Question 1

In China,the fraction of the population living below the international poverty line ($1.25 per person per day) fell from over 80 percent in 1978 to:

Accepted Answer

A)  under 20 percent as of 2011.
B)  under 50 percent as of 2011.
C)  under 40 percent as of 2011.
D)  under 30 percent as of 2011.E) A) and D)
F) None of the above

Question 2

Real GDP:

Accepted Answer

A)  is calculated based on goods and services valued at constant prices.
B)  is useful in discerning if the changes in GDP are due to increased production.
C)  uses a base year's prices for all years' calculation of GDP.
D)  All of these statements are true.E) C) and D)
F) A) and C)

Question 3

Investment,as a part of GDP,includes:

Accepted Answer

A)  spending on productive inputs such as factories,machines,and inventory.
B)  any goods that are bought by people or firms who plan to use those purchases to produce other goods and services in the future,rather than consuming them.
C)  capital goods.
D)  All of these statements are true.E) A) and B)
F) A) and C)

Question 4

In order to estimate the current annual GDP,economists:

Accepted Answer

A)  multiply the quarterly estimate by four.
B)  adjust quarterly GDP estimates to account for seasonal patterns.
C)  take an average of the last four quarters measured.
D)  None of these statements is correct.E) None of the above
F) All of the above

Question 5

U.S.imports are:

Accepted Answer

A)  U.S.goods sold to foreigners.
B)  Foreign goods bought by Americans.
C)  U.S.goods sold to Americans.
D)  Foreign and U.S.goods sold to foreigners,but consumed in the U.S.E) All of the above
F) B) and D)

Question 6

The two largest economies in the world in 2012 were:

Accepted Answer

A)  the U.S.and China.
B)  Japan and the U.S.
C)  England and the U.S.
D)  the U.S.and Germany.E) A) and B)
F) A) and C)

Question 7

Ted moves into his first apartment.He buys a barely used washer/dryer set from Craigslist and hires a company to pick it up and deliver it to his apartment.What about 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)  Since Craigslist listings are free,nothing about this transaction will count toward GDP.E) B) and D)
F) A) and B)

Question 8

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) A) and B)
F) All of the above

Question 9

An American citizen works for a U.S.-owned architectural firm located in Mexico.This architect will:

Accepted Answer

A)  contribute toward U.S.GDP since he's a U.S.citizen.
B)  contribute toward U.S.GDP since he's working for a U.S.firm.
C)  contribute toward Mexico's GDP since he's working in Mexico.
D)  contribute toward both Mexico's and U.S.GDP.E) A) and B)
F) A) and C)

Question 10

The most commonly used metric for measuring the value of a national economy is:

Accepted Answer

A)  gross domestic product,or GDP.
B)  gross national product,or GNP.
C)  gross national income,or GNI.
D)  gross domestic income,or GDI.E) A) and B)
F) A) and C)

Question 11

An example of a final good or service is:

Accepted Answer

A)  a tire to replace your flat.
B)  a new car.
C)  getting the oil changed in your car.
D)  All of these are final goods or services.E) B) and D)
F) A) and D)

Question 12

In the base year:

Accepted Answer

A)  nominal and real GDP are equal by definition.
B)  nominal GDP is always larger than real GDP because prices are held constant.
C)  real GDP is always larger than nominal GDP because prices are held constant.
D)  real GDP will only be larger than nominal GDP if prices increased in the base year.E) C) and D)
F) All of the above

Question 13

Kelly is a U.S.citizen who works for Burton located in Germany.Kelly's work contributes to:

Accepted Answer

A)  U.S.GDP,but not U.S.GNP.
B)  U.S.GNP,but not U.S.GDP.
C)  Germany's GDP and U.S.GNP.
D)  Germany's GNP and U.S.GDP.E) All of the above
F) A) and D)

Question 14

An example of a U.S.import would be:

Accepted Answer

A)  a French bottle of wine consumed by an American.
B)  an Apple computer purchased by a U.S.college student who plans to study abroad in France.
C)  a bushel of apples that Canadians pick and enjoy during a love fall day in Vermont.
D)  None of these would be considered an import.E) A) and B)
F) A) and D)

