question
When an individual makes repairs to her own home instead of hiring a company to make the repairs, the activity is
Select one:
A. Included in GDP but not included in GNP.
B. Excluded from GDP because it is an intermediate good.
C. Productive but excluded from GDP because it is a nonmarket activity.
D. Included in GDP because it represents production.
Select one:
A. Included in GDP but not included in GNP.
B. Excluded from GDP because it is an intermediate good.
C. Productive but excluded from GDP because it is a nonmarket activity.
D. Included in GDP because it represents production.
answer
Productive but excluded from GDP because it is a nonmarket activity.
question
Which of the following would not be included in the calculation of GDP?
Select one:
A. Contract work performed by an electrician.
B. Tips earned by a bartender who does not report them to the IRS.
C. Income earned by an attorney.
D. Income earned by a CPA.
Select one:
A. Contract work performed by an electrician.
B. Tips earned by a bartender who does not report them to the IRS.
C. Income earned by an attorney.
D. Income earned by a CPA.
answer
Tips earned by a bartender who does not report them to the IRS.
question
Investment, as defined by economists, would not include which of the following? Ford
Select one:
A. adds 1,000 new cars to inventories.
B. buys a new robotic machine (from a plant in Ohio) to assemble cars.
C. builds another assembly plant in the United States.
D. buys U.S. government bonds.
Select one:
A. adds 1,000 new cars to inventories.
B. buys a new robotic machine (from a plant in Ohio) to assemble cars.
C. builds another assembly plant in the United States.
D. buys U.S. government bonds.
answer
buys U.S. government bonds.
question
When U.S. net exports are negative, the United States consumes more output than it produces.
Select one:
True
False
Select one:
True
False
answer
True
question
An example of a transfer payment is
Select one:
A. a purchase of a new bridge in Alaska.
B. a welfare payment.
C. a paycheck for a member of the National Guard.
D. a teacher's paycheck.
Select one:
A. a purchase of a new bridge in Alaska.
B. a welfare payment.
C. a paycheck for a member of the National Guard.
D. a teacher's paycheck.
answer
a welfare payment.
question
A nation's GDP is
answer
C + I + G + (X-M)
question
National income accounting is defined as the
Select one:
A. Assessment of the distribution of output.
B. Measurement of aggregate economic activity.
C. Use of economic theory to predict future income.
D. Accounting cost associated with economic choices.
Select one:
A. Assessment of the distribution of output.
B. Measurement of aggregate economic activity.
C. Use of economic theory to predict future income.
D. Accounting cost associated with economic choices.
answer
Measurement of aggregate economic activity
question
What is the largest component of spending in the United States?
Select one:
A. net investment spending
B. government spending
C. investment spending
D. consumption spending
Select one:
A. net investment spending
B. government spending
C. investment spending
D. consumption spending
answer
consumption spending
question
A car that is produced in 2016 is not sold until 2017. According to the definition of GDP, in which year's GDP should it be counted?
Select one:
A. 2017
B. The production cost will count as part of 2016 GDP while the sales price will count as part of 2017 GDP.
C. 2016
D. Half of the sales price will count as part of 2016 GDP and half will count as part of 2017 GDP.
Select one:
A. 2017
B. The production cost will count as part of 2016 GDP while the sales price will count as part of 2017 GDP.
C. 2016
D. Half of the sales price will count as part of 2016 GDP and half will count as part of 2017 GDP.
answer
2016
question
In the calculation of real GDP, the value of goods and services is measured in the current prices for each year.
Select one:
True
False
Select one:
True
False
answer
False
question
Investment, as defined by economists, would include the purchase of a
Select one:
A. computer by an accounting firm.
B. corporate bond.
C. government bond.
D. share of stock in Exxon Mobil.
Select one:
A. computer by an accounting firm.
B. corporate bond.
C. government bond.
D. share of stock in Exxon Mobil.
answer
computer by an accounting firm.
question
Government spending in the national income accounts refers only to expenditures at the federal level.
