Question 1

A laptop computer that is purchased by an accounting firm is considered to be:

Accepted Answer

A)  consumption spending.
B)  investment spending.
C)  private saving.
D)  a pretax dividend.E) All of the above
F) A) and B)

Question 2

Disposable income in a particular period is:

Accepted Answer

A)  total earned income.
B)  earned income plus government transfer payments.
C)  earned income plus government transfer payments less taxes.
D)  earned income plus government transfer payments less taxes and savings.E) B) and D)
F) A) and C)

Question 3

If real GDP rises while nominal GDP falls, then prices on average have:

Accepted Answer

A)  risen.
B)  fallen.
C)  stayed the same.
D)  decreased and then been offset by an equal increase.E) All of the above
F) A) and B)

Question 4

Aggregate output is:

Accepted Answer

A)  equal to consumer spending on goods and services.
B)  the value of new construction, changes in inventories, and the purchase of physical capital by businesses.
C)  the total quantity of intermediate goods produced by an economy.
D)  the total quantity of final goods and services produced by an economy.E) A) and B)
F) A) and D)

Question 5

Use the following to answer questions:
Scenario: Price Index
Suppose that in the base period a college student buys 20 gallons of gasoline at $2 per gallon, 2 CDs for $13 each, and 4 movie tickets for $7 each. In the next month, the price of gasoline is $2.25 per gallon, CDs cost $12.50 each, and the price of a movie ticket is $7.50.
-(Scenario: Price Index)  Look at the scenario Price Index. The price index for the second month is:

Accepted Answer

A)  94.
B)  106.4.
C)  100.
D)  101.1.E) C) and D)
F) A) and D)

Question 6

Use the following to answer questions : 
-(Table: GDP II)  Look at the table GDP II. Calculate the GDP deflator for 2011.

Accepted Answer

A)  111
B)  104
C)  90
D)  96E) A) and C)
F) C) and D)

Question 7

A single woman attorney hires a local firm to mow the grass, rake the leaves, and trim the rose bushes. After several years she and the owner of the lawn service fall madly in love and get married. After the honeymoon, her new husband takes care of the yard maintenance, and she no longer pays his company the monthly fee. What has happened to GDP?

Accepted Answer

Official GDP accounts would fall. While ...

Question 8

GDP per capita measures the value of all intermediate goods and services produced in the economy.

Accepted Answer

A) True 
 B)False

Question 9

Gross domestic product is the economy's total production of _____ for a given period.

Accepted Answer

A)  goods and services
B)  final goods and services
C)  intermediate goods and services
D)  consumer goods and servicesE) A) and C)
F) A) and B)

Question 10

Which of the following would NOT be included in this year's GDP?

Accepted Answer

A)  the production of a television show
B)  the purchase of a new hybrid truck
C)  the hiring of a new schoolteacher
D)  your purchase of your neighbor's house, which was built in 1994E) A) and C)
F) A) and B)

Question 11

In the United States, government spending accounts for approximately_____ of GDP.

Accepted Answer

A)  5%
B)  10%
C)  20%
D)  30%E) A) and C)
F) B) and C)

Question 12

A firm is an organization that buys goods and/or services and produces resources.

Accepted Answer

A) True 
 B)False

Question 13

The construction of new housing is considered part of:

Accepted Answer

A)  investment spending.
B)  consumption.
C)  government purchases of goods and services.
D)  private saving.E) C) and D)
F) A) and B)

Question 14

In the circular-flow diagram, government purchases of goods and services are financed by:

Accepted Answer

A)  tax revenues.
B)  tax revenues net of transfer payments.
C)  tax revenues net of transfer payments plus government borrowing from financial markets.
D)  tax revenues plus government borrowing from financial markets.E) B) and C)
F) All of the above

Question 15

Use the following to answer questions :
Table: Pizza Economy III
 
-(Table: Pizza Economy III)  Look at the table Pizza Economy III. Considering 2010 as the base year, given that total population was 1,140 in 2010 and 1,380 in 2011, real GDP per capita between 2010 and 2011 grew at a rate of:

Accepted Answer

A)  -50%.
B)  -25%.
C)  50%.
D)  75%.E) C) and D)
F) None of the above

Question 16

If the price index in year 1 is 110 and the price index in year 2 is 115, then the inflation rate is exactly 5% from year 1 to year 2.

