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WEEK 1 PRACTICE MEASURING OUTPUT AND INCOME PART 1I |
LATEST UPDATED | ACTUAL EXAM QUESTIONS WITH SOLUTIONS |
100% RATED CORRECT | 100% VERFIED SOLTIONS | ALREADY
GRADED A+
Suppose at the beginning of the year, there are ten cranes in the economy. During the course of
the year, two cranes wear out and are replaced. At the same time, net investment is equal to two
cranes. Calculate gross investment from the given information. - (ANSWER)Gross investment is
equal to four cranes.
Suppose that expenditures by the federal government are $35 billion, expenditures by the state
governments are $50 billion, and expenditures by the local governments are $25 billion.
Government purchases of goods and services equal $ (BLANK) billion. - (ANSWER)110
Increases in (BLANK) GDP represent true increases in production. - (ANSWER)Real
Gross domestic product is equal to the total sum of four categories: - (ANSWER)Consumption,
gross investment, government purchases, and net exports
To calculate (BLANK)(BLANK),multiply the quantities of each good produced in each year by
base-year prices. - (ANSWER)real GDP
The expenditures or the dollar value of all the final goods and services that are produced during a
fixed period of time are: - (ANSWER)nominal gross domestic product.
(BLANK) GDP measures the constant dollar value of all final goods and services produced in a
country during a fixed period of time. - (ANSWER)real
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Suppose at the beginning of the year there are ten cranes in the economy. During the course of
the year, two cranes wear out and are replaced. At the same time, net investment is equal to two
cranes. Gross investment is equal to (BLANK) cranes. - (ANSWER)4
Using (BLANNK) (one word) GDP provides us with a better picture of the economy because it
allows us to see what is happening to the amount of production over time without price changes
skewing our calculation. - (ANSWER)real
If nominal GDP is calculated using (BLANK) pricing and (BLANK) output, you cannot really
know what causes nominal GDP to change from one year to the next. -
(ANSWER)Current/Existing, prevalent
Real GDP uses prices from a base year also referred to as (BLANK) prices. - (ANSWER)base
One problem with developing countries is that measures of GDP often underestimate the amount
of production that actually occurs. Why is this true? - (ANSWER)Developing countries often
have relatively large informal markets.
In the presence of inflation, why do we use real GDP instead of nominal GDP? -
(ANSWER)Real GDP adjusts for inflation.
Economic activity in which goods and services are exchanged for payment but are not counted as
part of GDP are exchanged in the (BLANK) economy. - (ANSWER)underground
Economists often make distinctions between nominal units and real units. (BLANK) refers to a
certain dollar amount, whereas (BLANK) denotes a quantity of goods and services. -
(ANSWER)nominal, real
GDP cannot account for: - (ANSWER)intangibles such as happiness.
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To calculate real GDP, multiply the (BLANK) of each good produced in each year by base-year
(BLANK) - (ANSWER)quantity, price
The value of leisure time spent with family, friends, or just relaxing on the couch does not have
any physical presence and is thus considered intangible. Thus it is (BLANK) (excluded/included)
while calculating GDP. (Remember enter only one word in the blank.) (Choose your answer from
the options given in the brackets) - (ANSWER)excluded
Which of the following is true of real GDP? - (ANSWER)It tells us how much output was
produced in a country.
It tells us whether more output was produced in one year relative to another.
GDP is not a perfect way to measure economic activity because: - (ANSWER)it does not account
for changes in product quality.
goods and services that are not bought and sold in a market are not included in GDP.
it ignores activities that occur outside formal markets.
it does not account for the depletion of natural resources.
it cannot measure the value of leisure time.
Goods and services that are produced by a household and are not exchanged in a market are
known as (BLANK) production. - (ANSWER)home
All of the following are counted as part of GDP except: - (ANSWER)a farmer growing their own
food.
WEEK 1 PRACTICE MEASURING OUTPUT AND INCOME PART 1I |
LATEST UPDATED | ACTUAL EXAM QUESTIONS WITH SOLUTIONS |
100% RATED CORRECT | 100% VERFIED SOLTIONS | ALREADY
GRADED A+
Suppose at the beginning of the year, there are ten cranes in the economy. During the course of
the year, two cranes wear out and are replaced. At the same time, net investment is equal to two
cranes. Calculate gross investment from the given information. - (ANSWER)Gross investment is
equal to four cranes.
Suppose that expenditures by the federal government are $35 billion, expenditures by the state
governments are $50 billion, and expenditures by the local governments are $25 billion.
Government purchases of goods and services equal $ (BLANK) billion. - (ANSWER)110
Increases in (BLANK) GDP represent true increases in production. - (ANSWER)Real
Gross domestic product is equal to the total sum of four categories: - (ANSWER)Consumption,
gross investment, government purchases, and net exports
To calculate (BLANK)(BLANK),multiply the quantities of each good produced in each year by
base-year prices. - (ANSWER)real GDP
The expenditures or the dollar value of all the final goods and services that are produced during a
fixed period of time are: - (ANSWER)nominal gross domestic product.
(BLANK) GDP measures the constant dollar value of all final goods and services produced in a
country during a fixed period of time. - (ANSWER)real
,2|Page
Suppose at the beginning of the year there are ten cranes in the economy. During the course of
the year, two cranes wear out and are replaced. At the same time, net investment is equal to two
cranes. Gross investment is equal to (BLANK) cranes. - (ANSWER)4
Using (BLANNK) (one word) GDP provides us with a better picture of the economy because it
allows us to see what is happening to the amount of production over time without price changes
skewing our calculation. - (ANSWER)real
If nominal GDP is calculated using (BLANK) pricing and (BLANK) output, you cannot really
know what causes nominal GDP to change from one year to the next. -
(ANSWER)Current/Existing, prevalent
Real GDP uses prices from a base year also referred to as (BLANK) prices. - (ANSWER)base
One problem with developing countries is that measures of GDP often underestimate the amount
of production that actually occurs. Why is this true? - (ANSWER)Developing countries often
have relatively large informal markets.
In the presence of inflation, why do we use real GDP instead of nominal GDP? -
(ANSWER)Real GDP adjusts for inflation.
Economic activity in which goods and services are exchanged for payment but are not counted as
part of GDP are exchanged in the (BLANK) economy. - (ANSWER)underground
Economists often make distinctions between nominal units and real units. (BLANK) refers to a
certain dollar amount, whereas (BLANK) denotes a quantity of goods and services. -
(ANSWER)nominal, real
GDP cannot account for: - (ANSWER)intangibles such as happiness.
, 3|Page
To calculate real GDP, multiply the (BLANK) of each good produced in each year by base-year
(BLANK) - (ANSWER)quantity, price
The value of leisure time spent with family, friends, or just relaxing on the couch does not have
any physical presence and is thus considered intangible. Thus it is (BLANK) (excluded/included)
while calculating GDP. (Remember enter only one word in the blank.) (Choose your answer from
the options given in the brackets) - (ANSWER)excluded
Which of the following is true of real GDP? - (ANSWER)It tells us how much output was
produced in a country.
It tells us whether more output was produced in one year relative to another.
GDP is not a perfect way to measure economic activity because: - (ANSWER)it does not account
for changes in product quality.
goods and services that are not bought and sold in a market are not included in GDP.
it ignores activities that occur outside formal markets.
it does not account for the depletion of natural resources.
it cannot measure the value of leisure time.
Goods and services that are produced by a household and are not exchanged in a market are
known as (BLANK) production. - (ANSWER)home
All of the following are counted as part of GDP except: - (ANSWER)a farmer growing their own
food.
