2026/2027
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EC 302 review Exam Questions
with Answers| Verified
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 Ans: 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.
, 2026/2027
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U.S. GDP decreases by $1,800,000, since U.S. consumption decreases
by $1,800,000 Ans: 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
d.
Increases German GDP but not U.S. GNP Ans: 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
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c.
$120, $210
d.
$210, $120 Ans: $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 Ans: 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?
, 2026/2027
Gmail:
a.
Consumer Price Index
b.
Personal Consumption Expenditures Index
c.
GDP Deflator Ans: Personal Consumption Expenditures Index
Which of the following would be the least likely to be used by
economists as a measure of inflation?
:a.
Consumer Price Index
b.
Personal Consumption Expenditures Index
c.
GDP Deflator Ans: GDP Deflator
Which of the following best describes core inflation?
a.
an inflation measure of all urban households
b.
an inflation measure of all domestic purchases
c.
an inflation measure of goods with inelastic demand
d.
Gmail:
EC 302 review Exam Questions
with Answers| Verified
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 Ans: 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.
, 2026/2027
Gmail:
U.S. GDP decreases by $1,800,000, since U.S. consumption decreases
by $1,800,000 Ans: 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
d.
Increases German GDP but not U.S. GNP Ans: 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
, 2026/2027
Gmail:
c.
$120, $210
d.
$210, $120 Ans: $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 Ans: 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?
, 2026/2027
Gmail:
a.
Consumer Price Index
b.
Personal Consumption Expenditures Index
c.
GDP Deflator Ans: Personal Consumption Expenditures Index
Which of the following would be the least likely to be used by
economists as a measure of inflation?
:a.
Consumer Price Index
b.
Personal Consumption Expenditures Index
c.
GDP Deflator Ans: GDP Deflator
Which of the following best describes core inflation?
a.
an inflation measure of all urban households
b.
an inflation measure of all domestic purchases
c.
an inflation measure of goods with inelastic demand
d.
