MACRO TEST 3
According to the data set below, what was the GDP per capita in the United States in 2016? Round your answer to the nearest whole dollar.
GDPpercapita=GDP / population For the United States in 2016, it is $18,624,500,000,000 / 323,405,935≈$57,589
Which of the following explains the impact of increasing girls' education in low-income countries?
Girls in low-income countries who receive more education have healthier, better-educated children. Investing in education for girls in low-income countries increases economic growth.
Using the table below, determine the growth in nominal GDP from 1980 to 2000. Year Nominal GDP 1970 $1,000 1980 $1,250 1990 $1,150 2000 $1,500
To find growth in nominal GDP, we apply the formula for percentage change: 2000 nominal GDP - 1980 nominal GDP1980 nominal GDP×100=% change 1,500−1,2501,250×100=20%
True or false?We call the economy's movement from peak to trough and trough to peak the depression cycle.
False
Fran is from Country B. Use the data below to help Fran discover the GDP per capita in her home country. Note that population is expressed in millions of people, whereas Real GDP is expressed in billions of U.S. dollars. Country Population(millions) Real GDP A 310 $1,240 B 595 $29,155 C 1025 $3,570 D 1020 $35,7000
$49,000
If total GDP for this economy is $17.04 trillion for the year shown in the table below, what was the total amount of government spending? Round your answer to the nearest hundredth. Components of GDP on the Demand Side(in trillions of dollars) Consumption 11.61 Investment 3.11 Government spending ? Exports 2.71 Imports 2.84 Total GDP 17.04
GDP=Consumption+Investment+Government spending+Trade balance GDP=C+I+G+(X−M) For this economy, Government spending=17.04−11.61−3.11−(2.71−2.84)=$2.45 trillion
If total GDP for this economy is $14.68 trillion for the year shown in the table below, what was the country's trade balance? Round your answer to the nearest hundredth. (If appropriate, include a negative sign in your answer.) Components of GDP on the Demand Side(in trillions of dollars) Consumption 9.45 Investment 2.75 Government spending 3.01 Exports ? Imports ? Total GDP 14.68
GDP=Consumption+Investment+Government spending+Trade balance Trade balance=(Exports−Imports)=(X−M) For this economy, Trade balance=$14.68−$9.45−$2.75−$3.01=−$0.53 trillion Since the trade balance for this economy is negative, this country is facing a trade deficit.
If total GDP for this economy is $18.10 trillion for the year shown in the table below, what was the country's trade balance? Round your answer to the nearest hundredth if necessary. Components of GDP on the Demand Side(in trillions of dollars) Consumption 12.13 Investment 2.82 Government spending 3.15 Exports ? Imports ? Total GDP 18.10
GDP=Consumption+Investment+Government spending+Trade balance Trade balance=(Exports−Imports)=(X−M) For this economy, Trade balance=18.10−12.13−2.82−3.15=$0 trillion
Using the information below, determine what percentage of total GDP for this country consists of services. Round your answer to the nearest tenth. Components of GDP on the Supply Side(in trillions of dollars) Durable goods 2.98 Nondurable goods 2.51 Services 10.98 Structures 1.92 Change in inventories 0.10 Total ?
GDP=Durable goods+Nondurable goods+Services+Structures+Change in inventories For this economy, GDP=2.98+2.51+10.98+1.92+0.10=$18.49 trillion To find the percentage of services, 10.9818.49×100=59.4%
Calculate total GDP for this economy given the following components of supply. Round your answer to the nearest tenth. Components of GDP on the Supply Side(in trillions of dollars) Durable goods 3.21 Nondurable goods 2.55 Services 11.12 Structures 1.76 Change in inventories 0.56 Total ?
GDP=Durable goods+Nondurable goods+Services+Structures+Change in inventories For this economy, GDP=3.21+2.55+11.12+1.76+0.56=$19.2 trillion
Calculate total GDP for this economy given the following components of supply. Round your answer to the nearest hundredth. Components of GDP on the Supply Side(in trillions of dollars) Durable goods 3.21 Nondurable goods 2.58 Services 12.03 Structures 1.77 Change in inventories 0.43 Total ?
GDP=Durable goods+Nondurable goods+Services+Structures+Change in inventories For this economy, GDP=3.21+2.58+12.03+1.77+0.43=$20.02 trillion
Using the information below, determine what percentage of total GDP for this country consists of services. Round your answer to the nearest tenth. Components of GDP on the Supply Side(in trillions of dollars) Durable goods 3.21 Nondurable goods 2.58 Services 12.03 Structures 1.77 Change in inventories 0.43 Total ?
