Question 1

When an unemployed worker receives a payment from the government as a result of being unemployed,it is

Accepted Answer

A)   included in the consumption category of GDP.
B)   included in the investment category of GDP.
C)   included in the government purchases category of GDP.
D)   included in the net export category of GDP.
E)   not included in any of the expenditure categories.F) C) and E)
G) B) and D)

Question 2

Assuming the price level increased,real gross domestic product (GDP) is greater than nominal GDP if the current period is ________ the base period,and real GDP is less than nominal GDP if the current year is ________ the base period.

Accepted Answer

A)   before; before
B)   before; after
C)   after; after
D)   after; before
E)   equal to; the same asF) A) and B)
G) B) and E)

Question 3

The phase of the business cycle where economic activity is decreasing is called

Accepted Answer

A)   an economic trough.
B)   the long-run trend of gross domestic product (GDP) .
C)   an economic expansion.
D)   an economic contraction.
E)   an economic peak.F) D) and E)
G) A) and B)

Question 4

A company produces a computer.It pays $100 for the keyboard and outer case,$200 for the internal hardware,and $100 for the software.It sells the computer to a consumer for $500.The contribution to gross domestic product (GDP) is

Accepted Answer

A)   $400.
B)   $500.
C)   $100.
D)   $900.
E)   $800.F) A) and E)
G) A) and D)

Question 5

The sale of American-grown corn to China is included in the ________ category of gross domestic product (GDP) .

Accepted Answer

A)   consumption
B)   investment
C)   government purchases
D)   export
E)   importF) C) and E)
G) All of the above

Question 6

Country A has a gross domestic product (GDP) of $200,000 and a population of 1,000.Country B has a GDP of $400,000 and a population of 4,000.Which of the following is true?

Accepted Answer

A)   The value of output is higher in country A.
B)   The value of income is higher in country A.
C)   The value of GDP per capita is higher in country A.
D)   The value of GDP per capita is higher in country B.
E)   The average living standard is higher in country B.F) B) and D)
G) B) and E)

Question 7

Ford produces 100,000 cars this year and only sells 95,000.The 5,000 cars that are not sold ________ listed in ________ category of gross domestic product (GDP) .

Accepted Answer

A)   are not; any
B)   are; the consumption
C)   are; the investment
D)   are; the unsold good
E)   are; the excess productionF) A) and D)
G) D) and E)

Question 8

Many economists say that the Great Recession of 2007-2009,rather than being simply an unusually long cyclical contraction,produced permanent changes in the economy.How is this claim supported by the graph,shown below,of U.S.real gross domestic product (GDP)since the year 1993?

Accepted Answer

It may be that at some point in the futu...

Question 9

Real gross domestic product (GDP) increases if

Accepted Answer

A)   current prices increase.
B)   current quantities increase.
C)   current prices are constant.
D)   nominal GDP increases.
E)   nominal GDP decreases.F) A) and D)
G) A) and E)

Question 10

The difference between microeconomics and macroeconomics is a matter of

Accepted Answer

A)   scale.
B)   time.
C)   demographics.
D)   politics.
E)   cost.F) None of the above
G) A) and D)

Question 11

Real gross domestic product (GDP) would be a better measure of economic well-being if it included the value of

Accepted Answer

A)   stocks and bonds purchases.
B)   intermediate goods.
C)   used goods.
D)   leisure time.
E)   Social Security payments.F) C) and D)
G) B) and C)

Question 12

What does economics research have to say about the old adage that money can't buy happiness? Be specific.

Accepted Answer

Economists do not,simplistically,declare...

Question 13

The table shows a series of market transactions in the life of an automobile.Describe two different ways that these transactions could contribute to gross domestic product (GDP)for the years 2017 and 2018.Which way is used in practice?

Accepted Answer

One way to calculate the contributions t...

Question 14

The four major expenditure categories of gross domestic product (GDP) are

Accepted Answer

A)   consumption,imports,exports,and government purchases.
B)   consumption,government purchases,taxes,and investment.
C)   consumption,investment,government purchases,and net exports.
D)   consumption,investment,government purchases,and stocks.
E)   consumption,investment,taxes,and net exports.F) C) and E)
G) A) and C)

Question 15

When you buy a new car built by Ford,it is included in the ________ category of gross domestic product (GDP) .

Accepted Answer

A)   consumption
B)   investment
C)   government purchases
D)   export
E)   importF) A) and E)
G) All of the above

Question 16

How does the focus of macroeconomics differ from that of microeconomics when it comes to income,output,employment,and prices?

Accepted Answer

Where microeconomics focuses on the inco...

Question 17

Explain the difference between gross domestic product (GDP)and the older concept of gross national product (GNP).

Accepted Answer

The difference is in the treatment of co...

