Question 1

Akemi,who is a Japanese citizen,works in the United States as a computer programmer.The value of her output is included in:

Accepted Answer

A)   both U.S.and Japan's GDP.
B)   both U.S.and Japan's GNP.
C)   U.S.GDP and Japan's GNP.
D)   U.S.GNP and Japan's GDP.E) A) and B)
F) A) and C)

Question 2

Which of the following would most likely NOT be counted in GDP?

Accepted Answer

A)   The legal sale of marijuana for medical purposes in the State of California.
B)   You build a shed in your back yard to store your lawn mower.
C)   An outside company is hired to clean up a chemical spill at a local factory.
D)   The fee you pay to snorkel with manatees while on vacation in Florida.E) C) and D)
F) B) and C)

Question 3

Imagine a nation that has automobile factories that emit pollution,grows (illegal) marijuana,and does not allow its women to work outside the home.Which activities will be counted in GDP?

Accepted Answer

A)   the sale of automobiles and marijuana
B)   the sale of automobiles,marijuana,and the value of the women's work
C)   the sale of automobiles minus the damage from pollution
D)   the sale of the automobilesE) A) and D)
F) A) and C)

Question 4

Currently,India's growth rate is low compared to that of most countries.

Accepted Answer

A) True 
 B)False

Question 5

Imported goods purchased in the United States are counted as part of U.S.GDP.

Accepted Answer

A) True 
 B)False

Question 6

A set of tires installed on a vehicle in an automobile factory is counted as:

Accepted Answer

A)   a final good and its market price is part of GDP.
B)   a final good and its market price is not part of GDP.
C)   an intermediate good and its market price is part of GDP.
D)   an intermediate good and its market price is not part of GDP.E) B) and C)
F) B) and D)

Question 7

A sound system produced by a supplier to Ford Motor Company is an example of:

Accepted Answer

A)   an inferior good.
B)   a final good.
C)   a public good.
D)   an intermediate good.E) C) and D)
F) None of the above

Question 8

What is the term for the value of a nation's entire stock of assets?

Accepted Answer

A)   gross domestic product
B)   gross national product
C)   national wealth
D)   real gross domestic productE) B) and C)
F) A) and D)

Question 9

The GDP deflator is the ratio of real to nominal GDP (multiplied by 100).

Accepted Answer

A) True 
 B)False

Question 10

When GDP per capita goes up by 10 percent:

Accepted Answer

A)   everyone's income goes up by 10 percent.
B)   only the most wealthy peoples' incomes will go up by 10 percent.
C)   no one's income goes up by 10 percent.
D)   the distribution of the increase in income may vary.E) A) and B)
F) A) and C)

Question 11

The value of production by a U.S.worker employed by a firm located in Canada is included in:

Accepted Answer

A)   both Canada's GDP and Canada's GNP.
B)   both U.S.GDP and U.S.GNP.
C)   Canada's GDP and U.S.GNP.
D)   U.S.GDP and Canada's GNP.E) All of the above
F) A) and B)

Question 12

If pressed to choose a single indicator of current economic performance,most economists would probably choose real GDP growth.

Accepted Answer

A) True 
 B)False

Question 13

The value of volunteer services is:

Accepted Answer

A)   included in GDP,but should not be because nothing tangible is produced.
B)   not included in GDP,but should be because a service is produced.
C)   included in GDP and should be because a service is produced.
D)   not included in GDP and should not be because nothing tangible is produced.E) A) and B)
F) None of the above

Question 14

Net exports will be negative if exports exceed imports.

Accepted Answer

A) True 
 B)False

Question 15

Spending on goods imported into the U.S.is included in GDP for:

Accepted Answer

A)   the United States.
B)   the country that produced the goods.
C)   both the United States and the country that produced the goods.
D)   no country.E) C) and D)
F) B) and C)

Question 16

Based on the level of GDP,India is one of the five largest economies in the world.

Accepted Answer

A) True 
 B)False

Question 17

GDP measures the total income in a country.

Accepted Answer

A) True 
 B)False

Question 18

National wealth refers to the value of a nation's entire stock of:

Accepted Answer

A)   assets.
B)   savings.
C)   gold.
D)   currency.E) A) and D)
F) A) and C)

Question 19

China has a larger economy than the United Kingdom (Great Britain),but the British are still better off in terms of living standards.

Accepted Answer

A) True 
 B)False

Question 20

GDP is calculated by:

Accepted Answer

A)   adding the quantities of all goods and services in an economy.
B)   adding the prices of all goods and services in an economy.
C)   dividing the quantity of all goods and services by their prices and adding together the results.
D)   multiplying the quantity of all goods and services by their prices and adding together the results.E) All of the above
F) None of the above

Exam 6: GDP and the Measurement of Progress

A sound system produced by a supplier to Ford Motor Company is an example of:

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China has a larger economy than the United Kingdom (Great Britain),but the British are still better off in terms of living standards.

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The value of volunteer services is:

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National wealth refers to the value of a nation's entire stock of:

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If pressed to choose a single indicator of current economic performance,most economists would probably choose real GDP growth.

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Akemi,who is a Japanese citizen,works in the United States as a computer programmer.The value of her output is included in:

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Which of the following would most likely NOT be counted in GDP?

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Based on the level of GDP,India is one of the five largest economies in the world.

Correct AnswerverifiedShow Answer

The value of production by a U.S.worker employed by a firm located in Canada is included in:

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Imported goods purchased in the United States are counted as part of U.S.GDP.

Correct AnswerverifiedShow Answer

Spending on goods imported into the U.S.is included in GDP for:

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Imagine a nation that has automobile factories that emit pollution,grows (illegal) marijuana,and does not allow its women to work outside the home.Which activities will be counted in GDP?

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A set of tires installed on a vehicle in an automobile factory is counted as:

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GDP measures the total income in a country.

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Net exports will be negative if exports exceed imports.

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What is the term for the value of a nation's entire stock of assets?

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When GDP per capita goes up by 10 percent:

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The GDP deflator is the ratio of real to nominal GDP (multiplied by 100).

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Currently,India's growth rate is low compared to that of most countries.

Correct AnswerverifiedShow Answer

GDP is calculated by:

Correct AnswerverifiedShow Answer

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