Question 1

Net exports will be negative if:

Accepted Answer

A)   imports exceed exports.
B)   exports exceed imports.
C)   the economy is closed.
D)   None of these are correct.E) B) and C)
F) C) and D)

Question 2

If total consumption is $5 trillion, investments $2 trillion, government purchases $1 trillion, exports $1 trillion, and imports $3 trillion, the GDP must equal:

Accepted Answer

A)   $6 trillion.
B)   $12 trillion.
C)   $9 trillion.
D)   $3 trillion.E) C) and D)
F) B) and D)

Question 3

Beyond GDP, which of the following measures can give some indication of the quality of life in an economy?

Accepted Answer

A)   Child mortality
B)   Literacy rates
C)   Life expectancy
D)   All of these help assess quality of life.E) A) and C)
F) A) and B)

Question 4

The base year refers to the year whose _______ are used to calculate _______ for all years.

Accepted Answer

A)   prices; real GDP
B)   levels of output; real GDP
C)   prices; nominal GDP
D)   levels of output; nominal GDPE) None of the above
F) A) and D)

Question 5

In order to estimate the current annual GDP, economists:

Accepted Answer

A)   multiply the quarterly estimate by four.
B)   adjust quarterly GDP estimates to account for seasonal patterns.
C)   take an average of the last four quarters measured.
D)   adjust GDP for changes in price level.E) B) and C)
F) A) and D)

Question 6

Real GDP is calculated:

Accepted Answer

A)   on goods and services valued at constant prices.
B)   on goods and services valued at current prices.
C)   on changes in prices over time.
D)   by including the value of goods and services traded in the underground economy.E) B) and D)
F) B) and C)

Question 7

John is a U.S. citizen who works for Walmart in Mexico. John's work contributes to:

Accepted Answer

A)   U.S. GDP, but not U.S. GNP.
B)   U.S. GNP, but not U.S. GDP.
C)   both U.S. GDP and U.S. GNP.
D)   neither U.S. GDP nor U.S. GNP.E) A) and B)
F) None of the above

Exam 7: Measuringgdp

Real GDP is calculated:

Correct Answer
verified

John is a U.S. citizen who works for Walmart in Mexico. John's work contributes to:

Correct Answer
verified

In order to estimate the current annual GDP, economists:

Correct Answer
verified

Beyond GDP, which of the following measures can give some indication of the quality of life in an economy?

Correct Answer
verified

The base year refers to the year whose _ are used to calculate _ for all years.

Correct Answer
verified

If total consumption is $5 trillion, investments $2 trillion, government purchases $1 trillion, exports $1 trillion, and imports $3 trillion, the GDP must equal:

Correct Answer
verified

Net exports will be negative if:

Correct Answer
verified

Exam 7: Measuringgdp

Real GDP is calculated:

Correct AnswerverifiedShow Answer

John is a U.S. citizen who works for Walmart in Mexico. John's work contributes to:

Correct AnswerverifiedShow Answer

In order to estimate the current annual GDP, economists:

Correct AnswerverifiedShow Answer

Beyond GDP, which of the following measures can give some indication of the quality of life in an economy?

Correct AnswerverifiedShow Answer

The base year refers to the year whose _______ are used to calculate _______ for all years.

Correct AnswerverifiedShow Answer

If total consumption is $5 trillion, investments $2 trillion, government purchases $1 trillion, exports $1 trillion, and imports $3 trillion, the GDP must equal:

Correct AnswerverifiedShow Answer

Net exports will be negative if:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The base year refers to the year whose _ are used to calculate _ for all years.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified