Question 1

Table 19-26
 
-If an American firm opens a production facility in India, the total value of the production will be included in the

Accepted Answer

A)   gross domestic product of the United States.
B)   national income of the United States.
C)   gross domestic product of India.
D)   national income of India.E) A) and B)
F) A) and C)

Question 2

Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.

Accepted Answer

A) True 
 B)False

Question 3

If the GDP deflator is equal to 100, then for that year nominal GDP is equal to real GDP.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is likely to increase measured GDP?

Accepted Answer

A)   A greater number of women decide to stay at home and provide day care for their children under age 5.
B)   Marijuana becomes legal to grow and sell.
C)   Tax rates increase and more people attempt to underreport their income for tax purposes.
D)   More people decide to do their own lawn maintenance and give up using a professional service.E) All of the above
F) None of the above

Question 5

Disposable personal income is equal to personal income minus personal tax payments.

Accepted Answer

A) True 
 B)False

Question 6

In comparing China to Canada, China's relatively ________ growth rate in GDP would make you more likely to take a job in China, and China's relatively ________ level of GDP would make you less likely to take a job in China.

Accepted Answer

A)   high; low
B)   high; high
C)   low; low
D)   low; highE) A) and B)
F) A) and C)

Question 7

Debbie makes porcelain plates in her home and sells them to the Opus gallery. She spent $400 last month on supplies and made 50 plates. She sold the plates to the gallery at $25 per plate. The gallery sells all the plates for $40 each. For all of the 50 plates, what is Debbie's total value added? For all the 50 plates, what is the gallery's total value added?

Accepted Answer

To determine Debbie's value added, we mu...

Question 8

Table 19-4
 
-Refer to Table 19-4. Consider the data above (in billions of dollars)  for an economy: Gross domestic product (in billions of dollars)  for this economy equals

Accepted Answer

A)   $2,200.
B)   $2,100.
C)   $1,600.
D)   $1,400.E) A) and B)
F) A) and C)

Question 9

Table 19-14
 
-Refer to Table 19-14. Consider the following data on nominal GDP and real GDP (values are in billions of dollars) : The GDP deflator for 2013 equals

Accepted Answer

A)   92.2.
B)   102.6.
C)   108.5.
D)   109.1.E) B) and D)
F) A) and B)

Question 10

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

Accepted Answer

A) True 
 B)False

Question 11

What are the differences between national income, personal income, and disposable personal income?

Accepted Answer

National income is the total income rece...

Question 12

An example of business fixed investment spending is

Accepted Answer

A)   a purchase of a home by a household.
B)   a purchase of a computer by an accounting firm.
C)   a purchase of a bond by General Electric Corporation.
D)   $200 million of unsold cars at a car dealership.E) B) and C)
F) A) and C)

Question 13

Table 19-26
 
-The output of U.S. citizens who work in Canada would be included in the

Accepted Answer

A)   gross domestic product of Canada.
B)   gross national product of Canada.
C)   gross domestic product of the United States.
D)   gross national product of Canada and the gross national product of the United States.E) None of the above
F) A) and B)

Question 14

Table 19-29
 
-Refer to Table 19-29. Based on the table above, what is national income for this economy?

Accepted Answer

A)   $4,700 billion
B)   $4,000 billion
C)   $3,150 billion
D)   $2,450 billionE) B) and C)
F) A) and B)

Question 15

Table 19-11
  Consider the following data for Tyrovia, a country that produces only two products: guns and butter.
-Refer to Table 19-11. Nominal GDP for Tyrovia in 2013 equals

Accepted Answer

A)   $1,140.
B)   $880.
C)   $690.
D)   $560.E) B) and C)
F) A) and D)

Question 16

Which component of consumption spending is the greatest in a typical economy?

Accepted Answer

A)   services
B)   durable goods
C)   nondurable goods
D)   new housingE) A) and B)
F) A) and C)

Question 17

Which of the following could cause nominal GDP to increase, but real GDP to decrease?

Accepted Answer

A)   The price level rises and the quantity of final goods and services produced rises.
B)   The price level rises and the quantity of final goods and services produced falls.
C)   The price level falls and the quantity of final goods and services produced rises.
D)   The price level falls and the quantity of final goods and services produced falls.E) C) and D)
F) B) and D)

Question 18

Which of the following is a true statement about real and nominal GDP?

Accepted Answer

A)   If nominal GDP increases from one year to the next, we know that production of goods and services has risen.
B)   Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and service year after year.
C)   Increases in average prices do not affect the calculation of nominal GDP.
D)   If real GDP increases from one year to the next, we know that production of goods and services has risen.E) A) and B)
F) All of the above

Question 19

If a German firm produces cars in the United States, that production should count towards

Accepted Answer

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

Question 20

Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?

