Question 1

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) B) and C)

Question 2

If nominal GDP is $10 trillion and real GDP is $8 trillion, then the GDP deflator is

Accepted Answer

A)   80, and this indicates that the price level has decreased by 20 percent since the base year.
B)   80, and this indicates that the price level has increased by 80 percent since the base year.
C)   125, and this indicates that the price level has increased by 25 percent since the base year.
D)   125, and this indicates that the price level has increased by 125 percent since the base year.E) A) and C)
F) A) and D)

Question 3

The information for 2008 in millions in the table below was reported by the World Bank. On the basis of this information, which list below contains the correct ordering of real GDP per person from highest to lowest?

Accepted Answer

A)   Japan, Germany, United States
B)   Japan, United States, Germany
C)   Germany, United States, Japan
D)   United States, Japan, GermanyE) A) and B)
F) B) and C)

Question 4

Countries with low GDP per person tend to have

Accepted Answer

A)   lower rates of child malnutrition.
B)   fewer infants with low birth weight.
C)   higher rates of infant mortality.
D)   more access to safe drinking water.E) B) and D)
F) B) and C)

Question 5

Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This change in behavior, by itself, has

Accepted Answer

A)   reduced measured GDP.
B)   not affected measured GDP.
C)   increased measured GDP by the value of the restaurant meals.
D)   increased measured GDP by the value added by the restaurant's preparation and serving of the meals.E) A) and B)
F) B) and D)

Question 6

Which of the following subcomponents of GDP can be either positive or negative?

Accepted Answer

A)   inventory investment
B)   exports
C)   government purchases
D)   All of the above are correct.E) A) and B)
F) None of the above

Question 7

The basic tools of supply and demand are central to microeconomic analysis but are of little use to macroeconomics.

Accepted Answer

A) True 
 B)False

Question 8

The inflation rate is the

Accepted Answer

A)   absolute change in real GDP from one period to another.
B)   percentage change in real GDP from one period to another.
C)   absolute change in the price level from one period to another.
D)   percentage change in the price level from one period to another.E) All of the above
F) C) and D)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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. From 2012 to 2013, this country's output grew

Accepted Answer

A)   28.2%.
B)   29.0%.
C)   29.6%.
D)   73.9%.E) A) and C)
F) All of the above

Question 11

Table 23-1
The table below contains data for Chereaux for the year 2015.
 
-Refer to Table 23-1. Gross national product for Chereaux in 2015 is

Accepted Answer

A)   $186.
B)   $214.
C)   $200.
D)   $204.E) A) and C)
F) A) and B)

Question 12

In the economy of Talikastan in 2015, consumption was $3000, exports were $1200, GDP was $6300, government purchases were $1300, and investment was $1500. What were Talikastan's imports in 2015?

Accepted Answer

A)   $500
B)   -$700
C)   $700
D)   -$500E) A) and C)
F) C) and D)

Question 13

Explain how real GDP differs from nominal GDP.

Accepted Answer

Real GDP reflects on...

Question 14

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

Question 15

International studies of the relationship between GDP per person and quality of life measures such as life expectancy and literacy rates show that larger GDP per person is associated with

Accepted Answer

A)   longer life expectancy and a lower percentage of the population that is literate.
B)   longer life expectancy and a higher percentage of the population that is literate.
C)   very nearly the same life expectancy and a lower percentage of the population that is literate.
D)   very nearly the same life expectancy and a higher percentage of the population that is literate.E) B) and C)
F) A) and D)

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.
 
-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) None of the above
F) B) and C)

Question 17

A U.S.-owned car factory in Mexico produces $5 million of cars. $2.5 million of these cars are sold in Mexico and the other $2.5 million are sold in the U.S. In both cases $1 million of the value of the cars was due to U.S-owned equipment located in Mexico and U.S. managers working in Mexico. How much did this production contribute to U.S. GDP?

Accepted Answer

A)   $0
B)   $1 million
C)   $2 million
D)   None of the above are correctE) A) and B)
F) C) and D)

Question 18

Real GDP is the yearly production of final goods and services valued at

Accepted Answer

A)   current prices.
B)   constant prices.
C)   expected future prices.
D)   the ratio of current prices to constant prices.E) All of the above
F) C) and D)

Question 19

National income differs from net national because

Accepted Answer

A)   it includes profits of corporations.
B)   of a statistical discrepancy.
C)   it includes transfer payments.
D)   it excludes depreciation.E) B) and C)
F) A) and C)

Question 20

Which of the following values would be included in U.S. GDP for 2015?

