question
Which of the following is a macroeconomics topic?
A. the effects of teen bullying ons suicide rates at a high school
B. the relationship between unemployment and inflation in the European Union
C. the effect of legalizing marijuana on teenage crime in Oregon
D. the effect of and increase in the minimum wage on UO attendance
A. the effects of teen bullying ons suicide rates at a high school
B. the relationship between unemployment and inflation in the European Union
C. the effect of legalizing marijuana on teenage crime in Oregon
D. the effect of and increase in the minimum wage on UO attendance
answer
B
question
2. Although it measures production, GDP is also a good measure of
A. productivity
B. living standards
C. population
D. interest rates
A. productivity
B. living standards
C. population
D. interest rates
answer
B
question
3. Business cycles are characterized by:
A. fluctuations in GDP
B. high GDP growth
C. falls in production
D. a dramatic shift in inflation
A. fluctuations in GDP
B. high GDP growth
C. falls in production
D. a dramatic shift in inflation
answer
A
question
4. An expansion is
A. phase of persistent increase in inflation
B. phase of persistent decrease in inflation
C. phase of persistent increase in GDP
D. phase of persistent decrease in GDP
A. phase of persistent increase in inflation
B. phase of persistent decrease in inflation
C. phase of persistent increase in GDP
D. phase of persistent decrease in GDP
answer
C
question
5. A business cycle proceeds in the following order:
A. trough → peak → expansion → recession
B. peak → trough → recession → expansion
C. recession → peak → expansion → trough
D. expansion → peak → recession → trough
A. trough → peak → expansion → recession
B. peak → trough → recession → expansion
C. recession → peak → expansion → trough
D. expansion → peak → recession → trough
answer
D
question
6. The long run average growth rate of real GDP in the U.S. is about
A. 1%
B. 3%
C. 5%
D. 10%
A. 1%
B. 3%
C. 5%
D. 10%
answer
B
question
7. An increase in the Consumer Price Index indicates that ___________ has occurred.
A. an expansion
B. inflation
C. deflation
D. a decrease in unemployment
A. an expansion
B. inflation
C. deflation
D. a decrease in unemployment
answer
B
question
8. Monetary policy in the U.S. is conducted by
A. the Federal Reserve
B. the Office of the Comptroller of the Currency the Federal Deposit C. Insurance Corporation
D. Donald Trump
A. the Federal Reserve
B. the Office of the Comptroller of the Currency the Federal Deposit C. Insurance Corporation
D. Donald Trump
answer
A
question
9. Over the past fifty , government budget ________ have been more common than budget ____________ in the U.S.
A. surpluses; deficits
B. deficits; surpluses
C. defaults; surpluses
D. balances; defaults
A. surpluses; deficits
B. deficits; surpluses
C. defaults; surpluses
D. balances; defaults
answer
B
question
10. The Federal Open Market Committee (FOMC) voted to blahblah the federal funds rate
at its most recent (March) meeting.
A. decrease
B. increase
C. not change
D. abolish
at its most recent (March) meeting.
A. decrease
B. increase
C. not change
D. abolish
answer
B
question
13. If consumption expenditures are $480 million, investment is $100 million, imports are $50 million, exports are $55 million, government spending is $220 million, and government transfer payments are $20 million, then GDP is ____________
