Macroeconomics HW6

Both the value of hamburgers sold by a restaurant and the value of the beef it used to make these hamburgers are included in GDP. True False

False

Periods during which real GDP rises are called recessions True False

False

An economy's income is the same as its expenditure because every transaction has a buyer and a seller True False

True

Changes in the GDP deflator reflect only changes in the prices of goods and services True False

True

GDP and GNP are identical when exports and imports exactly balance all domestic production is by domestically owned producers and no foreign production is carried out by domestic producers production by domestic producers in other countries is greater than production by foreign producers domestically there are no taxes

all domestic production is by domestically owned producers and no foreign production is carried out by domestic producers

Most goods and services produced at home and most goods and services produced illegally are included in GDP are included in GDP while most goods and services produced illegally are excluded from GDP are excluded from GDP while most goods and services produced illegally are included in the GDP and most goods and services produced illegally are excluded from GDP

and most goods and services produced illegally are excluded from GDP

expenditures on a nation's domestic production are less than its domestic production are equal to its domestic production are greater than its domestic production could be less than, equal to, or greater than its domestic production

are equal to its domestic production

GDP per person tells us the income and expenditure of the richest person in the economy poorest person in the economy average person in the economy entire economy

average person in the economy

Real GDP is the yearly production of final goods and services valued at current prices constant prices expected future prices the ratio of current prices to constant prices

constant prices

regerg

ebvev

If the price of a dress is three times the price of a pair of shoes, then a pair of shoes contributes exactly one-third as much to GDP as does a dress more than one-third as much to GDP as does a dress less than one-third as much to GDP as does a dress exactly three times as much to GDP as does a dress

exactly one-third as much to GDP as does a dress

social security payments are included in GDP because they represent current income included in GDP because they represent potential consumption excluded from GDP because they are not private pensions excluded from GDP because they do not reflect the economy's production

excluded from GDP because they do not reflect the economy's production

A statistical discrepancy exists because data sources are not perfect, so measures of expenditures and income are not equal insures that GDP will approximately equal GNP explains the close association between GDP and quality of life measures such as literacy and life expectancy explains the inadequacy of GDP in capturing the value of leisure and the value of a clean environment

exists because data sources are not perfect, so measures of expenditures and income are not equal

fiewjfcioewo

fmewmwm

A transfer payment is a payment made by consumers, but not in exchange for a tangible product firms, but not in exchange for capital equipment foreigners, but not in exchange for a domestically produced good or srvice government, but not in exchange for a currently good or service

government, but not in exchange for a currently produced good or service

Countries with low GDP per person tend to have lower rates of child malnutrition fewer infants with low birth weight higher rates of infant mortality more access to safe drinking water

higher rates of infant mortality

International data on GDP and socioeconomic variables are inconclusive about the relationship between GDP and the economic well-being of citizens suggest that poor nations actually might enjoy a higher standard of living that do rich nations leave no doubt that a nation's GDP is closely associated with its citizens' standard of living indicate that there are a few real differences in living standards around the world, in spite of the large differences in GDP between nations

leave no doubt that a nation's GDP is closely associated with its citizen's standard of living

National income differs from net national product because it includes profits of corporations of statistical discrepancy it includes transfer payments it excludes depreciation

of a statistical discrepancy

grgre

rgwgw

Which of the following topics are more likely to be studied by a macroeconomists than by a microeconomist? the effect of taxes on the prices of airline tickets and the profitability of automakers the price of beef and wage differences between genders how consumers maximize utility and how prices are established in markets for agricultural products the percentage of the labor force that is out of work and cross-country differences in average income

the percentage of the labor force that is out of work and cross-country differences in average income