Question 1

Table 23-1
The table below contains data for Chereaux for the year 2015. 
-Refer to Table 23-1. Gross national product for Chereaux in 2015 is

Accepted Answer

A)   $186.
B)   $214.
C)   $200.
D)   $204.E) B) and D)
F) C) and D)

Question 2

Table 23-12
A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. 
-Refer to Table 23-12. Calculate real and nominal GDP for the year 2012.

Accepted Answer

Nominal GD...

Question 3

Are sales of used goods included in GDP? Explain why or why not. Hint: Remember how GDP is defined.

Accepted Answer

Sales of used goods ...

Question 4

A newspaper article informs you that most businesses reduced production in the last quarter but also sold from their inventories during the last quarter. Based on this information GDP likely

Accepted Answer

A)   increased.
B)   decreased.
C)   stayed the same.
D)   may have increased, decreased, or stayed the same.E) None of the above
F) B) and C)

Question 5

GDP is the market value of all final goods and services produced within a country in a given period of time.

Accepted Answer

A) True 
 B)False

Question 6

Changes in real GDP reflect only changes in the amounts being produced.

Accepted Answer

A) True 
 B)False

Question 7

The income that households and noncorporate businesses receive is called

Accepted Answer

A)   personal income.
B)   net national product.
C)   disposable personal income.
D)   national income.E) C) and D)
F) All of the above

Question 8

Rachel babysits for her sister for no pay. When she babysits for someone else she charges $8 an hour. When is Rachel's babysitting included in GDP?

Accepted Answer

A)   When she babysits for her sister and when she babysits for someone else.
B)   When she babysits for her sister, but not when she babysits for someone else.
C)   When she babysits for someone else, but not when she babysits for her sister.
D)   Neither when she babysits for her sister nor for someone else.E) A) and C)
F) A) and B)

Question 9

When an American doctor opens a practice in Bermuda, his production there is part of U.S. GNP.

Accepted Answer

A) True 
 B)False

Question 10

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) All of the above
F) B) and D)

Question 11

Gross domestic product measures

Accepted Answer

A)   income and expenditures.
B)   income but not expenditures.
C)   expenditures but not income.
D)   neither income nor expenditures.E) A) and B)
F) A) and C)

Question 12

In the actual economy, households

Accepted Answer

A)   spend all of their income.
B)   divide their income among spending, taxes, and saving.
C)   buy all goods and services produced in the economy.
D)   Both (a)  and (c)  are correct.E) None of the above
F) C) and D)

Question 13

Last year country A had a nominal GDP of $600 billion, a GDP deflator of 150 and a population of 40 million. Country B had a nominal GDP of $720 billion, a GDP deflator of 120 and a population of 50 million. From these numbers which country is likely to have had the higher standard of living?

Accepted Answer

A)   Country A because it had the higher nominal GDP per person.
B)   Country B because it had the higher nominal GDP per person.
C)   Country A because it had the higher real GDP per person.
D)   Country B because it had the higher real GDP per person.E) B) and D)
F) A) and D)

Question 14

All of the following are examples of a nondurable good except

Accepted Answer

A)   a pencil.
B)   one gallon of gasoline.
C)   a queen-size bed.
D)   a pair of shoes.E) B) and D)
F) None of the above

Question 15

Which of the following items is counted as part of government purchases?

Accepted Answer

A)   The federal government pays the salary of a Navy officer.
B)   The state of Nevada pays a private firm to repair a Nevada state highway.
C)   The city of Las Vegas, Nevada pays a private firm to collect garbage in that city.
D)   All of the above are correct.E) A) and B)
F) B) and D)

Question 16

Macroeconomic statistics tell us about a particular household, firm, or market.

Accepted Answer

A) True 
 B)False

Question 17

If net exports is a negative number for a particular year, then

Accepted Answer

A)   the value of firms' inventories declined over the course of the year.
B)   consumption exceeded the sum of investment and government purchases during the year.
C)   the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year.
D)   the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.E) C) and D)
F) None of the above

Question 18

A dairy buys $50,000 worth of milk and spend $5,000 on cartons and utilities. It sells the cartons of milk to a grocery store for $60,000 that then sells all of the cartons to consumers for $65,000. How much do these actions add to GDP?

Accepted Answer

A)   $55,000
B)   $65,000
C)   $120,000
D)   None of the above are correct.E) None of the above
F) A) and B)

Question 19

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

Accepted Answer

A)   the estimated value of production accomplished at home, such as backyard production of fruits and vegetables
B)   the value of illegally-produced goods and services
C)   the value of cars and trucks produced in foreign countries and sold in the U.S.
D)   None of the above is included in U.S. GDP.E) All of the above
F) A) and B)

Question 20

Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2010 Quality Motors produced $30 million worth of automobiles, with $17 million in sales to Americans, $9 million in sales to Canadians, and $4 million worth of automobiles added to Quality Motors' inventory. The transactions just described contribute how much to U.S. GDP for 2010?

