Question 1

Final sales plus changes in inventories equals GDP.

Accepted Answer

A) True 
 B)False

Question 2

Refer to the information provided in Table 6.4 below to answer the questions that follow.
Table 6.4
 
-Refer to Table 6.4.The value for GDP in billions of dollars is

Accepted Answer

A)  910.
B)  920.
C)  950.
D)  1,050.E) A) and D)
F) A) and C)

Question 3

The GDP includes

Accepted Answer

A)  the value of all intermediate goods and services.
B)  the value of all final goods and services.
C)  the value of both intermediate and final goods and services.
D)  the value of all transactions.E) All of the above
F) B) and C)

Question 4

Net national product is

Accepted Answer

A)  GDP plus depreciation.
B)  GDP minus depreciation.
C)  GNP minus depreciation.
D)  GNP plus depreciation.E) A) and C)
F) B) and D)

Question 5

If personal saving is -$10 billion and disposable personal income is $370 billion,then personal consumption spending

Accepted Answer

A)  is $360 billion.
B)  is $380 billion.
C)  is $390 billion.
D)  cannot be determined from this information.E) C) and D)
F) B) and C)

Question 6

Refer to the information provided in Table 6.4 below to answer the questions that follow.
Table 6.4
 
-Refer to Table 6.4.The value for NNP in billions of dollars is

Accepted Answer

A)  890.
B)  910.
C)  940.
D)  970.E) B) and C)
F) A) and D)

Question 7

If in the same period output doubles and the price level remains the same,nominal GDP doubles.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would be counted in 2013's GDP?

Accepted Answer

A)  the value of a loan you take in 2013
B)  the value of a TV that was produced in 2012 but not sold until 2013
C)  the bonus check a stockbroker gets from his/her company in 2013
D)  the value of a bond sold by the federal governmentE) None of the above
F) B) and C)

Question 9

The costs of pollution are subtracted from the value of final sales before calculating GDP.

Accepted Answer

A) True 
 B)False

Question 10

The equation for GDP using the expenditure approach is

Accepted Answer

A)  GDP = C + I + G + EX - IM.
B)  GDP = C + I + G + (IM - EX) .
C)  GDP = C + I + G + EX + IM.
D)  GDP = C + I + G - EX - IM.E) None of the above
F) C) and D)

Question 11

Refer to the information provided in Table 6.5 below to answer the questions that follow.
Table 6.5
 
-Refer to Table 6.5.Assume that this economy produces only two goods Good X and Good Y.The value for this economy's nominal GDP in year 2 is

Accepted Answer

A)  $168.
B)  $179.
C)  $202.
D)  $214.E) A) and C)
F) A) and B)

Question 12

If disposable personal income is $400 billion and personal saving is $8 billion,the personal saving rate is

Accepted Answer

A)  1.5%.
B)  2%.
C)  5%.
D)  12%.E) B) and C)
F) C) and D)

Question 13

A weakness in the concept of GDP is that it ignores income distribution.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is subtracted from national income to get to personal income?

Accepted Answer

A)  retained earnings
B)  personal interest income
C)  depreciation
D)  personal TaxesE) B) and C)
F) A) and D)

Question 15

If the GDP deflator is greater than 100,then

Accepted Answer

A)  nominal GDP is greater than real GDP.
B)  nominal GDP is lower than real GDP.
C)  nominal GDP equals real GDP.
D)  prices decreased by more than half between the current and the base years.E) C) and D)
F) A) and D)

Question 16

The largest income component of GDP is

Accepted Answer

A)  proprietors' income.
B)  rental income.
C)  compensation of employees.
D)  corporate profit.E) A) and B)
F) A) and C)

Question 17

Which of the following is an example of an intermediate good?

Accepted Answer

A)  the dough you buy to fix yourself a pizza for dinner
B)  the chocolate you buy to make yourself some cookies
C)  the pizza sauce you purchase to make pizzas to sell for a fund-raiser for an organization you belong to
D)  lumber you buy to build a house for your dogE) B) and C)
F) None of the above

Question 18

Refer to the information provided in Table 6.3 below to answer the questions that follow.
Table 6.3
 
-Refer to Table 6.3.The value of disposable income

Accepted Answer

A)  is 505.
B)  is 560.
C)  is 605.
D)  cannot be calculated given the information in Table 6.3.E) B) and D)
F) A) and B)

Question 19

The base year of an index is

Accepted Answer

A)  the year chosen for the weights in a fixed weight procedure.
B)  the year currently being calculated.
C)  the last year of the index.
D)  the first year of the index.E) All of the above
F) B) and C)

Question 20

The single largest expenditure component in GDP is

Accepted Answer

A)  government spending.
B)  investment.
C)  consumption.
D)  net exports.E) None of the above
F) C) and D)

Exam 6: Measuring National Output and National Income

If in the same period output doubles and the price level remains the same,nominal GDP doubles.

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The GDP includes

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Refer to the information provided in Table 6.4 below to answer the questions that follow. Table 6.4 -Refer to Table 6.4.The value for GDP in billions of dollars is

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The base year of an index is

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Which of the following would be counted in 2013's GDP?

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The single largest expenditure component in GDP is

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If the GDP deflator is greater than 100,then

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If personal saving is -$10 billion and disposable personal income is $370 billion,then personal consumption spending

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Refer to the information provided in Table 6.3 below to answer the questions that follow. Table 6.3 -Refer to Table 6.3.The value of disposable income

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Which of the following is subtracted from national income to get to personal income?

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Which of the following is an example of an intermediate good?

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Final sales plus changes in inventories equals GDP.

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Refer to the information provided in Table 6.5 below to answer the questions that follow. Table 6.5 -Refer to Table 6.5.Assume that this economy produces only two goods Good X and Good Y.The value for this economy's nominal GDP in year 2 is

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Net national product is

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If disposable personal income is $400 billion and personal saving is $8 billion,the personal saving rate is

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A weakness in the concept of GDP is that it ignores income distribution.

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The largest income component of GDP is

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The equation for GDP using the expenditure approach is

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The costs of pollution are subtracted from the value of final sales before calculating GDP.

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Refer to the information provided in Table 6.4 below to answer the questions that follow. Table 6.4 -Refer to Table 6.4.The value for NNP in billions of dollars is

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