Accepted Answer

A)   the rent that Sam, an American citizen, would have paid on his home in Houston in 2015 had he not owned that home.
B)   the rent that Jim, an American citizen, paid on his apartment in San Francisco in 2015.
C)   the value of the legal services provided by Juan, an attorney and a Mexican citizen, who lived in San Antonio and practiced law there in 2015
D)   All of the above would be included in U.S. GDP for 2015.E) B) and D)
F) None of the above

Exam 15: Measuring a Nations Income

Which of the following subcomponents of GDP can be either positive or negative?

Correct Answer
verified

National income differs from net national because

Correct Answer
verified

Which of the following values would be included in U.S. GDP for 2015?

Correct Answer
verified

Countries with low GDP per person tend to have

Correct Answer
verified

International data on GDP and socioeconomic variables

Correct Answer
verified

Table 23-1 The table below contains data for Chereaux for the year 2015. -Refer to Table 23-1. Gross national product for Chereaux in 2015 is

Correct Answer
verified

Real GDP is the yearly production of final goods and services valued at

Correct Answer
verified

Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This change in behavior, by itself, has

Correct Answer
verified

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

Correct Answer
verified

The information for 2008 in millions in the table below was reported by the World Bank. On the basis of this information, which list below contains the correct ordering of real GDP per person from highest to lowest?

Correct Answer
verified

The basic tools of supply and demand are central to microeconomic analysis but are of little use to macroeconomics.

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 2012, this country's GDP deflator was

Correct Answer
verified

Correct Answer
verified

International studies of the relationship between GDP per person and quality of life measures such as life expectancy and literacy rates show that larger GDP per person is associated with

Correct Answer
verified

The inflation rate is the

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. From 2012 to 2013, this country's output grew

Correct Answer
verified

Explain how real GDP differs from nominal GDP.

Correct Answer
verified
Real GDP reflects on...
View Answer

In the economy of Talikastan in 2015, consumption was $3000, exports were $1200, GDP was $6300, government purchases were $1300, and investment was $1500. What were Talikastan's imports in 2015?

Correct Answer
verified

If nominal GDP is $10 trillion and real GDP is $8 trillion, then the GDP deflator is

Correct Answer
verified

For the economy as a whole,

Correct Answer
verified

Exam 15: Measuring a Nations Income

Which of the following subcomponents of GDP can be either positive or negative?

Correct AnswerverifiedShow Answer

National income differs from net national because

Correct AnswerverifiedShow Answer

Which of the following values would be included in U.S. GDP for 2015?

Correct AnswerverifiedShow Answer

Countries with low GDP per person tend to have

Correct AnswerverifiedShow Answer

International data on GDP and socioeconomic variables

Correct AnswerverifiedShow Answer

Table 23-1 The table below contains data for Chereaux for the year 2015. -Refer to Table 23-1. Gross national product for Chereaux in 2015 is

Correct AnswerverifiedShow Answer

Real GDP is the yearly production of final goods and services valued at

Correct AnswerverifiedShow Answer

Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This change in behavior, by itself, has

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The information for 2008 in millions in the table below was reported by the World Bank. On the basis of this information, which list below contains the correct ordering of real GDP per person from highest to lowest?

Correct AnswerverifiedShow Answer

The basic tools of supply and demand are central to microeconomic analysis but are of little use to macroeconomics.

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 2012, this country's GDP deflator was

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

International studies of the relationship between GDP per person and quality of life measures such as life expectancy and literacy rates show that larger GDP per person is associated with

Correct AnswerverifiedShow Answer

The inflation rate is the

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. From 2012 to 2013, this country's output grew

Correct AnswerverifiedShow Answer

Explain how real GDP differs from nominal GDP.

Correct AnswerverifiedReal GDP reflects on...View AnswerShow Answer

In the economy of Talikastan in 2015, consumption was $3000, exports were $1200, GDP was $6300, government purchases were $1300, and investment was $1500. What were Talikastan's imports in 2015?

Correct AnswerverifiedShow Answer

If nominal GDP is $10 trillion and real GDP is $8 trillion, then the GDP deflator is

Correct AnswerverifiedShow Answer

For the economy as a whole,

Correct AnswerverifiedShow Answer

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Real GDP reflects on...
View Answer

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