Question 1

Table 23-10
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 2015 .
Prices and Quantities 
-Refer to Table 23-10. In which year was this country's real GDP highest?

Accepted Answer

A)  2014
B)  2015
C)  2016
D)  2017E) A) and B)
F) B) and C)

Question 2

International data on GDP and socioeconomic variables

Accepted Answer

A)  are inconclusive about the relationship between GDP and the economic well-being of citizens.
B)  suggest that poor nations actually might enjoy a higher standard of living than do rich nations.
C)  leave no doubt that a nation's GDP is closely associated with its citizens' standard of living.
D)  indicate that there are few real differences in living standards around the world, in spite of the large differences in GDP between nations.E) A) and C)
F) A) and B)

Question 3

Typically in countries with lower levels of real GDP person, a smaller percentage of the population is literate.

Accepted Answer

A) True 
 B)False

Question 4

According to the circular-flow diagram GDP

Accepted Answer

A)  can be computed as either the revenue firms receive from the sales of goods and services or the payments they make to factors of production.
B)  can be computed as the revenue firms receive from the sales of goods and services but not as the payments they make to factors of production.
C)  can be computed as payments firms make to factors of production but not as revenues they receive from the sales of goods and services.
D)  cannot be computed as either the revenue firms receive or the payments they make to factors of production.E) A) and B)
F) B) and C)

Question 5

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

Accepted Answer

A) True 
 B)False

Question 6

A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10. Smith's Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP?

Accepted Answer

A)  $22.50
B)  $29.50
C)  $21.50
D)  $31.50E) A) and B)
F) None of the above

Question 7

A country's real GDP rose from $500 to $530 while its nominal GDP rose from $600 to $700. What was this country's inflation rate?

Accepted Answer

A)  16.7%.
B)  10.0%.
C)  15.0%.
D)  -9.1%.E) None of the above
F) C) and D)

Question 8

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  The market value of an oil change that Ben performs on his own car.
B)  The market value of an oil change at Speedy Lube.
C)  The market value of oil purchased by Ben.
D)  Production of foreign citizens living in the United States that work in an oil packaging facility.E) A) and C)
F) B) and D)

Question 10

Write the formula for calculating a country's inflation rate using the GDP deflator.

Accepted Answer

The answer of Write the formula for calculating a country's...

Question 11

Which of the following is an example of depreciation?

Accepted Answer

A)  falling stock prices
B)  the retirement of several employees
C)  computers becoming obsolete
D)  All of the above are examples of depreciation.E) A) and B)
F) A) and C)

Question 12

Which of the following statements about recessions is true?

Accepted Answer

A)  An old rule of thumb defining recession is two consecutive quarters of falling nominal GDP.
B)  Recessions occur at regular intervals and last standard amounts of time.
C)  There is no ironclad rule for the declaration of recessions.
D)  Recessions are associated with low unemployment and high income.E) B) and C)
F) A) and B)

Question 13

Income generated by a nation's domestic production

Accepted Answer

A)  is less than its domestic production.
B)  is equal to its domestic production.
C)  is greater than its domestic production.
D)  could be less than, equal to, or greater than its domestic production.E) A) and B)
F) A) and C)

Question 14

​Which of the following measures includes the effects of taxes?

Accepted Answer

A)  ​Net national product.
B)  ​Gross national product.
C)  ​National income.
D)  ​Personal income.E) A) and C)
F) B) and C)

Question 15

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) A) and B)
F) B) and C)

Question 16

Table 23-6
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013 .
Prices and Quantities 
-Refer to Table 23-6. This country's inflation rate from 2012 to 2013 was

Accepted Answer

A)  35.6%.
B)  25.8%.
C)  34.8%.
D)  100.0%.E) All of the above
F) None of the above

Question 17

How does U.S. gross domestic product (GDP)  differ from U.S. gross national product (GNP) ?

Accepted Answer

A)  GNP = GDP - losses from depreciation
B)  GNP = GDP + income earned by U.S. citizens abroad - income that foreign citizens earned in the U.S.
C)  GNP = GDP + transfer payments to households + - indirect sales taxes
D)  GNP = GDP - depreciation - retained earningsE) A) and B)
F) B) and C)

Question 18

GDP excludes most of two types of production. List one.

Accepted Answer

GDP excludes most items that a...

Question 19

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 BE) A) and B)
F) All of the above

Question 20

​In the simple circular-flow diagram, with households and firms, GDP can be computed

Accepted Answer

A)  ​as the income received by households, in the form of wages, rent and profit.
B)  ​as the income received by households in the form of wages.
C)  ​as the payments made by firms for labor.
D)  ​as the profits received by households.E) None of the above
F) A) and D)

Exam 23: Measuring a Nation S Income

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013 . Prices and Quantities -Refer to Table 23-6. This country's inflation rate from 2012 to 2013 was

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Which of the following is an example of depreciation?

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GDP excludes most of two types of production. List one.

Correct AnswerverifiedGDP excludes most items that a...View AnswerShow Answer

International data on GDP and socioeconomic variables

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

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Table 23-10 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 2015 . Prices and Quantities -Refer to Table 23-10. In which year was this country's real GDP highest?

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Typically in countries with lower levels of real GDP person, a smaller percentage of the population is literate.

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​In the simple circular-flow diagram, with households and firms, GDP can be computed

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Write the formula for calculating a country's inflation rate using the GDP deflator.

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​Which of the following measures includes the effects of taxes?

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A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10. Smith's Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP?

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Which of the following statements about recessions is true?

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GDP is equal to

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GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

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Income generated by a nation's domestic production

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According to the circular-flow diagram GDP

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A country's real GDP rose from $500 to $530 while its nominal GDP rose from $600 to $700. What was this country's inflation rate?

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GDP excludes the value of intermediate goods because their value is included in the value of final goods.

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

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How does U.S. gross domestic product (GDP) differ from U.S. gross national product (GNP) ?

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GDP excludes most items that a...
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Figure 23-1. -Refer to Figure 23-1. Which of the following correctly identifies the flow of dollars?

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In the simple circular-flow diagram, with households and firms, GDP can be computed

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Which of the following measures includes the effects of taxes?

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