Question 1

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) None of the above
F) C) and D)

Question 2

In a simple circular-flow diagram, firms use the money they get from a sale to

Accepted Answer

A)  pay wages to workers.
B)  pay rent to landlords.
C)  pay profit to the firms' owners.
D)  All of the above are correct.E) All of the above
F) A) and B)

Question 3

Changes in the GDP deflator reflect only changes in the prices of goods and services.

Accepted Answer

A) True 
 B)False

Question 4

Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2008, Quality Motors produced $25 million worth of automobiles and sold $12 million in the U.S. and $13 million in Mexico. In addition, it sold $2 million from the previous year's inventory in the U.S. The transactions just described contribute how much to U.S. GDP for 2008?

Accepted Answer

A)  $12 million
B)  $14 million
C)  $25 million
D)  $27 millionE) B) and D)
F) A) and B)

Question 5

U.S. GDP excludes the production of most illegal goods.

Accepted Answer

A) True 
 B)False

Question 6

Disposable personal income is

Accepted Answer

A)  the total income earned by a nation's permanent residents.
B)  the total income earned by a nation's residents in the production of goods and services.
C)  the income that households and non-corporate businesses receive.
D)  the income that households and businesses have remaining after satisfying their obligations to the government.E) B) and C)
F) A) and B)

Question 7

Consumption is $7 trillion, investment is $1.5 trillion, government expenditures are $2 trillion, government transfer payments are $1 trillion, exports are $1.50 trillion and imports are $1.25 trillion. What is GDP?

Accepted Answer

GDP = C + I + G + NX = $7 tril...

Question 8

The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.

Accepted Answer

A) True 
 B)False

Question 9

The government purchases component of GDP includes salaries paid to soldiers but not Social Security benefits paid to the elderly.

Accepted Answer

A) True 
 B)False

Question 10

Estimates of the values of which of the following non-market goods or services are included in GDP?

Accepted Answer

A)  the value of unpaid housework
B)  the value of services provided by major household appliances purchased in a previous period
C)  the estimated rental value of owner-occupied homes
D)  All of the above are included in GDP.E) None of the above
F) All of the above

Question 11

What three types of goods are included in investment spending?

Accepted Answer

capital equipment, i...

Question 12

Which of the following transactions would be included in GDP for 2015?

Accepted Answer

A)  In February 2015, Amanda sells a 2009 Hyundai to Isabella.
B)  In March 2015, Amanda buys a ticket to visit a zoo in Florida. She visits the zoo in February 2016.
C)  In November 2015, Isabella eats onions that she harvested from her backyard garden in October 2015.
D)  All of the above are correct.E) All of the above
F) A) and D)

Question 13

Changes in the GDP deflator reflect

Accepted Answer

A)  only changes in prices.
B)  only changes in the amounts being produced.
C)  both changes in prices and changes in the amounts being produced.
D)  neither changes in prices nor changes in the amounts being produced.E) C) and D)
F) A) and C)

Question 14

The U.S. buys $500 billion of goods and $250 billion of services from foreign countries. Foreign countries buy $250 billion of goods and $300 billion of services from the U.S. What is net exports?

Accepted Answer

The answer of The U.S. buys $500 billion of goods...

Question 15

Which of the following is an example of a durable good?

Accepted Answer

A)  a hair dryer.
B)  a suit.
C)  a pair of shoes.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 16

Table 23-5
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015.
Prices and Quantities 
-Refer to Table 23-5. In 2015, this country's

Accepted Answer

A)  nominal GDP was greater than real GDP, and the GDP deflator was greater than 100.
B)  nominal GDP was equal to real GDP, and the GDP deflator was equal to 100%.
C)  nominal GDP was less than real GDP, and the GDP deflator was less than 100.
D)  nominal GDP was equal to real GDP, and the GDP deflator was equal to 100.E) B) and D)
F) A) and C)

Question 17

Real GDP evaluates current production using prices that are fixed at past levels and therefore shows how the economy's overall production of goods and services changes over time.

Accepted Answer

A) True 
 B)False

Question 18

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 2011, this country's nominal GDP was

Accepted Answer

A)  $260.
B)  $440.
C)  $620.
D)  $760.E) B) and C)
F) All of the above

Question 19

Real GDP per person tells us the income and expenditure of the average person in the economy.