GDP=Durable goods+Nondurable goods+Services+Structures+Change in inventories For this economy, GDP=3.21+2.58+12.03+1.77+0.43=$20.02 trillion To find the percentage of services, 12.0320.02×100=60.1%
Using the information below, determine what percentage of total GDP for this country consists of structures. Round your answer to the nearest tenth. Components of GDP on the Supply Side(in trillions of dollars) Durable goods 4.8 Nondurable goods 2.5 Services 11.1 Structures 1.4 Change in inventories 0.7 Total ?
GDP=Durable goods+Nondurable goods+Services+Structures+Change in inventories For this economy, GDP=4.8+2.5+11.1+1.4+0.7=$20.5 trillion To find the percentage of structures, 1.420.5×100=6.8%
Angela is trying to figure out the population size of her country. If her country's real GDP is $65,880,208 and its GDP per capita is $25,978, what is Angela's country's population?
Population 2536
Ray is interested in studying economic growth of his country. He pulled statistics for the GDP of his country, Country G, and found it's present GDP to be $345,521. What will Country G's GDP be in 3 years with an annual growth rate of 9%? Round your answer to the nearest whole number.
To calculate the future GDP use the formula below: GDP at starting date×(1+growth rate of GDP)years=GDP at end date $345,521×(1+0.09)3=$447,460
Today's GDP in Country C is $456,987. The economy grows at a rate of 1% every year. What will Country C's GDP be in 10 years? Round your answer to the nearest whole number.
To calculate the future GDP use the formula below: GDP at starting date×(1+growth rate of GDP)years=GDP at end date $456,987×(1+0.01)10=$504,798
Today's GDP in Country B is $78,456. The economy grows at a rate of 2% every year. What will Country B's GDP be in 5 years? Round your answer to the nearest whole number.
To calculate the future GDP use the formula below: GDP at starting date×(1+growth rate of GDP)years=GDP at end date $78,456×(1+0.02)5=$86,622
Using the table below, determine the growth in real GDP from 1960 to 1990. Round your answer to the nearest whole percent. Year Nominal GDP(billions of dollars) Real GDP(billions of 2005 dollars) 1960 543.3 2859.5 1975 1688.9 4952.8 1990 5979.6 8225 2005 13095.4 13095.4
To find growth in real GDP, we apply the formula for percentage change: 1990 real GDP - 1960 real GDP1960 real GDP×100=% change 8,225−2,859.52,859.5×100=188%
Businesses become more optimistic and increase business expenditures on investment, causing real GDP to increase from $17,500 to $20,000. What is the percent change in real GDP? Round your answer to the nearest tenth.
To find the real growth rate, we apply the formula for percentage change: New GDP - Old GDPOld GDP×100=% change In this case, real GDP increased, so 20,000-17,500(over)17,500×100=14.3%
Real GDP increases from $22,000 to $34,000 due to an increase in government expenditures on military projects. What is the percent change in real GDP? Round your answer to the nearest hundredth.
To find the real growth rate, we apply the formula for percentage change: New GDP - Old GDPOld GDP×100=% change In this case, real GDP increased, so the percent change is positive, 34,000-22,00022,000×100=54.55%
To solve for the GDP per capita for her country, Bridget first gathers information on population and real GDP. In 2016, the population was 120,355,000 and real GDP was $655,930,000,000. What is the GDP per capita of Bridget's country? Round your answer to the nearest whole dollar.
$5,450
It takes roughly 900 North Korea Won (KPW) to purchase $1 on the foreign exchange market. If the GDP of North Korea is 5,000 KPW, what is it as measured in USD? Round your answer to the nearest hundredth.
$5.56
According to the data set below, what was the GDP per capita in the United States in 2013? Round your answer to the nearest whole dollar. YEAR GDP IN US $ $ POPULATION 2013 $16,691,500,000,000 316,234,505
$52,782
According to the data set below, what was the GDP per capita in the United States in 2014? Round your answer to the nearest whole dollar.
$54,697
Suppose the GDP of the entire European Union is 485,000 euros and the exchange rate between euros and USD is 0.86 euros=$1. What is the GDP of the European Union when measured in USD? Round your answer to the nearest hundredth.
$563,953.49
According to the data set below, what was the GDP per capita in the United States in 2017? Round your answer to the nearest whole dollar.
$59,532
Suppose the GDP of Australia is 100,000 AUD and the exchange rate between AUD and USD is 1.34 AUD=$1. What is the GDP of Australia when measured in USD? Round your answer to the nearest hundredth.
