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| 1 | |
GDP excludes expenditures for: |
| | A) | additions to inventories |
| | B) | new housing |
| | C) | government purchases of military equipment |
| | D) | corporate stock |
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| 2 | |
The "G" term in C + Ig + G + Xn includes all of the following except: |
| | A) | state government purchases of new computers |
| | B) | Social Security checks received by retirees |
| | C) | salaries received by members of the military |
| | D) | local government expenditures for building new roads |
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| 3 | |
The income approach to GDP sums the total income earned by resource suppliers and adds: |
| | A) | net transfer payments and personal taxes |
| | B) | net investment and depreciation |
| | C) | depreciation, taxes on production and imports, and subtracts net foreign factor income |
| | D) | net transfer payments, depreciation, and net foreign factor income |
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| 4 | |
Refer to the following data:Year | Units of Output | Price per unit | 1 | 4 | $3 | 2 | 5 | $4 | 3 | 8 | $5 | 4 | 9 | $6 | 5 | 10 | $7 |
This economy produces only one product; price and output data are shown for a five-year period. Year 3 is the base year.
The price index for year 4 is: |
| | A) | 80 |
| | B) | 120 |
| | C) | 20% |
| | D) | 1.2 |
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| 5 | |
The change in real GDP is not an accurate measure of the change in economic welfare because, for example: |
| | A) | improvements in product quality are overstated |
| | B) | expenditures for personal services are excluded |
| | C) | the price level changes over time |
| | D) | some production creates pollution |
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| 6 | |
"The market value of all final goods and services produced within a nation in a given year." This best describes: |
| | A) | Net domestic product |
| | B) | Gross domestic product |
| | C) | National income |
| | D) | Personal income |
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| 7 | |
In calculating GDP: |
| | A) | both exports and imports are added |
| | B) | neither exports nor imports are added |
| | C) | exports are added and imports are subtracted |
| | D) | imports are added and exports are subtracted |
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| 8 | |
Suppose that last year domestic firms spent $80 billion on final purchases of plant and equipment, of which $15 billion replaced equipment that had worn out during the year. In addition, firms collectively added $10 billion to inventories and new construction totaled $35 billion. In calculating GDP, national income accountants would add gross investment of: |
| | A) | $95 billion |
| | B) | $100 billion |
| | C) | $110 billion |
| | D) | $125 billion |
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| 9 | |
Suppose nominal GDP in the base year was $380 billion. Five years later, nominal GDP was $480 and the GDP price index was 120. Over those five years, real GDP: |
| | A) | increased by $20 billion |
| | B) | increased by $96 billion |
| | C) | increased by $80 billion |
| | D) | did not change |
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| 10 | |
Disposable income consists of: |
| | A) | personal income plus personal taxes |
| | B) | net domestic product minus personal taxes |
| | C) | GDP corrected for inflation |
| | D) | consumption plus saving |
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