Question 1

In 2009, the level of U.S. real GDP was close to four times its 1965 level.

Accepted Answer

A) True 
 B)False

Question 2

Table 23-2
The table below contains data for country A for the year 2010.
 
-Refer to Table 23-2. What were country A's exports in 2010?

Accepted Answer

A)   -$32
B)   $32
C)   $88
D)   $120E) B) and C)
F) A) and B)

Question 3

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

Accepted Answer

A)   purchases of staplers, paper clips, and pens by U.S. business firms
B)   purchases of natural gas by U.S. households
C)   purchases of newly constructed homes by U.S. households
D)   All of the above are correct.E) C) and D)
F) All of the above

Question 4

New home construction is included in the consumption component of GDP.

Accepted Answer

A) True 
 B)False

Question 5

Foreign countries buy $1.2 trillion of U.S. goods and services. U.S. residents purchase $1.8 trillion of foreign goods and services. What is net exports?

Accepted Answer

The answer of Foreign countries buy $1.2 trillion of U.S....

Question 6

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 2010, this country's real GDP was

Accepted Answer

A)   $620.
B)   $260.
C)   $400.
D)   $630.E) B) and D)
F) None of the above

Question 7

Sam, an American citizen, prepares meals for his family at home. Ellen, a Canadian citizen, commutes to the U.S. to help prepare meals at a restaurant in Idaho. Whose value of services preparing meals is included in U.S. GDP?

Accepted Answer

A)   Sam's and Ellen's.
B)   Sam's but not Ellen's.
C)   Ellen's but not Sam's.
D)   Neither Sam's nor Ellen's.E) None of the above
F) A) and B)

Question 8

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 .
 
-Refer to Table 23-10. What was this country's GDP deflator in 2017?

Accepted Answer

A)   123.4
B)   116.7
C)   120.0
D)   None of the above is correct.E) B) and C)
F) A) and B)

Question 9

In the economy of Talikastan in 2015, consumption was $3000, exports were $400, GDP was $5000, imports were $500, and investment was $1400. What were Talikastan's government purchases in 2015?

Accepted Answer

A)   $60
B)   $500
C)   $700
D)   $1500E) C) and D)
F) A) and D)

Question 10

In 2012, U.S. GDP was almost

Accepted Answer

A)   $16 trillion.
B)   $12 trillion.
C)   $15 trillion.
D)   $14 trillion.E) B) and C)
F) A) and D)

Question 11

Which of the following always uses prices and quantities from the same period?

Accepted Answer

A)   both nominal and real GDP.
B)   nominal GDP but not real GDP.
C)   real GDP but not nominal GDP.
D)   neither nominal or real GDP.E) A) and B)
F) A) and C)

Question 12

If real GDP and the GDP deflator both rise, then it must be that nominal GDP rose.

Accepted Answer

A) True 
 B)False

Question 13

In the economy of Talikastan in 2015, consumption was $600, exports were $300, GDP was $1300, government purchases were $250, and investment was $300. What were Talikastan's imports in 2015?

Accepted Answer

A)   -$150
B)   -$200
C)   $200
D)   $150E) B) and C)
F) All of the above

Question 14

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

Accepted Answer

A) True 
 B)False

Question 15

The government's purchases of goods but not its purchases of services are included in GDP.

Accepted Answer

A) True 
 B)False

Question 16

The residents of country A earn $500 million of income from abroad. Residents of other countries earn $200 million in country A. These earnings are accounted for in country A's

Accepted Answer

A)   GNP which is larger than GDP in country A.
B)   GNP which is smaller than GDP in country A.
C)   GDP which is larger than GNP in country A.
D)   GDP which is smaller than GNP in country A.E) None of the above
F) B) and C)

Question 17

Which of the following statements regarding GDP is correct?

Accepted Answer

A)   GDP includes factory production, but not any harm that may be inflicted on the environment.
B)   GDP accounts for all activities taking place outside markets.
C)   GDP provides detailed information about the distribution of income.
D)   GDP is a good measure of economic well-being for all purposes.E) None of the above
F) C) and D)

Question 18

Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage.

Accepted Answer

They are closely associated; c...

Question 19

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

Question 20

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) None of the above
F) A) and B)

Exam 10: Measuring a Nations Income

Which of the following always uses prices and quantities from the same period?

Correct AnswerverifiedShow Answer

In the economy of Talikastan in 2015, consumption was $3000, exports were $400, GDP was $5000, imports were $500, and investment was $1400. What were Talikastan's government purchases in 2015?

Correct AnswerverifiedShow Answer

The government's purchases of goods but not its purchases of services are included in GDP.

Correct AnswerverifiedShow Answer

Which of the following statements regarding GDP is correct?

Correct AnswerverifiedShow Answer

In the economy of Talikastan in 2015, consumption was $600, exports were $300, GDP was $1300, government purchases were $250, and investment was $300. What were Talikastan's imports in 2015?

Correct AnswerverifiedShow Answer

In 2009, the level of U.S. real GDP was close to four times its 1965 level.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 23-2 The table below contains data for country A for the year 2010. -Refer to Table 23-2. What were country A's exports in 2010?

Correct AnswerverifiedShow Answer

The residents of country A earn $500 million of income from abroad. Residents of other countries earn $200 million in country A. These earnings are accounted for in country A's

Correct AnswerverifiedShow Answer

New home construction is included in the consumption component of GDP.

Correct AnswerverifiedShow Answer

Sam, an American citizen, prepares meals for his family at home. Ellen, a Canadian citizen, commutes to the U.S. to help prepare meals at a restaurant in Idaho. Whose value of services preparing meals is included in U.S. GDP?

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 2010, this country's real GDP was

Correct AnswerverifiedShow Answer

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

Correct AnswerverifiedShow Answer

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 . -Refer to Table 23-10. What was this country's GDP deflator in 2017?

Correct AnswerverifiedShow Answer

Foreign countries buy $1.2 trillion of U.S. goods and services. U.S. residents purchase $1.8 trillion of foreign goods and services. What is net exports?

Correct AnswerverifiedShow Answer

In 2012, U.S. GDP was almost

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage.

Correct AnswerverifiedThey are closely associated; c...View AnswerShow Answer

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?

Correct AnswerverifiedShow Answer

If real GDP and the GDP deflator both rise, then it must be that nominal GDP rose.

Correct AnswerverifiedShow Answer

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They are closely associated; c...
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