Question 1

For the economy as a whole,

Accepted Answer

A)  income must be greater than expenditure.
B)  unemployment must rise when GDP rises.
C)  expenditure must equal income.
D)  consumption must be greater than investment.E) B) and C)
F) A) and B)

Question 2

Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

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The answer of Calculate GDP for an economy with exports...

Question 3

Macroeconomics is the study of the economy as a whole.

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A) True 
 B)False

Question 4

Figure 23-2. 
-Refer to Figure 23-2. Identify the location for markets for factors of production and markets for goods and services.

Accepted Answer

X is markets for fac...

Question 5

Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?

Accepted Answer

A)  Why do prices in general rise by more in some countries than in others?
B)  Why do wages differ across industries?
C)  Why do national production and income increase in some periods and not in others?
D)  How rapidly is GDP currently increasing?E) All of the above
F) A) and C)

Question 6

What measure of GDP shows the value of goods and services produced if we valued these good and services at the prices that prevailed in some specific year in the past?

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The answer of What measure of GDP shows the value...

Question 7

How is net national product (NNP)  calculated?

Accepted Answer

A)  Saving is subtracted from the total income of a nation's citizens.
B)  Saving is added to the total income of a nation's citizens
C)  Depreciation losses are subtracted from the total income of a nation's citizens.
D)  Depreciation losses are added to the total income of a nation's citizens.E) A) and B)
F) None of the above

Question 8

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) A) and D)

Question 9

Rocket Energy Drink Company buys sugar to produce energy drinks. At the end of a quarter both its inventory of sugar and its inventory of energy drinks has increased. Investment for the quarter will include

Accepted Answer

A)  both the increased inventory of sugar and the increased inventory of energy drinks.
B)  the increased inventory of sugar, but not the increased inventory of energy drinks.
C)  the increased inventory of energy drinks, but not the increased inventory of sugar.
D)  neither the increased inventory of sugar nor the increased inventory of energy drinks.E) B) and D)
F) C) and D)

Question 10

When economists talk about growth in the economy, they measure that growth as the

Accepted Answer

A)  absolute change in nominal GDP from one period to another.
B)  percentage change in nominal GDP from one period to another.
C)  absolute change in real GDP from one period to another.
D)  percentage change in real GDP from one period to another.E) None of the above
F) All of the above

Question 11

In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were $1700, imports were $400, and investment was $1800. What was Talikastan's consumption in 2015?

Accepted Answer

A)  $2000
B)  $2800
C)  $3000
D)  $3800E) B) and D)
F) B) and C)

Question 12

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. In 2012, this country's GDP deflator was

Accepted Answer

A)  74.2.
B)  100.0.
C)  171.4.
D)  240.0.E) A) and C)
F) C) and D)

Question 13

Which of the following transactions adds to U.S. GDP for 2015?

Accepted Answer

A)  In 2015, Frank's Feta manufactures 2000 pounds of cheese that will eventually be sold to grocery stores. The 2000 pounds of cheese remains in Frank's inventory at the end of 2015.
B)  An Irish marketing consultant works in Richmond during the summer of 2015 and earns $45,000 during that time.
C)  When Len and Mika were both single, they lived in separate apartments and each paid $700 in rent. Len and Mika got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,500 per month.
D)  All of the above transactions add to U.S. GDP for 2015.E) A) and B)
F) A) and C)

Question 14

You find that your paycheck for the year is higher this year than last. Does that mean that your real income has increased? Explain carefully.

Accepted Answer

Real income is nominal income adjusted f...

Question 15

Which of the following is a way to compute GDP?

Accepted Answer

A)  add up the wages paid to all workers
B)  add up the quantities of all final goods and services
C)  add up the market values of all final goods and services
D)  add up the difference between the market values of all final goods and services and then subtract the costs of producing those goods and servicesE) B) and D)
F) All of the above

Question 16

On the basis of the information presented in the table below, which presents the correct ordering of real GDP per person from highest to lowest?

Accepted Answer

A)  Atlantis, Merpois, Bensalem
B)  Bensalem, Atlantis, Merpois
C)  Atlantis, Bensalem, Merpois
D)  Bensalem, Merpois, AtlantisE) B) and C)
F) All of the above

Question 17

A statistical discrepancy

Accepted Answer

A)  exists because data sources are not perfect, so measures of expenditures and income are not equal.
B)  insures that GDP will approximately equal GNP.
C)  explains the close association between GDP and quality of life measures such as literacy and life expectancy.
D)  explains the inadequacy of GDP in capturing the value of leisure and the value of a clean environment.E) B) and C)
F) All of the above

Question 18

All of the following are examples of a nondurable good except

Accepted Answer

A)  a pencil.
B)  one gallon of gasoline.
C)  a queen-size bed.
D)  a pair of shoes.E) B) and D)
F) All of the above

Question 19

In the economy of Talikastan in 2015, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $1800, and imports were $1200. What was Talikastan's investment in 2015?

Accepted Answer

A)  $0
B)  $1200
C)  $2400
D)  $5600E) A) and C)
F) A) and B)

Question 20

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

Exam 23: Measuring a Nation S Income

Macroeconomics is the study of the economy as a whole.

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A statistical discrepancy

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Figure 23-2. -Refer to Figure 23-2. Identify the location for markets for factors of production and markets for goods and services.

Correct AnswerverifiedX is markets for fac...View AnswerShow 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 . Prices and Quantities -Refer to Table 23-6. In 2012, this country's GDP deflator was

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When economists talk about growth in the economy, they measure that growth as the

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How is net national product (NNP) calculated?

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Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

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Rocket Energy Drink Company buys sugar to produce energy drinks. At the end of a quarter both its inventory of sugar and its inventory of energy drinks has increased. Investment for the quarter will include

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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

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All of the following are examples of a nondurable good except

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Grapes are considered intermediate goods

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In the economy of Talikastan in 2015, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $1800, and imports were $1200. What was Talikastan's investment in 2015?

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In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were $1700, imports were $400, and investment was $1800. What was Talikastan's consumption in 2015?

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You find that your paycheck for the year is higher this year than last. Does that mean that your real income has increased? Explain carefully.

Correct AnswerverifiedReal income is nominal income adjusted f...View AnswerShow Answer

On the basis of the information presented in the table below, which presents the correct ordering of real GDP per person from highest to lowest?

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Which of the following is a way to compute GDP?

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For the economy as a whole,

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Which of the following transactions adds to U.S. GDP for 2015?

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Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?

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What measure of GDP shows the value of goods and services produced if we valued these good and services at the prices that prevailed in some specific year in the past?

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