Question 1

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

Question 2

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut. As a result,

Accepted Answer

A)   U.S. investment, GDP, and GNP all increase by the same amount.
B)   U.S. investment increases, but GDP and GNP are unaffected by the purchase.
C)   U.S. investment and GDP increase by the same amount, but U.S. GNP increases by a smaller amount.
D)   U.S. investment and GNP increase by the same amount, but U.S. GDP increases by a smaller amount.E) None of the above
F) B) and D)

Question 3

Calculate GDP for a country with investment of $2 trillion, government purchases of $3 trillion, capital depreciation of $1.5 trillion, consumption of $10 trillion, exports of $3.4 trillion, and imports of $3.9 trillion.

Accepted Answer

The answer of Calculate GDP for a country with investment...

Question 4

Table 23-5
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015.
Prices and Quantities
 
-Refer to Table 23-5. This country's output grew

Accepted Answer

A)   31.3% from 2015 to 2016.
B)   42.0% from 2016 to 2017.
C)   15.4% from 2016 to 2017.
D)   53.6% from 2017 to 2018.E) A) and B)
F) A) and C)

Question 5

The basic tools of supply and demand are

Accepted Answer

A)   useful only in the analysis of economic behavior in individual markets.
B)   useful in analyzing the overall economy, but not in analyzing individual markets.
C)   central to microeconomic analysis, but seldom used in macroeconomic analysis.
D)   central to macroeconomic analysis as well as to microeconomic analysis.E) None of the above
F) B) and D)

Question 6

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 2010, this country's real GDP was

Accepted Answer

A)   $620.
B)   $260.
C)   $400.
D)   $630.E) B) and C)
F) C) and D)

Question 7

A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result,

Accepted Answer

A)   U.S. investment and GDP increase, but German GDP is unaffected.
B)   U.S. investment and German GDP increase, but U.S. GDP is unaffected.
C)   U.S. investment, U.S. GDP, and German GDP are unaffected because tractors are intermediate goods.
D)   U.S. investment, U.S. GDP, and German GDP all increase.E) A) and D)
F) B) and D)

Question 8

In a simple circular-flow diagram, households buy goods and services with the income they get from

Accepted Answer

A)   wages.
B)   rents.
C)   profits.
D)   All of the above are correct.E) A) and C)
F) All of the above

Question 9

Michigan Cranberry Company sold $10 million worth of cranberries it produced. In producing cranberries, it purchased $1 million dollars worth of supplies from foreign countries and paid workers who reside in Canada but commute to the U.S. $1 million. How much did these transactions add to U.S. GDP?

Accepted Answer

A)   $12 million
B)   $11 million
C)   $10 million
D)   $9 millionE) A) and C)
F) All of the above

Question 10

Last quarter Newton computers produced 3,000 computers. Two thousand of these computers were sold to households, 750 were sold to businesses, and 250 were added to Newton's inventory. How many of the computers should have been included in last quarter's GDP?

Accepted Answer

The answer of Last quarter Newton computers produced 3,000 computers....

Question 11

Household spending on education is included in

Accepted Answer

A)   consumption, although it might be argued that it would fit better in investment.
B)   investment, although it might be argued that it would fit better in consumption.
C)   government spending, based on the fact that most higher-education students attend publicly-supported colleges and universities.
D)   None of the above is correct; in general, household spending on services is not included in any component of GDP.E) All of the above
F) A) and B)

Question 12

A form of government spending that is not made in exchange for a currently produced good or service is called

Accepted Answer

A)   a transfer payment.
B)   consumption.
C)   investment.
D)   None of the above is correct.E) B) and D)
F) A) and D)

Question 13

Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage.

Accepted Answer

They are closely associated; c...

Question 14

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 15

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) A) and D)
F) B) and C)

Question 16

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

Accepted Answer

A)   included in GDP whether Susan pays Speedy Lube to change it or changes it herself.
B)   included in GDP if Susan pays Speedy Lube to change it but not if she changes it herself.
C)   included in GDP if Susan changes it herself, but not if she pays Speedy Lube to change it.
D)   not included in GDP whether Susan pays Speedy lube to change it or she changes it herself.E) A) and B)
F) A) and C)

Question 17

A consumer buys toys made in China. The value of the toys is included only in the net exports component of GDP.

