Question 1

Use the following to answer questions :
Table: Peanut Butter and Jelly
 
-(Table: Peanut Butter and Jelly)  Look at the table Peanut Butter and Jelly. Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly. If 2012 is the base year, what is the value of the price index in 2012?

Accepted Answer

A)  0
B)  90
C)  100
D)  111.25E) All of the above
F) A) and D)

Question 2

Which of the following is included in the calculation of GDP?

Accepted Answer

A)  expenditure on new construction
B)  a retiree's monthly Social Security check
C)  buying a house built 10 years ago
D)  buying shares of Home Depot stockE) B) and C)
F) A) and B)

Question 3

Use the following to answer questions :
Table: Peanut Butter and Jelly
 
-(Table: Peanut Butter and Jelly)  Look at the table Peanut Butter and Jelly. Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly. If 2012 is the base year, what is the rate of inflation between 2012 and 2013?

Accepted Answer

A)  4.5%
B)  11.25%
C)  22.5%
D)  44.5%E) All of the above
F) B) and C)

Question 4

You read in the newspaper that the consumer price index in 2011 was 120. You conclude that a typical market basket in 2011 would have cost _____ more than the same market basket purchased in _____.

Accepted Answer

A)  20%; 2010
B)  120%; 2010
C)  20%; the base year
D)  120%; the base yearE) A) and C)
F) B) and D)

Question 5

The GDP deflator is equal to:

Accepted Answer

A)  nominal GDP divided by real GDP times 100.
B)  real GDP divided by nominal GDP times 100.
C)  real GDP times nominal GDP times 100.
D)  [(real GDP times nominal GDP)  divided by real GDP] times 100.E) A) and C)
F) B) and C)

Question 6

Use the following to answer questions :
Table: Per Capita GDP
 
-(Table: Per Capita GDP)  Look at the table Per Capita GDP. The growth rate of nominal GDP from 2011 to 2014 was:

Accepted Answer

A)  37.5%.
B)  60%.
C)  62.5%.
D)  166.7%.E) All of the above
F) C) and D)

Question 7

Use the following to answer questions : 
-(Table: Peanut Butter and Jelly Economy)  Look at the table Peanut Butter and Jelly Economy. From 2010 to 2011 real GDP ____ by _____.

Accepted Answer

A)  increased; 12.5%
B)  decreased; 50%
C)  increased; 43.75%
D)  decreased; 12.5%E) B) and D)
F) C) and D)

Question 8

GDP may be calculated as the sum of:

Accepted Answer

A)  consumer spending, investment spending, government purchases of goods and services, and exports minus imports.
B)  consumer spending, investment spending, government transfer payments, and exports minus imports.
C)  consumer spending, investment spending, government purchases of goods and services, and exports.
D)  exports and imports only.E) A) and B)
F) A) and C)

Question 9

Assume that the real GDP of the United States is approximately $12 trillion and the population of the United States is approximately 300 million. What is per capita real GDP?

Accepted Answer

A)  $4,000
B)  $36,000
C)  $40,000
D)  Real per capita GDP can't be determined without more information.E) A) and B)
F) C) and D)

Question 10

Use the following to answer questions:
Figure: Expanded Circular-Flow Model 
-(Figure: Expanded Circular-Flow Model)  Look at the figure Expanded Circular-Flow Model. What is the value of disposable income?

Accepted Answer

A)  $1,020
B)  $1,000
C)  $870
D)  $850E) None of the above
F) B) and D)

Question 11

Use the following to answer questions:
Table: Real and Nominal Output 
-(Table: Real and Nominal Output)  Look at the table Real and Nominal Output. The change in nominal output between years 3 and 4 is an increase of:

Accepted Answer

A)  64%.
B)  100%.
C)  180%.
D)  280%.E) All of the above
F) A) and D)

Question 12

A country's GNP:

Accepted Answer

A)  must be larger than its GDP.
B)  is the total factor income earned by residents of a country.
C)  includes factor income earned by foreigners.
D)  excludes factor income earned abroad by Americans.E) A) and D)
F) All of the above

Question 13

Purchases of imported products are:

Accepted Answer

A)  subtracted from GDP.
B)  considered domestic spending, since the money is spent by a domestic consumer.
C)  double counting.
D)  not a part of the GDP calculation.E) All of the above
F) None of the above

Question 14

If GDP increases from $10 trillion to $12 trillion in a year, it can only mean that aggregate output grew by 20%.

Accepted Answer

A) True 
 B)False

Question 15

In 2013, _____ spending was the largest component of U.S. GDP, at approximately 70% of aggregate spending.

Accepted Answer

A)  government
B)  consumer
C)  investment
D)  net exportE) B) and D)
F) None of the above

Question 16

Use the following to answer questions:
Table: Real and Nominal Output 
-(Table: Real and Nominal Output)  Look at the table Real and Nominal Output. The price index in year 1, using year 3 as the base period, is:

Accepted Answer

A)  25
B)  50.
C)  100.
D)  150.E) A) and B)
F) A) and C)

Question 17

If we add up the consumer spending on goods and services, investment spending, government purchases of goods and services, and the value of exports, then subtract the value of imports, we have measured the nation's:

Accepted Answer

A)  disposable income.
B)  gross domestic product.
C)  trade deficit.
D)  budget deficit.E) B) and D)
F) A) and C)

Question 18

Gross domestic product is defined as:

Accepted Answer

A)  consumer spending + government purchases of goods and services + financial spending + exports - imports.
B)  consumer spending + government transfers + investment spending + exports - imports.
C)  disposable income + taxes + investment spending + exports + imports.
D)  consumer spending + government purchases of goods and services + investment spending + exports - imports.E) A) and B)
F) A) and C)

Question 19

Households demand resources in the factor markets.

