Econ 1301 exam 2 - Assignment Essays

question

Which of the following do national income accountants consider to be investment?

answer

the purchase of a new house

question

Final goods and services refers to

answer

goods and services purchased by ultimate users, rather than for resale or further processing.

question

Which of the following is a final good or service?

answer

a haircut purchased by a father for his 12-year-old son

question

In calculating GDP, governmental transfer payments, such as Social Security or unemployment compensation, are

answer

not counted.

question

In the treatment of U.S. exports and imports, national income accountants

answer

add exports, but subtract imports, in calculating GDP.

question

If nominal GDP rises,

answer

real GDP may either rise or fall.

question

GDP excludes

answer

the market value of unpaid work in the home.

question

a. Interest received on an AT&T corporate bond

answer

Included

question

. Social Security payments received by a retired factory worker:

answer

Excluded

question

c. Unpaid services of a family member who painted the family home:

answer

Excluded

question

d. Income of a dentist from the dental services she provided:

answer

Included

question

e. A monthly allowance that a college student receives from home:

answer

Excluded

question

f. Money received by Josh when he resells his nearly brand-new Honda automobile to Kim:

answer

Excluded

question

g. The publication and sale of a new college textbook

answer

Included

question

h. An increase in leisure resulting from a 2-hour decrease in the length of the workweek, with no reduction in pay:

answer

Excluded

question

i. A $2 billion increase in business inventories:

answer

Included

question

j. The purchase of 100 shares of Alphabet (the parent company of Google) stock:

answer

Excluded

question

Real GDP measures

answer

current output at base year prices.

question

Suppose that this year a small country has a GDP of $100 billion. Also assume that Ig = $30 billion, C = $60 billion, and Xn = − $10 billion. What is the value of G?

answer

$20 billion

question

Net exports are a country's export of

answer

goods and services less its imports of goods and services

question

If foreigners spend $7 billion on U.S. exports in a given year and Americans spend $5 billion on imports from abroad in the same year, what is the value of U.S. net exports?

answer

+ $2 billion

question

Net exports might be a negative amount if

answer

Americans spend more on imports than foreign countries spend on American exports.

question

The sale of a used automobile would not be included in GDP of the current year because it is a

answer

nonproduction transaction.

question

a. Economists include only final goods and services when measuring GDP because

answer

if intermediate goods were counted, then multiple counting would occur. Correct

question

Gross domestic product does not include the value of the stocks and bonds bought and sold because these transactions are considered

answer

economic investment and should not be counted as production of final goods and services

question

When measuring GDP, economists don't include the value of the used furniture bought and sold because

answer

this value was already counted in GDP in some previous year.

question

Nominal GDP is

answer

the market or money value of all final goods and services produced by the economy in a given year, whereas real GDP is adjusted for inflation

question

The more reliable measure for comparing changes in the standard of living over a series of years is

answer

real GDP.

question

The GDP price index is

answer

a measure of the price of a specified collection of goods and services compared to the price of a highly similar collection of goods and services in a reference year.

question

Which of the following statements is true?

answer

Real GDP is nominal GDP divided by the price index

question

In national income accounting, the personal consumption expenditures category includes purchases of

answer

automobiles for personal use but not houses.

question

Which of the following is a private transfer payment?

answer

a check for $250 sent by a parent to a daughter at college

question

A nation's gross domestic product (GDP)

answer

can be found by summing C + Ig + G + Xn.

question

What is a final good?

answer

Consumed rather than used for the production of another good. Ex. Car

question

What is an interme

answer

A good that is used in the production of a final good

question

Which of the following transactions would be included in GDP?

answer

Peter buys a newly constructed house.

question

Government purchases include government spending on

answer

government consumption goods and public capital goods.

question

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, its real GDP per capita will

answer

remain constant.

question

Economic growth is best defined as an increase in

answer

either real GDP or real GDP per capita.

question

Economic growth can be portrayed as

answer

an outward shift of the production possibilities curve.

question

Refer to the graph. Growth of production capacity is shown by the

answer

shift from AB to CD.

question

Consider the following data for a particular country.

Year Population (Millions) Real GDP (Trillions of $)
1 300 18
2 375 27

a. What is the growth rate of real GDP from year 1 to year 2?
b. What is the growth rate of real GDP per capita from year 1 to year 2?

answer

a. 50%
b. 20%

question

Given the annual rate of economic growth, the "rule of 70" allows one to

answer

calculate the number of years required for real GDP to double.

question

Identify the following arguments about economic growth as either anti-growth or pro-growth.

a. Growth means worker burnout and frantic schedules:

b. Rising incomes allow people to buy more education, medical care, and recreation:

c. Earth has only finite amounts of natural resources:

d. Even the richest countries still have poverty, homelessness, and discrimination:

e. Richer countries spend more money protecting the environment:

f. Natural resource prices have fallen rather than increased over time:

answer

a.Anti-growth
b.Pro-growth
c.Anti-growth
d.Anti-growth
e.Pro-growth
f.Pro-growth

question

The largest contributor to increases in the productivity of American labor is

answer

technological advance.

question

What are the four supply factors of economic growth?

answer

the level of technology
the quality and quantity of natural resources
the stock of capital goods
the quality and quantity of human resources

question

What is the demand factor?

answer

The level of purchases needed to maintain full employment.

question

What is the efficiency factor?

answer

The level of economic efficiency and full employment needed to reach full production potential

question

What annual growth rate is needed for a country to double its output in each of the following cases?

