Quiz 4 Macro (Chapter 9)

If, during 2010, Indonesia recorded investment spending of $3 billion, government purchases of $3 billion, consumer spending of $7 billion, imports of $5 billion, government transfers of $1 billion, and exports of $3 billion, Indonesia's GDP in 2010 was:

$11 billion.

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the nominal GDP for last year?

$180,000

Domestically produced goods and services sold to people in other countries are known as:

Exports.

Gross domestic product is the value of all _____ produced in an economy over a given period.

Final goods and services.

We calculate net exports by subtracting:

Imports from exports.

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the real GDP for last year?

$262,500

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the real GDP for this year?

$275,625

In 2004, Canada's GDP was approximately $1.13 trillion, and its population was about 32 million. What was Canada's approximate GDP per person in 2004?

$35,290

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the real GDP for this year?

$5,104,500

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the average price level between the two years?

$52.50

Use Table: Real and Nominal Output. Nominal GDP in year 2 is equal to:

$60

Use Table: Per Capita GDP. The growth rate of per capita real GDP from 2016 to 2019 was:

-33%

Use Table: Pizza Economy III. Given that the total population was 1,140 in 2018 and 1,380 in 2019, real GDP per capita between 2018 and 2019 grew at a rate of _____.

-48%

Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. The growth rate of nominal GDP from 2018 to 2019 was _____.

11.25%

In 1986, the United States recorded real GDP growth of 3.5% and nominal GDP growth of 5.5%. What was the inflation rate in 1945?

2%

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the growth rate of real GDP between the two years?

3.75%

Use Table: Real and Nominal Output. Based on prices in years 3 and 4, the change in real output between years 3 and 4 is an increase of:

40%

Suppose that nominal GDP is $1,000 in 2018 and $1,500 in 2019. If the overall price level increased by _____ between 2018 and 2019, we could say that real GDP _____.

50%; stayed constant

In 1939, inflation in the United States was −1%, but at the same time, the country recorded a real GDP growth rate of 8%. What was the nominal GDP growth rate?

7%

In your first three years of managing sales at a tech startup, you see growth in sales of 7.5 percent each year. Your boss asks you how long, at this rate, it will take for your firm to double its sales volume. You respond:

9.3 years.

Consider the graphs, which are discussed in the textbook. Focus on the graph that looks at the relationship between GDP per person and infant deaths per 1,000 live births. What can explain this relationship?

As real GDP per person rises, maternal and fetal health increase due to better health care, education, sanitation, and nutrition.

In the circular flow diagram, an organization that produces goods and services for sale is a:

Business

When your household buys goods and services, this is called:

Consumption.

Economic growth per capita economic growth is:

Growth per person. Thank

Consider the graphs, which are discussed in the textbook. Focus on the graph that looks at the relationship between GDP per person and life expectancy. What can explain this relationship?

Higher income per person allows for better health care, sanitation, and nutrition.

Households do NOT derive income from:

Imports.

Refer to the diagram of the circular flow of income. Based on the diagram, box 2 must be:

The market for outputs.

Goods that are sold in 2020 but produced in 2018:

are included in investment in 2018.

Economists frequently use real GDP per capita to show:

differences in living standards across countries.

The town of York produces two goods, good A and good B. The table presents information regarding York's production of these two goods and their prices over three years. In 2018, nominal GDP was _____ nominal GDP in _____.

greater than; 2017

In the U.S. economy, the circular flow diagram does NOT illustrate:

growing income inequality.

In the circular flow diagram, goods and services are bought and sold in:

markets for outputs.

In microeconomics, output refers to _____, whereas in macroeconomics, output refers to _____.

output your individual business produces; output produced by all businesses in the economy

GDP per person in Sweden was $60,028 in 2021; in Germany, it was $50,802. These data:

provideprima facieevidence that Swedes, on average, are happier—have greater life satisfaction—than Germans.

GDP is the:

total market value of all final goods and services produced in a country in one year.

Transfer payments are payments that:

transfer income from one person to another.

The topics studied in macroeconomics include:

Inflation

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for last year?

$182,500

Use Table: Pizza Economy III. Real GDP between 2018 and 2019 grew at a rate of:

-60.34%

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for this year?

$191,625

In 1933, if inflation in the United States was2.8% and the growth rate of real GDP was −1.2%, what was the nominal GDP growth rate?

-4%

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the growth rate of real GDP between the two years?

5%

A "final" good or service is one that is:

Finished and ready for the final user.

A recent World Bank study found that in South Africa, the top 1% of the population have about 71% of the wealth in the economy, and the lowest 60% of the population have about 7% of the wealth in the economy. What shortcoming of GDP measurement does this finding reflect?

GDP ignores income distribution.

If the local construction company buys an industrial 3D printer, this expenditure is:

Investment.

Which statement about gross domestic product is FALSE?

It is the total output of all final and intermediate goods and services.

The LG Corporation produced 24,000 smartphones in 2019. Only 4,000 smartphones remained unsold at the end of 2019. As a result:

all 24,000 smartphones will be included in GDP in 2019, 20,000 as consumption expenditure and 4,000 as investment expenditure.

Spending on inputs is _____ of GDP, and investment spending is _____ of GDP.

not a part; part