Question 1

Typically in countries with lower levels of real GDP person,a smaller percentage of the population is literate.

Accepted Answer

A) True 
 B)False

Question 2

Net exports equal

Accepted Answer

A)   exports plus imports.
B)   exports minus imports.
C)   imports minus exports.
D)   GDP minus imports.E) B) and D)
F) All of the above

Question 3

We would expect a macroeconomist,as opposed to a microeconomist,to be particularly interested in

Accepted Answer

A)   explaining how economic changes affect prices of particular goods.
B)   devising policies to deal with market failures such as externalities and market power.
C)   devising policies to promote low inflation.
D)   identifying those markets that are competitive and those that are not competitive.E) B) and C)
F) B) and D)

Question 4

Otherwise legal transactions that go unreported or unrecorded are called

Accepted Answer

A)   the underground economy.
B)   the shadow economy.
C)   the informal economy.
D)   All of the above are correct.E) C) and D)
F) B) and D)

Question 5

Table 15-4
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 2008.
Prices and Quantities
 
-Refer to Table 15-4.In 2011,this country's

Accepted Answer

A)   real GDP was $900,and the GDP deflator was 150.2.
B)   real GDP was $900,and the GDP deflator was 177.8.
C)   real GDP was $1065,and the GDP deflator was 177.8.
D)   real GDP was $1065,and the GDP deflator was 150.2.E) C) and D)
F) None of the above

Question 6

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

Question 7

GDP is the market value of all final goods and services produced within a country in a given period of time.

Accepted Answer

A) True 
 B)False

Question 8

In the economy of Ukzten in 2010,consumption was $2000,exports were $800,GDP was $4800,government purchases were $840,and investment was $1400.What were Ukzten's imports in 2010?

Accepted Answer

A)   -$560
B)   -$240
C)   $240
D)   $560E) B) and C)
F) B) and D)

Question 9

Darin grows and sells marijuana to Jennifer.Thomas is an organic farmer who sells broccoli to Jennifer.Marijuana is an illegal good and broccoli is a legal good.Assume that if Jennifer marries either,they give her what they use to sell her.Which of the following statements is consistent with the way GDP is computed?

Accepted Answer

A)   GDP will fall if Jennifer marries either Darin or Thomas..
B)   GDP will fall if Jennifer marries Darin but not if she marries Thomas.
C)   GDP will fall if Jennifer marries Thomas but not if she marries Darin.
D)   GDP remains the same whether Jennifer marries Darin or Thomas.E) All of the above
F) A) and B)

Question 10

Which of the following is not included in GDP?

Accepted Answer

A)   a can of bug spray
B)   the services of an exterminator
C)   the honey produced and sold by a beekeeper
D)   All of the above are included in GDP.E) B) and D)
F) B) and C)

Question 11

Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?

Accepted Answer

A)   the effect of taxes on the prices of airline tickets,and the profitability of automobile-manufacturing firms
B)   the price of beef,and wage differences between genders
C)   how consumers maximize utility,and how prices are established in markets for agricultural products
D)   the percentage of the labor force that is out of work,and differences in average income from country to countryE) None of the above
F) A) and B)

Question 12

A newspaper article informs you that most businesses reduced production in the last quarter but also sold from their inventories during the last quarter.Based on this information GDP likely

Accepted Answer

A)   increased.
B)   decreased.
C)   stayed the same.
D)   may have increased,decreased,or stayed the same.E) A) and B)
F) A) and C)

Question 13

In a simple circular-flow diagram,total income and total expenditure are

Accepted Answer

A)   never equal because total income always exceeds total expenditure.
B)   seldom equal because of the ongoing changes in an economy's unemployment rate.
C)   equal only when the government purchases no goods or services.
D)   always equal because every transaction has a buyer and a seller.E) B) and C)
F) All of the above

Question 14

A U.S.firm produces nail guns in the first quarter of 2010 and adds them to its inventory.In the second quarter of 2010 the firm sells the nail guns to a U.S.construction company.In which quarter(s) is (are) GDP higher?

Accepted Answer

A)   the first and the second
B)   the first but not the second
C)   the second but not the first
D)   neither the first nor the secondE) None of the above
F) A) and C)

Question 15

Gasoline is considered a final good if it is sold by a

Accepted Answer

A)   gasoline station to a bus company that operates a bus route between San Francisco and Los Angeles.
B)   pipeline operator to a gasoline station in San Francisco.
C)   gasoline station to a motorist in Los Angeles.
D)   All of the above are correct.E) All of the above
F) A) and C)

Question 16

In the economy of Ukzten in 2010,consumption was $5300,GDP was $8800,government purchases were $1800,imports were $500,and investment was $2000.What were Ukzten's exports in 2010?

Accepted Answer

A)   -$800
B)   -$300
C)   $200
D)   $300E) B) and C)
F) A) and D)

Question 17

Which of the following items is included in GDP?