Accepted Answer

A) True 
 B)False

Question 18

Suppose that an economy produces 20,000 units of good A which sells at $3 a unit and 40,000 units of good B which sells at $1 per unit. Production of good A contributes

Accepted Answer

A)   1/3 times as much to GDP as the production of good B.
B)   3/2 times as much to GDP as the production of good B.
C)   3 times as much to GDP as the production of good B.
D)   2/3 times as much to GDP as production of good B.E) B) and C)
F) None of the above

Exam 5: Measuring a Nations Income

Household spending on education is included in

Correct Answer
verified

Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage.

Correct Answer
verified
They are closely associated; c...
View Answer

A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result,

Correct Answer
verified

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

Correct Answer
verified

Last quarter Newton computers produced 3,000 computers. Two thousand of these computers were sold to households, 750 were sold to businesses, and 250 were added to Newton's inventory. How many of the computers should have been included in last quarter's GDP?

Correct Answer
verified

Calculate GDP for a country with investment of $2 trillion, government purchases of $3 trillion, capital depreciation of $1.5 trillion, consumption of $10 trillion, exports of $3.4 trillion, and imports of $3.9 trillion.

Correct Answer
verified

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 2010, this country's real GDP was

Correct Answer
verified

The income that households and noncorporate businesses receive is called

Correct Answer
verified

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.

Correct Answer
verified

Michigan Cranberry Company sold $10 million worth of cranberries it produced. In producing cranberries, it purchased $1 million dollars worth of supplies from foreign countries and paid workers who reside in Canada but commute to the U.S. $1 million. How much did these transactions add to U.S. GDP?

Correct Answer
verified

A form of government spending that is not made in exchange for a currently produced good or service is called

Correct Answer
verified

A consumer buys toys made in China. The value of the toys is included only in the net exports component of GDP.

Correct Answer
verified

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut. As a result,

Correct Answer
verified

In a simple circular-flow diagram, households buy goods and services with the income they get from

Correct Answer
verified

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

Correct Answer
verified

The basic tools of supply and demand are

Correct Answer
verified

Table 23-5 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities -Refer to Table 23-5. This country's output grew

Correct Answer
verified

Suppose that an economy produces 20,000 units of good A which sells at $3 a unit and 40,000 units of good B which sells at $1 per unit. Production of good A contributes

Correct Answer
verified

Exam 5: Measuring a Nations Income

Household spending on education is included in

Correct AnswerverifiedShow Answer

Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage.

Correct AnswerverifiedThey are closely associated; c...View AnswerShow Answer

A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result,

Correct AnswerverifiedShow Answer

Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is

Correct AnswerverifiedShow Answer

Last quarter Newton computers produced 3,000 computers. Two thousand of these computers were sold to households, 750 were sold to businesses, and 250 were added to Newton's inventory. How many of the computers should have been included in last quarter's GDP?

Correct AnswerverifiedShow Answer

Calculate GDP for a country with investment of $2 trillion, government purchases of $3 trillion, capital depreciation of $1.5 trillion, consumption of $10 trillion, exports of $3.4 trillion, and imports of $3.9 trillion.

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. In 2010, this country's real GDP was

Correct AnswerverifiedShow Answer

The income that households and noncorporate businesses receive is called

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.

Correct AnswerverifiedShow Answer

Michigan Cranberry Company sold $10 million worth of cranberries it produced. In producing cranberries, it purchased $1 million dollars worth of supplies from foreign countries and paid workers who reside in Canada but commute to the U.S. $1 million. How much did these transactions add to U.S. GDP?

Correct AnswerverifiedShow Answer

A form of government spending that is not made in exchange for a currently produced good or service is called

Correct AnswerverifiedShow Answer

A consumer buys toys made in China. The value of the toys is included only in the net exports component of GDP.

Correct AnswerverifiedShow Answer

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut. As a result,

Correct AnswerverifiedShow Answer

In a simple circular-flow diagram, households buy goods and services with the income they get from

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The basic tools of supply and demand are

Correct AnswerverifiedShow Answer

Table 23-5 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities -Refer to Table 23-5. This country's output grew

Correct AnswerverifiedShow Answer

Suppose that an economy produces 20,000 units of good A which sells at $3 a unit and 40,000 units of good B which sells at $1 per unit. Production of good A contributes

Correct AnswerverifiedShow Answer

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They are closely associated; c...
View Answer

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