Question 18

A doctor receives $50,000 per month from her patients (and their insurance companies) as payment for her services.Each month she buys medical supplies for $10,000 and she pays a lab $15,000 for analyzing slides.The total contribution to gross domestic product (GDP) this month is

Accepted Answer

A)   $50,000.
B)   $65,000.
C)   $75,000.
D)   $25,000.
E)   $55,000.F) A) and C)
G) A) and E)

Question 19

The best measure of the average living standards of people in the country is the

Accepted Answer

A)   dollar value of final goods and services produced.
B)   dollar value of final goods and services produced per person.
C)   amount of final goods and services produced.
D)   amount of final goods and services produced per person.
E)   average price of final goods and services produced.F) D) and E)
G) A) and B)

Question 20

Nominal gross domestic product (GDP) increases if

Accepted Answer

A)   current prices increase,while current quantities decrease.
B)   current quantities increase,while current prices decrease.
C)   current prices or current quantities increase.
D)   real GDP increases.
E)   real GDP decreases.F) B) and D)
G) A) and D)

Exam 19: Introduction to Macroeconomics and Gross Domestic Product

The difference between microeconomics and macroeconomics is a matter of

Correct AnswerverifiedShow Answer

Explain the difference between gross domestic product (GDP)and the older concept of gross national product (GNP).

Correct AnswerverifiedThe difference is in the treatment of co...View AnswerShow Answer

How does the focus of macroeconomics differ from that of microeconomics when it comes to income,output,employment,and prices?

Correct AnswerverifiedWhere microeconomics focuses on the inco...View AnswerShow Answer

Real gross domestic product (GDP) would be a better measure of economic well-being if it included the value of

Correct AnswerverifiedShow Answer

The four major expenditure categories of gross domestic product (GDP) are

Correct AnswerverifiedShow Answer

The phase of the business cycle where economic activity is decreasing is called

Correct AnswerverifiedShow Answer

When an unemployed worker receives a payment from the government as a result of being unemployed,it is

Correct AnswerverifiedShow Answer

Assuming the price level increased,real gross domestic product (GDP) is greater than nominal GDP if the current period is ________ the base period,and real GDP is less than nominal GDP if the current year is ________ the base period.

Correct AnswerverifiedShow Answer

Many economists say that the Great Recession of 2007-2009,rather than being simply an unusually long cyclical contraction,produced permanent changes in the economy.How is this claim supported by the graph,shown below,of U.S.real gross domestic product (GDP)since the year 1993?

Correct AnswerverifiedIt may be that at some point in the futu...View AnswerShow Answer

The table shows a series of market transactions in the life of an automobile.Describe two different ways that these transactions could contribute to gross domestic product (GDP)for the years 2017 and 2018.Which way is used in practice?

Correct AnswerverifiedOne way to calculate the contributions t...View AnswerShow Answer

What does economics research have to say about the old adage that money can't buy happiness? Be specific.

Correct AnswerverifiedEconomists do not,simplistically,declare...View AnswerShow Answer

A company produces a computer.It pays $100 for the keyboard and outer case,$200 for the internal hardware,and $100 for the software.It sells the computer to a consumer for $500.The contribution to gross domestic product (GDP) is

Correct AnswerverifiedShow Answer

Nominal gross domestic product (GDP) increases if

Correct AnswerverifiedShow Answer

A doctor receives $50,000 per month from her patients (and their insurance companies) as payment for her services.Each month she buys medical supplies for $10,000 and she pays a lab $15,000 for analyzing slides.The total contribution to gross domestic product (GDP) this month is

Correct AnswerverifiedShow Answer

Country A has a gross domestic product (GDP) of $200,000 and a population of 1,000.Country B has a GDP of $400,000 and a population of 4,000.Which of the following is true?

Correct AnswerverifiedShow Answer

The sale of American-grown corn to China is included in the ________ category of gross domestic product (GDP) .

Correct AnswerverifiedShow Answer

Real gross domestic product (GDP) increases if

Correct AnswerverifiedShow Answer

The best measure of the average living standards of people in the country is the

Correct AnswerverifiedShow Answer

When you buy a new car built by Ford,it is included in the ________ category of gross domestic product (GDP) .

Correct AnswerverifiedShow Answer

Ford produces 100,000 cars this year and only sells 95,000.The 5,000 cars that are not sold ________ listed in ________ category of gross domestic product (GDP) .

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The difference is in the treatment of co...
View Answer

Correct Answer
verified
Where microeconomics focuses on the inco...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Assuming the price level increased,real gross domestic product (GDP) is greater than nominal GDP if the current period is the base period,and real GDP is less than nominal GDP if the current year is the base period.

Correct Answer
verified

Correct Answer
verified
It may be that at some point in the futu...
View Answer

Correct Answer
verified
One way to calculate the contributions t...
View Answer

Correct Answer
verified
Economists do not,simplistically,declare...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Ford produces 100,000 cars this year and only sells 95,000.The 5,000 cars that are not sold listed in category of gross domestic product (GDP) .

Correct Answer
verified