Question 1

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

Question 2

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Accepted Answer

A) True 
 B)False

Question 3

Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP,but the value of intermediate goods produced and not sold is included directly as part of GDP.

Accepted Answer

Intermediate goods produced and sold dur...

Question 4

The overall effect of accounting for purchases of foreign goods in GDP reduces GDP.

Accepted Answer

A) True 
 B)False

Question 5

U.S.real GDP is substantially higher today than it was 60 years ago.What does this tell us,and what does it not tell us,about the well-being of U.S.residents?

Accepted Answer

Since this is in real terms,it tells us ...

Question 6

In the equation Y = C + I + G + NX,

Accepted Answer

A)  Y represents the economy's total expenditure.
B)  C represents household expenditures on services and durable goods.
C)  all of the variables are always positive numbers.
D)  All of the above are correct.E) A) and C)
F) C) and D)

Question 7

The term real GDP refers to a country's actual GDP as opposed to its estimated GDP.

Accepted Answer

A) True 
 B)False

Question 8

The U.S.Air Force pays a Turkish citizen $30,000 to work on a U.S.base in Turkey.As a result,

Accepted Answer

A)  U.S.government purchases increase by $30,000; U.S.net exports decrease by $30,000; and U.S.GDP is unaffected.
B)  U.S.government purchases increase by $30,000; U.S.net exports are unaffected; and U.S.GDP increases by $30,000.
C)  U.S.government purchases,net exports,and GDP are unaffected.
D)  U.S.government purchases are unaffected; U.S.net exports decrease by $30,000; and U.S.GDP decreases by $30,000.E) All of the above
F) None of the above

Question 9

Which of the following is not included in GDP?

Accepted Answer

A)  carrots grown in your garden and eaten by your family
B)  carrots purchased at a farmer's market and eaten by your family
C)  carrots purchased at a grocery store and eaten by your family
D)  None of the above are included in GDP.E) A) and C)
F) All of the above

Question 10

Table 10-1
The table below contains data for country A for the year 2010.   Household purchases of durable goods $1293 Household purchases of nondurable goods $1717 Household purchases of services $301 Household purchases of new housing $704 Purchases of capital equipment $310 Inventory changes $374 Purchases of new structures $611 Depreciation $117 Sal aries of government workers $1422 Government expenditures on public works $553 Transfer payments $777 Foreign purchases of domestically produced goods $88 Domestic purchases of foreign goods $120\begin{array} { | l | l | } \hline 	ext { Household purchases of durable goods } & \$ 1293 \\hline 	ext { Household purchases of nondurable goods } & \$ 1717 \\hline 	ext { Household purchases of services } & \$ 301 \\hline 	ext { Household purchases of new housing } & \$ 704 \\hline 	ext { Purchases of capital equipment } & \$ 310 \\hline 	ext { Inventory changes } & \$ 374 \\hline 	ext { Purchases of new structures } & \$ 611 \\hline 	ext { Depreciation } & \$ 117 \\hline 	ext { Sal aries of government workers } & \$ 1422 \\hline 	ext { Government expenditures on public works } & \$ 553 \\hline 	ext { Transfer payments } & \$ 777 \\hline 	ext { Foreign purchases of domestically produced goods } & \$ 88 \\hline 	ext { Domestic purchases of foreign goods } & \$ 120 \\hline\end{array} Household purchases of durable goods  Household purchases of nondurable goods  Household purchases of services  Household purchases of new housing  Purchases of capital equipment  Inventory changes  Purchases of new structures  Depreciation  Sal aries of government workers  Government expenditures on public works  Transfer payments  Foreign purchases of domestically produced goods  Domestic purchases of foreign goods ​$1293$1717$301$704$310$374$611$117$1422$553$777$88$120​​ 
-Refer to Table 10-1.What were country A's net exports in 2010?

Accepted Answer

A)  -$32
B)  $32
C)  $88
D)  $120 E) None of the above
F) B) and C)

Question 11

Foreign citizens earn more income in Ireland than Irish citizens earn in foreign countries.

Accepted Answer

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

Question 12

International data on GDP and socioeconomic variables

Accepted Answer

A)  are inconclusive about the relationship between GDP and the economic well-being of citizens.
B)  suggest that poor nations actually might enjoy a higher standard of living than do rich nations.
C)  leave no doubt that a nation's GDP is closely associated with its citizens' standard of living.
D)  indicate that there are few real differences in living standards around the world,in spite of the large differences in GDP between nations.E) A) and B)
F) A) and C)

Question 13

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 14

A German citizen buys an automobile produced in the United States by a Japanese company.As a result,

Accepted Answer

A)  U.S.net exports increase,U.S.GDP is unaffected,Japanese GNP increases,German net exports decrease,and German GNP and GDP are unaffected.
B)  U.S.net exports and GDP increase,Japanese GNP increases,German net exports decrease,German GNP is unaffected,and German GDP decreases.
C)  U.S.net exports and GDP increase,Japanese GNP increases,German net exports decrease,and German GNP and GDP are unaffected.
D)  U.S.net exports and GDP are unaffected,Japanese GNP increases,and German net exports,GNP,and GDP decrease.E) B) and C)
F) None of the above

Question 15

When economists talk about growth in the economy,they measure that growth as the

Accepted Answer

A)  absolute change in nominal GDP from one period to another.
B)  percentage change in nominal GDP from one period to another.
C)  absolute change in real GDP from one period to another.
D)  percentage change in real GDP from one period to another.E) B) and D)
F) None of the above

Question 16

The investment component of GDP refers to financial investment in stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is included in GDP?

