Question 1

Table 23-9
A country produces only ice cream and pie. Quantities and prices of these goods for the last several years are shown below. The base year is 2008.
Prices and Quantities
 
-Refer to Table 23-9. In 2009, this country's

Accepted Answer

A)   real GDP was $250, and the GDP deflator was 125.
B)   real GDP was $250, and the GDP deflator was 120.
C)   real GDP was $240, and the GDP deflator was 125.
D)   real GDP was $240, and the GDP deflator was 120.E) None of the above
F) A) and C)

Question 2

A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP

Accepted Answer

A)   increases by $40.
B)   increases by $220.
C)   increases by $280.
D)   increases by $1500.E) B) and D)
F) A) and B)

Question 3

Which of the following correctly lists what is included in the consumption component of GDP?

Accepted Answer

A)   household purchases of services and household purchases of nondurable goods but not any household purchases of durable goods
B)   household purchases of nondurable goods and durable goods other than residential construction but not household purchases of services
C)   household purchases of services, nondurable goods, and all durable goods
D)   household purchases of services, nondurable goods, and durable goods other than residential constructionE) None of the above
F) A) and B)

Question 4

A farmer sells sugar to a candy producer for $150. If the producer uses this sugar to make candy that sells for $200, what is the total contribution to GDP from these transactions?

Accepted Answer

The answer of A farmer sells sugar to a candy...

Question 5

Which of the following transactions adds to U.S. GDP for 2015?

Accepted Answer

A)   In 2015, Ann sells a car that she bought in 2011 to Bill for $7,000.
B)   An American management consultant works in Canada during the summer of 2015 and earns the equivalent of $40,000 during that time.
C)   When Ken and Kim were both single, they lived in separate apartments and each paid $800 in rent. Ken and Kim got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,700 per month.
D)   None of the above transactions adds to U.S. GDP for 2015.E) C) and D)
F) None of the above

Question 6

During the third quarter of this year a firm produces consumer goods and adds some of those goods to its inventory. During the fourth quarter of this year, the firm sells the goods at a retail outlet, with the result that the value of its inventory at the end of the fourth quarter is smaller than the value of its inventory at the end of the third quarter. These actions affect which components)  of fourth-quarter GDP?

Accepted Answer

A)   they increase consumption and have no effect on investment
B)   they increase consumption and decrease investment
C)   they have no effect on either consumption or investment
D)   they have no effect on consumption and decrease investmentE) C) and D)
F) B) and C)

Question 7

U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing services.

Accepted Answer

A) True 
 B)False

Question 8

Over time, people have come to rely more on market-produced goods and services and less on goods and services they produce for themselves. For example, busy people with high incomes, rather than cleaning their own houses, hire people to clean their houses. By itself, this change has

Accepted Answer

A)   caused measured GDP to fall.
B)   not caused any change in measured GDP.
C)   caused measured GDP to rise.
D)   probably changed measured GDP, but in an uncertain direction; the direction of the change depends on the difference in the quality of the cleaning that has resulted.E) A) and D)
F) B) and D)

Question 9

Net exports equal

Accepted Answer

A)   exports plus imports.
B)   exports minus imports.
C)   imports minus exports.
D)   GDP minus imports.E) A) and B)
F) A) and C)

Question 10

Table 23-4
The table below reports nominal and real GDP for the U.S. from 1929 to 1932.
 
-Refer to Table 23-4. What are the GDP deflator and the inflation rate for 1932?

Accepted Answer

A)   8.09, -11.7
B)   8.09.16, -13.3
C)   1236.46, 11.7
D)   1236.46, 13.3E) A) and C)
F) B) and C)

Question 11

GDP does not reflect

Accepted Answer

A)   the value of leisure.
B)   the value of goods and services produced at home.
C)   the quality of the environment.
D)   All of the above are correct.E) A) and B)
F) B) and C)

Question 12

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

Accepted Answer

A)   household purchases of appliances.
B)   household purchases of medical care.
C)   household purchases of food.
D)   All of the above are included in the consumption component of GDP.E) B) and C)
F) A) and D)

Question 13

Which of the following statements about GDP is correct?

Accepted Answer

A)   GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy's output of goods and services.
B)   Money continuously flows from households to firms and then back to households, and GDP measures this flow of money.
C)   GDP is generally regarded as the best single measure of a society's economic well­being.
D)   All of the above are correct.E) A) and B)
F) None of the above

Question 14

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

Question 15

Nominal GDP is $15 trillion and real GDP is $10 trillion. What is the GDP deflator? Show your work.

Accepted Answer

The GDP Deflator = N...

Question 16

Table 23-11
The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009.
Prices and Quantities
 
-Refer to Table 23-11.
What was the inflation rate for 2010? Show your work.

