Survey of Economics Unit 3 best exam 2025
Graded A+
1. GDP is a measure of:
a. the total prices of goods available in markets
b. all resources available in a nation
c. a nation's money supply
d. a nation's total production - d. a nation's total production
2. What is included in GDP?
a. only newly produced services
b. only newly produced goods
c. all goods and services sold
d. only newly produced goods and services - d. only newly produced goods and
services
3. Which of the following best describes what GDP is a measurement of?
a. the sum total incomes of every citizen during a particular period
b. the market value of the final goods and services produced during a particular
period
c. the profit gained over the course of a particular period
d. the average profit margin for all final goods and services produced during a
particular period - b. the market value of the final goods and services produced
during a particular period
4. Which of the following would not be included in a national GDP calculation?
a. apples
b. used cars
c. music
d. piano lessons - b. used cars
5. Which of the following is omitted from the calculation of GDP?
a. the underground economy
, b. home production
c. quality improvement
d. leisure activity
6. Government purchases include:
a. payments for services of government officials
b. social security payments
c. purchases of vehicles by government agencies
d. pension payments to retired military personnel
7. payments for services of government officials
a. the underground economy
b.
home production
8. c. quality improvement
9. d. leisure activity
10. Transfer payments are:
a. included in government purchases but excluded from GDP.
b. excluded from government purchases and GDP
c. excluded from GDP but included in government purchases.
d. included in government purchases and in GDP - b. excluded from government
purchases and GDP
11. Gross private domestic investment includes purchases of:
a. new factory equipment
b. new residential housing
c. company stocks
d. government T-bills - a. new factory equipment
12. b. new residential housing
13. In the long run, a country's material standard of living is determined by:
, a. its output relative to its population
b. the average level of prices and the average income of its population.
c. how much its environment is preserved
d. the amount of money supply relative to its population - a. its output relative to
its population
14. A measure of the value of production that corrects for inflation is
a. value added
b. nominal GDP
c. real GDP
d. the CPI - c. real GDP
15. Which of the following exists when price inflation is both high and accelerating?
a. debt deflation
b. price stability
c. hyperinflation
d. underinflation - c. hyperinflation
16. The cost of a basket of flowers in 2022 was $14.68. The cost of the same basket in 2021
was $13.76. If you were to construct a flower-lover's price index using 2021 as the base
year, the value for 2022 would be:
a. 93.7
b. 146.8
c. 100
d. 106.7 - d. 106.7
17. If this year's nominal GDP is $4 billion and real GDP is $3 billion, then the implicit price
deflator must be:
a. 125
b. 66
c. 133
d. 100 - c. 133
Graded A+
1. GDP is a measure of:
a. the total prices of goods available in markets
b. all resources available in a nation
c. a nation's money supply
d. a nation's total production - d. a nation's total production
2. What is included in GDP?
a. only newly produced services
b. only newly produced goods
c. all goods and services sold
d. only newly produced goods and services - d. only newly produced goods and
services
3. Which of the following best describes what GDP is a measurement of?
a. the sum total incomes of every citizen during a particular period
b. the market value of the final goods and services produced during a particular
period
c. the profit gained over the course of a particular period
d. the average profit margin for all final goods and services produced during a
particular period - b. the market value of the final goods and services produced
during a particular period
4. Which of the following would not be included in a national GDP calculation?
a. apples
b. used cars
c. music
d. piano lessons - b. used cars
5. Which of the following is omitted from the calculation of GDP?
a. the underground economy
, b. home production
c. quality improvement
d. leisure activity
6. Government purchases include:
a. payments for services of government officials
b. social security payments
c. purchases of vehicles by government agencies
d. pension payments to retired military personnel
7. payments for services of government officials
a. the underground economy
b.
home production
8. c. quality improvement
9. d. leisure activity
10. Transfer payments are:
a. included in government purchases but excluded from GDP.
b. excluded from government purchases and GDP
c. excluded from GDP but included in government purchases.
d. included in government purchases and in GDP - b. excluded from government
purchases and GDP
11. Gross private domestic investment includes purchases of:
a. new factory equipment
b. new residential housing
c. company stocks
d. government T-bills - a. new factory equipment
12. b. new residential housing
13. In the long run, a country's material standard of living is determined by:
, a. its output relative to its population
b. the average level of prices and the average income of its population.
c. how much its environment is preserved
d. the amount of money supply relative to its population - a. its output relative to
its population
14. A measure of the value of production that corrects for inflation is
a. value added
b. nominal GDP
c. real GDP
d. the CPI - c. real GDP
15. Which of the following exists when price inflation is both high and accelerating?
a. debt deflation
b. price stability
c. hyperinflation
d. underinflation - c. hyperinflation
16. The cost of a basket of flowers in 2022 was $14.68. The cost of the same basket in 2021
was $13.76. If you were to construct a flower-lover's price index using 2021 as the base
year, the value for 2022 would be:
a. 93.7
b. 146.8
c. 100
d. 106.7 - d. 106.7
17. If this year's nominal GDP is $4 billion and real GDP is $3 billion, then the implicit price
deflator must be:
a. 125
b. 66
c. 133
d. 100 - c. 133
