Question 1

Juan is an American citizen who works for a U.S.-owned architectural firm located in Mexico. Juan's work will contribute toward:

Accepted Answer

A)   U.S. GDP, because he's a U.S. citizen.
B)   U.S. GDP, because he's working for a U.S. firm.
C)   Mexico's GDP, because he's working in Mexico.
D)   both Mexico's and U.S. GDP.E) All of the above
F) A) and B)

Question 2

Inventory is the stock of goods that a company:

Accepted Answer

A)   produces this year, but keeps to sell next year.
B)   produced last year and was forced to sell below cost.
C)   is producing, but has already sold contractually.
D)   produces and sells within a given time period.E) None of the above
F) B) and D)

Question 3

A country's GDP per capita may not correlate with its well-being when:

Accepted Answer

A)   inequality is high, leaving income unequally distributed.
B)   high net exports mean that workers can easily find work in local factories.
C)   corruption is low.
D)   None of these are true.E) A) and C)
F) All of the above

Question 4

Which of the following is an example of a transfer payment?

Accepted Answer

A)   A federal income tax refund
B)   A Social Security payment
C)   The money you send to a friend through Venmo
D)   The taxes corporations pay on profitE) All of the above
F) A) and B)

Question 5

If both nominal GDP and real GDP increase from one year to the next, but the increase in real GDP is smaller than that of nominal GDP, we can conclude that:

Accepted Answer

A)   prices went up, but output stayed the same.
B)   prices stayed the same, but output went up.
C)   both prices and output went up.
D)   both prices and output stayed the same.E) C) and D)
F) A) and C)

Question 6

If China's real GDP grew from $7 trillion one year to $8 trillion the next year, the annual growth rate would be:

Accepted Answer

A)   14.3 percent.
B)   1.43 percent.
C)   8 percent.
D)   12.5 percent.E) None of the above
F) A) and B)

Question 7

GDP can be calculated over:

Accepted Answer

A)   a month.
B)   a quarter.
C)   a year.
D)   GDP can be calculated over any of these time periods.E) A) and C)
F) B) and C)

Question 8

According to the circular flow model, expenditures by one person translate:

Accepted Answer

A)   directly into income for someone else.
B)   indirectly into the value of that person's time.
C)   directly into taxes collected by a local government.
D)   indirectly into the household's budget.E) A) and B)
F) A) and C)

Question 9

The system we use to measure the value of an economy is called:

Accepted Answer

A)   national income accounting.
B)   national economic valuation.
C)   macroeconomic summation.
D)   national expenditure accounting.E) C) and D)
F) A) and B)

Question 10

The GDP growth rate:

Accepted Answer

A)   is a measure to track changes in an economy over time.
B)   can be negative or positive.
C)   is measured as the percent change in real GDP from one time period to the next.
D)   All of these are true.E) A) and B)
F) All of the above

Question 11

A period of significant decline in economic activity-marked by falling GDP, rising unemployment, and an increased number of bankruptcies-is called:

Accepted Answer

A)   a severe depression.
B)   a recession.
C)   an expansion.
D)   a boom.E) A) and B)
F) B) and C)

Question 12

U.S. gross national product (GNP)  includes goods produced by:

Accepted Answer

A)   foreign firms on U.S. soil.
B)   U.S. firms on foreign soil.
C)   foreign firms on foreign soil.
D)   None of these are included in U.S. GNP.E) All of the above
F) B) and C)

Question 13

The rate of change in GDP over time is called the:

Accepted Answer

A)   price accelerator.
B)   output generator.
C)   Gini coefficient.
D)   economic growth rate.E) A) and D)
F) B) and D)

Question 14

Goods and services sold outside of official records are purchased in the:

Accepted Answer

A)   underground economy.
B)   soft market.
C)   planned economy.
D)   barter economy.E) B) and D)
F) A) and B)

Question 15

You purchase a bag of chocolate chips for $3, a bag of flour for $3, a bag of sugar for $2.00, a half dozen eggs for $1.50, and a half pound of butter for $2.50. You use all these ingredients to make three dozen cookies. Your roommate offers you $15 for the freshly-baked cookies, and you happily accept. How much does this process contribute to GDP?

Accepted Answer

A)   $12
B)   $15
C)   $22
D)   $8E) B) and C)
F) A) and D)

Question 16

Ted is moving into his first apartment. He decides to buy a barely-used washer/dryer set from Craigslist and hires a company to pick it up and deliver it to his apartment. Which part of this transaction will be counted in GDP?

Accepted Answer

A)   The value of the washer/dryer set
B)   The value of the delivery service
C)   The value of the washer/dryer set and the delivery service
D)   No part of this transaction will count toward GDP.E) C) and D)
F) A) and B)

Question 17

The field of macroeconomics studies _______ and microeconomics studies _______.

Accepted Answer

A)   economic aggregates; individual markets
B)   individual markets; economic aggregates
C)   international variables; variables within a single economy
D)   variables within a single economy; international variablesE) A) and B)
F) A) and C)

Question 18

Goods or services traded on the black market include:

Accepted Answer

A)   endangered animals, illegal drugs, and restricted weapons.
B)   babysitting and lawn mowing services.
C)   buying steel, bolts, and tires to produce new cars.
D)   used iPhones, tablets, or laptops sold on Offer Up.E) A) and C)
F) A) and B)

Question 19

Which of the following is an example of a U.S. export?

Accepted Answer

A)   A French bottle of wine consumed by an American
B)   An HP computer, made in the United States, purchased by a U.S. college student who plans to study abroad in France
C)   A bushel of apples that Canadians pick and enjoy in Vermont
D)   An HP computer, made in the United States, purchased by a French studentE) C) and D)
F) A) and D)

Question 20

The GDP deflator can be used to track:

Accepted Answer

A)   the interest rate.
B)   the GDP growth rate.
C)   consumer confidence.
D)   inflation.E) A) and D)
F) C) and D)

Exam 7: Measuringgdp

Goods or services traded on the black market include:

Correct Answer
verified

GDP can be calculated over:

Correct Answer
verified

If China's real GDP grew from $7 trillion one year to $8 trillion the next year, the annual growth rate would be:

Correct Answer
verified

Juan is an American citizen who works for a U.S.-owned architectural firm located in Mexico. Juan's work will contribute toward:

Correct Answer
verified

According to the circular flow model, expenditures by one person translate:

Correct Answer
verified

The GDP deflator can be used to track:

Correct Answer
verified

Correct Answer
verified

Which of the following is an example of a U.S. export?

Correct Answer
verified

If both nominal GDP and real GDP increase from one year to the next, but the increase in real GDP is smaller than that of nominal GDP, we can conclude that:

Correct Answer
verified

A period of significant decline in economic activity-marked by falling GDP, rising unemployment, and an increased number of bankruptcies-is called:

Correct Answer
verified

Inventory is the stock of goods that a company:

Correct Answer
verified

Which of the following is an example of a transfer payment?

Correct Answer
verified

Goods and services sold outside of official records are purchased in the:

Correct Answer
verified

The system we use to measure the value of an economy is called:

Correct Answer
verified

U.S. gross national product (GNP) includes goods produced by:

Correct Answer
verified

The GDP growth rate:

Correct Answer
verified

The rate of change in GDP over time is called the:

Correct Answer
verified

Ted is moving into his first apartment. He decides to buy a barely-used washer/dryer set from Craigslist and hires a company to pick it up and deliver it to his apartment. Which part of this transaction will be counted in GDP?

Correct Answer
verified

The field of macroeconomics studies _ and microeconomics studies _.

Correct Answer
verified

A country's GDP per capita may not correlate with its well-being when:

Correct Answer
verified

Exam 7: Measuringgdp

Goods or services traded on the black market include:

Correct AnswerverifiedShow Answer

GDP can be calculated over:

Correct AnswerverifiedShow Answer

If China's real GDP grew from $7 trillion one year to $8 trillion the next year, the annual growth rate would be:

Correct AnswerverifiedShow Answer

Juan is an American citizen who works for a U.S.-owned architectural firm located in Mexico. Juan's work will contribute toward:

Correct AnswerverifiedShow Answer

According to the circular flow model, expenditures by one person translate:

Correct AnswerverifiedShow Answer

The GDP deflator can be used to track:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an example of a U.S. export?

Correct AnswerverifiedShow Answer

If both nominal GDP and real GDP increase from one year to the next, but the increase in real GDP is smaller than that of nominal GDP, we can conclude that:

Correct AnswerverifiedShow Answer

A period of significant decline in economic activity-marked by falling GDP, rising unemployment, and an increased number of bankruptcies-is called:

Correct AnswerverifiedShow Answer

Inventory is the stock of goods that a company:

Correct AnswerverifiedShow Answer

Which of the following is an example of a transfer payment?

Correct AnswerverifiedShow Answer

Goods and services sold outside of official records are purchased in the:

Correct AnswerverifiedShow Answer

The system we use to measure the value of an economy is called:

Correct AnswerverifiedShow Answer

U.S. gross national product (GNP) includes goods produced by:

Correct AnswerverifiedShow Answer

The GDP growth rate:

Correct AnswerverifiedShow Answer

The rate of change in GDP over time is called the:

Correct AnswerverifiedShow Answer

Ted is moving into his first apartment. He decides to buy a barely-used washer/dryer set from Craigslist and hires a company to pick it up and deliver it to his apartment. Which part of this transaction will be counted in GDP?

Correct AnswerverifiedShow Answer

The field of macroeconomics studies _______ and microeconomics studies _______.

Correct AnswerverifiedShow Answer

A country's GDP per capita may not correlate with its well-being when:

Correct AnswerverifiedShow Answer

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The field of macroeconomics studies _ and microeconomics studies _.

Correct Answer
verified

Correct Answer
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