Accepted Answer

A) True 
 B)False

Question 20

In the circular-flow diagram, the value of household income-the sum of wages, dividends, interest, rental income, and transfer payments-equals the sum of:

Accepted Answer

A)  household tax payments.
B)  consumer spending, private saving, and household tax payments.
C)  the money supply.
D)  transfer payments and household tax payments.E) B) and C)
F) All of the above

Exam 7: Gdp and Cpi: Tracking the Macroeconomy

Households demand resources in the factor markets.

Correct Answer
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Purchases of imported products are:

Correct Answer
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Use the following to answer questions : -(Table: Peanut Butter and Jelly Economy) Look at the table Peanut Butter and Jelly Economy. From 2010 to 2011 real GDP by _.

Correct Answer
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Use the following to answer questions: Table: Real and Nominal Output -(Table: Real and Nominal Output) Look at the table Real and Nominal Output. The change in nominal output between years 3 and 4 is an increase of:

Correct Answer
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In 2013, _____ spending was the largest component of U.S. GDP, at approximately 70% of aggregate spending.

Correct Answer
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The GDP deflator is equal to:

Correct Answer
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In the circular-flow diagram, the value of household income-the sum of wages, dividends, interest, rental income, and transfer payments-equals the sum of:

Correct Answer
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If we add up the consumer spending on goods and services, investment spending, government purchases of goods and services, and the value of exports, then subtract the value of imports, we have measured the nation's:

Correct Answer
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Use the following to answer questions : Table: Per Capita GDP -(Table: Per Capita GDP) Look at the table Per Capita GDP. The growth rate of nominal GDP from 2011 to 2014 was:

Correct Answer
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If GDP increases from $10 trillion to $12 trillion in a year, it can only mean that aggregate output grew by 20%.

Correct Answer
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Which of the following is included in the calculation of GDP?

Correct Answer
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You read in the newspaper that the consumer price index in 2011 was 120. You conclude that a typical market basket in 2011 would have cost _ more than the same market basket purchased in _.

Correct Answer
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A country's GNP:

Correct Answer
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Correct Answer
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Assume that the real GDP of the United States is approximately $12 trillion and the population of the United States is approximately 300 million. What is per capita real GDP?

Correct Answer
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Gross domestic product is defined as:

Correct Answer
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Use the following to answer questions: Figure: Expanded Circular-Flow Model -(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. What is the value of disposable income?

Correct Answer
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GDP may be calculated as the sum of:

Correct Answer
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Use the following to answer questions: Table: Real and Nominal Output -(Table: Real and Nominal Output) Look at the table Real and Nominal Output. The price index in year 1, using year 3 as the base period, is:

Correct Answer
verified

Exam 7: Gdp and Cpi: Tracking the Macroeconomy

Households demand resources in the factor markets.

Correct AnswerverifiedShow Answer

Purchases of imported products are:

Correct AnswerverifiedShow Answer

Use the following to answer questions : -(Table: Peanut Butter and Jelly Economy) Look at the table Peanut Butter and Jelly Economy. From 2010 to 2011 real GDP ____ by _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Use the following to answer questions: Table: Real and Nominal Output -(Table: Real and Nominal Output) Look at the table Real and Nominal Output. The change in nominal output between years 3 and 4 is an increase of:

Correct AnswerverifiedShow Answer

In 2013, _____ spending was the largest component of U.S. GDP, at approximately 70% of aggregate spending.

Correct AnswerverifiedShow Answer

The GDP deflator is equal to:

Correct AnswerverifiedShow Answer

In the circular-flow diagram, the value of household income-the sum of wages, dividends, interest, rental income, and transfer payments-equals the sum of:

Correct AnswerverifiedShow Answer

If we add up the consumer spending on goods and services, investment spending, government purchases of goods and services, and the value of exports, then subtract the value of imports, we have measured the nation's:

Correct AnswerverifiedShow Answer

Use the following to answer questions : Table: Per Capita GDP -(Table: Per Capita GDP) Look at the table Per Capita GDP. The growth rate of nominal GDP from 2011 to 2014 was:

Correct AnswerverifiedShow Answer

If GDP increases from $10 trillion to $12 trillion in a year, it can only mean that aggregate output grew by 20%.

Correct AnswerverifiedShow Answer

Which of the following is included in the calculation of GDP?

Correct AnswerverifiedShow Answer

You read in the newspaper that the consumer price index in 2011 was 120. You conclude that a typical market basket in 2011 would have cost _____ more than the same market basket purchased in _____.

Correct AnswerverifiedShow Answer

A country's GNP:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Assume that the real GDP of the United States is approximately $12 trillion and the population of the United States is approximately 300 million. What is per capita real GDP?

Correct AnswerverifiedShow Answer

Gross domestic product is defined as:

Correct AnswerverifiedShow Answer

Use the following to answer questions: Figure: Expanded Circular-Flow Model -(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. What is the value of disposable income?

Correct AnswerverifiedShow Answer

GDP may be calculated as the sum of:

Correct AnswerverifiedShow Answer

Use the following to answer questions: Table: Real and Nominal Output -(Table: Real and Nominal Output) Look at the table Real and Nominal Output. The price index in year 1, using year 3 as the base period, is:

Correct AnswerverifiedShow Answer

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Use the following to answer questions : -(Table: Peanut Butter and Jelly Economy) Look at the table Peanut Butter and Jelly Economy. From 2010 to 2011 real GDP by _.

Correct Answer
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You read in the newspaper that the consumer price index in 2011 was 120. You conclude that a typical market basket in 2011 would have cost _ more than the same market basket purchased in _.

Correct Answer
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