ECON 104 Bille Goffe Final Exam
Questions Reviewed And Revised
With Correct Answers
1) If nominal GDP is growing more quickly than real GDP, which
is most likely?
A. rising prices
B. falling prices
C. an expansion
D. a recession - ANSWER A. rising prices
2) Which two are most likely to go together? ___ inflation and
___ in the GDP deflator.
A. High, small increases
B. High, large increases
C. Low, small decreases
D. Low, large decreases - ANSWER B. High, large increases
3) Which of the following would NOT be investment?
A. a baking company buying a new oven
,B. a car dealership adding to the number of cars it has to sell to
its customers
C. a just-completed home is sold to a household
D. a household buying stock in a company - ANSWER D. a
household buying stock in a company
4) Say that after graduation you live in Manhattan and you
walk to work. Then, you got a raise and you take a taxi most
days. As a result, GDP would most likely ___.
A. fall
B. be unchanged
C. rise - ANSWER C. rise
5) Which is largest in an advanced economy like the U.S.?
A. GDP measured by income
B. GDP measured by spending
C. GDP measured by production
D. the previous three have the same value - ANSWER D.
the previous three have the same value
6) Since 1970, real GDP ___ in most years.
,A. fell
B. stayed the same
C. rose - ANSWER C. rose
7) The best example of a transfer payment would be ___.
A. government investment
B. government purchases
C. government giving funds to the unemployed
D. the government paying its workers - ANSWER C.
government giving funds to the unemployed
8) Which of the following items would be in GDP?
A. the value of pollution emitted from a factory
B. the building that a company has used for its headquarters for
a decade
C. a household purchasing tax advice from an accountant
D. a single person cleaning their own clothes - ANSWER C.
a household purchasing tax advice from an accountant
9) How is leisure counted in GDP?
A. as consumption
, B. as investment
C. it is not counted in GDP
D. as an intermediate good - ANSWER C. it is not counted
in GDP
10) The best example of a capital good would be ___.
A. the generator in a power plant that makes electricity
B. a new lawn mower owned by Mr. Goffe
C. aluminum that is transformed into an airplane
D. funds that a company borrows from a bank - ANSWER A.
the generator in a power plant that makes electricity
The inflation rate is best described as ___.
A. a growing economy
B. nominal GDP
C. an expansion
D. rising prices - ANSWER D. rising prices
Which of the following items would NOT be in U.S. GDP this
quarter?
A. a dress produced and sold in Dallas, Texas this month
Questions Reviewed And Revised
With Correct Answers
1) If nominal GDP is growing more quickly than real GDP, which
is most likely?
A. rising prices
B. falling prices
C. an expansion
D. a recession - ANSWER A. rising prices
2) Which two are most likely to go together? ___ inflation and
___ in the GDP deflator.
A. High, small increases
B. High, large increases
C. Low, small decreases
D. Low, large decreases - ANSWER B. High, large increases
3) Which of the following would NOT be investment?
A. a baking company buying a new oven
,B. a car dealership adding to the number of cars it has to sell to
its customers
C. a just-completed home is sold to a household
D. a household buying stock in a company - ANSWER D. a
household buying stock in a company
4) Say that after graduation you live in Manhattan and you
walk to work. Then, you got a raise and you take a taxi most
days. As a result, GDP would most likely ___.
A. fall
B. be unchanged
C. rise - ANSWER C. rise
5) Which is largest in an advanced economy like the U.S.?
A. GDP measured by income
B. GDP measured by spending
C. GDP measured by production
D. the previous three have the same value - ANSWER D.
the previous three have the same value
6) Since 1970, real GDP ___ in most years.
,A. fell
B. stayed the same
C. rose - ANSWER C. rose
7) The best example of a transfer payment would be ___.
A. government investment
B. government purchases
C. government giving funds to the unemployed
D. the government paying its workers - ANSWER C.
government giving funds to the unemployed
8) Which of the following items would be in GDP?
A. the value of pollution emitted from a factory
B. the building that a company has used for its headquarters for
a decade
C. a household purchasing tax advice from an accountant
D. a single person cleaning their own clothes - ANSWER C.
a household purchasing tax advice from an accountant
9) How is leisure counted in GDP?
A. as consumption
, B. as investment
C. it is not counted in GDP
D. as an intermediate good - ANSWER C. it is not counted
in GDP
10) The best example of a capital good would be ___.
A. the generator in a power plant that makes electricity
B. a new lawn mower owned by Mr. Goffe
C. aluminum that is transformed into an airplane
D. funds that a company borrows from a bank - ANSWER A.
the generator in a power plant that makes electricity
The inflation rate is best described as ___.
A. a growing economy
B. nominal GDP
C. an expansion
D. rising prices - ANSWER D. rising prices
Which of the following items would NOT be in U.S. GDP this
quarter?
A. a dress produced and sold in Dallas, Texas this month