Accepted Answer

A)   GDP will decrease.
B)   GDP will increase.
C)   GDP will not change.
D)   GDP may increase or may decrease depending on inflation.E) B) and D)
F) B) and C)

Exam 19: GDP: Measuring Total Production and Income

If a German firm produces cars in the United States, that production should count towards

Correct Answer
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Which component of consumption spending is the greatest in a typical economy?

Correct Answer
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Correct Answer
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To determine Debbie's value added, we mu...
View Answer

Table 19-14 -Refer to Table 19-14. Consider the following data on nominal GDP and real GDP (values are in billions of dollars) : The GDP deflator for 2013 equals

Correct Answer
verified

Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?

Correct Answer
verified

Table 19-26 -If an American firm opens a production facility in India, the total value of the production will be included in the

Correct Answer
verified

Table 19-4 -Refer to Table 19-4. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals

Correct Answer
verified

What are the differences between national income, personal income, and disposable personal income?

Correct Answer
verified
National income is the total income rece...
View Answer

An example of business fixed investment spending is

Correct Answer
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Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

Correct Answer
verified

Which of the following could cause nominal GDP to increase, but real GDP to decrease?

Correct Answer
verified

Table 19-11 Consider the following data for Tyrovia, a country that produces only two products: guns and butter. -Refer to Table 19-11. Nominal GDP for Tyrovia in 2013 equals

Correct Answer
verified

Table 19-29 -Refer to Table 19-29. Based on the table above, what is national income for this economy?

Correct Answer
verified

Which of the following is a true statement about real and nominal GDP?

Correct Answer
verified

Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.

Correct Answer
verified

In comparing China to Canada, China's relatively growth rate in GDP would make you more likely to take a job in China, and China's relatively level of GDP would make you less likely to take a job in China.

Correct Answer
verified

Table 19-26 -The output of U.S. citizens who work in Canada would be included in the

Correct Answer
verified

Which of the following is likely to increase measured GDP?

Correct Answer
verified

Disposable personal income is equal to personal income minus personal tax payments.

Correct Answer
verified

If the GDP deflator is equal to 100, then for that year nominal GDP is equal to real GDP.

Correct Answer
verified

Exam 19: GDP: Measuring Total Production and Income

If a German firm produces cars in the United States, that production should count towards

Correct AnswerverifiedShow Answer

Which component of consumption spending is the greatest in a typical economy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedTo determine Debbie's value added, we mu...View AnswerShow Answer

Table 19-14 -Refer to Table 19-14. Consider the following data on nominal GDP and real GDP (values are in billions of dollars) : The GDP deflator for 2013 equals

Correct AnswerverifiedShow Answer

Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?

Correct AnswerverifiedShow Answer

Table 19-26 -If an American firm opens a production facility in India, the total value of the production will be included in the

Correct AnswerverifiedShow Answer

Table 19-4 -Refer to Table 19-4. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals

Correct AnswerverifiedShow Answer

What are the differences between national income, personal income, and disposable personal income?

Correct AnswerverifiedNational income is the total income rece...View AnswerShow Answer

An example of business fixed investment spending is

Correct AnswerverifiedShow Answer

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

Correct AnswerverifiedShow Answer

Which of the following could cause nominal GDP to increase, but real GDP to decrease?

Correct AnswerverifiedShow Answer

Table 19-11 Consider the following data for Tyrovia, a country that produces only two products: guns and butter. -Refer to Table 19-11. Nominal GDP for Tyrovia in 2013 equals

Correct AnswerverifiedShow Answer

Table 19-29 -Refer to Table 19-29. Based on the table above, what is national income for this economy?

Correct AnswerverifiedShow Answer

Which of the following is a true statement about real and nominal GDP?

Correct AnswerverifiedShow Answer

Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.

Correct AnswerverifiedShow Answer

In comparing China to Canada, China's relatively ________ growth rate in GDP would make you more likely to take a job in China, and China's relatively ________ level of GDP would make you less likely to take a job in China.

Correct AnswerverifiedShow Answer

Table 19-26 -The output of U.S. citizens who work in Canada would be included in the

Correct AnswerverifiedShow Answer

Which of the following is likely to increase measured GDP?

Correct AnswerverifiedShow Answer

Disposable personal income is equal to personal income minus personal tax payments.

Correct AnswerverifiedShow Answer

If the GDP deflator is equal to 100, then for that year nominal GDP is equal to real GDP.

Correct AnswerverifiedShow Answer

Correct Answer
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To determine Debbie's value added, we mu...
View Answer

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National income is the total income rece...
View Answer

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In comparing China to Canada, China's relatively growth rate in GDP would make you more likely to take a job in China, and China's relatively level of GDP would make you less likely to take a job in China.

Correct Answer
verified

Correct Answer
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Correct Answer
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