ECON 312 HOMEWORK EXAM QUESTIONS WITH CORRECT
ANSWERS
In 2018, output (GDP) per capita in the United States was approximately equal to:
A) 63000
B) 15500
C) 25800
D) 47300 - VERIFIED ANSWER-A) 63000
The standard of living typically refers to:
A) The rate of unemployment
B) Output per capita
C) Wealth per capita
D) All of the above - VERIFIED ANSWER-B) Output per capita
Inflation represents
A) An increase in output
B) An increase in the aggregate price level
C) An increase in the unemployment rate
D) A recession - VERIFIED ANSWER-B) An increase in the aggregate price level
GDP is the value of all _________ produced in a given period.
A) Final and intermediate goods and services produced by the private sector only
B) Final goods and services
C) Final and intermediate goods and services, plus raw materials
D) All of the above
E) None of the above - VERIFIED ANSWER-B) Final goods and services
,Assume that 1980 is the base year. We know that:
A) Nominal GDP is always smaller than real GDP since 1980
B) Real GDP and nominal GDP would be equal for the entire period.
C) Real GDP is larger than nominal GDP from 2002 to 2008
D) Real GDP and nominal GDP were equal in 1980
E) None of the above - VERIFIED ANSWER-D) Real GDP and nominal GDP were equal in 1980
Suppose that nominal GDP increased in a given year. Based on this information, we know with
certainty that:
A) Real output was increased
B) The price level (GDP deflator) has increased
C) Real output and the price level (GDP deflator) have both increased
D) Either real output or the price level (GDP deflator) have increased.
E) Real output has increased and the price level has decreased - VERIFIED ANSWER-D) Either real
output or the price level (GDP deflator) have increased.
If nominal GDP rises from $100 trillion to $120 trillion, while the GDP deflator rises from 2.0 to 2.2, the
percentage change in real GDP is approximately equal to:
A) -10%
B) 15%
C) 20%
D) 9.1%
E) 0% - VERIFIED ANSWER-D) 9.1%
In a given year, suppose that a company spends $100 million on intermediate goods and $200 million
on wages, with no other expenses. Also suppose that its total sales are $800 million. The value added
by this company equals:
A) $200 million
B) $300 million
C) $500 million
, D) $700 million
E) $800 million - VERIFIED ANSWER-D) $700 million
A firm's value added equals:
A) Its revenue minus all of its costs
B) Its revenue minus its wages
C) Its revenue minus its wages and profit
D) Its revenue minus its cost of intermediate goods
E) None of the above - VERIFIED ANSWER-D) Its revenue minus its cost of intermediate goods
Suppose that you are provided with the following data for your country for a particular month: 200
million people are working, 20 million are not working but are looking for work, and 40 million are not
working and have given up looking for work. The official unemployment rate for that month is:
A) 7.7%
B) 9.1%
C) 10%
D) 23%
E) 30% - VERIFIED ANSWER-B) 9.1%
The labor force in the United States is defined as:
A) The total number of individuals who are employed
B) The sum of the total number of individuals who are employed and the officially unemployed
C) The sum of the total number if individuals who are employed, the officially unemployed, and
discouraged workers
D) The total number of individuals who are 16 years old and older, but not retired
E) None of the above - VERIFIED ANSWER-B) The sum of the total number of individuals who are
employed and the officially unemployed.
Assume that a country using the United States' system of calculating official unemployment statistics.
The population is 100 million, of whom 50 million are in the working age. Of these 50 million, 20
million have jobs. Of the remainder: 10 million are actively searching for jobs; 10 million would like
ANSWERS
In 2018, output (GDP) per capita in the United States was approximately equal to:
A) 63000
B) 15500
C) 25800
D) 47300 - VERIFIED ANSWER-A) 63000
The standard of living typically refers to:
A) The rate of unemployment
B) Output per capita
C) Wealth per capita
D) All of the above - VERIFIED ANSWER-B) Output per capita
Inflation represents
A) An increase in output
B) An increase in the aggregate price level
C) An increase in the unemployment rate
D) A recession - VERIFIED ANSWER-B) An increase in the aggregate price level
GDP is the value of all _________ produced in a given period.
A) Final and intermediate goods and services produced by the private sector only
B) Final goods and services
C) Final and intermediate goods and services, plus raw materials
D) All of the above
E) None of the above - VERIFIED ANSWER-B) Final goods and services
,Assume that 1980 is the base year. We know that:
A) Nominal GDP is always smaller than real GDP since 1980
B) Real GDP and nominal GDP would be equal for the entire period.
C) Real GDP is larger than nominal GDP from 2002 to 2008
D) Real GDP and nominal GDP were equal in 1980
E) None of the above - VERIFIED ANSWER-D) Real GDP and nominal GDP were equal in 1980
Suppose that nominal GDP increased in a given year. Based on this information, we know with
certainty that:
A) Real output was increased
B) The price level (GDP deflator) has increased
C) Real output and the price level (GDP deflator) have both increased
D) Either real output or the price level (GDP deflator) have increased.
E) Real output has increased and the price level has decreased - VERIFIED ANSWER-D) Either real
output or the price level (GDP deflator) have increased.
If nominal GDP rises from $100 trillion to $120 trillion, while the GDP deflator rises from 2.0 to 2.2, the
percentage change in real GDP is approximately equal to:
A) -10%
B) 15%
C) 20%
D) 9.1%
E) 0% - VERIFIED ANSWER-D) 9.1%
In a given year, suppose that a company spends $100 million on intermediate goods and $200 million
on wages, with no other expenses. Also suppose that its total sales are $800 million. The value added
by this company equals:
A) $200 million
B) $300 million
C) $500 million
, D) $700 million
E) $800 million - VERIFIED ANSWER-D) $700 million
A firm's value added equals:
A) Its revenue minus all of its costs
B) Its revenue minus its wages
C) Its revenue minus its wages and profit
D) Its revenue minus its cost of intermediate goods
E) None of the above - VERIFIED ANSWER-D) Its revenue minus its cost of intermediate goods
Suppose that you are provided with the following data for your country for a particular month: 200
million people are working, 20 million are not working but are looking for work, and 40 million are not
working and have given up looking for work. The official unemployment rate for that month is:
A) 7.7%
B) 9.1%
C) 10%
D) 23%
E) 30% - VERIFIED ANSWER-B) 9.1%
The labor force in the United States is defined as:
A) The total number of individuals who are employed
B) The sum of the total number of individuals who are employed and the officially unemployed
C) The sum of the total number if individuals who are employed, the officially unemployed, and
discouraged workers
D) The total number of individuals who are 16 years old and older, but not retired
E) None of the above - VERIFIED ANSWER-B) The sum of the total number of individuals who are
employed and the officially unemployed.
Assume that a country using the United States' system of calculating official unemployment statistics.
The population is 100 million, of whom 50 million are in the working age. Of these 50 million, 20
million have jobs. Of the remainder: 10 million are actively searching for jobs; 10 million would like
