Question 1

Which of the following would NOT be counted in 2013's GDP?

Accepted Answer

A)  the value of a 2008 boat you purchase from a boat dealer in 2013
B)  the 2013 salary of a used motorcycle salesperson
C)  the commissions earned by a real estate agent in selling condominiums built prior to 2013
D)  the value of a refrigerator manufactured in 2013 but not sold in 2013E) C) and D)
F) All of the above

Question 2

The change in business inventories is measured as

Accepted Answer

A)  final sales minus GDP.
B)  final sales plus GDP.
C)  GDP minus final sales.
D)  the ratio of final sales to GDP.E) A) and C)
F) None of the above

Question 3

Refer to the information provided in Table 6.2 below to answer the questions that follow.
Table 6.2
 
-Refer to Table 6.2.The value for gross private domestic investment in billions of dollars is

Accepted Answer

A)  740.
B)  810.
C)  850.
D)  890.E) A) and C)
F) A) and B)

Question 4

If the GDP deflator next year is less than the GDP deflator this year,then the price level has fallen.

Accepted Answer

A) True 
 B)False

Question 5

Nominal GDP is gross domestic product measured

Accepted Answer

A)  in the prices of a base year.
B)  in current dollars.
C)  at a constant output level but at the base-year prices.
D)  as the difference between the current year's GDP and last year's GDP.E) A) and B)
F) None of the above

Question 6

Profits earned in the United States by foreign-owned companies are included in

Accepted Answer

A)  the U.S.GDP but not GNP.
B)  neither the U.S.GDP nor GNP.
C)  the U.S.GNP but not GDP.
D)  both the U.S.GDP and GNP.E) All of the above
F) B) and D)

Question 7

If depreciation equals zero and retained earnings equal $5 billion,then

Accepted Answer

A)  GNP is less than net national product by $5 billion.
B)  GNP equals net national product.
C)  Net national product is less than GNP by $5 billion.
D)  GNP is greater than GDP by $5 billion.E) All of the above
F) A) and D)

Question 8

The GDP of the U.S.in 2012 was around $15.9 trillion.This means

Accepted Answer

A)  that the value of output in the U.S.in 2012 was around $15.9 trillion.
B)  that total income in the U.S.in 2012 was around $15.9 trillion.
C)  that total spending on final goods and services in the U.S.in 2012 was around $15.9 trillion.
D)  all of the aboveE) B) and C)
F) A) and D)

Question 9

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1
 
-Refer to Table 6.1.The value of gross domestic product in billions of dollars is

Accepted Answer

A)  3,000.
B)  3,075.
C)  3,125.
D)  3,750.E) A) and B)
F) A) and C)

Question 10

Depreciation is

Accepted Answer

A)  subtracted from national income to get GDP.
B)  added to national income to get GDP.
C)  subtracted from GNP to get NNP.
D)  added to GNP to get NNP.E) A) and B)
F) A) and C)

Question 11

The total value of all capital goods newly produced in a given period is

Accepted Answer

A)  the change in business inventories.
B)  depreciation.
C)  net investment.
D)  gross investment.E) A) and B)
F) None of the above

Question 12

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1
 
-Refer to Table 6.1.The value of government spending in billions of dollars is

Accepted Answer

A)  100.
B)  200.
C)  300.
D)  500.E) B) and D)
F) A) and D)

Question 13

Refer to the information provided in Table 6.2 below to answer the questions that follow.
Table 6.2
 
-Refer to Table 6.2.The value for gross domestic product in billions of dollars is

Accepted Answer

A)  2,900.
B)  3,140.
C)  3,440.
D)  3,650.E) A) and B)
F) B) and C)

Question 14

Gross domestic product measures

Accepted Answer

A)  the total spending of everyone in the economy.
B)  the value of all output in the economy.
C)  the total income of everyone in the economy.
D)  all of the aboveE) A) and B)
F) B) and C)