A. $805 million
B. $825 million
C. $845 million
D. $925 million
A. $805 million
B. $825 million
C. $845 million
D. $925 million
answer
A
question
14. If Apple, an American company, produces iPhones in China, this would ___________
A. count as part of U.S. GDP since it is a U.S. company.
B. add to China's GDP but not to U.S. GDP.
C. count for both China's GDP and U.S. GDP.
D. add to neither U.S. GDP nor China's GDP.
A. count as part of U.S. GDP since it is a U.S. company.
B. add to China's GDP but not to U.S. GDP.
C. count for both China's GDP and U.S. GDP.
D. add to neither U.S. GDP nor China's GDP.
answer
B
question
15. Gross Domestic Product
A. measures the value of the production of final goods and services in a country during a given time period.
B. includes all the goods and none of the services produced in a country in a given time period.
C. is generally less than government spending in any time period.
D. measures only the value of labor payments generated in an economy in a given time period.
A. measures the value of the production of final goods and services in a country during a given time period.
B. includes all the goods and none of the services produced in a country in a given time period.
C. is generally less than government spending in any time period.
D. measures only the value of labor payments generated in an economy in a given time period.
answer
A
question
Which of the following items is NOT a component of U.S. GDP?
A. purchases of food made in the United States
B. purchases of new homes made by people living in the United States
C. Social Security payments (a type of transfer payment) made by the government
D. purchases of U.S.-made movies by Europeans
A. purchases of food made in the United States
B. purchases of new homes made by people living in the United States
C. Social Security payments (a type of transfer payment) made by the government
D. purchases of U.S.-made movies by Europeans
answer
C
question
17. Let C represent consumption expenditure, S represent savings, I represent investment, G represent government spending on goods and services, and X-M represent net exports of goods and services. Then GDP equals
A. C+I+G+X-M
B. C+S+G+X-M
C. C+I+G-X-M
D. C+S+G-X-M
A. C+I+G+X-M
B. C+S+G+X-M
C. C+I+G-X-M
D. C+S+G-X-M
answer
A
question
18. Which of the following represents the largest share of U.S. GDP?
A. services
B. agricultural goods
C. durable goods
D. nondurable goods
A. services
B. agricultural goods
C. durable goods
D. nondurable goods
answer
A
question
19. The state of Florida spends $3 million to repave highways. This is included in the _______________ category of GDP.
A.consumption
B. investment
C. net exports
D. government spending
A.consumption
B. investment
C. net exports
D. government spending
answer
D
question
Country A has a GDP of $400,000 and a population of 4,000. Country B has a GDP of $200,000 and a population of 1,000. Which of the following is true?
A. the value of output is higher in country B.
B. the value of GDP per capita is higher in country A.
C. the value of GDP per capita is higher in country B.
D. the average living standard is likely higher in country A.
A. the value of output is higher in country B.
B. the value of GDP per capita is higher in country A.
C. the value of GDP per capita is higher in country B.
D. the average living standard is likely higher in country A.
answer
C
question
21. You bought a popular video game last year for $75 and sold it to a store this year for $20. When you sell your game to the store, how is this included in GDP?
A. as consumption
B. as investment
C. as government purchases
D. this does not count as part of GDP
A. as consumption
B. as investment
C. as government purchases
D. this does not count as part of GDP
answer
D
question
22. Gross Domestic Product (GDP) measures the value of production as well as
A. a nation's exports.
B. a nation's debt.
C. a nation's income.
D. a nation's consumption.
A. a nation's exports.
B. a nation's debt.
C. a nation's income.
D. a nation's consumption.
answer
C
question
23. Why doesn't GDP count expenditure on intermediate goods?
A. to make GDP calculations easier.
B. because intermediate goods are used by firms instead of consumers.
C. to avoid double counting.
D. intermediate goods have no market value.
A. to make GDP calculations easier.
B. because intermediate goods are used by firms instead of consumers.
C. to avoid double counting.
D. intermediate goods have no market value.
answer
C
question
24. How is real GDP different from nominal GDP?
A. real GDP is adjusted for inflation, and nominal GDP is just measured in current prices.
B. real GDP includes goods and services, and nominal GDP only includes goods.
C. real GDP averages income over time, and nominal GDP is just for this year.
D. there is no difference.
A. real GDP is adjusted for inflation, and nominal GDP is just measured in current prices.
B. real GDP includes goods and services, and nominal GDP only includes goods.
C. real GDP averages income over time, and nominal GDP is just for this year.
D. there is no difference.
answer
A
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