Question 1

U.S.GDP includes estimates of things such as unpaid housework and car maintenance.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is included in the consumption component of U.S.GDP?

Accepted Answer

A)  purchases of staplers, paper clips, and telephones by U.S.business firms
B)  purchases of natural gas by U.S.households
C)  purchases of newly constructed homes by U.S households
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 3

In a certain economy in 2005,households spent $1,000 on goods and services;purchases of capital equipment,inventories,and structures amounted to $350;government spent $450 on goods and services;and the value of imports exceeded the value of exports by $50.It follows that 2005 GDP for this economy was

Accepted Answer

A)  $1,750.
B)  $1,850.
C)  $1,950.
D)  $2,100.E) None of the above
F) B) and D)

Question 4

Goods that go into inventory and are not sold during the current period are

Accepted Answer

A)  counted as intermediate goods and so are not included in current period GDP.
B)  counted in current GDP only if the firm that produced them sells them to another firm.
C)  included in current period GDP as inventory investment.
D)  included in current period GDP as consumption.E) B) and D)
F) A) and B)

Question 5

The statistical discrepancy that regularly arises in national income accounting refers to the slight difference between

Accepted Answer

A)  personal income and personal disposable income.
B)  total household payments to the government and taxes paid to the government.
C)  the income and expenditure approaches to the calculation of GDP.
D)  the quarterly and annual approaches to the calculation of GDP.E) A) and B)
F) A) and D)

Question 6

The information below was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of GDP per person from highest to lowest?

Accepted Answer

A)  Japan, Switzerland, United States
B)  Japan, United States, Switzerland
C)  United States, Switzerland, Japan
D)  United States, Japan, SwitzerlandE) All of the above
F) B) and C)

Question 7

A professional gambler moves from a state where gambling is illegal to a state where gambling is legal.Most of his income was,and continues to be,from gambling.His move

Accepted Answer

A)  necessarily raises GDP.
B)  necessarily decreases GDP.
C)  doesn't change GDP because gambling is never included in GDP.
D)  doesn't change GDP because in either case his income is included.E) B) and C)
F) C) and D)

Question 8

Which of the following statistics is usually regarded as the best single measure of a society's economic well-being?

Accepted Answer

A)  the unemployment rate
B)  the inflation rate
C)  gross domestic product
D)  the trade deficitE) A) and B)
F) All of the above

Question 9

Which of the following items is included in GDP?

Accepted Answer

A)  the sale of stocks and bonds
B)  the sale of used goods
C)  the sale of services such as those performed by a doctor
D)  All of the above are included in GDP.E) A) and D)
F) None of the above

Question 10

Which of the following items is included in GDP?

Accepted Answer

A)  the sale of stocks and bonds
B)  the estimated rental value of owner-occupied housing
C)  unpaid production of goods and services at home
D)  All of the above are included in GDP.E) A) and D)
F) C) and D)

Question 11

GDP may be calculated as either the production of,or the income generated by,the value of final goods and services produced within an economy.

Accepted Answer

A) True 
 B)False

Question 12

The local Chevrolet dealership has an increase in inventory of 25 cars in 2006.In 2007 it sells all 25 cars.Which of the following statements is correct?

Accepted Answer

A)  The full value of the increased inventory will be counted as part of GDP in 2006, and the value of the cars sold in 2007 will not cause 2007 GDP to increase.
B)  The value of the increased inventory will not affect 2006 GDP; instead, the full value of the inventory will be counted as part of 2007 GDP.
C)  The value of the increased inventory will be counted as part of 2006 GDP and the value of the cars sold in 2007 will increase 2007 GDP.
D)  One-half of the value of the increased inventory will be counted as part of 2006 GDP and the other one-half of the value will be counted as part of 2007 GDP.E) None of the above
F) C) and D)

Question 13

Estimates of the values of which of the following non-market goods or services are included in GDP?

Accepted Answer

A)  the value of unpaid housework
B)  the value of vegetables and other foods that people grow in their gardens
C)  the estimated rental value of owner-occupied homes
D)  All of the above are included.E) A) and D)
F) C) and D)

Question 14

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

Accepted Answer

A)  absolute change in nominal GDP.
B)  percentage change in nominal GDP.
C)  absolute change in real GDP.
D)  percentage change in real GDP.E) A) and D)
F) All of the above

Question 15

Which of the following statements about nominal GDP and real GDP is accurate?

Accepted Answer

A)  Nominal GDP is a better gauge of economic well-being than is real GDP.
B)  Real GDP is a better gauge of economic well-being than is nominal GDP.
C)  Real GDP and nominal GDP are equally good measures of economic well-being.
D)  Whether real GDP or nominal GDP is a better measure of economic well-being depends on the mix of goods and services.E) B) and C)
F) A) and B)

Question 16

In 2004,U.S.GDP was almost

Accepted Answer

A)  $8 trillion.
B)  $12 trillion.
C)  $24 trillion.
D)  $44 trillion.E) A) and C)
F) All of the above

Question 17

Countries in which the underground or "shadow" economy has been estimated to account for more than 50 percent of GDP include

Accepted Answer

A)  Georgia, Bolivia, and Zimbabwe.
B)  Thailand, Mexico, and Argentina.
C)  Japan, Bolivia, and Argentina.
D)  Peru, Mexico, and the United States.E) B) and D)
F) B) and C)

Question 18

In 2004,GDP per person in the United States was about

Accepted Answer

A)  $22,000.
B)  $31,000.
C)  $40,000.
D)  $57,000.E) A) and D)
F) None of the above

Question 19

Table 23-1. The data pertain to the nation of Simplia for the year 2006.
 
