ECON 111 Exam 3 (Modules) CORRECTLY
ANSWERED!
What are intermediate goods? correct answers Goods used in the production of final goods
and services.
A general rule of thumb says that a country has experienced a recession if: correct answers
Real GDP has declined for two consecutive quarters.
What does GDP per capita indicate about a particular country? correct answers Average
standard of living.
Real GDP is: correct answers Nominal GDP adjusted for inflation.
Which of the following would not be counted in GDP? correct answers A gadget produced in
Mexico by a U.S. company.
Which of the following is a final good or service? correct answers -Sugar sold to your mother
to be used to bake your favorite cookies.
-Flour sold to your grandmother to be used to bake a birthday cake.
Which is the most accurate indicator of economic output over time? correct answers Real
GDP
GDP measures the: correct answers Total market value of all final goods and services
produced in an economy in a given year.
The countries of Sigma and Kappa both have a GDP of $25 Billion. The population of Sigma
is 1 million. The population of Kappa is 2 million. Which country has a higher standard of
living? correct answers Sigma
Since 1950, the growth rate of the U.S. economy, as measured by real GDP, has averaged
about: correct answers 3.3 percent
Automatic stabilizers are: correct answers provisions in a government's budget that cause
government spending to rise (fall) or taxes to fall (rise) automatically—without legislation—
when GDP falls (rises).
If the growth of real GDP is sluggish—that is, below trend—in order to stimulate the
economy policymakers may choose to: correct answers increase the money supply.
Which of the following is an example of an automatic stabilizer? correct answers
unemployment insurance
The country of Duoland has a GDP of $400,000 and the country of Unoland has a GDP of
$100,000. The standard of living in Duoland: correct answers cannot be determined from the
information provided.
ANSWERED!
What are intermediate goods? correct answers Goods used in the production of final goods
and services.
A general rule of thumb says that a country has experienced a recession if: correct answers
Real GDP has declined for two consecutive quarters.
What does GDP per capita indicate about a particular country? correct answers Average
standard of living.
Real GDP is: correct answers Nominal GDP adjusted for inflation.
Which of the following would not be counted in GDP? correct answers A gadget produced in
Mexico by a U.S. company.
Which of the following is a final good or service? correct answers -Sugar sold to your mother
to be used to bake your favorite cookies.
-Flour sold to your grandmother to be used to bake a birthday cake.
Which is the most accurate indicator of economic output over time? correct answers Real
GDP
GDP measures the: correct answers Total market value of all final goods and services
produced in an economy in a given year.
The countries of Sigma and Kappa both have a GDP of $25 Billion. The population of Sigma
is 1 million. The population of Kappa is 2 million. Which country has a higher standard of
living? correct answers Sigma
Since 1950, the growth rate of the U.S. economy, as measured by real GDP, has averaged
about: correct answers 3.3 percent
Automatic stabilizers are: correct answers provisions in a government's budget that cause
government spending to rise (fall) or taxes to fall (rise) automatically—without legislation—
when GDP falls (rises).
If the growth of real GDP is sluggish—that is, below trend—in order to stimulate the
economy policymakers may choose to: correct answers increase the money supply.
Which of the following is an example of an automatic stabilizer? correct answers
unemployment insurance
The country of Duoland has a GDP of $400,000 and the country of Unoland has a GDP of
$100,000. The standard of living in Duoland: correct answers cannot be determined from the
information provided.
