Question 1

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) None of the above
F) All of the above

Question 2

Table 23-11
Table 23-12
A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. 
-Refer to Table 23-12. Calculate the rate of inflation for 2012.

Accepted Answer

The answer of Table 23-11
Table 23-12
A country produces only ice...

Question 3

If the GDP deflator in 2009 was 150 and the GDP deflator in 2010 was 175, then the inflation rate in 2010 was 25%.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  $6359
B)  $7136
C)  $7253
D)  $8147E) A) and C)
F) A) and B)

Question 5

Which of the following is a true statement?

Accepted Answer

A)  International data leave few doubts that a nation's GDP per person is associated with its citizens' standard of living.
B)  Rich and poor countries often have vastly different standards of living, but similar levels of real GDP per person.
C)  The value of leisure time is included in the calculation of GDP per person.
D)  International data indicate that measures on the distribution of income are closely associated with GDP per person.E) A) and B)
F) A) and C)

Question 6

Other things equal, in countries with higher levels of real GDP per person, life expectancy and literacy rates are higher than in countries with lower levels of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 7

Table 23-1
The table below contains data for Chereaux for the year 2015. 
-Refer to Table 23-1. Personal income for Chereaux in 2015 is

Accepted Answer

A)  $178.
B)  $201.
C)  $259.
D)  $196.E) C) and D)
F) A) and D)

Question 8

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 D)
F) B) and C)

Question 9

Suppose an economy produces only eggs and ham. In 2009, 100 dozen eggs are sold at $3 per dozen and 50 pounds of ham sold at $4 per pound. In 2010, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound. For 2009,

Accepted Answer

A)  nominal GDP is $400, real GDP is $500, and the GDP deflator is 80.
B)  nominal GDP is $400, real GDP is $500, and the GDP deflator is 125.
C)  nominal GDP is $500, real GDP is $400, and the GDP deflator is 80.
D)  nominal GDP is $500, real GDP is $400, and the GDP deflator is 125.E) A) and C)
F) B) and C)

Question 10

If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.

Accepted Answer

A) True 
 B)False

Question 11

Nominal GDP uses constant base-year prices to place a value on the economy's production of goods and services, while real GDP uses current prices to place a value on the economy's production of goods and services.

Accepted Answer

A) True 
 B)False

Question 12

Al's Aluminum Company sells $1 million worth of aluminum to Shiny Foil Company, which uses the aluminum to make aluminum foil. Shiny Foil Company sells $4 million worth of aluminum foil to households. The transactions just described contribute how much to GDP?

Accepted Answer

A)  $1 million
B)  $3 million
C)  $4 million
D)  $5 millionE) A) and B)
F) A) and C)

Question 13

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut. As a result,

Accepted Answer

A)  U.S. investment, GDP, and GNP all increase by the same amount.
B)  U.S. investment increases, but GDP and GNP are unaffected by the purchase.
C)  U.S. investment and GDP increase by the same amount, but U.S. GNP increases by a smaller amount.
D)  U.S. investment and GNP increase by the same amount, but U.S. GDP increases by a smaller amount.E) A) and C)
F) All of the above

Question 14

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

Accepted Answer

A)  Argentina, Bolivia, Peru
B)  Argentina, Peru, Bolivia
C)  Bolivia, Argentina, Peru
D)  Peru, Bolivia, ArgentinaE) All of the above
F) B) and C)

Question 15

GDP is a useful measure since it provides a single measure of the value of the entire variety of goods and services produced by an economy.
​

Accepted Answer

A) True 
 B)False

Question 16

Tim mows the yard for his neighbors. He spends $1 on gas and charges them $20 for each lawn he mows. What's the total contribution to GDP each time Tim mows a yard?

Accepted Answer

A)  $1
B)  $19
C)  $20
D)  $21E) C) and D)
F) B) and D)

Question 17

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 net exports in 2010?

Accepted Answer

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

Question 18

Suppose that an economy produces 30,000 units of good A which sells at $3 a unit and 60,000 units of good B which sells at $2 per unit. Production of good A contributes

Accepted Answer

A)  1/2 times as much to GDP as the production of good B.
B)  3/2 times as much to GDP as the production of good B.
C)  3/4 times as much to GDP as the production of good B.
D)  4/3 times as much to GDP as production of good B.E) B) and D)
F) A) and B)

Question 19

Define GDP. Remember to be specific about what it includes.

Accepted Answer

GDP is the market value of all...

Question 20

If an economy's GDP rises, then it must be the case that the economy's

Accepted Answer

A)  income rises and saving falls.
B)  income and saving both rise.
C)  income rises and expenditure falls.
D)  income and expenditure both rise.E) A) and B)
F) None of the above

Exam 23: Measuring a Nation S Income

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut. As a result,

Correct AnswerverifiedShow Answer

If an economy's GDP rises, then it must be the case that the economy's

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

GDP is a useful measure since it provides a single measure of the value of the entire variety of goods and services produced by an economy. ​

Correct AnswerverifiedShow Answer

Define GDP. Remember to be specific about what it includes.

Correct AnswerverifiedGDP is the market value of all...View AnswerShow 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 net exports in 2010?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose that an economy produces 30,000 units of good A which sells at $3 a unit and 60,000 units of good B which sells at $2 per unit. Production of good A contributes

Correct AnswerverifiedShow Answer

Suppose an economy produces only eggs and ham. In 2009, 100 dozen eggs are sold at $3 per dozen and 50 pounds of ham sold at $4 per pound. In 2010, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound. For 2009,

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Tim mows the yard for his neighbors. He spends $1 on gas and charges them $20 for each lawn he mows. What's the total contribution to GDP each time Tim mows a yard?

Correct AnswerverifiedShow Answer

Al's Aluminum Company sells $1 million worth of aluminum to Shiny Foil Company, which uses the aluminum to make aluminum foil. Shiny Foil Company sells $4 million worth of aluminum foil to households. The transactions just described contribute how much to GDP?

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

Table 23-11 Table 23-12 A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-12. Calculate the rate of inflation for 2012.

Correct AnswerverifiedShow Answer

If the GDP deflator in 2009 was 150 and the GDP deflator in 2010 was 175, then the inflation rate in 2010 was 25%.

Correct AnswerverifiedShow Answer

If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.

Correct AnswerverifiedShow Answer

Other things equal, in countries with higher levels of real GDP per person, life expectancy and literacy rates are higher than in countries with lower levels of real GDP per person.

Correct AnswerverifiedShow Answer

Nominal GDP uses constant base-year prices to place a value on the economy's production of goods and services, while real GDP uses current prices to place a value on the economy's production of goods and services.

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

Table 23-1 The table below contains data for Chereaux for the year 2015. -Refer to Table 23-1. Personal income for Chereaux in 2015 is

Correct AnswerverifiedShow Answer

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GDP is a useful measure since it provides a single measure of the value of the entire variety of goods and services produced by an economy.

Correct Answer
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Correct Answer
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GDP is the market value of all...
View Answer

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