Accepted Answer

A)  the market value of rental housing services,but not the market value of owner-occupied housing services.
B)  the market value of owner-occupied housing services,but not the market value of rental housing services
C)  both the market value of rental housing services and the market value of owner-occupied housing services
D)  neither the market value of owner-occupied housing services nor the market value of rental housing services.E) A) and B)
F) A) and C)

Question 18

In years of economic contraction,firms throughout the economy increase their production of goods and services,employment rises,and jobs are easy to find.

Accepted Answer

A) True 
 B)False

Question 19

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)  a refrigerator
B)  a quart of motor oil
C)  a business suit
D)  a can of soupE) All of the above
F) B) and C)

Exam 23: Measuring a Nations Income

Which of the following is included in GDP?

Correct Answer
verified

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

Correct Answer
verified

U.S.real GDP is substantially higher today than it was 60 years ago.What does this tell us,and what does it not tell us,about the well-being of U.S.residents?

Correct Answer
verified
Since this is in real terms,it tells us ...
View Answer

Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP,but the value of intermediate goods produced and not sold is included directly as part of GDP.

Correct Answer
verified
Intermediate goods produced and sold dur...
View Answer

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Correct Answer
verified

The overall effect of accounting for purchases of foreign goods in GDP reduces GDP.

Correct Answer
verified

Which of the following statements about recessions is true?

Correct Answer
verified

A German citizen buys an automobile produced in the United States by a Japanese company.As a result,

Correct Answer
verified

The term real GDP refers to a country's actual GDP as opposed to its estimated GDP.

Correct Answer
verified

When economists talk about growth in the economy,they measure that growth as the

Correct Answer
verified

Correct Answer
verified

Foreign citizens earn more income in Ireland than Irish citizens earn in foreign countries.

Correct Answer
verified

In years of economic contraction,firms throughout the economy increase their production of goods and services,employment rises,and jobs are easy to find.

Correct Answer
verified

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

Correct Answer
verified

The investment component of GDP refers to financial investment in stocks and bonds.

Correct Answer
verified

Which of the following is not included in GDP?

Correct Answer
verified

International data on GDP and socioeconomic variables

Correct Answer
verified

The U.S.Air Force pays a Turkish citizen $30,000 to work on a U.S.base in Turkey.As a result,

Correct Answer
verified

In the equation Y = C + I + G + NX,

Correct Answer
verified

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

Correct Answer
verified

Exam 23: Measuring a Nations Income

Which of the following is included in GDP?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

U.S.real GDP is substantially higher today than it was 60 years ago.What does this tell us,and what does it not tell us,about the well-being of U.S.residents?

Correct AnswerverifiedSince this is in real terms,it tells us ...View AnswerShow Answer

Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP,but the value of intermediate goods produced and not sold is included directly as part of GDP.

Correct AnswerverifiedIntermediate goods produced and sold dur...View AnswerShow Answer

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Correct AnswerverifiedShow Answer

The overall effect of accounting for purchases of foreign goods in GDP reduces GDP.

Correct AnswerverifiedShow Answer

Which of the following statements about recessions is true?

Correct AnswerverifiedShow Answer

A German citizen buys an automobile produced in the United States by a Japanese company.As a result,

Correct AnswerverifiedShow Answer

The term real GDP refers to a country's actual GDP as opposed to its estimated GDP.

Correct AnswerverifiedShow Answer

When economists talk about growth in the economy,they measure that growth as the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Foreign citizens earn more income in Ireland than Irish citizens earn in foreign countries.

Correct AnswerverifiedShow Answer

In years of economic contraction,firms throughout the economy increase their production of goods and services,employment rises,and jobs are easy to find.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The investment component of GDP refers to financial investment in stocks and bonds.

Correct AnswerverifiedShow Answer

Which of the following is not included in GDP?

Correct AnswerverifiedShow Answer

International data on GDP and socioeconomic variables

Correct AnswerverifiedShow Answer

The U.S.Air Force pays a Turkish citizen $30,000 to work on a U.S.base in Turkey.As a result,

Correct AnswerverifiedShow Answer

In the equation Y = C + I + G + NX,

Correct AnswerverifiedShow Answer

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Since this is in real terms,it tells us ...
View Answer

Correct Answer
verified
Intermediate goods produced and sold dur...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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