Accepted Answer

A) True 
 B)False

Question 20

The term economists use to describe a situation in which the economy's overall price level is rising is

Accepted Answer

A)  growth.
B)  inflation.
C)  recession.
D)  expansion.E) A) and B)
F) A) and C)

Exam 23: Measuring a Nation S Income

Consumption is $7 trillion, investment is $1.5 trillion, government expenditures are $2 trillion, government transfer payments are $1 trillion, exports are $1.50 trillion and imports are $1.25 trillion. What is GDP?

Correct Answer
verified
GDP = C + I + G + NX = $7 tril...
View Answer

Which of the following is an example of a durable good?

Correct Answer
verified

Disposable personal income is

Correct Answer
verified

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

Correct Answer
verified

U.S. GDP excludes the production of most illegal goods.

Correct Answer
verified

The U.S. buys $500 billion of goods and $250 billion of services from foreign countries. Foreign countries buy $250 billion of goods and $300 billion of services from the U.S. What is net exports?

Correct Answer
verified

The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.

Correct Answer
verified

Correct Answer
verified

Changes in the GDP deflator reflect

Correct Answer
verified

Table 23-5 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities -Refer to Table 23-5. In 2015, this country's

Correct Answer
verified

In a simple circular-flow diagram, firms use the money they get from a sale to

Correct Answer
verified

Estimates of the values of which of the following non-market goods or services are included in GDP?

Correct Answer
verified

Which of the following transactions would be included in GDP for 2015?

Correct Answer
verified

The term economists use to describe a situation in which the economy's overall price level is rising is

Correct Answer
verified

What three types of goods are included in investment spending?

Correct Answer
verified
capital equipment, i...
View Answer

Real GDP evaluates current production using prices that are fixed at past levels and therefore shows how the economy's overall production of goods and services changes over time.

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 . Prices and Quantities -Refer to Table 23-6. In 2011, this country's nominal GDP was

Correct Answer
verified

Real GDP per person tells us the income and expenditure of the average person in the economy.

Correct Answer
verified

The government purchases component of GDP includes salaries paid to soldiers but not Social Security benefits paid to the elderly.

Correct Answer
verified

Changes in the GDP deflator reflect only changes in the prices of goods and services.

Correct Answer
verified

Exam 23: Measuring a Nation S Income

Consumption is $7 trillion, investment is $1.5 trillion, government expenditures are $2 trillion, government transfer payments are $1 trillion, exports are $1.50 trillion and imports are $1.25 trillion. What is GDP?

Correct AnswerverifiedGDP = C + I + G + NX = $7 tril...View AnswerShow Answer

Which of the following is an example of a durable good?

Correct AnswerverifiedShow Answer

Disposable personal income is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

U.S. GDP excludes the production of most illegal goods.

Correct AnswerverifiedShow Answer

The U.S. buys $500 billion of goods and $250 billion of services from foreign countries. Foreign countries buy $250 billion of goods and $300 billion of services from the U.S. What is net exports?

Correct AnswerverifiedShow Answer

The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Changes in the GDP deflator reflect

Correct AnswerverifiedShow Answer

Table 23-5 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities -Refer to Table 23-5. In 2015, this country's

Correct AnswerverifiedShow Answer

In a simple circular-flow diagram, firms use the money they get from a sale to

Correct AnswerverifiedShow Answer

Estimates of the values of which of the following non-market goods or services are included in GDP?

Correct AnswerverifiedShow Answer

Which of the following transactions would be included in GDP for 2015?

Correct AnswerverifiedShow Answer

The term economists use to describe a situation in which the economy's overall price level is rising is

Correct AnswerverifiedShow Answer

What three types of goods are included in investment spending?

Correct Answerverifiedcapital equipment, i...View AnswerShow Answer

Real GDP evaluates current production using prices that are fixed at past levels and therefore shows how the economy's overall production of goods and services changes over time.

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 . Prices and Quantities -Refer to Table 23-6. In 2011, this country's nominal GDP was

Correct AnswerverifiedShow Answer

Real GDP per person tells us the income and expenditure of the average person in the economy.

Correct AnswerverifiedShow Answer

The government purchases component of GDP includes salaries paid to soldiers but not Social Security benefits paid to the elderly.

Correct AnswerverifiedShow Answer

Changes in the GDP deflator reflect only changes in the prices of goods and services.

Correct AnswerverifiedShow Answer

Correct Answer
verified
GDP = C + I + G + NX = $7 tril...
View Answer

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capital equipment, i...
View Answer

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