7 years, 35 y, 70 y, 140 y

answer

10%, 2%, 1%, 0.5%

1 of 49

question

Which of the following do national income accountants consider to be investment?

answer

the purchase of a new house

question

Final goods and services refers to

answer

goods and services purchased by ultimate users, rather than for resale or further processing.

question

Which of the following is a final good or service?

answer

a haircut purchased by a father for his 12-year-old son

question

In calculating GDP, governmental transfer payments, such as Social Security or unemployment compensation, are

answer

not counted.

question

In the treatment of U.S. exports and imports, national income accountants

answer

add exports, but subtract imports, in calculating GDP.

question

If nominal GDP rises,

answer

real GDP may either rise or fall.

question

GDP excludes

answer

the market value of unpaid work in the home.

question

a. Interest received on an AT&T corporate bond

answer

Included

question

. Social Security payments received by a retired factory worker:

answer

Excluded

question

c. Unpaid services of a family member who painted the family home:

answer

Excluded

question

d. Income of a dentist from the dental services she provided:

answer

Included

question

e. A monthly allowance that a college student receives from home:

answer

Excluded

question

f. Money received by Josh when he resells his nearly brand-new Honda automobile to Kim:

answer

Excluded

question

g. The publication and sale of a new college textbook

answer

Included

question

h. An increase in leisure resulting from a 2-hour decrease in the length of the workweek, with no reduction in pay:

answer

Excluded

question

i. A $2 billion increase in business inventories:

answer

Included

question

j. The purchase of 100 shares of Alphabet (the parent company of Google) stock:

answer

Excluded

question

Real GDP measures

answer

current output at base year prices.

question

Suppose that this year a small country has a GDP of $100 billion. Also assume that Ig = $30 billion, C = $60 billion, and Xn = − $10 billion. What is the value of G?

answer

$20 billion

question

Net exports are a country's export of

answer

goods and services less its imports of goods and services

question

If foreigners spend $7 billion on U.S. exports in a given year and Americans spend $5 billion on imports from abroad in the same year, what is the value of U.S. net exports?

answer

+ $2 billion

question

Net exports might be a negative amount if

answer

Americans spend more on imports than foreign countries spend on American exports.

question

The sale of a used automobile would not be included in GDP of the current year because it is a

answer

nonproduction transaction.

question

a. Economists include only final goods and services when measuring GDP because

answer

if intermediate goods were counted, then multiple counting would occur. Correct

question

Gross domestic product does not include the value of the stocks and bonds bought and sold because these transactions are considered

answer

economic investment and should not be counted as production of final goods and services

question

When measuring GDP, economists don't include the value of the used furniture bought and sold because

answer

this value was already counted in GDP in some previous year.

question

Nominal GDP is

answer

the market or money value of all final goods and services produced by the economy in a given year, whereas real GDP is adjusted for inflation

question

The more reliable measure for comparing changes in the standard of living over a series of years is

answer

real GDP.

question

The GDP price index is

answer

a measure of the price of a specified collection of goods and services compared to the price of a highly similar collection of goods and services in a reference year.

question

Which of the following statements is true?

answer

Real GDP is nominal GDP divided by the price index

question

In national income accounting, the personal consumption expenditures category includes purchases of

answer

automobiles for personal use but not houses.

question

Which of the following is a private transfer payment?

answer

a check for $250 sent by a parent to a daughter at college

question

A nation's gross domestic product (GDP)

answer

can be found by summing C + Ig + G + Xn.

question

What is a final good?

answer

Consumed rather than used for the production of another good. Ex. Car

question

What is an interme

answer

A good that is used in the production of a final good

question

Which of the following transactions would be included in GDP?

answer

Peter buys a newly constructed house.

question

Government purchases include government spending on

answer

government consumption goods and public capital goods.

question

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, its real GDP per capita will

answer

remain constant.

question

Economic growth is best defined as an increase in

answer

either real GDP or real GDP per capita.

question

Economic growth can be portrayed as

answer

an outward shift of the production possibilities curve.

question

Refer to the graph. Growth of production capacity is shown by the

answer

shift from AB to CD.

question

answer

a. 50%
b. 20%

question

Given the annual rate of economic growth, the "rule of 70" allows one to

answer

calculate the number of years required for real GDP to double.

question

answer

a.Anti-growth
b.Pro-growth
c.Anti-growth
d.Anti-growth
e.Pro-growth
f.Pro-growth

question

The largest contributor to increases in the productivity of American labor is

answer

technological advance.

question

What are the four supply factors of economic growth?

answer

the level of technology
the quality and quantity of natural resources
the stock of capital goods
the quality and quantity of human resources

question

What is the demand factor?

answer

The level of purchases needed to maintain full employment.

question

What is the efficiency factor?

answer

The level of economic efficiency and full employment needed to reach full production potential

question

What annual growth rate is needed for a country to double its output in each of the following cases?

7 years, 35 y, 70 y, 140 y

answer

10%, 2%, 1%, 0.5%

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