Question 1

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)   Ghana, Kenya, Tanzania
B)   Ghana, Tanzania, Kenya
C)   Kenya, Tanzania, Ghana
D)   Kenya, Ghana, TanzaniaE) All of the above
F) A) and B)

Question 2

Java Hut, a U.S. coffee retailer, buys $10 million worth of coffee beans from Colombia. It also pays $5 million for paper cups and utilities, all produced in the U.S. It sells the coffee it produces using the above inputs to U.S. consumers for $50 million. Overall how do these expenditure affect net exports? How do these expenditures effect U.S. consumption?

Accepted Answer

Net exports are $10 million le...

Question 3

In the economy of Talikastan in 2015, consumption was $5000, exports were $400, government purchases were $1000, imports were $600, and investment was $1200. What was Talikastan's GDP in 2015?

Accepted Answer

A)   $6200
B)   $6400
C)   $7000
D)   $8200E) B) and C)
F) A) and B)

Question 4

Which of the following statements about recessions is true?

Accepted Answer

A)   An old rule of thumb defining recession is two consecutive quarters of falling nominal GDP.
B)   Recessions occur at regular intervals and last standard amounts of time.
C)   There is no ironclad rule for the declaration of recessions.
D)   Recessions are associated with low unemployment and high income.E) B) and D)
F) A) and C)

Question 5

Table 23-7
The table below contains data for the country of Togogo. The base year is 1974.
 
-Refer to Table 23-7. From 1975 to 1976,

Accepted Answer

A)   inflation was 25% and output did not grow.
B)   inflation was 25% and output grew.
C)   inflation was 50% and output did not grow.
D)   inflation was 50% and output grew.E) C) and D)
F) A) and B)

Question 6

The underground economy

Accepted Answer

A)   excludes the amount of criminal activity in an economy.
B)   is larger for developed nations than developing nations when measured as a percent of GDP.
C)   includes otherwise legal transactions that go unreported or unrecorded.
D)   in the United States is insignificant is size when compared to the official measure of GDP.E) A) and B)
F) All of the above

Question 7

If net exports is a negative number for a particular year, then

Accepted Answer

A)   the value of firms' inventories declined over the course of the year.
B)   consumption exceeded the sum of investment and government purchases during the year.
C)   the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year.
D)   the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.E) A) and B)
F) B) and C)

Question 8

GDP is not a perfect measure of well-being; for example,

Accepted Answer

A)   GDP excludes the value of volunteer work.
B)   GDP does not address the distribution of income.
C)   GDP does not address environmental quality.
D)   All of the above are correct.E) A) and B)
F) A) and D)

Question 9

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

Accepted Answer

A)   spending to build new houses
B)   spending to build new factories
C)   spending on business equipment such as welding equipment
D)   All of the above are included in the investment component of GDP.E) All of the above
F) None of the above

Question 10

Table 23-6
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013.
 
-Refer to Table 23-6. In 2012, this country's real GDP was

Accepted Answer

A)   $510.
B)   $690.
C)   $930.
D)   $780.E) C) and D)
F) A) and B)

Question 11

How is net national product NNP)  calculated?

Accepted Answer

A)   Saving is added to the total income of a nation's citizens.
B)   Saving is added to the total income earned within a nation.
C)   Depreciation losses are subtracted from the total income of a nation's citizens.
D)   Depreciation losses are subtracted from the total income earned within a nation.E) A) and B)
F) None of the above

Question 12

Countries with low GDP per person tend to have

Accepted Answer

A)   lower rates of child malnutrition.
B)   fewer infants with low birth weight.
C)   higher rates of infant mortality.
D)   more access to safe drinking water.E) A) and B)
F) B) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Question 15

If total spending rises from one year to the next, then which of the following could not be true?

Accepted Answer

A)   the economy is producing a smaller output of goods and services, and goods and services are selling at higher prices.
B)   the economy is producing a larger output of goods and services, and goods and services are selling at lower prices.
C)   the economy is producing a larger output of goods and services, and goods and services are selling at higher prices.
D)   the economy is producing a smaller output of goods and services, and goods and services are selling at lower prices.E) A) and D)
F) B) and C)

Question 16

Macroeconomists study

Accepted Answer

A)   the decisions of individual households and firms.
B)   the interaction between households and firms.
C)   economy-wide phenomena.
D)   regulations imposed on firms and unions.E) C) and D)
F) A) and B)

Question 17

Gina, a U.S. citizen, works only in Bermuda. The value of Gina's production is included in

Accepted Answer

A)   U.S. GDP and Bermudan GDP.
B)   U.S. GDP and Bermudan GNP.
C)   U.S. GNP and Bermudan GDP.
D)   U.S. GNP and Bermudan GNP.E) C) and D)
F) None of the above

Question 18

If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is $800, then consumption is $6200.

