Question 1

Real GDP is gross domestic product measured

Accepted Answer

A)   at a constant output level but at current prices.
B)   in current dollars.
C)   in the prices of a base year.
D)   as the difference between the current year's GDP and last year's GDP.E) None of the above
F) A) and B)

Question 2

Gross investment minus net investment is

Accepted Answer

A)   the change in inventories.
B)   total investment.
C)   depreciation.
D)   zero.E) None of the above
F) All of the above

Question 3

Refer to the information provided in Table 6.7 below to answer the questions that follow.
Table 6.7 
-Refer to Table 6.7. The value of disposable income in billions of dollars

Accepted Answer

A)   is 625.
B)   is 710.
C)   is 800.
D)   cannot be calculated given the information in Table 6.3.E) A) and B)
F) A) and C)

Question 4

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1 
-Refer to Table 6.1. Personal consumption expenditures in billions of dollars are

Accepted Answer

A)   1,000.
B)   1,300.
C)   1,500.
D)   2,000.E) A) and B)
F) None of the above

Question 5

National income minus the amount of national income not going to households is

Accepted Answer

A)   proprietor's income.
B)   interest income.
C)   personal income.
D)   disposable income.E) A) and B)
F) A) and C)

Question 6

Which of the following is an example of an intermediate good?

Accepted Answer

A)   the dough you buy to fix yourself a pizza for dinner
B)   the chocolate you buy to make yourself some cookies
C)   the pizza sauce you purchase to make pizzas to sell for a fund-raiser for an organization you belong to
D)   lumber you buy to build a house for your dogE) All of the above
F) B) and C)

Question 7

If net investment in 2016 is $350 billion and gross investment in 2016 is $500 billion, depreciation in 2016 is

Accepted Answer

A)   $0.7 billion.
B)   $150 billion.
C)   $175 billion.
D)   $250 billion.E) B) and D)
F) C) and D)

Question 8

Consumers can spend their entire personal income.

Accepted Answer

A) True 
 B)False

Question 9

Refer to the information provided in Table 6.4 below to answer the questions that follow.
Table 6.4 
-Refer to Table 6.4. The value for NNP in billions of dollars is

Accepted Answer

A)   890.
B)   910.
C)   940.
D)   970.E) A) and B)
F) B) and D)

Question 10

Interest paid by businesses is

Accepted Answer

A)   counted in national income, but not in GDP.
B)   not counted in GDP because it is not assumed to flow from the production of goods and services.
C)   not counted in GDP but is counted in GNP because it is paid by U.S. businesses.
D)   included in both GDP and national income.E) A) and B)
F) A) and C)

Question 11

If nominal GDP is $8 trillion and real GDP is $6 trillion, the GDP deflator is

Accepted Answer

A)   48.
B)   75.
C)   133.33.
D)   480.E) A) and C)
F) B) and C)

Question 12

Refer to the information provided in Table 6.4 below to answer the questions that follow.
Table 6.4 
-Refer to Table 6.4. The value for disposable personal income in billions of dollars is

Accepted Answer

A)   750.
B)   770.
C)   820.
D)   990.E) A) and D)
F) All of the above

Question 13

If personal income is $700 billion and personal income taxes are $140 billion, the value of disposable personal income is

Accepted Answer

A)   $560 billion.
B)   $630 billion.
C)   $640 billion.
D)   $840 billion.E) B) and C)
F) A) and D)

Question 14

Refer to the information provided in Table 6.6 below to answer the questions that follow.
Table 6.6 
-Refer to Table 6.6. The value for gross private domestic investment in billions of dollars is

Accepted Answer

A)   800.
B)   900.
C)   1,000.
D)   1,100.E) A) and B)
F) None of the above

Question 15

Which of the following is not a component of gross domestic product?

Accepted Answer

A)   net exports
B)   government purchases
C)   purchases by consumers of used goods
D)   purchases by consumers of finished goodsE) None of the above
F) A) and B)

Question 16

If nominal GDP rises, then so must real GDP.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is an example of a final good or service?

Accepted Answer

A)   wheat a bakery purchases to make bread
B)   coffee beans Starbucks purchases to make coffee
C)   lumber purchased by a construction company to used in building houses
D)   a computer purchased by Federal Express to track shipmentsE) B) and C)
F) C) and D)

Question 18

The GDP deflator in year 2 is 95 using year 1 as a base year. This means that, on average, the price of goods and services is

Accepted Answer

A)   105% higher in year 2 than in year 1.
B)   5% higher in year 2 than in year 1.
C)   5% higher in year 1 than in year 2.
D)   105% higher in year 1 than in year 2.E) None of the above
F) All of the above

Question 19

Refer to the information provided in Table 6.5 below to answer the questions that follow.
Table 6.5 
-Refer to Table 6.5. The value for gross private domestic investment in billions of dollars is

Accepted Answer

A)   360.
B)   400.
C)   440.
D)   510.E) B) and D)
F) All of the above

Question 20

If the value of net exports is negative, then

Accepted Answer

A)   exports exceed imports.
B)   imports exceed exports.
C)   exports equal imports.
D)   imports are zero.E) A) and B)
F) B) and D)

Exam 6: Measuring National Output and National Income

The GDP deflator in year 2 is 95 using year 1 as a base year. This means that, on average, the price of goods and services is

Correct AnswerverifiedShow Answer

If the value of net exports is negative, then

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.5 below to answer the questions that follow. Table 6.5 -Refer to Table 6.5. The value for gross private domestic investment in billions of dollars is

Correct AnswerverifiedShow Answer

Which of the following is an example of an intermediate good?

Correct AnswerverifiedShow Answer

If nominal GDP is $8 trillion and real GDP is $6 trillion, the GDP deflator is

Correct AnswerverifiedShow Answer

If net investment in 2016 is $350 billion and gross investment in 2016 is $500 billion, depreciation in 2016 is

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.4 below to answer the questions that follow. Table 6.4 -Refer to Table 6.4. The value for disposable personal income in billions of dollars is

Correct AnswerverifiedShow Answer

Real GDP is gross domestic product measured

Correct AnswerverifiedShow Answer

National income minus the amount of national income not going to households is

Correct AnswerverifiedShow Answer

Interest paid by businesses is

Correct AnswerverifiedShow Answer

If personal income is $700 billion and personal income taxes are $140 billion, the value of disposable personal income is

Correct AnswerverifiedShow Answer

Which of the following is not a component of gross domestic product?

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.6 below to answer the questions that follow. Table 6.6 -Refer to Table 6.6. The value for gross private domestic investment in billions of dollars is

Correct AnswerverifiedShow Answer

Gross investment minus net investment is

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.4 below to answer the questions that follow. Table 6.4 -Refer to Table 6.4. The value for NNP in billions of dollars is

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.1 below to answer the questions that follow. Table 6.1 -Refer to Table 6.1. Personal consumption expenditures in billions of dollars are

Correct AnswerverifiedShow Answer

Consumers can spend their entire personal income.

Correct AnswerverifiedShow Answer

If nominal GDP rises, then so must real GDP.

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.7 below to answer the questions that follow. Table 6.7 -Refer to Table 6.7. The value of disposable income in billions of dollars

Correct AnswerverifiedShow Answer

Which of the following is an example of a final good or service?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified