answer
verified

A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The oranges produced by the farmer are called

Correct Answer
verified

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. In 2013, this country's GDP deflator was

Correct Answer
verified

Which of the following statements about GDP is correct?

Correct Answer
verified

After the terrorist attacks on September 11, 2001, governments within the United States raised expenditures to increase security at airports. These purchases of goods and services are

Correct Answer
verified

If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.

Correct Answer
verified

U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does it not tell us, about the well-being of U.S. residents?

Correct Answer
verified
Since this is in real terms, it tells us...
View Answer

A newspaper article informs you that most businesses reduced production in the last quarter but also sold from their inventories during the last quarter. Based on this information GDP likely

Correct Answer
verified

Figure 23-1. -Refer to Figure 23-1. Which of the following pairs correctly identify X and Z?

Correct Answer
verified

When an Egyptian firm purchases a cement mixer from Slovakia,

Correct Answer
verified

In the national income accounts, depreciation is called

Correct Answer
verified

Grapes are considered intermediate goods

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Tyler and Camille both live in Oklahoma. A new-car dealer in Oklahoma bought a new car from the manufacturer for $18,000 and sold it to Tyler for $22,000. Later that year, Tyler sold the car to Camille for $17,000. By how much did these transactions contribute to U.S. GDP for the year?

Correct Answer
verified

GDP per person tells us the income and expenditure of the

Correct Answer
verified

Exam 5: Measuring a Nations Income

Table 23-11 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-11. What was nominal GDP, real GDP, and the GDP deflator for 2008?

Correct AnswerverifiedNominal GDP was $4x100 + $50X1...View AnswerShow Answer

A U.S. publisher purchases new computers that were manufactured in the U.S. This purchase by itself makes

Correct AnswerverifiedShow Answer

Micah buys a used car for $10,000 and spends $200 on a new radio that is made in the U.S. The end result of these two transactions is

Correct AnswerverifiedShow Answer

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. In 2011, this country's nominal GDP was

Correct AnswerverifiedShow Answer

The percentage change in the price level from one period to another is called

Correct AnswerverifiedShow Answer

A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The oranges produced by the farmer are called

Correct AnswerverifiedShow Answer

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. In 2013, this country's GDP deflator was

Correct AnswerverifiedShow Answer

Which of the following statements about GDP is correct?

Correct AnswerverifiedShow Answer

After the terrorist attacks on September 11, 2001, governments within the United States raised expenditures to increase security at airports. These purchases of goods and services are

Correct AnswerverifiedShow Answer

If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.

Correct AnswerverifiedShow Answer

U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does it not tell us, about the well-being of U.S. residents?

Correct AnswerverifiedSince this is in real terms, it tells us...View AnswerShow Answer

A newspaper article informs you that most businesses reduced production in the last quarter but also sold from their inventories during the last quarter. Based on this information GDP likely

Correct AnswerverifiedShow Answer

Figure 23-1. -Refer to Figure 23-1. Which of the following pairs correctly identify X and Z?

Correct AnswerverifiedShow Answer

When an Egyptian firm purchases a cement mixer from Slovakia,

Correct AnswerverifiedShow Answer

In the national income accounts, depreciation is called

Correct AnswerverifiedShow Answer

Grapes are considered intermediate goods

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Tyler and Camille both live in Oklahoma. A new-car dealer in Oklahoma bought a new car from the manufacturer for $18,000 and sold it to Tyler for $22,000. Later that year, Tyler sold the car to Camille for $17,000. By how much did these transactions contribute to U.S. GDP for the year?

Correct AnswerverifiedShow Answer

GDP per person tells us the income and expenditure of the

Correct AnswerverifiedShow Answer

Correct Answer
verified
Nominal GDP was $4x100 + $50X1...
View Answer

Correct Answer
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verified
Since this is in real terms, it tells us...
View Answer

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