question
Shares in the ownership of companies are called _____, and borrowing tools that a company can use in the form of an IOU with interest are called _____.
answer
stocks; bonds
question
A small economy only produces two goods: steak and potatoes. This information is shown in the table. Based on the table, if year 2 is the base year, the growth rate of real GDP between years 1 and 2 is _____ percent.
answer
2.2
question
Based on the information in the table, which country is experiencing disinflation (positive but falling inflation rates)?
answer
South Macton
question
_____ refers to the total market value of all final goods and services produced in an economy during a given period.
answer
Gross domestic product
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_____ refers to the economy's total quantity of output of final goods and services.
answer
Aggregate output
question
The aggregate price level is a measure of the:
answer
overall level of prices in the economy.
question
_____ is/are the sum of consumer spending, investment spending, government purchases of goods and services, and exports minus imports.
answer
Aggregate spending
question
_____ is the value of all final goods and services produced in the economy during a given year; it is calculated using the current prices from the year in which the output is produced.
answer
Nominal GDP
question
The table shows the quantities of food and clothes that make up a two-good market basket. The value of the market basket in 2015 was $_____.
answer
1200
question
A small economy produces three items: wheat, flour, and bread. Farmer Zack produces wheat and sells it to the Big Gluten Company. The Big Gluten Company produces flour and sells it to the Fragrant Bread Corporation. This information is shown in the table. The total profit received in this economy is $_____.
answer
70
question
The chain-linking method of measuring the change in real GDP applies the average between the GDP growth rate using an early base year and the GDP growth rate using:
answer
a late base year
question
The table shows the quantities of food and clothes that make up a two-good market basket. If 2014 is the base year, the price index in 2014 was:
answer
100
question
Which equation shows the proper way to calculate GDP (gross domestic product) as the factor income earned from firms in the economy?
answer
GDP = wages + rent + interest payments + profit.
question
The table represents data on the economy of the nation of Microeconomia. Based on this table, the base year is:
answer
2013
question
Which is NOT included in the calculation of the gross domestic product (GDP)?
answer
intermediate goods
question
A small economy only produces two goods: soda and pizza. This information is shown in the table. Based on the table, nominal GDP in 2010 was $_____.
answer
700
question
The table represents the economy of Thriftland. Based on this table, the value of real GDP in 2013 was:
answer
120
question
Aggregate spending is equal to consumer spending plus:
answer
investment spending + government purchases of goods and services + exports - imports.
question
A country with a larger population usually has _____ a country with a smaller population, because the more populated nation has more people working.
answer
a higher GDP than
question
The table represents the cost of some fruits in the city of Gaga in 2013 and 2014. A market basket for constructing a price index consists of 200 oranges, 100 apples, and 100 bananas, and 2013 is the base year. The value of the price index in 2013 was:
answer
100
question
The difference between spending on inputs and investment spending is that:
answer
spending on investment goods is included in the calculation of GDP.
question
Real GDP is nominal GDP adjusted for changes in:
answer
prices
question
The price index of Ecologia is 125 in year 1, and 120 in year 2. The rate of inflation is _____ percent.
answer
-4
question
Economists refer to spending by the firm sector as:
answer
investment spending
question
Chained dollars refers to a method of measuring the change in real GDP finding the average between the GDP growth rate using an early base year and the GDP growth rate using:
answer
a late base year
question
The table represents the cost of a market basket of goods in Boopterville for the years 2011, 2012, 2013, and 2014. If the base year is 2011, the price index for 2011 was:
answer
100
question
Income earned by firms that is not paid out as profits, interest, or rent is:
answer
wages
question
_____ refers to GDP divided by the size of the population.
answer
GDP per capita
question
As of 2015, the base period for the consumer price index were the years:
answer
1982 and 1984
question
Spending on inventories is part of:
answer
investment
question
Tanesha receives monthly wages of $1,500 and government transfers of $200 per month. She also pays income and sales tax of $170, and has consumption spending of $1,450. Tanesha's private savings is:
answer
$80
question
An economy has three firms: American Racquet Co., which produces tennis racquets; American Metal Co., which produces the various metals that go into racquet production; and American Ore Co., which mines the ores needed for the manufacture of the metal. This economy produces 100 racquets that sell for $50 each. There are no other goods produced in this economy. All the ore that is mined is sold to the metal company, and all the metal that is produced is sold to the racquet company. Based on the table, the gross domestic product for this hypothetical economy is equal to:
answer
$5,000, or the value of sales for American Racquet Co.
question
Spending on productive physical capital is known as _____ spending.
answer
investment
question
_____ is often used to compare output across countries with different populations.
answer
GDP per capita
question
A small economy only produces two goods: soda and pizza. This information is shown in the table. Based on the table, the growth rate of nominal GDP from 2010 to 2011 was _____ percent.
answer
10
question
In one nation, GDP (gross domestic product) is $14 trillion, consumption is $9 trillion, investment is $3 trillion, and net exports are -$1 trillion. In this nation, government spending is $_____ trillion.
answer
3
question
_____ sell factors of production in the factor markets.
answer
Households
question
Pepperland is a small country; its GDP in 2014 was $10,000 and its population was 10 people. GDP in Pepperland in 2015 increased to $12,000, while the population increased by 25 percent. As a result, GDP per capita in Pepperland in 2015:
answer
decreased, because the percentage change in GDP was smaller than the percentage change in population.
question
The table shows the quantities of food and clothes that make up a two-good market basket. The value of the market basket in 2014 was $_____.
answer
900
question
Spending on _____ is NOT counted as part of GDP (gross domestic product) when GDP is calculated by adding up aggregate spending on domestically produced final goods and services.
answer
inputs
question
In 2014, the GDP of Prospero's Island was $10,000 and its population was 10 people. GDP in Prospero's Island in 2015 increased to $20,000 while the population increased by 10 percent. As a result, GDP per capita in Prospero's Island in 2015:
answer
increased, because the percentage change in GDP was greater than the percentage change in population.
question
Xanadu is a small kingdom; its GDP in 2014 was $10,000 and its population was 10 people. In 2015, GDP in Xanadu increased to $12,000 while the population increased by 20 percent. As a result, GDP per capita in Xanadu in 2015:
answer
did not change, because the percentage change in GDP was the same as the percentage change in population.
question
A(n) _____ is a share (or shares) of ownership of a company.
answer
stock
question
Kravonia produces tractors and pizzas. This information is shown in the table. Based on the table, the growth rate in real GDP in Kravonia from 2013 to 2014, using 2013 as the base year:
answer
was a negative growth rate.
question
The table shows the quantities of food and clothes that make up a two-good market basket. If 2015 is the base year, the price index in 2014 was:
answer
75
question
Households demand goods and services in the _____ market.
answer
goods and services
question
The _____ keep(s) track of the flows of money between different sectors of the economy.
answer
national accounts
question
If nominal GDP is adjusted for changes in prices, the result is:
answer
real GDP
question
In Macroland, the GDP deflator for 2014 is 105 with 2013 as the base year. Real GDP in 2014 equaled $210 billion. Therefore, nominal GDP in 2014 equaled _____, while nominal GDP in 2013 equaled _____.
answer
$220.5 billion; $200 billion
question
_____ sell goods and services in the goods and services market.
answer
Firms
question
_____ refers to the total value of all final goods and services produced in the economy during a given year; it is calculated using the prices of a selected base year.
answer
Real GDP
question
If the dollar amount of GDP (gross domestic product) increases, then aggregate output:
answer
may be increasing or decreasing.
question
Real GDP rises if:
answer
the output of goods and services rises.
question
Given the output and price data in the table, real GDP did not change between years:
answer
3 and 4
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