EC 302 review Exam Questions with
Answers 100% PASS
Which of the following is true?
a.
GDP is a measure of total spending and total income
b.
GDP = C+I+G+ net exports
c.
GDP = C+S(private)+T
d.
All of the above - CORRECT ANSWER-All of the above
If a consumer in the U.S. purchases a Lamborghini produced in Italy for
$1,800,000
a.
,U.S. GDP does not change, since U.S. consumption increases by $1,800,000 and
U.S. imports increase by $1,800,000
b.
U.S. GDP decreases by $1,800,000, since U.S. imports increase by $1,800,000
c.
U.S. GDP increases by $1,800,000, since U.S. consumption increases by $1,800,000
d.
U.S. GDP decreases by $1,800,000, since U.S. consumption decreases by
$1,800,000 - CORRECT ANSWER-U.S. GDP does not change, since U.S.
consumption increases by $1,800,000 and U.S. imports increase by $1,800,000
A BMW produced in South Carolina
a.
Increases U.S. GDP and German GNP
b.
Increases German GDP and U.S. GNP
c.
Increases German GNP but not U.S. GDP
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,d.
Increases German GDP but not U.S. GNP - CORRECT ANSWER-Increases U.S.
GDP and German GNP
Suppose in the current year, an economy produces 50 apples and 20 oranges.
Currently an apple sells for $1, an orange sells for $2.Suppose next year, an
economy produces 60 apples and 30 oranges. Next year an apple sells for $2, an
orange sells for $3.
Suppose the current year is the base year for statistical calculations, meaning that
$90 would be the value for both nominal and real GDP in the current year.
Next year, the value for nominal GDP is _____, and the value for real GDP is
____.
:a.
$160, $90
b.
$90, $160
c.
$120, $210
d.
$210, $120 - CORRECT ANSWER-$210, $120
, During the Great Depression in 1933, President Roosevelt's annual salary was
$75,000. Today, a president has an annual salary of $400,000. Suppose the CPI in
1933 was 100 (base year), and today's CPI is 900. Which of the following is true?
a.
The current president's nominal and real salary is greater than President
Roosevelt's
b.
President Roosevelt's nominal and real salary is greater than the current president
c.
While President Roosevelt's nominal salary is greater than the current president,
the current president's real salary is greater than President Roosevelt's
d.
While the current president's nominal salary is greater than President Roosevelt's,
President Roosevelt's real salary is greater than the current president - CORRECT
ANSWER-While the current president's nominal salary is greater than President
Roosevelt's, President Roosevelt's real salary is greater than the current president
Which of the following is preferred by the Federal Reserve when measuring
inflation in the economy to achieve its target goal for inflation?
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Answers 100% PASS
Which of the following is true?
a.
GDP is a measure of total spending and total income
b.
GDP = C+I+G+ net exports
c.
GDP = C+S(private)+T
d.
All of the above - CORRECT ANSWER-All of the above
If a consumer in the U.S. purchases a Lamborghini produced in Italy for
$1,800,000
a.
,U.S. GDP does not change, since U.S. consumption increases by $1,800,000 and
U.S. imports increase by $1,800,000
b.
U.S. GDP decreases by $1,800,000, since U.S. imports increase by $1,800,000
c.
U.S. GDP increases by $1,800,000, since U.S. consumption increases by $1,800,000
d.
U.S. GDP decreases by $1,800,000, since U.S. consumption decreases by
$1,800,000 - CORRECT ANSWER-U.S. GDP does not change, since U.S.
consumption increases by $1,800,000 and U.S. imports increase by $1,800,000
A BMW produced in South Carolina
a.
Increases U.S. GDP and German GNP
b.
Increases German GDP and U.S. GNP
c.
Increases German GNP but not U.S. GDP
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
,d.
Increases German GDP but not U.S. GNP - CORRECT ANSWER-Increases U.S.
GDP and German GNP
Suppose in the current year, an economy produces 50 apples and 20 oranges.
Currently an apple sells for $1, an orange sells for $2.Suppose next year, an
economy produces 60 apples and 30 oranges. Next year an apple sells for $2, an
orange sells for $3.
Suppose the current year is the base year for statistical calculations, meaning that
$90 would be the value for both nominal and real GDP in the current year.
Next year, the value for nominal GDP is _____, and the value for real GDP is
____.
:a.
$160, $90
b.
$90, $160
c.
$120, $210
d.
$210, $120 - CORRECT ANSWER-$210, $120
, During the Great Depression in 1933, President Roosevelt's annual salary was
$75,000. Today, a president has an annual salary of $400,000. Suppose the CPI in
1933 was 100 (base year), and today's CPI is 900. Which of the following is true?
a.
The current president's nominal and real salary is greater than President
Roosevelt's
b.
President Roosevelt's nominal and real salary is greater than the current president
c.
While President Roosevelt's nominal salary is greater than the current president,
the current president's real salary is greater than President Roosevelt's
d.
While the current president's nominal salary is greater than President Roosevelt's,
President Roosevelt's real salary is greater than the current president - CORRECT
ANSWER-While the current president's nominal salary is greater than President
Roosevelt's, President Roosevelt's real salary is greater than the current president
Which of the following is preferred by the Federal Reserve when measuring
inflation in the economy to achieve its target goal for inflation?
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