Question 15

Related to the Economics in Practice on p.431: The National Income and Product Accounts (NIPAs) allow policymakers and economists to analyze the impact of

Accepted Answer

A)  spending and tax plans.
B)  price shocks.
C)  monetary policy.
D)  all of the aboveE) All of the above
F) A) and C)

Question 16

If GNP is $200 billion,receipts of factor income from the rest of the world are $10 billion,and payments of factor income to the rest of the world are $30 billion,then GDP is

Accepted Answer

A)  $160 billion.
B)  $210 billion.
C)  $220 billion.
D)  $240 billion.E) A) and B)
F) A) and C)

Question 17

If personal income is $925 billion and personal income taxes are $70 billion,the value of disposable personal income is

Accepted Answer

A)  $835 billion.
B)  $855 billion.
C)  $890 billion.
D)  $995 billion.E) A) and B)
F) None of the above

Question 18

Legalizing all forms of illegal activities would

Accepted Answer

A)  reduce measured GDP.
B)  reduce the size of the underground economy and increase measured GDP.
C)  reduce both the underground economy and measured GDP.
D)  increase the size of the underground economy and reduce measured GDP.E) A) and B)
F) A) and C)

Question 19

Income Mexican citizens earn in the U.S.counts in

Accepted Answer

A)  U.S.GNP.
B)  Mexican GNP.
C)  Mexican GDP.
D)  both U.S.and Mexican GDP.E) A) and D)
F) A) and C)

Question 20

In 2012 the change in business inventories is -$70 billion and GDP is $200 billion.Final sales in 2012

Accepted Answer

A)  are $130 billion.
B)  are $200 billion.
C)  are $270 billion.
D)  are $340 billion.E) C) and D)
F) A) and B)

Exam 6: Measuring National Output and National Income

The GDP of the U.S.in 2012 was around $15.9 trillion.This means

Correct AnswerverifiedShow Answer

In 2012 the change in business inventories is -$70 billion and GDP is $200 billion.Final sales in 2012

Correct AnswerverifiedShow Answer

Related to the Economics in Practice on p.431: The National Income and Product Accounts (NIPAs) allow policymakers and economists to analyze the impact of

Correct AnswerverifiedShow Answer

If GNP is $200 billion,receipts of factor income from the rest of the world are $10 billion,and payments of factor income to the rest of the world are $30 billion,then GDP is

Correct AnswerverifiedShow Answer

Profits earned in the United States by foreign-owned companies are included in

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.1 below to answer the questions that follow. Table 6.1 -Refer to Table 6.1.The value of government spending in billions of dollars is

Correct AnswerverifiedShow Answer

The change in business inventories is measured as

Correct AnswerverifiedShow Answer

Gross domestic product measures

Correct AnswerverifiedShow Answer

If depreciation equals zero and retained earnings equal $5 billion,then

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.2 below to answer the questions that follow. Table 6.2 -Refer to Table 6.2.The value for gross private domestic investment in billions of dollars is

Correct AnswerverifiedShow Answer

If the GDP deflator next year is less than the GDP deflator this year,then the price level has fallen.

Correct AnswerverifiedShow Answer

Nominal GDP is gross domestic product measured

Correct AnswerverifiedShow Answer

Which of the following would NOT be counted in 2013's GDP?

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.1 below to answer the questions that follow. Table 6.1 -Refer to Table 6.1.The value of gross domestic product in billions of dollars is

Correct AnswerverifiedShow Answer

Income Mexican citizens earn in the U.S.counts in

Correct AnswerverifiedShow Answer

If personal income is $925 billion and personal income taxes are $70 billion,the value of disposable personal income is

Correct AnswerverifiedShow Answer

The total value of all capital goods newly produced in a given period is

Correct AnswerverifiedShow Answer

Depreciation is

Correct AnswerverifiedShow Answer

Legalizing all forms of illegal activities would

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.2 below to answer the questions that follow. Table 6.2 -Refer to Table 6.2.The value for gross domestic product in billions of dollars is

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