Question 15

A depression is:

Accepted Answer

A)  a severe and extended period of recession.
B)  a recession that lasts more than four quarters.
C)  a recession that lasts more than three quarters.
D)  a recession that lasts more than eight quarters.E) A) and C)
F) B) and D)

Question 16

A Chinese restaurant buys 10 cups rice for $1;soy,fish and oyster sauces for $1 each;and assorted vegetables for $20.They create 10 meals with these ingredients and sell each one for $5.How much does this process contribute to GDP?

Accepted Answer

A)  $23
B)  $50
C)  $73
D)  $27E) A) and B)
F) A) and D)

Question 17

The GDP deflator is a measure of:

Accepted Answer

A)  the overall change in prices in an economy,using the ratio between real and nominal GDP.
B)  the overall change in output in an economy,based on goods and services valued at constant prices.
C)  the overall change in prices in an economy,based on price-changes determined when output is held constant.
D)  the overall change in output in an economy,using the ration between real and nominal GDP.E) None of the above
F) A) and B)

Question 18

An example of something that might be sold in the underground economy is:

Accepted Answer

A)  lawn-mowing services.
B)  endangered animals.
C)  baby-sitting services.
D)  All of these are exchanged in the underground economy.E) B) and D)
F) None of the above

Question 19

An example of a negative externality is:

Accepted Answer

A)  pollution.
B)  toxic waste disposal.
C)  a nuclear power plant.
D)  All of these are examples of negative externalities.E) All of the above
F) A) and B)

Question 20

Of the world's countries,which of the following can be said of their real GDP growth rates in recent years?

Accepted Answer

A)  Countries like China and the Middle East have experienced higher rates of growth than the U.S.
B)  The U.S.has consistently had the highest growth rate in the world for many years.
C)  Neither of these statements is true.
D)  Both of these statements are true,since the U.S.was highest until 2010,when China surpassed it.E) A) and C)
F) A) and D)

Exam 24: Measuring the Wealth of Nations

An example of a U.S.import would be:

Correct AnswerverifiedShow Answer

Ted moves into his first apartment.He buys a barely used washer/dryer set from Craigslist and hires a company to pick it up and deliver it to his apartment.What about this transaction will be counted in GDP?

Correct AnswerverifiedShow Answer

The GDP deflator is a measure of:

Correct AnswerverifiedShow Answer

The two largest economies in the world in 2012 were:

Correct AnswerverifiedShow Answer

U.S.imports are:

Correct AnswerverifiedShow Answer

Real GDP:

Correct AnswerverifiedShow Answer

The most commonly used metric for measuring the value of a national economy is:

Correct AnswerverifiedShow Answer

An example of a negative externality is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In China,the fraction of the population living below the international poverty line ($1.25 per person per day) fell from over 80 percent in 1978 to:

Correct AnswerverifiedShow Answer

An example of something that might be sold in the underground economy is:

Correct AnswerverifiedShow Answer

A depression is:

Correct AnswerverifiedShow Answer

In the base year:

Correct AnswerverifiedShow Answer

An American citizen works for a U.S.-owned architectural firm located in Mexico.This architect will:

Correct AnswerverifiedShow Answer

Investment,as a part of GDP,includes:

Correct AnswerverifiedShow Answer

Of the world's countries,which of the following can be said of their real GDP growth rates in recent years?

Correct AnswerverifiedShow Answer

In order to estimate the current annual GDP,economists:

Correct AnswerverifiedShow Answer

An example of a final good or service is:

Correct AnswerverifiedShow Answer

A Chinese restaurant buys 10 cups rice for $1;soy,fish and oyster sauces for $1 each;and assorted vegetables for $20.They create 10 meals with these ingredients and sell each one for $5.How much does this process contribute to GDP?

Correct AnswerverifiedShow Answer

Kelly is a U.S.citizen who works for Burton located in Germany.Kelly's work contributes to:

Correct AnswerverifiedShow 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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified