Question 1

If GDP is $5.2 trillion,depreciation is $400 billion,government spending is $800 billion,and indirect business taxes are $450 billion,how much is NDP (net domestic product)and national income?

Accepted Answer

GDP ($5.2 trillion)- depreciat...

Question 2

The increased participation of housewives in the labor force

Accepted Answer

A)  increases GDP because a greater share of their production is included in the market.
B)  increases GDP because the value of housewives' activities is not included in GDP.
C)  does not change GDP because the value of housewives' activities is not included in GDP.
D)  does not change GDP because the value of housewives' activities does not contribute to economic well-being.E) A) and B)
F) A) and C)

Question 3

The total amount of income earned by American resource suppliers in a year is measured by

Accepted Answer

A)  Gross domestic product.
B)  National income.
C)  Personal income.
D)  Disposable income.E) A) and D)
F) B) and D)

Question 4

Year  GDP  GDP deflator  Population 1998500100200 million 1999800160210 million \begin{array} { c c c c } 	ext { Year } & 	ext { GDP } & 	ext { GDP deflator } & 	ext { Population } \1998 & 500 & 100 & 200 	ext { million } \1999 & 800 & 160 & 210 	ext { million }\end{array} Year 19981999​ GDP 500800​ GDP deflator 100160​ Population 200 million 210 million ​ 
-By what percent did real GDP rise between 1998 and 1999?

Accepted Answer

A)  0
B)  20
C)  60
D)  100
E)  160 F) A) and C)
G) A) and B)

Question 5

Assume that the size of the "underground economy" increases both absolutely and relatively over time.As a result

Accepted Answer

A)  real GDP will rise more rapidly than GDP.
B)  GDP will tend to increasingly understate the level of output through time.
C)  GDP will tend to increasingly overstate the level of output through time.
D)  the accuracy of GDP will be unaffected through time.E) A) and C)
F) A) and B)

Question 6

If the price level has declined by 15% since the base year,the GDP deflator will be ___.

Accepted Answer

The answer of If the price level has declined by...

Question 7

Statement I: Net exports is a negative number if exports exceed imports.
Statement II: G is the largest sector of GDP.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) A) and D)
F) B) and C)

Question 8

Suppose that our GDP fell from one year to the next.

Accepted Answer

A)  The GDP deflator definitely fell.
B)  Real GDP definitely fell.
C)  Both real GDP and the GDP deflator definitely fell.
D)  None of the choices are correct.E) A) and B)
F) None of the above

Question 9

Gross investment minus _____ = net investment.

Accepted Answer

The answer of Gross investment minus _____ = net investment....

Question 10

The concept of "net domestic investment" refers to

Accepted Answer

A)  the amount of machinery and equipment used up in producing the GDP in a given year.
B)  the difference between the market value and book value of outstanding capital stock.
C)  gross domestic investment less net exports.
D)  total investment less the amount of investment goods used up in accomplishing the year's production.
E)  The total output of capital equipment,construction,and additions to inventories which occur in a given year.F) D) and E)
G) All of the above

Question 11

Which of the following would cause the GDP statistic to understate the growth in economic well-being over the past 50 years?

Accepted Answer

A)  Increase in the population
B)  Increase in the price level
C)  Increase in the proportion of goods which pass through the market
D)  Increase in leisure timeE) B) and C)
F) A) and B)

Question 12

Nominal GDP changed from $5,743.8 billion in 1990 to $5,916.7 billion in 1991.Nominal GDP ___________ (increased / decreased)by ________ percent.

Accepted Answer

increased;...

Question 13

An increase in depreciation will do which of the following?

Accepted Answer

A)  Increase GDP and leave NDP unchanged
B)  Decrease NDP and leave GDP unchanged
C)  Decrease GDP and leave NDP unchanged
D)  Increase both GDP and NDPE) All of the above
F) C) and D)

Question 14

Which statement is true?

Accepted Answer

A)  GDP tells us what we produce.
B)  GDP estimates the value of household and illegal production.
C)  Per capita real GDP is found by dividing population by real GDP.
D)  International comparisons of per capita real GDP may be made with less caution than comparisons over time within a given country.
E)  None of the statements are true.F) B) and E)
G) B) and D)

Question 15

Which is the smallest?

Accepted Answer

A)  Employees' compensation
B)  Corporate profits
C)  Net interest
D)  Rental incomeE) All of the above
F) A) and C)

Question 16

The smallest component of national income is

Accepted Answer

A)  rent.
B)  interest.
C)  profits.
D)  salaries and wages.E) B) and D)
F) All of the above

Question 17

$$\begin{array} { l r } 
\text { Wages and salaries } & 4,000 \
\text { Rent } & 200 \
\text { Depreciation } & 600 \
\text { Consumption } & 4,200 \
\text { Profits } & 500 \
\text { Indirect business taxes } & 400 \
\text { Interest } & 300
\end{array}$$
-Find gross domestic product.

Accepted Answer

net domestic product...

Question 18

The change in the United States from a rural,self-sufficient economy to an urban,market-oriented economy had the effect of

Accepted Answer

A)  causing the growth in GDP to understate the growth in economic well-being.
B)  inhibiting the growth of GDP.
C)  causing the growth in GDP to overstate the growth in economic well-being.
D)  increasing GDP primarily through the resulting increase in the general price level.E) All of the above
F) A) and D)

Question 19

GDP includes

Accepted Answer

A)  intermediate but not final products.
B)  substitute but not intermediate products.
C)  final but not intermediate products.
D)  complementary but not intermediate products.E) B) and C)
F) A) and D)

Question 20

If GDP fell and the GDP deflator rose,

Accepted Answer

A)  real GDP definitely rose.
B)  real GDP may have risen.
C)  GDP probably stayed about the same.
D)  GDP may have fallen.
E)  GDP definitely fell.F) A) and D)
G) A) and C)

Exam 9: Gross Domestic Product

Assume that the size of the "underground economy" increases both absolutely and relatively over time.As a result

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The change in the United States from a rural,self-sufficient economy to an urban,market-oriented economy had the effect of

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An increase in depreciation will do which of the following?

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The smallest component of national income is

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If GDP fell and the GDP deflator rose,

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GDP includes

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Statement I: Net exports is a negative number if exports exceed imports. Statement II: G is the largest sector of GDP.

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If the price level has declined by 15% since the base year,the GDP deflator will be ___.

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The concept of "net domestic investment" refers to

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Which statement is true?

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Correct Answerverifiednet domestic product...View AnswerShow Answer

If GDP is $5.2 trillion,depreciation is $400 billion,government spending is $800 billion,and indirect business taxes are $450 billion,how much is NDP (net domestic product)and national income?

Correct AnswerverifiedGDP ($5.2 trillion)- depreciat...View AnswerShow Answer

Which is the smallest?

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Gross investment minus _____ = net investment.

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The increased participation of housewives in the labor force

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Which of the following would cause the GDP statistic to understate the growth in economic well-being over the past 50 years?

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Suppose that our GDP fell from one year to the next.

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Nominal GDP changed from $5,743.8 billion in 1990 to $5,916.7 billion in 1991.Nominal GDP ___________ (increased / decreased)by ________ percent.

Correct Answerverifiedincreased;...View AnswerShow Answer

The total amount of income earned by American resource suppliers in a year is measured by

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net domestic product...
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GDP ($5.2 trillion)- depreciat...
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Nominal GDP changed from $5,743.8 billion in 1990 to $5,916.7 billion in 1991.Nominal GDP ___ (increased / decreased)by percent.

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increased;...
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