-Refer to Table 23-1.GNP for Simplia is

Accepted Answer

A)  $96.
B)  $100.
C)  $105.
D)  $110.E) All of the above
F) A) and D)

Question 20

In a certain small country,the unit of currency is the huck.That country's government recently announced that "GDP amounted to 400 million hucks in the quarter that just ended." Assuming this country has adopted American GDP accounting conventions,this statement means that GDP,

Accepted Answer

A)  without seasonal adjustment, amounted to 100 million hucks in the quarter that just ended.
B)  with seasonal adjustment, amounted to 100 million hucks in the quarter that just ended.
C)  without seasonal adjustment, amounted to 400 million hucks in the quarter that just ended.
D)  with seasonal adjustment, amounted to 400 million hucks in the quarter that just ended.E) A) and D)
F) None of the above

Exam 23: Measuring a Nations Income

Which of the following items is included in GDP?

Correct Answer
verified

GDP may be calculated as either the production of,or the income generated by,the value of final goods and services produced within an economy.

Correct Answer
verified

Which of the following statistics is usually regarded as the best single measure of a society's economic well-being?

Correct Answer
verified

In 2004,GDP per person in the United States was about

Correct Answer
verified

In a certain small country,the unit of currency is the huck.That country's government recently announced that "GDP amounted to 400 million hucks in the quarter that just ended." Assuming this country has adopted American GDP accounting conventions,this statement means that GDP,

Correct Answer
verified

The information below was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of GDP per person from highest to lowest?

Correct Answer
verified

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

Correct Answer
verified

Goods that go into inventory and are not sold during the current period are

Correct Answer
verified

Table 23-1. The data pertain to the nation of Simplia for the year 2006. -Refer to Table 23-1.GNP for Simplia is

Correct Answer
verified

Correct Answer
verified

Estimates of the values of which of the following non-market goods or services are included in GDP?

Correct Answer
verified

The statistical discrepancy that regularly arises in national income accounting refers to the slight difference between

Correct Answer
verified

Which of the following statements about nominal GDP and real GDP is accurate?

Correct Answer
verified

Which of the following items is included in GDP?

Correct Answer
verified

A professional gambler moves from a state where gambling is illegal to a state where gambling is legal.Most of his income was,and continues to be,from gambling.His move

Correct Answer
verified

The local Chevrolet dealership has an increase in inventory of 25 cars in 2006.In 2007 it sells all 25 cars.Which of the following statements is correct?

Correct Answer
verified

In 2004,U.S.GDP was almost

Correct Answer
verified

Countries in which the underground or "shadow" economy has been estimated to account for more than 50 percent of GDP include

Correct Answer
verified

U.S.GDP includes estimates of things such as unpaid housework and car maintenance.

Correct Answer
verified

Which of the following is included in the consumption component of U.S.GDP?

Correct Answer
verified

Exam 23: Measuring a Nations Income

Which of the following items is included in GDP?

Correct AnswerverifiedShow Answer

GDP may be calculated as either the production of,or the income generated by,the value of final goods and services produced within an economy.

Correct AnswerverifiedShow Answer

Which of the following statistics is usually regarded as the best single measure of a society's economic well-being?

Correct AnswerverifiedShow Answer

In 2004,GDP per person in the United States was about

Correct AnswerverifiedShow Answer

In a certain small country,the unit of currency is the huck.That country's government recently announced that "GDP amounted to 400 million hucks in the quarter that just ended." Assuming this country has adopted American GDP accounting conventions,this statement means that GDP,

Correct AnswerverifiedShow Answer

The information below was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of GDP per person from highest to lowest?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Goods that go into inventory and are not sold during the current period are

Correct AnswerverifiedShow Answer

Table 23-1. The data pertain to the nation of Simplia for the year 2006. -Refer to Table 23-1.GNP for Simplia is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Estimates of the values of which of the following non-market goods or services are included in GDP?

Correct AnswerverifiedShow Answer

The statistical discrepancy that regularly arises in national income accounting refers to the slight difference between

Correct AnswerverifiedShow Answer

Which of the following statements about nominal GDP and real GDP is accurate?

Correct AnswerverifiedShow Answer

Which of the following items is included in GDP?

Correct AnswerverifiedShow Answer

A professional gambler moves from a state where gambling is illegal to a state where gambling is legal.Most of his income was,and continues to be,from gambling.His move

Correct AnswerverifiedShow Answer

The local Chevrolet dealership has an increase in inventory of 25 cars in 2006.In 2007 it sells all 25 cars.Which of the following statements is correct?

Correct AnswerverifiedShow Answer

In 2004,U.S.GDP was almost

Correct AnswerverifiedShow Answer

Countries in which the underground or "shadow" economy has been estimated to account for more than 50 percent of GDP include

Correct AnswerverifiedShow Answer

U.S.GDP includes estimates of things such as unpaid housework and car maintenance.

Correct AnswerverifiedShow Answer

Which of the following is included in the consumption component of U.S.GDP?

Correct AnswerverifiedShow Answer

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