ECON 2152 FINAL EXAM TESTBANK QUESTIONS AND
CORRECT ANSWERS
Correct 117
Incorrect 00
1 of 117
Term
28) In using the expenditure approach to GDP, consumption
A) includes consumer durables, semi-durable goods, nondurable
goods, and services.
B) includes houses, consumer durables, nondurable goods, and
services.
C) includes residential investment, nondurable goods, and services.
D) excludes all purchases by business firms.
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D C
A B
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2 of 117
Term
63) The consumer price index is 132 in 2004 and 112 in 2003 when the
base year is 1997. The 2004 annual inflation rate, using 2003 as a base
year, is
A) 17.8 percent.
B) 20 percent.
C) 12 percent.
D) unknown, as there is not sufficient information.
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B D
A C
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3 of 117
Term
19) Inventories are
A) included in the measurement of capital goods.
,B) included in the measurements of intermediate goods.
C) fully included in annual measurements of GDP.
D) included in measurements of GDP only if they have changed from
the preceding year.
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D B
A C
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4 of 117
Term
29) In the expenditure approach to GDP, which of the following would
be excluded from measurements of GDP?
A) government payments for goods produced by foreign firms
B) government payments for goods produced by firms owned by state
or local governments
C) government payments for welfare
D) All government payments are included in GDP.
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C D
, B A
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5 of 117
Term
26) The process of adding together individual economic variables to
obtain economywide totals is called
A) macroeconomics.
B) aggregation.
C) agglomeration.
D) data development.
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C D
A B
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6 of 117
Term
CORRECT ANSWERS
Correct 117
Incorrect 00
1 of 117
Term
28) In using the expenditure approach to GDP, consumption
A) includes consumer durables, semi-durable goods, nondurable
goods, and services.
B) includes houses, consumer durables, nondurable goods, and
services.
C) includes residential investment, nondurable goods, and services.
D) excludes all purchases by business firms.
Give this one a try later!
D C
A B
, Don't know?
2 of 117
Term
63) The consumer price index is 132 in 2004 and 112 in 2003 when the
base year is 1997. The 2004 annual inflation rate, using 2003 as a base
year, is
A) 17.8 percent.
B) 20 percent.
C) 12 percent.
D) unknown, as there is not sufficient information.
Give this one a try later!
B D
A C
Don't know?
3 of 117
Term
19) Inventories are
A) included in the measurement of capital goods.
,B) included in the measurements of intermediate goods.
C) fully included in annual measurements of GDP.
D) included in measurements of GDP only if they have changed from
the preceding year.
Give this one a try later!
D B
A C
Don't know?
4 of 117
Term
29) In the expenditure approach to GDP, which of the following would
be excluded from measurements of GDP?
A) government payments for goods produced by foreign firms
B) government payments for goods produced by firms owned by state
or local governments
C) government payments for welfare
D) All government payments are included in GDP.
Give this one a try later!
C D
, B A
Don't know?
5 of 117
Term
26) The process of adding together individual economic variables to
obtain economywide totals is called
A) macroeconomics.
B) aggregation.
C) agglomeration.
D) data development.
Give this one a try later!
C D
A B
Don't know?
6 of 117
Term
