Question 1

Table 15-6
The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009.
Prices and Quantities
 
-Refer to Table 15-6.In 2008,this country's nominal GDP was

Accepted Answer

A)   $300.
B)   $390.
C)   $400.
D)   $540.E) None of the above
F) A) and D)

Question 2

In the economy of Ukzten in 2010,consumption was $200,exports were $50,GDP was $325,government purchases were $100,imports were $125,and investment was $100.What were Ukzten's net exports in 2010?

Accepted Answer

A)   -$75
B)   -$50
C)   $50
D)   $75E) A) and D)
F) None of the above

Question 3

Suppose an apartment complex converts to a condominium,so that the former renters are now owners of their housing units.Suppose further that a current estimate of the value of the condominium owners' housing services is the same as the rent they previously paid.What happens to GDP as a result of this conversion?

Accepted Answer

A)   GDP necessarily increases.
B)   GDP necessarily decreases.
C)   GDP is unaffected because neither the rent nor the estimate of the value owner-occupied housing services is included in GDP.
D)   GDP is unaffected because previously the rent payments were included in GDP and now the rent payments are replaced in GDP by the estimate of the value of owner occupied housing services.E) None of the above
F) C) and D)

Question 4

In the economy of Ukzten in 2010,consumption was $500,exports were $200,GDP was $1200,government purchases were $250,and investment was $300.What were Ukzten's imports in 2010?

Accepted Answer

A)   -$150
B)   -$50
C)   $50
D)   $150E) A) and D)
F) A) and C)

Question 5

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009.It also reported a GDP deflator of 100 in 2010 and 105 in 2009.Between 2009 and 2010,

Accepted Answer

A)   real output and the price level both rose.
B)   real output rose and the price level fell.
C)   real output fell and the price level rose.
D)   real output and the price level both fell.E) A) and B)
F) All of the above

Question 6

In the economy of Ukzten in 2010,exports were $200,GDP was $2000,government purchases were $300,imports were $130,and investment was $400.What was Ukzten's consumption in 2010?

Accepted Answer

A)   $970
B)   $1230
C)   $1370
D)   $1630E) None of the above
F) B) and C)

Question 7

Thomas,a U.S.citizen,works only in Canada.The value of the output he produces is

Accepted Answer

A)   included in both U.S.GDP and U.S.GNP.
B)   included in U.S.GDP,but it is not included in U.S.GNP.
C)   included in U.S.GNP,but it is not included in U.S.GDP.
D)   included in neither U.S.GDP nor U.S.GNP.E) All of the above
F) C) and D)

Question 8

GDP

Accepted Answer

A)   is used to monitor the performance of the overall economy but is not the single best measure of a society's economic well-being.
B)   is used to monitor the performance of the overall economy and is the single best measure of a society's economic well-being.
C)   is not used to monitor the performance of the overall economy but is the single best measure of a society's economic well-being.
D)   is not used to monitor the performance of the overall economy and is not the single best measure of a society's economic well-being.E) A) and C)
F) C) and D)

Question 9

An American soldier stationed in North Carolina receives a paycheck from the federal government for $300,which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market.As a result,U.S.GDP increases by

Accepted Answer

A)   $200.
B)   $300.
C)   $500.
D)   $600.E) C) and D)
F) A) and B)

Question 10

Which of the following is not a question that macroeconomists address?

Accepted Answer

A)   Why is average income high in some countries while it is low in others?
B)   Why does the price of oil rise when war erupts in the Middle East?
C)   Why do production and employment expand in some years and contract in others?
D)   Why do prices rise rapidly in some periods of time while they are more stable in other periods?E) A) and B)
F) C) and D)

Question 11

The U.S.Air Force pays a Turkish citizen $30,000 to work on a U.S.base in Turkey.As a result,

Accepted Answer

A)   U.S.government purchases increase by $30,000; U.S.net exports decrease by $30,000; and U.S.GDP is unaffected.
B)   U.S.government purchases increase by $30,000; U.S.net exports are unaffected; and U.S.GDP increases by $30,000.
C)   U.S.government purchases,net exports,and GDP are unaffected.
D)   U.S.government purchases are unaffected; U.S.net exports decrease by $30,000; and U.S.GDP decreases by $30,000.E) A) and D)
F) A) and C)

Question 12

A painter pays $500 for paint he uses to repaint a house.He then presents a bill for $1200 that covers his time and expenses to the homeowner.How much do these transactions add to GDP?

