Question 1

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

Accepted Answer

A) True 
 B)False

Question 2

Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale, are

Accepted Answer

A)   included in current GDP because GDP measures the value of all goods and services sold in the current year.
B)   included in current GDP but valued at their original prices.
C)   not included in current GDP because it is difficult to determine their value.
D)   not included in current GDP because GDP only measures the value of goods and services produced in the current year.E) A) and B)
F) A) and C)

Question 3

If in some year real GDP was $25 billion and the GDP deflator was 68, what was nominal GDP?

Accepted Answer

A)   $2.72 billion
B)   $17 billion
C)   $36.8 billion
D)   $43 billionE) None of the above
F) B) and D)

Question 4

Table 5-1
The table below contains data for Bahkan for the year 2010.
 
-Refer to Table 5-1. Personal income for Bahkan in 2010 is

Accepted Answer

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

Question 5

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

Accepted Answer

A)   spending on new residential construction and spending on stocks and bonds
B)   spending on new residential construction but not spending on stocks and bonds
C)   spending on stocks and bonds but not spending on new residential construction
D)   neither spending on stocks and bonds nor spending on new residential constructionE) A) and C)
F) C) and D)

Question 6

Table 5-2
The table below contains data for the country of Crete for the year 2010.
 
-Refer to Table 5-2. What was Crete's GDP in 2010?

Accepted Answer

A)   $4623
B)   $5731
C)   $6037
D)   $6839E) A) and B)
F) B) and D)

Question 7

In the actual economy, households

Accepted Answer

A)   spend all of their income.
B)   divide their income among spending, taxes, and saving.
C)   buy all goods and services produced in the economy.
D)   Both (a)  and (c)  are correct.E) A) and D)
F) A) and C)

Question 8

Consumption consists of spending by households on goods and services, with the exception of

Accepted Answer

A)   purchases of intangible services.
B)   purchases of durable goods.
C)   purchases of new houses.
D)   spending on education.E) B) and D)
F) C) and D)

Exam 5: Measuring a Nations Income

In the actual economy, households

Correct Answer
verified

Table 5-1 The table below contains data for Bahkan for the year 2010. -Refer to Table 5-1. Personal income for Bahkan in 2010 is

Correct Answer
verified

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

Correct Answer
verified

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

Correct Answer
verified

Table 5-2 The table below contains data for the country of Crete for the year 2010. -Refer to Table 5-2. What was Crete's GDP in 2010?

Correct Answer
verified

Consumption consists of spending by households on goods and services, with the exception of

Correct Answer
verified

Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale, are

Correct Answer
verified

If in some year real GDP was $25 billion and the GDP deflator was 68, what was nominal GDP?

Correct Answer
verified

Exam 5: Measuring a Nations Income

In the actual economy, households

Correct AnswerverifiedShow Answer

Table 5-1 The table below contains data for Bahkan for the year 2010. -Refer to Table 5-1. Personal income for Bahkan in 2010 is

Correct AnswerverifiedShow Answer

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 5-2 The table below contains data for the country of Crete for the year 2010. -Refer to Table 5-2. What was Crete's GDP in 2010?

Correct AnswerverifiedShow Answer

Consumption consists of spending by households on goods and services, with the exception of

Correct AnswerverifiedShow Answer

Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale, are

Correct AnswerverifiedShow Answer

If in some year real GDP was $25 billion and the GDP deflator was 68, what was nominal GDP?

Correct AnswerverifiedShow Answer

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