Accepted Answer

A) True 
 B)False

Question 19

Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit and 100 units of maple syrup are sold at $8 per unit. In 2009, the base year, the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit. For 2010,

Accepted Answer

A)   nominal GDP is $1800, real GDP is $2000, and the GDP deflator is 90.
B)   nominal GDP is $1800, real GDP is $2000, and the GDP deflator is 111.1.
C)   nominal GDP is $2000, real GDP is $1800, and the GDP deflator is 90.
D)   nominal GDP is $2000, real GDP is $1800, and the GDP deflator is 111.1.E) C) and D)
F) B) and D)

Question 20

When economists refer to intangible items, they are referring to such things as

Accepted Answer

A)   illegal goods, and the value of such items is included in GDP.
B)   illegal goods, and the value of such items is excluded from GDP.
C)   hair styling and dental care, and the value of such items is included in GDP.
D)   hair styling and dental care, and the value of such items is excluded from GDP.E) B) and D)
F) C) and D)

Exam 5: Measuring a Nations Income

Which of the following statements about recessions is true?

Correct Answer
verified

Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit and 100 units of maple syrup are sold at $8 per unit. In 2009, the base year, the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit. For 2010,

Correct Answer
verified

Macroeconomists study

Correct Answer
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If net exports is a negative number for a particular year, then

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

Correct Answer
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Gina, a U.S. citizen, works only in Bermuda. The value of Gina's production is included in

Correct Answer
verified

When economists refer to intangible items, they are referring to such things as

Correct Answer
verified

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

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

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 Answer
verified

Correct Answer
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Net exports are $10 million le...
View Answer

Table 23-7 The table below contains data for the country of Togogo. The base year is 1974. -Refer to Table 23-7. From 1975 to 1976,

Correct Answer
verified

If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is $800, then consumption is $6200.

Correct Answer
verified

GDP is not a perfect measure of well-being; for example,

Correct Answer
verified

If total spending rises from one year to the next, then which of the following could not be true?

Correct Answer
verified

How is net national product NNP) calculated?

Correct Answer
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Countries with low GDP per person tend to have

Correct Answer
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Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. In 2012, this country's real GDP was

Correct Answer
verified

The underground economy

Correct Answer
verified

In the economy of Talikastan in 2015, consumption was $5000, exports were $400, government purchases were $1000, imports were $600, and investment was $1200. What was Talikastan's GDP in 2015?

Correct Answer
verified

Exam 5: Measuring a Nations Income

Which of the following statements about recessions is true?

Correct AnswerverifiedShow Answer

Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit and 100 units of maple syrup are sold at $8 per unit. In 2009, the base year, the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit. For 2010,

Correct AnswerverifiedShow Answer

Macroeconomists study

Correct AnswerverifiedShow Answer

If net exports is a negative number for a particular year, then

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Gina, a U.S. citizen, works only in Bermuda. The value of Gina's production is included in

Correct AnswerverifiedShow Answer

When economists refer to intangible items, they are referring to such things as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not correct?

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

Correct AnswerverifiedNet exports are $10 million le...View AnswerShow Answer

Table 23-7 The table below contains data for the country of Togogo. The base year is 1974. -Refer to Table 23-7. From 1975 to 1976,

Correct AnswerverifiedShow Answer

If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is $800, then consumption is $6200.

Correct AnswerverifiedShow Answer

GDP is not a perfect measure of well-being; for example,

Correct AnswerverifiedShow Answer

If total spending rises from one year to the next, then which of the following could not be true?

Correct AnswerverifiedShow Answer

How is net national product NNP) calculated?

Correct AnswerverifiedShow Answer

Countries with low GDP per person tend to have

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. -Refer to Table 23-6. In 2012, this country's real GDP was

Correct AnswerverifiedShow Answer

The underground economy

Correct AnswerverifiedShow Answer

In the economy of Talikastan in 2015, consumption was $5000, exports were $400, government purchases were $1000, imports were $600, and investment was $1200. What was Talikastan's GDP in 2015?

Correct AnswerverifiedShow Answer

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Net exports are $10 million le...
View Answer

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