Accepted Answer

A)   $500
B)   $700
C)   $1200
D)   $1700E) None of the above
F) B) and D)

Question 13

When an American household purchases a bottle of Italian wine for $100,

Accepted Answer

A)   U.S.consumption does not change,U.S.net exports decrease by $100,and U.S.GDP decreases by $100.
B)   U.S.consumption does not change,U.S.net exports increase by $100,and U.S.GDP increases by $100.
C)   U.S.consumption increases by $100,U.S.net exports decrease by $100,and U.S.GDP does not change.
D)   U.S.consumption increases by $100,U.S.net exports do not change,and U.S.GDP increases by $100.E) A) and D)
F) All of the above

Question 14

Changes in the GDP deflator reflect

Accepted Answer

A)   only changes in prices.
B)   only changes in the amounts being produced.
C)   both changes in prices and changes in the amounts being produced.
D)   neither changes in prices nor changes in the amounts being produced.E) B) and D)
F) A) and B)

Question 15

GDP is equal to

Accepted Answer

A)   the market value of all final goods and services produced within a country in a given period of time.
B)   Y.
C)   C + I + G + NX.
D)   All of the above are correct.E) C) and D)
F) B) and D)

Question 16

The term real GDP refers to a country's actual GDP as opposed to its estimated GDP.

Accepted Answer

A) True 
 B)False

Question 17

An American company operates a fast food restaurant in Paris,France.Which of the following statements is accurate?

Accepted Answer

A)   The value of the goods and services produced by the restaurant is included in both French GDP and U.S.GDP.
B)   The value added by American workers and equipment in France is included in U.S.GDP and the value added by French workers and equipment is added to French GDP.
C)   The value of the goods and services produced by the restaurant is included in French GDP,but not in U.S.GDP.
D)   The value of the goods and services produced by the restaurant is included in U.S.GDP,but not in French GDP.E) A) and B)
F) A) and C)

Question 18

In the actual economy,goods and services are purchased by

Accepted Answer

A)   households,but not firms or the government.
B)   households and firms,but not the government.
C)   households and the government,but not firms.
D)   households,firms,and the government.E) A) and C)
F) All of the above

Question 19

If real GDP and the GDP deflator both rise,then it must be that nominal GDP rose.

Accepted Answer

A) True 
 B)False

Question 20

Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants.In 2008,Quality Motors produced $25 million worth of automobiles and sold $12 million in the U.S.and $13 million in Mexico.In addition,it sold $2 million from the previous year's inventory in the U.S.The transactions just described contribute how much to U.S.GDP for 2008?

Accepted Answer

A)   $12 million
B)   $14 million
C)   $25 million
D)   $27 millionE) A) and B)
F) C) and D)

Exam 15: Measuring a Nations Income

Table 15-6 The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009. Prices and Quantities -Refer to Table 15-6.In 2008,this country's nominal GDP was

Correct Answer
verified

In the economy of Ukzten in 2010,consumption was $200,exports were $50,GDP was $325,government purchases were $100,imports were $125,and investment was $100.What were Ukzten's net exports in 2010?

Correct Answer
verified

Thomas,a U.S.citizen,works only in Canada.The value of the output he produces is

Correct Answer
verified

GDP

Correct Answer
verified

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009.It also reported a GDP deflator of 100 in 2010 and 105 in 2009.Between 2009 and 2010,

Correct Answer
verified

In the economy of Ukzten in 2010,consumption was $500,exports were $200,GDP was $1200,government purchases were $250,and investment was $300.What were Ukzten's imports in 2010?

Correct Answer
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GDP is equal to

Correct Answer
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A painter pays $500 for paint he uses to repaint a house.He then presents a bill for $1200 that covers his time and expenses to the homeowner.How much do these transactions add to GDP?

Correct Answer
verified

Correct Answer
verified

An American soldier stationed in North Carolina receives a paycheck from the federal government for $300,which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market.As a result,U.S.GDP increases by

Correct Answer
verified

In the actual economy,goods and services are purchased by

Correct Answer
verified

An American company operates a fast food restaurant in Paris,France.Which of the following statements is accurate?

Correct Answer
verified

The U.S.Air Force pays a Turkish citizen $30,000 to work on a U.S.base in Turkey.As a result,

Correct Answer
verified

Changes in the GDP deflator reflect

Correct Answer
verified

In the economy of Ukzten in 2010,exports were $200,GDP was $2000,government purchases were $300,imports were $130,and investment was $400.What was Ukzten's consumption in 2010?

Correct Answer
verified

Correct Answer
verified

When an American household purchases a bottle of Italian wine for $100,

Correct Answer
verified

Which of the following is not a question that macroeconomists address?

Correct Answer
verified

The term real GDP refers to a country's actual GDP as opposed to its estimated GDP.

Correct Answer
verified

If real GDP and the GDP deflator both rise,then it must be that nominal GDP rose.

Correct Answer
verified

Exam 15: Measuring a Nations Income

Table 15-6 The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009. Prices and Quantities -Refer to Table 15-6.In 2008,this country's nominal GDP was

Correct AnswerverifiedShow Answer

In the economy of Ukzten in 2010,consumption was $200,exports were $50,GDP was $325,government purchases were $100,imports were $125,and investment was $100.What were Ukzten's net exports in 2010?

Correct AnswerverifiedShow Answer

Thomas,a U.S.citizen,works only in Canada.The value of the output he produces is

Correct AnswerverifiedShow Answer

GDP

Correct AnswerverifiedShow Answer

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009.It also reported a GDP deflator of 100 in 2010 and 105 in 2009.Between 2009 and 2010,

Correct AnswerverifiedShow Answer

In the economy of Ukzten in 2010,consumption was $500,exports were $200,GDP was $1200,government purchases were $250,and investment was $300.What were Ukzten's imports in 2010?

Correct AnswerverifiedShow Answer

GDP is equal to

Correct AnswerverifiedShow Answer

A painter pays $500 for paint he uses to repaint a house.He then presents a bill for $1200 that covers his time and expenses to the homeowner.How much do these transactions add to GDP?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An American soldier stationed in North Carolina receives a paycheck from the federal government for $300,which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market.As a result,U.S.GDP increases by

Correct AnswerverifiedShow Answer

In the actual economy,goods and services are purchased by

Correct AnswerverifiedShow Answer

An American company operates a fast food restaurant in Paris,France.Which of the following statements is accurate?

Correct AnswerverifiedShow Answer

The U.S.Air Force pays a Turkish citizen $30,000 to work on a U.S.base in Turkey.As a result,

Correct AnswerverifiedShow Answer

Changes in the GDP deflator reflect

Correct AnswerverifiedShow Answer

In the economy of Ukzten in 2010,exports were $200,GDP was $2000,government purchases were $300,imports were $130,and investment was $400.What was Ukzten's consumption in 2010?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When an American household purchases a bottle of Italian wine for $100,

Correct AnswerverifiedShow Answer

Which of the following is not a question that macroeconomists address?

Correct AnswerverifiedShow Answer

The term real GDP refers to a country's actual GDP as opposed to its estimated GDP.

Correct AnswerverifiedShow Answer

If real GDP and the GDP deflator both rise,then it must be that nominal GDP rose.

Correct AnswerverifiedShow Answer

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