Accepted Answer

A)   the sale of stocks and bonds
B)   the sale of used goods
C)   the sale of services such as those performed by a doctor
D)   All of the above are included in GDP.E) A) and C)
F) A) and B)

Question 18

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)   country A's net factor payments from abroad are positive,and its GDP is larger than its GNP.
B)   country A's net factor payments from abroad are positive,and its GNP is larger than its GDP.
C)   country A's net factor payments from abroad are negative,and its GDP is larger than its GNP.
D)   country A's net factor payments from abroad are negative,and its GNP is larger than its GDP.E) All of the above
F) B) and C)

Question 19

Which of the following is not correct?

Accepted Answer

A)   GNP equals net national product plus losses from depreciation.
B)   For most countries,including the United States,GDP and GNP are nearly the same.
C)   GDP and GNP typically move in opposite directions.
D)   Personal income equals disposable personal income plus personal taxes plus certain nontax payments.E) B) and D)
F) A) and C)

Question 20

In 2009,U.S.GDP was almost

Accepted Answer

A)   $3 trillion.
B)   $7 trillion.
C)   $10 trillion.
D)   $14 trillion.E) All of the above
F) None of the above

Exam 15: Measuring a Nations Income

Otherwise legal transactions that go unreported or unrecorded are called

Correct Answer
verified

Net exports equal

Correct Answer
verified

A newspaper article informs you that most businesses reduced production in the last quarter but also sold from their inventories during the last quarter.Based on this information GDP likely

Correct Answer
verified

Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?

Correct Answer
verified

In the economy of Ukzten in 2010,consumption was $5300,GDP was $8800,government purchases were $1800,imports were $500,and investment was $2000.What were Ukzten's exports in 2010?

Correct Answer
verified

Which of the following items is included in GDP?

Correct Answer
verified

Which of the following is not included in GDP?

Correct Answer
verified

In a simple circular-flow diagram,total income and total expenditure are

Correct Answer
verified

Which of the following statements regarding GDP is correct?

Correct Answer
verified

We would expect a macroeconomist,as opposed to a microeconomist,to be particularly interested in

Correct Answer
verified

Correct Answer
verified

In the economy of Ukzten in 2010,consumption was $2000,exports were $800,GDP was $4800,government purchases were $840,and investment was $1400.What were Ukzten's imports in 2010?

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Typically in countries with lower levels of real GDP person,a smaller percentage of the population is literate.

Correct Answer
verified

GDP is the market value of all final goods and services produced within a country in a given period of time.

Correct Answer
verified

In 2009,U.S.GDP was almost

Correct Answer
verified

Gasoline is considered a final good if it is sold by a

Correct Answer
verified

A U.S.firm produces nail guns in the first quarter of 2010 and adds them to its inventory.In the second quarter of 2010 the firm sells the nail guns to a U.S.construction company.In which quarter(s) is (are) GDP higher?

Correct Answer
verified

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 Answer
verified

Table 15-4 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 2008. Prices and Quantities -Refer to Table 15-4.In 2011,this country's

Correct Answer
verified

Exam 15: Measuring a Nations Income

Otherwise legal transactions that go unreported or unrecorded are called

Correct AnswerverifiedShow Answer

Net exports equal

Correct AnswerverifiedShow Answer

A newspaper article informs you that most businesses reduced production in the last quarter but also sold from their inventories during the last quarter.Based on this information GDP likely

Correct AnswerverifiedShow Answer

Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?

Correct AnswerverifiedShow Answer

In the economy of Ukzten in 2010,consumption was $5300,GDP was $8800,government purchases were $1800,imports were $500,and investment was $2000.What were Ukzten's exports in 2010?

Correct AnswerverifiedShow Answer

Which of the following items is included in GDP?

Correct AnswerverifiedShow Answer

Which of the following is not included in GDP?

Correct AnswerverifiedShow Answer

In a simple circular-flow diagram,total income and total expenditure are

Correct AnswerverifiedShow Answer

Which of the following statements regarding GDP is correct?

Correct AnswerverifiedShow Answer

We would expect a macroeconomist,as opposed to a microeconomist,to be particularly interested in

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the economy of Ukzten in 2010,consumption was $2000,exports were $800,GDP was $4800,government purchases were $840,and investment was $1400.What were Ukzten's imports in 2010?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Typically in countries with lower levels of real GDP person,a smaller percentage of the population is literate.

Correct AnswerverifiedShow Answer

GDP is the market value of all final goods and services produced within a country in a given period of time.

Correct AnswerverifiedShow Answer

In 2009,U.S.GDP was almost

Correct AnswerverifiedShow Answer

Gasoline is considered a final good if it is sold by a

Correct AnswerverifiedShow Answer

A U.S.firm produces nail guns in the first quarter of 2010 and adds them to its inventory.In the second quarter of 2010 the firm sells the nail guns to a U.S.construction company.In which quarter(s) is (are) GDP higher?

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

Table 15-4 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 2008. Prices and Quantities -Refer to Table 15-4.In 2011,this country's

Correct AnswerverifiedShow Answer

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