CLEMSON MACROECONOMICS
2120 FINAL EXAM QUESTIONS
WITH VERIFIED ANSWERS 100%
SOLVED
Gross Domestic Product - answer-The market value of all final goods and services produced
within a country in a year
Difference between nominal GDP and real GDP is that nominal GPD, which - answer-
measures a country's production of final goods and services at current prices, whereas real
GDP measures a country's production of all final goods and services at fixed historical prices
In a single good economy, if nominal GDP increases in 2014, we know that - answer-the
prices or the quantity of goods increased
The reason economists focus on measuring GDP is because - answer-GDP is highly correlated
with other measures of well-being
If a country's real GDP per capita rises, this suggests - answer-1. Some people in the country
have more wealth
2. The country's standard of living is rising
Identify why the growth rate in real GDP may overstate the effect on welfare - answer-
Fracking may result in unpriced environmental degradation
Final Goods are goods - answer-consumed or held in personal inventories
Which of the following choices shows a good or service (produced in the current period that
is not counted in GDP for this year) - answer-wood that is used to make furniture
(it is an intermediate good)
, Which of the following services does not count towards GDP - answer-You paint your garage
Volunteer painters, bought paint supplies last year, the value of their community painting
project - answer-will not be included in this year's GDP even though productive activities are
involved
Sydney buys a used car for 3000, a salesperson gains a 200 commission on the sale, how
much does this transaction contribute to this years GDP - answer-200
(Used cars are not newly produced so they are excluded from GDP)
Calculating Growth - answer-70/# years since change = percent of growth
Vice Versa
If a nation doubles its GDP per capita in 28 years, what is its annual growth rate - answer-2.5
Percent
A country has a -1% real GDP per growth rate but the real GDP per capita is positive. What
causes this change - answer-The country's population is changing faster than the growth of
the Real GDP
Inflation is - answer-An increase in average price levels
Deaton argues that the west developing more quickly - answer-caused income inequality
across countries
Deaton argues that there is a measurement bias in female labor participation over time. This
alone would imply - answer-The improvements in wealth are overstated
GDP uses _________ to account for differences in __________ of final goods and services -
answer-market prices ; value
2120 FINAL EXAM QUESTIONS
WITH VERIFIED ANSWERS 100%
SOLVED
Gross Domestic Product - answer-The market value of all final goods and services produced
within a country in a year
Difference between nominal GDP and real GDP is that nominal GPD, which - answer-
measures a country's production of final goods and services at current prices, whereas real
GDP measures a country's production of all final goods and services at fixed historical prices
In a single good economy, if nominal GDP increases in 2014, we know that - answer-the
prices or the quantity of goods increased
The reason economists focus on measuring GDP is because - answer-GDP is highly correlated
with other measures of well-being
If a country's real GDP per capita rises, this suggests - answer-1. Some people in the country
have more wealth
2. The country's standard of living is rising
Identify why the growth rate in real GDP may overstate the effect on welfare - answer-
Fracking may result in unpriced environmental degradation
Final Goods are goods - answer-consumed or held in personal inventories
Which of the following choices shows a good or service (produced in the current period that
is not counted in GDP for this year) - answer-wood that is used to make furniture
(it is an intermediate good)
, Which of the following services does not count towards GDP - answer-You paint your garage
Volunteer painters, bought paint supplies last year, the value of their community painting
project - answer-will not be included in this year's GDP even though productive activities are
involved
Sydney buys a used car for 3000, a salesperson gains a 200 commission on the sale, how
much does this transaction contribute to this years GDP - answer-200
(Used cars are not newly produced so they are excluded from GDP)
Calculating Growth - answer-70/# years since change = percent of growth
Vice Versa
If a nation doubles its GDP per capita in 28 years, what is its annual growth rate - answer-2.5
Percent
A country has a -1% real GDP per growth rate but the real GDP per capita is positive. What
causes this change - answer-The country's population is changing faster than the growth of
the Real GDP
Inflation is - answer-An increase in average price levels
Deaton argues that the west developing more quickly - answer-caused income inequality
across countries
Deaton argues that there is a measurement bias in female labor participation over time. This
alone would imply - answer-The improvements in wealth are overstated
GDP uses _________ to account for differences in __________ of final goods and services -
answer-market prices ; value