$74,626.87
Suppose the GDP of India is 65,000 rupees (INR) and the exchange rate between rupees and USD is 68 INR=$1. What is the GDP of India when measured in USD? Note: Please enter your answer as a price. It can include decimals to the hundredth place.
$955.88
If the GDP per capita for Country T is $45,020 and the population is 153 people, what is the real GDP for Country T?
($45,020×153)=$6,888,060
A moderate decline in real GDP that lasts two or more consecutive quarters is known as a __________.
recession
According to growth accounting studies, _________ is the most important contributor to U.S. economic growth.
technology
A(n) ______ is an especially lengthy period, where real GDP experiences a severe drop.
depression
GDP can understate standard of living by ______________.
not capturing increases in leisure time
Suppose political instability in Russia depreciates its currency to a low of 800 RUB=$1. At the same time, this instability causes the Russian economy to enter a recession and GDP falls from 190,000 RUB to 120,000 RUB. What is the current value of Russian GDP measured in USD?
$150
Suppose the GDP of Canada is 250,000 CAD and the exchange rate between CAD and USD is 1.3 CAD=$1. What is the GDP of Canada when measured in USD? Round your answer to the nearest hundredth.
$192,307.69
Increased tourism to the island of Fiji has pushed the demand for its currency to a new high, increasing its value to a record of 1.05 FJD=$1. Its GDP has also increased by 20% to 285,000 FJD. What is the Fijian GDP as measured in USD? Round your answer to the nearest hundredth.
$271,428.57
Which of the following accurately explains the "New Economy" controversy? Please select two correct answers.
Correct answer: Some economists argue that technological advances guarantee higher average productivity growth in the long run. Some economists argue that strong short term productivity growth does not indicate higher productivity in the long run.
In the table below, which country has the greatest output per person? (Hint: Calculate per capita GDP) Country Population(in millions) Real GDP(billions) A 310 $930 B 595 $1,595 C 1,025 $2,570 D 1,020 $2,000
Country A
Which of the following equations is used to find the trade balance?
Exports - Imports
A high GDP may be misrepresented by an overestimated standard of living. Select two factors that demonstrate that a rise in the standard of living might be overestimated within a high GDP. Select two correct answers below.
Factors not included in GDP, such as human health and environmental cleanliness, are worsening. Factors such as crime rates and income inequality are both increasing.
Economists believe that the single most important factor in labor productivity is the quantity of available labor.
False
If GDP is rising, standard of living will increase at the same rate. True or False?
False
The goals of macroeconomic policy include low rates of inflation, lower unemployment, and perfect competition in markets.
False
The government spending component of GDP only accounts for federal spending. Correct answer:
False
True or false?In an aggregate production function, GDP is commonly a primary input to production.
False
Which of the following explains the relationship between a country's GDP and the quality of life of its citizens with respect to health?
GDP includes what a country spends on healthcare, but does not measure actual levels of health in the country.
If total GDP for this economy is $20.1 trillion for the year shown in the table below, what was the total amount spent on consumption? Round your answer to the nearest tenth. Components of GDP on the Demand Side(in trillions of dollars) Consumption ? Investment 3.2 Government spending 3.1 Exports 2.6 Imports 2.8 Total GDP 20.1
GDP=Consumption+Investment+Government spending+Trade balance GDP=C+I+G+(X−M) For this economy, Consumption=20.1−3.2−3.1−(2.6−2.8)=$14 trillion
Which of the following are ways that markets encourage economic growth? I. They incentivize workers to acquire more human capital. II. They leave employees responsible for their own training III. They incentivize firms to look for new technologies.
I and III
Which of the following two countries are "fast growth" countries?
India China
Which of the following is the correct definition of infrastructure?
Infrastructure is a component of physical capital such as roads and rail systems.
An aggregate production function can be thought of as a(n) _______________ production function.
Macroeconomic
Why do economists care about recessions?
Many people lose work and struggle to support themselves financially.
Which of the following explains why spending on environmental protection does not give an accurate measure of the standard of living?
Spending on environmental protection does not truly measure environmental well-being.
For a school economics project, Maya has to calculate the future GDP of imaginary country Econland 20 years from now. If the present GDP is $985 and the country's growth rate is 5%, what is the future GDP of Econland? Round your answer to the nearest whole number
To calculate the future GDP use the formula below: GDP at starting date×(1+growth rate of GDP)years=GDP at end date $985×(1+0.05)20=$2,613
If the current price level is 175 and nominal GDP is $125,000, what is real GDP? Round your answer to the nearest hundredth. Correct answers:
To calculate real GDP, use the formula: Real GDP =Nominal GDPPrice Index/100 The GDP Deflator is also known as the price level, so Real GDP =$125,000175/100 Real GDP =$125,0001.75=$71,428.57
Suppose that consumers become more pessimistic about the economy, which causes the price level to decrease to 98 and nominal GDP to decrease to $28,000. What is real GDP? Round your answer to the nearest hundredth.
To calculate real GDP, use the formula: Real GDP =Nominal GDPPrice Index/100 The GDP Deflator is also known as the price level, so Real GDP =$28,00098/100 Real GDP =$28,0000.98=$28,571.43
Today's GDP in Country D is $2,590. The economy grows at a rate of 4% every year. What will Country D's GDP be in 7 years? Round your answer to the nearest whole number.
To calculate the future GDP use the formula below: GDP at starting date×(1+growth rate of GDP)years=GDP at end date $2,590×(1+0.04)7=$3,408
According to proponents to the "New Economy" theory, advancements in technology and communication generate higher productivity growth in the long run.
True
True or false? A contractual right is a form of property right that allows individuals to use the legal system when agreements regarding the use of property are violated
True
True or false? Capital deepening refers to an increase in the amount of capital per worker.
True
Of the following, which is a way that government can create a healthy climate for economic growth?
by creating policies that encourage lifelong learning
When it comes to economics and the law, which two of the following are considered to be most important to economic growth?
contractual rights property rights
Which of the following groups of workers are not included when measuring dollar value per hour contributed to output? Please select two correct answers.
farmers government workers
GDP is the current value of all final goods and services produced in a nation in a year. What are final goods?
goods at the furthest stage of production at the end of a year
Using the information below, determine what percentage of total GDP for this country consists of durable goods. Round your answer to the nearest tenth. Components of GDP on the Supply Side(in trillions of dollars) Durable goods 3.21 Nondurable goods 2.55 Services 11.12 Structures 1.76 Change in inventories 0.56 Total ?
in inventories For this economy, GDP=3.21+2.55+11.12+1.76+0.56=$19.2 trillion To find the percentage of durable goods, 3.21(fraction)19.2×100=16.7%
A peak _______.
is the highest point in an economy that comes just before real GDP begins falling and recession begins
The gap between imports and exports is called the ___________. Correct answer:
trade balance
Within an economy's business cycle, what is the lowest point of a recession called?
trough
Domino's Pizza decides to buy a larger oven, which allows workers to produce more pizza in the same amount of time. This is an example of economies of scale increasing _______________.
worker productivity
Suppose that an economy experienced a natural disaster that declined its nominal GDP by 5%. Meanwhile, inflation was 5%. What is the real GDP growth rate for this period? (Don't forget to use a negative symbol in your answer if necessary.)
·$-10\%$−10% We know that, % change in Quantity =% change in Nominal −% change in Price Therefore, real GDP growth rate (% change in quantity) equals the growth rate in nominal GDP (% change in value) minus the inflation rate (% change in price). % change in Quantity =−5%−5%=−10%
All of the following are inputs for the aggregate production function with GDP as its output except:
physical capital per person
One U.S. dollar can purchase 4.7 Turkish Lira (TRY) on the foreign exchange market. If the Turkish GDP is 135,000 TRY, what is its value in USD? Round your answer to the nearest hundredth.
$28,723.40
The aggregate production function has __________ as its output.
GDP per Capita
Calculate total GDP for this economy given the following components of demand. Round your answer to the nearest tenth. Components of GDP on the Demand Side(in trillions of dollars) Consumption 9.6 Investment 2.8 Government spending 3.0 Exports 2.4 Imports 0.4 Total GDP ?
GDP=Consumption+Investment+Government spending+Trade balance GDP=C+I+G+(X−M) For this economy, GDP=9.6+2.8+3.0+(2.4−0.4)=$17.4 trillion
Which of the following conditions contributed to the modern economic growth of the last two centuries?
advances in technology increased income levels
Low-income economies grow faster than high-income economies because _______. -Investing in capital deepening in low-income economies has a greater effect than in high-income economies -improving technology is easier in low-income countries -low-income economies are more likely to learn from the successes of successful economies -all of the above
all of the above
Which of the following explains why convergence between high-income countries and the rest of the world may not be likely?
all of the above
Which of the following were outcomes from the Industrial Revolution?
all of the above
Infrastructure is a component of physical capital such as roads and rail systems.
an increase by society in the average level of physical and/or human capital per person
Even though GDP does not measure the broader standard of living with any precision, it does measure production well and it does indicate when a country is materially better or worse off in terms of ________________.
jobs and incomes
In economic terms, new roads are considered _______.
physical capital