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| 1 | |
Gross domestic product can best be described as: |
| | A) | the total number of all final goods and services produced within a nation in a given year. |
| | B) | the market value of all final goods and services produced within a nation in a given year. |
| | C) | the total number of products produced in the economy. |
| | D) | the total number of services produced in the economy. |
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| 2 | |
In a given year, a country's exports total $25 billion and its imports are $27 billion. Its net exports are: |
| | A) | $52 billion. |
| | B) | –$2 billion. |
| | C) | $2 billion. |
| | D) | $26 billion. |
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| 3 | |
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 new school construction. |
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| 4 | |
In order from largest to smallest, the components of U.S. expenditures are: |
| | A) | consumption, net exports, gross investment, and government purchases. |
| | B) | government purchases, gross investment, consumption, and net exports. |
| | C) | consumption, government purchases, gross investment, and net exports. |
| | D) | consumption, government purchases, net exports, and gross investment. |
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| 5 | |
GDP includes: |
| | A) | all government spending at all levels. |
| | B) | all government spending at all levels except the local level. |
| | C) | government purchases at all levels and federal spending on transfer payments. |
| | D) | government purchases at all levels, but excluding transfer payments. |
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| 6 | |
How are intermediate goods treated in the calculation of GDP? |
| | A) | Only imported intermediate goods are considered. |
| | B) | Intermediate goods are included in GDP only in the year in which they are produced. |
| | C) | The value of intermediate goods is not counted separately but is included as part of the value of the final good of which they are an input. |
| | D) | The value of intermediate goods is counted separately and also included as part of the value of the final good of which they are an input. |
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| 7 | |
Real GDP is found by: |
| | A) | adding depreciation to nominal GDP. |
| | B) | adjusting nominal GDP by the GDP price index. |
| | C) | adding up the dollar value of all transactions in the economy in a given year. |
| | D) | excluding exports and imports from nominal GDP. |
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| 8 | |
Last year nominal GDP increased by 8 percent while real GDP increased by 10 percent. From this, we can conclude that: |
| | A) | net investment was positive last year. |
| | B) | the price level increased last year. |
| | C) | the price level decreased last year. |
| | D) | unemployment increased last year. |
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| 9 | |
Refer to the following data: <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073511455/991476/ch10_q9.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (14.0K)</a>]]>
This economy produces only one product; price and output data are shown for a five-year period. Year 3 is the base year. Real GDP in year 5 is: |
| | A) | $40 |
| | B) | $50 |
| | C) | $56 |
| | D) | $70 |
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| 10 | |
Real GDP was $5,000 billion in year 1 and $5,200 billion in year 2. The approximate rate of economic growth from year 1 to year 2 was: |
| | A) | 0.2 percent. |
| | B) | 0.4 percent. |
| | C) | 4 percent. |
| | D) | $200 billion. |
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