Select one:
True
False
Select one:
True
False
answer
False
question
GDP per capita is
answer
Is equal to a nation's GDP divided by its population
question
Which of the following is not a final good or service?
Select one:
A. A flu shot purchased by a teacher.
B. A refrigerator purchased by a home owner.
C. Paper purchased by a textbook company.
D. A computer purchased by a local middle school.
Select one:
A. A flu shot purchased by a teacher.
B. A refrigerator purchased by a home owner.
C. Paper purchased by a textbook company.
D. A computer purchased by a local middle school.
answer
Paper purchased by a textbook company.
question
If a friend helps you with your homework, it will not be calculated in the GDP accounts. But if you hire a tutor who reports the income, the services will be counted in GDP.
Select one:
True
False
Select one:
True
False
answer
True
question
Which of the following could cause nominal GDP to decrease, but real GDP to increase?
Select one:
A. The price level falls and the quantity of final goods and services produced rises.
B. The price level rises and the quantity of final goods and services produced rises.
C. The price level falls and the quantity of final goods and services produced falls.
D. The price level rises and the quantity of final goods and services produced falls.
Select one:
A. The price level falls and the quantity of final goods and services produced rises.
B. The price level rises and the quantity of final goods and services produced rises.
C. The price level falls and the quantity of final goods and services produced falls.
D. The price level rises and the quantity of final goods and services produced falls.
answer
The price level falls and the quantity of final goods and services produced rises
question
To examine how the total production of an economy has changed over time, it would be better to examine
Select one:
A. the GDP deflator.
B. GDP at current prices.
C. nominal GDP.
D. real GDP
Select one:
A. the GDP deflator.
B. GDP at current prices.
C. nominal GDP.
D. real GDP
answer
real GDP
question
If the GDP deflator rises from 185 to 190, what is the rate of inflation between the two years?
Select one:
A. 270%
B. 50%
C. 5%
D. 2.7%
Select one:
A. 270%
B. 50%
C. 5%
D. 2.7%
answer
2.7%
question
Inflation is
Select one:
A. A decrease in the price of all goods and services.
B. The increase in the market value of a product that takes place at each stage of the production process.
C. Included in the calculation of real GDP.
D. An increase in the average level of prices of goods and services
Select one:
A. A decrease in the price of all goods and services.
B. The increase in the market value of a product that takes place at each stage of the production process.
C. Included in the calculation of real GDP.
D. An increase in the average level of prices of goods and services
answer
An increase in the average level of prices of goods and services
question
The GDP deflator is the
Select one:
A. difference between real GDP and nominal GDP multiplied by 100.
B. ratio of real GDP to nominal GDP multiplied by 100.
C. difference between nominal GDP and real GDP divided by 100.
D. ratio of nominal GDP to real GDP multiplied by 100
Select one:
A. difference between real GDP and nominal GDP multiplied by 100.
B. ratio of real GDP to nominal GDP multiplied by 100.
C. difference between nominal GDP and real GDP divided by 100.
D. ratio of nominal GDP to real GDP multiplied by 100
answer
ratio of nominal GDP to real GDP multiplied by 100
question
Suppose the total market value of all the final goods and services produced in the country of Cannedada was $4 billion in 2008 (measured in 2008 prices) and $5 billion in 2009 (measured in 2009 prices). Which of the following statements is definitely correct?
Select one:
A. Production increased in Cannedada between 2008 and 2009.
B. Nominal GDP decreased in Cannedada between 2008 and 2009.
C. Average price levels increased in Cannedada between 2008 and 2009.
D. The change in real GDP cannot be determined without more information
Select one:
A. Production increased in Cannedada between 2008 and 2009.
B. Nominal GDP decreased in Cannedada between 2008 and 2009.
C. Average price levels increased in Cannedada between 2008 and 2009.
D. The change in real GDP cannot be determined without more information
answer
The change in real GDP cannot be determined without more information
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
