Question 1

If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.

Accepted Answer

A) True 
 B)False

Question 2

GDP does not directly measure those things that make life worthwhile, but it does measure our ability to obtain many of the inputs into a worthwhile life.

Accepted Answer

A) True 
 B)False

Question 3

Table 23-7
The table below contains data for the country of Togogo. The base year is 1974.
 
-Refer to Table 23-7. Which of the following is not correct?

Accepted Answer

A)   This economy experienced growth from 1974 to 1975.
B)   This economy experienced growth from 1975 to 1976.
C)   This economy experienced growth from 1976 to 1977.
D)   This economy experienced inflation from 1974 to 1975, from 1975 to 1976, and from 1976 to 1977.E) None of the above
F) A) and D)

Question 4

In the economy of Talikastan in 2015, consumption was $3000, GDP was $5500, government purchases were $1000, imports were $1000, and investment was $1000. What were Talikastan's exports in 2015?

Accepted Answer

A)  -$500
B)   $500
C)   $1500
D)   $-1500E) A) and D)
F) A) and C)

Question 5

The output of goods and services produced in the United States has grown on average 3 percent per year since 1965.

Accepted Answer

A) True 
 B)False

Question 6

An American retailer purchased 100 pairs of shoes from a company in Mexico in the second quarter of 2016 but does not sell them to a consumer until the third quarter of 2016. In which quarters)  doesdo)  the value of the shoes add to U.S. GDP?

Accepted Answer

A)   the second and third quarters
B)   the second quarter but not the third quarter
C)   the third but not the second quarter
D)   neither the second nor the third quarterE) All of the above
F) A) and C)

Question 7

Explain how real GDP differs from nominal GDP.

Accepted Answer

Real GDP reflects on...

Question 8

Table 23-6
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013.
 
-Refer to Table 23-6. From 2012 to 2013, this country's output grew

Accepted Answer

A)   28.2%.
B)   29.0%.
C)   29.6%.
D)   73.9%.E) A) and B)
F) B) and C)

Question 9

In the economy of Talikastan in 2015, consumption was $1000, GDP was $1950, government purchases were $500, and investment was $700. What were Talikastan's net exports in 2015?

Accepted Answer

A)   -$250
B)   $250
C)   $2200
D)   Net exports cannot be calculated from the information given.E) None of the above
F) A) and D)

Question 10

In the equation Y = C + I + G + NX,

Accepted Answer

A)   Y represents the economy's total expenditure.
B)   C represents household expenditures on services and durable goods.
C)   all of the variables are always positive numbers.
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 11

Recessions are not associated with which of the following?

Accepted Answer

A)   increased bankruptcies
B)   falling profits
C)   falling incomes
D)   falling unemploymentE) B) and D)
F) None of the above

Question 12

Table 23-6
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013.
 
-Refer to Table 23-6. In 2011, this country's nominal GDP was

Accepted Answer

A)   $260.
B)   $440.
C)   $620.
D)   $760.E) A) and B)
F) A) and C)

Question 13

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Accepted Answer

A) True 
 B)False

Question 14

Income generated by a nation's domestic production

Accepted Answer

A)   is less than its domestic production.
B)   is equal to its domestic production.
C)   is greater than its domestic production.
D)   could be less than, equal to, or greater than its domestic production.E) A) and B)
F) None of the above

Question 15

Table 23-8
A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year.
 
-Refer to Table 23-8. In 2012, GDP deflator is

Accepted Answer

A)   122.
B)   134.
C)   92.
D)   113.E) B) and C)
F) A) and B)

Question 16

Which of the following is not included in GDP?

Accepted Answer

A)   carrots grown in your garden and eaten by your family
B)   carrots purchased at a farmer's market and eaten by your family
C)   carrots purchased at a grocery store and eaten by your family
D)   None of the above are included in GDP.E) All of the above
F) B) and D)

Question 17

Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP, but the value of intermediate goods produced and not sold is included directly as part of GDP.

Accepted Answer

Intermediate goods produced and sold dur...

Question 18

Table 23-6
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013.
 
-Refer to Table 23-6. In 2011, this country's GDP deflator was

Accepted Answer

A)   57.9.
B)   100.0.
C)   137.5.
D)   169.2.E) All of the above
F) A) and B)

Question 19

Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

Accepted Answer

The answer of Calculate GDP for an economy with exports...

Question 20

GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality.

Accepted Answer

A) True 
 B)False

Exam 10: Measuring a Nations Income

If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.

Correct AnswerverifiedShow Answer

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. From 2012 to 2013, this country's output grew

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Recessions are not associated with which of the following?

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Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. In 2011, this country's nominal GDP was

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Which of the following is not included in GDP?

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In the economy of Talikastan in 2015, consumption was $3000, GDP was $5500, government purchases were $1000, imports were $1000, and investment was $1000. What were Talikastan's exports in 2015?

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The output of goods and services produced in the United States has grown on average 3 percent per year since 1965.

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Income generated by a nation's domestic production

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Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP, but the value of intermediate goods produced and not sold is included directly as part of GDP.

Correct AnswerverifiedIntermediate goods produced and sold dur...View AnswerShow Answer

In the economy of Talikastan in 2015, consumption was $1000, GDP was $1950, government purchases were $500, and investment was $700. What were Talikastan's net exports in 2015?

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Table 23-7 The table below contains data for the country of Togogo. The base year is 1974. -Refer to Table 23-7. Which of the following is not correct?

Correct AnswerverifiedShow Answer

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Correct AnswerverifiedShow Answer

Calculate GDP for an economy with exports of $5 trillion, investment of $1.5 trillion, consumption spending of $11 trillion, imports of $6 trillion, and government purchases of $3 trillion.

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Explain how real GDP differs from nominal GDP.

Correct AnswerverifiedReal GDP reflects on...View AnswerShow Answer

GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality.

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Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. In 2011, this country's GDP deflator was

Correct AnswerverifiedShow Answer

Table 23-8 A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-8. In 2012, GDP deflator is

Correct AnswerverifiedShow Answer

GDP does not directly measure those things that make life worthwhile, but it does measure our ability to obtain many of the inputs into a worthwhile life.

Correct AnswerverifiedShow Answer

In the equation Y = C + I + G + NX,

Correct AnswerverifiedShow Answer

An American retailer purchased 100 pairs of shoes from a company in Mexico in the second quarter of 2016 but does not sell them to a consumer until the third quarter of 2016. In which quarters) doesdo) the value of the shoes add to U.S. GDP?

Correct AnswerverifiedShow Answer

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Intermediate goods produced and sold dur...
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Real GDP reflects on...
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