Question 1

GDP is defined as the

Accepted Answer

A)   value of all goods and services produced within a country in a given period of time.
B)   value of all goods and services produced by the citizens of a country,regardless of where they are living,in a given period of time.
C)   value of all final goods and services produced within a country in a given period of time.
D)   value of all final goods and services produced by the citizens of a country,regardless of where they are living,in a given period of time.E) None of the above
F) A) and B)

Question 2

A Mexican company operates a restaurant in the U.S.The value of the restaurant's output produced by Mexican citizens and the equipment they own is included in

Accepted Answer

A)   U.S.GNP and Mexican GNP.
B)   U.S.GNP and Mexican GDP.
C)   U.S.GDP and Mexican GNP.
D)   U.S.GDP and Mexican GDP.E) A) and B)
F) A) and C)

Question 3

Table 10-1
The table below contains data for Bahkan for the year 2010.
 
-Refer to Table 10-1.Personal income for Bahkan in 2010 is

Accepted Answer

A)   $87.
B)   $89.
C)   $103.
D)   $105.E) A) and B)
F) A) and C)

Question 4

In the economy of Ukzten in 2010,consumption was one-half of GDP,government purchases were $2000 more than investment,investment was one-sixth of GDP,and the value of imports exceeded the value of exports by $500.What was Ukzten's GDP in 2010?

Accepted Answer

A)   $3000
B)   $4500
C)   $9000
D)   $15,000E) A) and B)
F) A) and C)

Question 5

When an American household purchases a bottle of Italian wine for $100,

Accepted Answer

A)   U.S.consumption does not change,U.S.net exports decrease by $100,and U.S.GDP decreases by $100.
B)   U.S.consumption does not change,U.S.net exports increase by $100,and U.S.GDP increases by $100.
C)   U.S.consumption increases by $100,U.S.net exports decrease by $100,and U.S.GDP does not change.
D)   U.S.consumption increases by $100,U.S.net exports do not change,and U.S.GDP increases by $100.E) C) and D)
F) All of the above

Question 6

In the economy of Ukzten in 2010,consumption was $3000,GDP was $5500,government purchases were $1000,imports were $2000,and investment was $1000.What were Ukzten's exports in 2010?

Accepted Answer

A)   -$1500
B)   $500
C)   $1500
D)   $2500E) A) and B)
F) A) and C)

Question 7

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) All of the above
F) None of the above

Question 8

Which of the following statements about GDP is correct?

Accepted Answer

A)   Nominal GDP values production at current prices,whereas real GDP values production at constant prices.
B)   Nominal GDP values production at constant prices,whereas real GDP values production at current prices.
C)   Nominal GDP values production at market prices,whereas real GDP values production at the cost of the resources used in the production process.
D)   Nominal GDP values production at the cost of the resources used in the production process,whereas real GDP values production at market prices..E) A) and D)
F) None of the above

Question 9

Suppose the government eliminates all environmental regulations and,as a result,the production of goods and services increases,but there is considerably more pollution.Based on this scenario,which of the following statements is correct?

Accepted Answer

A)   GDP would definitely increase,despite the fact that GDP includes environmental quality.
B)   GDP would definitely decrease because GDP includes environmental quality.
C)   GDP would definitely increase because GDP excludes environmental quality.
D)   GDP could either increase or decrease because GDP excludes environmental quality.E) A) and C)
F) C) and D)

Question 10

Which of the following is not included in GDP?

Accepted Answer

A)   carrots grown in your garden and eaten by your family
B)   carrots purchased at a farmer's market and eaten by your family
C)   carrots purchased at a grocery store and eaten by your family
D)   None of the above are included in GDP.E) A) and C)
F) A) and D)

Question 11

Which of the following is an example of a durable good?

Accepted Answer

A)   a refrigerator
B)   a quart of motor oil
C)   a business suit
D)   a can of soupE) B) and D)
F) None of the above

Question 12

Table 10-5
A hypothetical country of Lahland produces only movies and popcorn.Quantities and prices of these goods for the last several years are shown below.The base year is 2009.
Prices and Quantities
 
-Refer to Table 10-5 In which year was this country's real GDP highest?