Accepted Answer

A)   $17 million
B)   $21 million
C)   $26 million
D)   $30 millionE) None of the above
F) B) and D)

Exam 23: Measuring a Nations Income

A newspaper article informs you that most businesses reduced production in the last quarter but also sold from their inventories during the last quarter. Based on this information GDP likely

Correct Answer
verified

In the actual economy, households

Correct Answer
verified

Correct Answer
verified

When an American doctor opens a practice in Bermuda, his production there is part of U.S. GNP.

Correct Answer
verified

Gross domestic product measures

Correct Answer
verified

Rachel babysits for her sister for no pay. When she babysits for someone else she charges $8 an hour. When is Rachel's babysitting included in GDP?

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

Table 23-12 A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-12. Calculate real and nominal GDP for the year 2012.

Correct Answer
verified
Nominal GD...
View Answer

Table 23-1 The table below contains data for Chereaux for the year 2015. -Refer to Table 23-1. Gross national product for Chereaux in 2015 is

Correct Answer
verified

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

Correct Answer
verified

Macroeconomic statistics tell us about a particular household, firm, or market.

Correct Answer
verified

The income that households and noncorporate businesses receive is called

Correct Answer
verified

All of the following are examples of a nondurable good except

Correct Answer
verified

Which of the following items is counted as part of government purchases?

Correct Answer
verified

Changes in real GDP reflect only changes in the amounts being produced.

Correct Answer
verified

A dairy buys $50,000 worth of milk and spend $5,000 on cartons and utilities. It sells the cartons of milk to a grocery store for $60,000 that then sells all of the cartons to consumers for $65,000. How much do these actions add to GDP?

Correct Answer
verified

GDP is the market value of all final goods and services produced within a country in a given period of time.

Correct Answer
verified

Last year country A had a nominal GDP of $600 billion, a GDP deflator of 150 and a population of 40 million. Country B had a nominal GDP of $720 billion, a GDP deflator of 120 and a population of 50 million. From these numbers which country is likely to have had the higher standard of living?

Correct Answer
verified

If net exports is a negative number for a particular year, then

Correct Answer
verified

Are sales of used goods included in GDP? Explain why or why not. Hint: Remember how GDP is defined.

Correct Answer
verified
Sales of used goods ...
View Answer

Exam 23: Measuring a Nations Income

A newspaper article informs you that most businesses reduced production in the last quarter but also sold from their inventories during the last quarter. Based on this information GDP likely

Correct AnswerverifiedShow Answer

In the actual economy, households

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When an American doctor opens a practice in Bermuda, his production there is part of U.S. GNP.

Correct AnswerverifiedShow Answer

Gross domestic product measures

Correct AnswerverifiedShow Answer

Rachel babysits for her sister for no pay. When she babysits for someone else she charges $8 an hour. When is Rachel's babysitting included in GDP?

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

Table 23-12 A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-12. Calculate real and nominal GDP for the year 2012.

Correct AnswerverifiedNominal GD...View AnswerShow Answer

Table 23-1 The table below contains data for Chereaux for the year 2015. -Refer to Table 23-1. Gross national product for Chereaux in 2015 is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Macroeconomic statistics tell us about a particular household, firm, or market.

Correct AnswerverifiedShow Answer

The income that households and noncorporate businesses receive is called

Correct AnswerverifiedShow Answer

All of the following are examples of a nondurable good except

Correct AnswerverifiedShow Answer

Which of the following items is counted as part of government purchases?

Correct AnswerverifiedShow Answer

Changes in real GDP reflect only changes in the amounts being produced.

Correct AnswerverifiedShow Answer

A dairy buys $50,000 worth of milk and spend $5,000 on cartons and utilities. It sells the cartons of milk to a grocery store for $60,000 that then sells all of the cartons to consumers for $65,000. How much do these actions add to GDP?

Correct AnswerverifiedShow Answer

GDP is the market value of all final goods and services produced within a country in a given period of time.

Correct AnswerverifiedShow Answer

Last year country A had a nominal GDP of $600 billion, a GDP deflator of 150 and a population of 40 million. Country B had a nominal GDP of $720 billion, a GDP deflator of 120 and a population of 50 million. From these numbers which country is likely to have had the higher standard of living?

Correct AnswerverifiedShow Answer

If net exports is a negative number for a particular year, then

Correct AnswerverifiedShow Answer

Are sales of used goods included in GDP? Explain why or why not. Hint: Remember how GDP is defined.

Correct AnswerverifiedSales of used goods ...View AnswerShow Answer

Correct Answer
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Nominal GD...
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Sales of used goods ...
View Answer