Question 1

GDP is a measure of:

Accepted Answer

A)   domestic production.
B)   changes in the general level of prices.
C)   material well-being.
D)   social welfare.E) None of the above
F) A) and B)

Question 2

Exhibit 5-10 GDP data (billions of dollars)

In Exhibit 5-10, and using the expenditures approach, compute net exports (X-M) . Which of the following is correct ?

Accepted Answer

A)   $500 billion.
B)   $150 billion.
C)   $100 billion.
D)   -$50 billion.E) A) and B)
F) A) and C)

Question 3

Gross domestic product (GDP)  includes:

Accepted Answer

A)   intermediate as well as final goods.
B)   foreign goods as well as domestically produced goods.
C)   used goods sold in the current time period.
D)   only final goods and services.E) B) and D)
F) B) and C)

Question 4

Which of the following statements is true ?

Accepted Answer

A)   National income is total income earned by households whereas personal income is total income received by households (including transfer payments) .
B)   Disposable personal income equals personal income plus personal taxes.
C)   The expenditures approach yields a higher GDP value than the income approach.
D)   The expenditures approach yields a lower GDP value than the income approach.E) A) and D)
F) All of the above

Question 5

The lower portion of the circular flow model contains factor markets in which households provide:

Accepted Answer

A)   goods and services.
B)   savings, spending, and investment.
C)   natural resources, labor, and capital.
D)   output of all final goods and services produced.E) C) and D)
F) A) and B)

Question 6

Real GDP means GDP:

Accepted Answer

A)   valued at prices in a base year.
B)   that does not change from year to year.
C)   corrected for changes in quality.
D)   valued at prices at which goods are actually sold.E) None of the above
F) C) and D)

Question 7

Based on the circular flow model, goods and services flow from:

Accepted Answer

A)   households to businesses in product markets.
B)   businesses to households in product markets.
C)   households to businesses in factor markets.
D)   businesses to households in factor markets.E) C) and D)
F) None of the above

Question 8

Which one of the following is an example of the circular flow model and shows the interdependence of households and firms?

Accepted Answer

A)   Households demand their resources from the firms in the factor markets and, in turn, supply in the product market the goods and services produced by firms.
B)   The firms go to the resource market to supply resources that households demand and, in turn, provide households with the goods and services produced for the product markets.
C)   Households supply their resources to the firms in the factor markets and, in turn, demand in the product market the goods and services produced by the firms.
D)   The firms in the factor markets pay to households in the form of wages, interest, rent and profit ⎯ for resources demanded.E) B) and C)
F) A) and B)

Question 9

Which of the following expenditures would be included in GDP for this year?

Accepted Answer

A)   The purchase of a new car.
B)   The purchase of a new tire by General Motors for a new car.
C)   The purchase of a used car.
D)   The purchase of an intermediate good.E) B) and C)
F) A) and B)

Exam 15: Gross Domestic Product

Which of the following statements is true ?

Correct Answer
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Which one of the following is an example of the circular flow model and shows the interdependence of households and firms?

Correct Answer
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Gross domestic product (GDP) includes:

Correct Answer
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GDP is a measure of:

Correct Answer
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Exhibit 5-10 GDP data (billions of dollars) In Exhibit 5-10, and using the expenditures approach, compute net exports (X-M) . Which of the following is correct ?

Correct Answer
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The lower portion of the circular flow model contains factor markets in which households provide:

Correct Answer
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Real GDP means GDP:

Correct Answer
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Which of the following expenditures would be included in GDP for this year?

Correct Answer
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Based on the circular flow model, goods and services flow from:

Correct Answer
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Exam 15: Gross Domestic Product

Which of the following statements is true ?

Correct AnswerverifiedShow Answer

Which one of the following is an example of the circular flow model and shows the interdependence of households and firms?

Correct AnswerverifiedShow Answer

Gross domestic product (GDP) includes:

Correct AnswerverifiedShow Answer

GDP is a measure of:

Correct AnswerverifiedShow Answer

Exhibit 5-10 GDP data (billions of dollars) In Exhibit 5-10, and using the expenditures approach, compute net exports (X-M) . Which of the following is correct ?

Correct AnswerverifiedShow Answer

The lower portion of the circular flow model contains factor markets in which households provide:

Correct AnswerverifiedShow Answer

Real GDP means GDP:

Correct AnswerverifiedShow Answer

Which of the following expenditures would be included in GDP for this year?

Correct AnswerverifiedShow Answer

Based on the circular flow model, goods and services flow from:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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