Accepted Answer

A)   2008
B)   2009
C)   2010
D)   2011E) All of the above
F) C) and D)

Question 13

Between 1929 and 1933,NNP measured in current prices fell from $96 billion to $48 billion.Over the same period,the relevant price index fell from 100 to 75.
a.What was the percentage decline in nominal NNP from 1929 to1933?
b.What was the percentage decline in real NNP from 1929 to 1933? Show your work.

Accepted Answer

a.NNP measured in current prices is nomi...

Question 14

Which of the following is included in U.S.GDP?

Accepted Answer

A)   the value of production by a Singaporean working in the U.S.
B)   the value of production by an American working in Singapore
C)   Both (a) and (b) are correct.
D)   Neither (a) nor (b) is correct.E) B) and C)
F) A) and D)

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.E) B) and D)
F) A) and C)

Question 16

The GDP deflator for years subsequent to the base year measures the change in

Accepted Answer

A)   nominal GDP from the base year that cannot be attributable to a change in real GDP.
B)   real GDP from the base year that cannot be attributable to a change in nominal GDP.
C)   nominal GDP from the base year that cannot be attributable to a change in prices.
D)   real GDP from the base year that cannot be attributable to a change in prices.E) A) and B)
F) A) and D)

Question 17

Last year country A had a nominal GDP of $600 billion,a GDP deflator of 150 and a population of 40 million.Country B had a nominal GDP of $720 billion,a GDP deflator of 120 and a population of 50 million.From these numbers which country is likely to have had the higher standard of living?

Accepted Answer

A)   Country A because it had the higher nominal GDP per person.
B)   Country B because it had the higher nominal GDP per person.
C)   Country A because it had the higher real GDP per person.
D)   Country B because it had the higher real GDP per person.E) A) and C)
F) C) and D)

Question 18

Transfer payments are

Accepted Answer

A)   included in GDP because they represent income to individuals.
B)   included in GDP because they eventually will be spent on consumption.
C)   not included in GDP because they are not payments for currently produced goods or services.
D)   not included in GDP because taxes will have to be raised to pay for them.E) A) and B)
F) B) and D)

Question 19

Table 10-2
The table below contains data for the country of Crete for the year 2010.
 
-Refer to Table 10-2.What was Crete's GDP in 2010?

Accepted Answer

A)   $4623
B)   $5731
C)   $6037
D)   $6839E) B) and C)
F) None of the above

Question 20

Expenditures by households on education are included in the consumption component of GDP.

Accepted Answer

A) True 
 B)False

Exam 23: Measuring a Nations Income

Which of the following is included in U.S.GDP?

Correct Answer
verified

Table 10-2 The table below contains data for the country of Crete for the year 2010. -Refer to Table 10-2.What was Crete's GDP in 2010?

Correct Answer
verified

Expenditures by households on education are included in the consumption component of GDP.

Correct Answer
verified

A Mexican company operates a restaurant in the U.S.The value of the restaurant's output produced by Mexican citizens and the equipment they own is included in

Correct Answer
verified

When an American household purchases a bottle of Italian wine for $100,

Correct Answer
verified

The GDP deflator for years subsequent to the base year measures the change in

Correct Answer
verified

GDP is defined as the

Correct Answer
verified

Which of the following is an example of a durable good?

Correct Answer
verified

Transfer payments are

Correct Answer
verified

Correct Answer
verified
a.NNP measured in current prices is nomi...
View 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 Answer
verified

Table 10-1 The table below contains data for Bahkan for the year 2010. -Refer to Table 10-1.Personal income for Bahkan in 2010 is

Correct Answer
verified

Which of the following statements about GDP is correct?

Correct Answer
verified

Macroeconomists study

Correct Answer
verified

Table 10-5 A hypothetical country of Lahland produces only movies and popcorn.Quantities and prices of these goods for the last several years are shown below.The base year is 2009. Prices and Quantities -Refer to Table 10-5 In which year was this country's real GDP highest?

Correct Answer
verified

Suppose the government eliminates all environmental regulations and,as a result,the production of goods and services increases,but there is considerably more pollution.Based on this scenario,which of the following statements is correct?

Correct Answer
verified

In the economy of Ukzten in 2010,consumption was one-half of GDP,government purchases were $2000 more than investment,investment was one-sixth of GDP,and the value of imports exceeded the value of exports by $500.What was Ukzten's GDP in 2010?

Correct Answer
verified

Last year country A had a nominal GDP of $600 billion,a GDP deflator of 150 and a population of 40 million.Country B had a nominal GDP of $720 billion,a GDP deflator of 120 and a population of 50 million.From these numbers which country is likely to have had the higher standard of living?

Correct Answer
verified

In the economy of Ukzten in 2010,consumption was $3000,GDP was $5500,government purchases were $1000,imports were $2000,and investment was $1000.What were Ukzten's exports in 2010?

Correct Answer
verified

Which of the following is not included in GDP?

Correct Answer
verified

Exam 23: Measuring a Nations Income

Which of the following is included in U.S.GDP?

Correct AnswerverifiedShow Answer

Table 10-2 The table below contains data for the country of Crete for the year 2010. -Refer to Table 10-2.What was Crete's GDP in 2010?

Correct AnswerverifiedShow Answer

Expenditures by households on education are included in the consumption component of GDP.

Correct AnswerverifiedShow Answer

A Mexican company operates a restaurant in the U.S.The value of the restaurant's output produced by Mexican citizens and the equipment they own is included in

Correct AnswerverifiedShow Answer

When an American household purchases a bottle of Italian wine for $100,

Correct AnswerverifiedShow Answer

The GDP deflator for years subsequent to the base year measures the change in

Correct AnswerverifiedShow Answer

GDP is defined as the

Correct AnswerverifiedShow Answer

Which of the following is an example of a durable good?

Correct AnswerverifiedShow Answer

Transfer payments are

Correct AnswerverifiedShow Answer

Correct Answerverifieda.NNP measured in current prices is nomi...View AnswerShow 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

Table 10-1 The table below contains data for Bahkan for the year 2010. -Refer to Table 10-1.Personal income for Bahkan in 2010 is

Correct AnswerverifiedShow Answer

Which of the following statements about GDP is correct?

Correct AnswerverifiedShow Answer

Macroeconomists study

Correct AnswerverifiedShow Answer

Table 10-5 A hypothetical country of Lahland produces only movies and popcorn.Quantities and prices of these goods for the last several years are shown below.The base year is 2009. Prices and Quantities -Refer to Table 10-5 In which year was this country's real GDP highest?

Correct AnswerverifiedShow Answer

Suppose the government eliminates all environmental regulations and,as a result,the production of goods and services increases,but there is considerably more pollution.Based on this scenario,which of the following statements is correct?

Correct AnswerverifiedShow Answer

In the economy of Ukzten in 2010,consumption was one-half of GDP,government purchases were $2000 more than investment,investment was one-sixth of GDP,and the value of imports exceeded the value of exports by $500.What was Ukzten's GDP in 2010?

Correct AnswerverifiedShow Answer

Last year country A had a nominal GDP of $600 billion,a GDP deflator of 150 and a population of 40 million.Country B had a nominal GDP of $720 billion,a GDP deflator of 120 and a population of 50 million.From these numbers which country is likely to have had the higher standard of living?

Correct AnswerverifiedShow Answer

In the economy of Ukzten in 2010,consumption was $3000,GDP was $5500,government purchases were $1000,imports were $2000,and investment was $1000.What were Ukzten's exports in 2010?

Correct AnswerverifiedShow Answer

Which of the following is not included in GDP?

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
a.NNP measured in current prices is nomi...
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

Correct Answer
verified