Accepted Answer

2009 is the base year so the GDP Deflato...

Question 17

Changes in real GDP reflect only changes in the amounts being produced.

Accepted Answer

A) True 
 B)False

Question 18

Disposable 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) All of the above
F) A) and B)

Question 19

If Brazil buys $100 million of tractors from the U.S., then U.S. net exports will decrease.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not included in the investment component of GDP?

Accepted Answer

A)   The purchase of 100 shares of stock.
B)   The purchase of a $1000 bond.
C)   A firm's purchase of a used van to use for deliveries.
D)   None of the above are included in the investment component of GDP.E) A) and B)
F) None of the above

Exam 5: Measuring a Nations Income

If Brazil buys $100 million of tractors from the U.S., then U.S. net exports will decrease.

Correct Answer
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A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP

Correct Answer
verified

Which of the following transactions adds to U.S. GDP for 2015?

Correct Answer
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Which of the following correctly lists what is included in the consumption component of GDP?

Correct Answer
verified

A farmer sells sugar to a candy producer for $150. If the producer uses this sugar to make candy that sells for $200, what is the total contribution to GDP from these transactions?

Correct Answer
verified

Correct Answer
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Table 23-11 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-11. What was the inflation rate for 2010? Show your work.

Correct Answer
verified
2009 is the base year so the GDP Deflato...
View Answer

Over time, people have come to rely more on market-produced goods and services and less on goods and services they produce for themselves. For example, busy people with high incomes, rather than cleaning their own houses, hire people to clean their houses. By itself, this change has

Correct Answer
verified

Nominal GDP is $15 trillion and real GDP is $10 trillion. What is the GDP deflator? Show your work.

Correct Answer
verified
The GDP Deflator = N...
View Answer

Disposable income is

Correct Answer
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GDP does not reflect

Correct Answer
verified

Table 23-9 A country produces only ice cream and pie. Quantities and prices of these goods for the last several years are shown below. The base year is 2008. Prices and Quantities -Refer to Table 23-9. In 2009, this country's

Correct Answer
verified

Changes in real GDP reflect only changes in the amounts being produced.

Correct Answer
verified

Table 23-4 The table below reports nominal and real GDP for the U.S. from 1929 to 1932. -Refer to Table 23-4. What are the GDP deflator and the inflation rate for 1932?

Correct Answer
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Which of the following statements about GDP is correct?

Correct Answer
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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

U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing services.

Correct Answer
verified

Which of the following is not included in the investment component of GDP?

Correct Answer
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Which of the following is included in the consumption component of GDP?

Correct Answer
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Net exports equal

Correct Answer
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Exam 5: Measuring a Nations Income

If Brazil buys $100 million of tractors from the U.S., then U.S. net exports will decrease.

Correct AnswerverifiedShow Answer

A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP

Correct AnswerverifiedShow Answer

Which of the following transactions adds to U.S. GDP for 2015?

Correct AnswerverifiedShow Answer

Which of the following correctly lists what is included in the consumption component of GDP?

Correct AnswerverifiedShow Answer

A farmer sells sugar to a candy producer for $150. If the producer uses this sugar to make candy that sells for $200, what is the total contribution to GDP from these transactions?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 23-11 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-11. What was the inflation rate for 2010? Show your work.

Correct Answerverified2009 is the base year so the GDP Deflato...View AnswerShow Answer

Over time, people have come to rely more on market-produced goods and services and less on goods and services they produce for themselves. For example, busy people with high incomes, rather than cleaning their own houses, hire people to clean their houses. By itself, this change has

Correct AnswerverifiedShow Answer

Nominal GDP is $15 trillion and real GDP is $10 trillion. What is the GDP deflator? Show your work.

Correct AnswerverifiedThe GDP Deflator = N...View AnswerShow Answer

Disposable income is

Correct AnswerverifiedShow Answer

GDP does not reflect

Correct AnswerverifiedShow Answer

Table 23-9 A country produces only ice cream and pie. Quantities and prices of these goods for the last several years are shown below. The base year is 2008. Prices and Quantities -Refer to Table 23-9. In 2009, this country's

Correct AnswerverifiedShow Answer

Changes in real GDP reflect only changes in the amounts being produced.

Correct AnswerverifiedShow Answer

Table 23-4 The table below reports nominal and real GDP for the U.S. from 1929 to 1932. -Refer to Table 23-4. What are the GDP deflator and the inflation rate for 1932?

Correct AnswerverifiedShow Answer

Which of the following statements about GDP is correct?

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

U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing services.

Correct AnswerverifiedShow Answer

Which of the following is not included in the investment component of GDP?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Net exports equal

Correct AnswerverifiedShow Answer

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2009 is the base year so the GDP Deflato...
View Answer

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The GDP Deflator = N...
View Answer

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