ECO 201 Quizzes (6, 7, 11, 8) Questions and Answers Solved Correctly
Which of the following is a topic of macroeconomics? - Answers the number of unemployed people in
the economy
Which of the following is a sign that an economy is in poor health? - Answers a prolonged decline in
total output
Suppose a particular model of smartphone contains $150 worth of raw materials and requires $175
worth of labor to produce. One day, one of these phones sells for $400. The seller would have been
willing to sell it for as little as $375, whereas the buyer would have been willing to pay as much as $425.
Which dollar amount would be used to calculate this transaction's contribution to gross domestic
product (GDP)? - Answers $400
Gross domestic product (GDP) is most often measured by the - Answers year
To determine living standards for the average person, we calculate - Answers per capita GDP.
Consider the data to answer the following questions:
Which country has the lowest average living standard? - Answers D
The business cycle measures - Answers short-run fluctuations in economic activity.
The phase of the business cycle where the economy is growing faster than usual is called - Answers an
economic expansion.
Consider the following data, which shows the quantities and prices of two goods produced in the
economy, to answer the following questions:
The market value of cell phones is - Answers $500 million
Assuming these are the only two goods produced in the economy, what is the value of the gross
domestic product (GDP)? - Answers $750 million
Which of the following is a service? - Answers a visit to your doctor
To avoid double counting when calculating gross domestic product (GDP), it is best to count - Answers
the value added at each stage of production.
A company produces a computer. It pays $100 for the keyboard and outer case, $200 for the internal
hardware, and $100 for the software. It sells the computer to a consumer for $500. The contribution to
gross domestic product (GDP) is - Answers $500.
Goods that firms repackage with other goods for sale at a later stage are - Answers intermediate goods.
, You bought a popular video game last year for $75 and sold it to a store this year for $20. The store sells
the used game to a consumer for $40. When you sell your game to the store, how is this included in
gross domestic product (GDP)? - Answers This does not count in GDP.
The four major expenditure categories of gross domestic product (GDP) are - Answers consumption,
investment, government purchases, and net exports.
When George buys a new computer for his business, it is included in gross domestic product (GDP) as
________, and when he buys a new computer for use at home, it counts as ________. - Answers
investment; consumption
The state of Florida spends $3 million to repave highways. This is included in the ________ category of
gross domestic product (GDP). - Answers government purchases
Consider the following data, where gross domestic product (GDP) values are measured in millions of
dollars, to answer the following questions:
What is the value of real gross domestic product (GDP) in 2010? Round to the nearest second decimal. -
Answers $520.00 million
Consider the following data, where gross domestic product (GDP) values are measured in millions of
dollars, to answer the following questions:
What is the value of nominal gross domestic product (GDP) in 2009? - Answers $500 million
Consider the following data that gives the quantity produced and unit price for three different goods
across two different years to answer the following questions. Assume that the base year is 2015.
What was the real gross domestic product (GDP) in 2016? - Answers $3,600
Real gross domestic product (GDP) can be calculated as - Answers (nominal GDP) / (the GDP deflator) ×
100.
Nominal gross domestic product (GDP) increases if - Answers current prices or current quantities
increase.
Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-
run trend of real GDP to answer the following questions:
In what quarter did this economy enter a recession? - Answers quarter 7
A shortcoming of using real gross domestic product (GDP) as a measure of economic well-being is that it
does not measure changes in - Answers environmental quality.
Official unemployment is identified as when a worker - Answers who is not currently employed is
searching for a job unsuccessfully.
Which of the following is a topic of macroeconomics? - Answers the number of unemployed people in
the economy
Which of the following is a sign that an economy is in poor health? - Answers a prolonged decline in
total output
Suppose a particular model of smartphone contains $150 worth of raw materials and requires $175
worth of labor to produce. One day, one of these phones sells for $400. The seller would have been
willing to sell it for as little as $375, whereas the buyer would have been willing to pay as much as $425.
Which dollar amount would be used to calculate this transaction's contribution to gross domestic
product (GDP)? - Answers $400
Gross domestic product (GDP) is most often measured by the - Answers year
To determine living standards for the average person, we calculate - Answers per capita GDP.
Consider the data to answer the following questions:
Which country has the lowest average living standard? - Answers D
The business cycle measures - Answers short-run fluctuations in economic activity.
The phase of the business cycle where the economy is growing faster than usual is called - Answers an
economic expansion.
Consider the following data, which shows the quantities and prices of two goods produced in the
economy, to answer the following questions:
The market value of cell phones is - Answers $500 million
Assuming these are the only two goods produced in the economy, what is the value of the gross
domestic product (GDP)? - Answers $750 million
Which of the following is a service? - Answers a visit to your doctor
To avoid double counting when calculating gross domestic product (GDP), it is best to count - Answers
the value added at each stage of production.
A company produces a computer. It pays $100 for the keyboard and outer case, $200 for the internal
hardware, and $100 for the software. It sells the computer to a consumer for $500. The contribution to
gross domestic product (GDP) is - Answers $500.
Goods that firms repackage with other goods for sale at a later stage are - Answers intermediate goods.
, You bought a popular video game last year for $75 and sold it to a store this year for $20. The store sells
the used game to a consumer for $40. When you sell your game to the store, how is this included in
gross domestic product (GDP)? - Answers This does not count in GDP.
The four major expenditure categories of gross domestic product (GDP) are - Answers consumption,
investment, government purchases, and net exports.
When George buys a new computer for his business, it is included in gross domestic product (GDP) as
________, and when he buys a new computer for use at home, it counts as ________. - Answers
investment; consumption
The state of Florida spends $3 million to repave highways. This is included in the ________ category of
gross domestic product (GDP). - Answers government purchases
Consider the following data, where gross domestic product (GDP) values are measured in millions of
dollars, to answer the following questions:
What is the value of real gross domestic product (GDP) in 2010? Round to the nearest second decimal. -
Answers $520.00 million
Consider the following data, where gross domestic product (GDP) values are measured in millions of
dollars, to answer the following questions:
What is the value of nominal gross domestic product (GDP) in 2009? - Answers $500 million
Consider the following data that gives the quantity produced and unit price for three different goods
across two different years to answer the following questions. Assume that the base year is 2015.
What was the real gross domestic product (GDP) in 2016? - Answers $3,600
Real gross domestic product (GDP) can be calculated as - Answers (nominal GDP) / (the GDP deflator) ×
100.
Nominal gross domestic product (GDP) increases if - Answers current prices or current quantities
increase.
Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-
run trend of real GDP to answer the following questions:
In what quarter did this economy enter a recession? - Answers quarter 7
A shortcoming of using real gross domestic product (GDP) as a measure of economic well-being is that it
does not measure changes in - Answers environmental quality.
Official unemployment is identified as when a worker - Answers who is not currently employed is
searching for a job unsuccessfully.