Accepted Answer

A) True 
 B)False

Question 17

The instrument by which a household makes a loan to a firm and the firm pays interest to the household is known as:

Accepted Answer

A)  a stock.
B)  a bond.
C)  a transfer payment.
D)  disposable income.E) C) and D)
F) B) and C)

Question 18

Use the following to answer questions :
Scenario: Good A and Good B
 
-(Scenario: Good A and Good B)  Look at the Scenario Good A and Good B. With 2009 as the base year, real GDP was greatest in:

Accepted Answer

A)  2009
B)  2010.
C)  2011.
D)  its base year always.E) None of the above
F) All of the above

Question 19

An example of investment spending is the purchase of a:

Accepted Answer

A)  bond by a banker.
B)  loaf of bread by a restaurant.
C)  new tractor by a farmer.
D)  ticket to a football game by a student.E) A) and B)
F) A) and C)

Question 20

Most households derive the bulk of their income from:

Accepted Answer

A)  wages.
B)  interest.
C)  profit.
D)  rent.E) A) and B)
F) B) and D)

Exam 7: Gdp and Cpi: Tracking the Macroeconomy

Use the following to answer questions : -(Table: GDP II) Look at the table GDP II. Calculate the GDP deflator for 2011.

Correct Answer
verified

Use the following to answer questions : Table: Pizza Economy III -(Table: Pizza Economy III) Look at the table Pizza Economy III. Considering 2010 as the base year, given that total population was 1,140 in 2010 and 1,380 in 2011, real GDP per capita between 2010 and 2011 grew at a rate of:

Correct Answer
verified

A firm is an organization that buys goods and/or services and produces resources.

Correct Answer
verified

Use the following to answer questions : Scenario: Good A and Good B -(Scenario: Good A and Good B) Look at the Scenario Good A and Good B. With 2009 as the base year, real GDP was greatest in:

Correct Answer
verified

In the circular-flow diagram, government purchases of goods and services are financed by:

Correct Answer
verified

Which of the following would NOT be included in this year's GDP?

Correct Answer
verified

The instrument by which a household makes a loan to a firm and the firm pays interest to the household is known as:

Correct Answer
verified

Disposable income in a particular period is:

Correct Answer
verified

Most households derive the bulk of their income from:

Correct Answer
verified

Correct Answer
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A laptop computer that is purchased by an accounting firm is considered to be:

Correct Answer
verified

If real GDP rises while nominal GDP falls, then prices on average have:

Correct Answer
verified

If the price index in year 1 is 110 and the price index in year 2 is 115, then the inflation rate is exactly 5% from year 1 to year 2.

Correct Answer
verified

An example of investment spending is the purchase of a:

Correct Answer
verified

Correct Answer
verified
Official GDP accounts would fall. While ...
View Answer

The construction of new housing is considered part of:

Correct Answer
verified

In the United States, government spending accounts for approximately_____ of GDP.

Correct Answer
verified

Aggregate output is:

Correct Answer
verified

Gross domestic product is the economy's total production of _____ for a given period.

Correct Answer
verified

GDP per capita measures the value of all intermediate goods and services produced in the economy.

Correct Answer
verified

Exam 7: Gdp and Cpi: Tracking the Macroeconomy

Use the following to answer questions : -(Table: GDP II) Look at the table GDP II. Calculate the GDP deflator for 2011.

Correct AnswerverifiedShow Answer

Use the following to answer questions : Table: Pizza Economy III -(Table: Pizza Economy III) Look at the table Pizza Economy III. Considering 2010 as the base year, given that total population was 1,140 in 2010 and 1,380 in 2011, real GDP per capita between 2010 and 2011 grew at a rate of:

Correct AnswerverifiedShow Answer

A firm is an organization that buys goods and/or services and produces resources.

Correct AnswerverifiedShow Answer

Use the following to answer questions : Scenario: Good A and Good B -(Scenario: Good A and Good B) Look at the Scenario Good A and Good B. With 2009 as the base year, real GDP was greatest in:

Correct AnswerverifiedShow Answer

In the circular-flow diagram, government purchases of goods and services are financed by:

Correct AnswerverifiedShow Answer

Which of the following would NOT be included in this year's GDP?

Correct AnswerverifiedShow Answer

The instrument by which a household makes a loan to a firm and the firm pays interest to the household is known as:

Correct AnswerverifiedShow Answer

Disposable income in a particular period is:

Correct AnswerverifiedShow Answer

Most households derive the bulk of their income from:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A laptop computer that is purchased by an accounting firm is considered to be:

Correct AnswerverifiedShow Answer

If real GDP rises while nominal GDP falls, then prices on average have:

Correct AnswerverifiedShow Answer

If the price index in year 1 is 110 and the price index in year 2 is 115, then the inflation rate is exactly 5% from year 1 to year 2.

Correct AnswerverifiedShow Answer

An example of investment spending is the purchase of a:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedOfficial GDP accounts would fall. While ...View AnswerShow Answer

The construction of new housing is considered part of:

Correct AnswerverifiedShow Answer

In the United States, government spending accounts for approximately_____ of GDP.

Correct AnswerverifiedShow Answer

Aggregate output is:

Correct AnswerverifiedShow Answer

Gross domestic product is the economy's total production of _____ for a given period.

Correct AnswerverifiedShow Answer

GDP per capita measures the value of all intermediate goods and services produced in the economy.

Correct AnswerverifiedShow Answer

Correct Answer
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Official GDP accounts would fall. While ...
View Answer

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Correct Answer
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Correct Answer
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