Economics Ch. 24-25, 27 Test Review
Refer to the above data. Real GDP in year 3 is:
450/300 = $1.5
The term "final goods and services" refers to:
goods and services purchased by ultimate users, as opposed to resale or further processing.
Refer to the above data. Nominal GDP in year 3 is:
15 * 30 = $450
Which of the following statements is most accurate about advanced economies?
Economies experience a positive growth trend over the long run but experience significant variability in the short run.
The term "real GDP" refers to:
GDP data that have been adjusted for changed in the price level.
Which of the following is a final good or service?
a haircut
Suppose that inventories were $40 billion in 2000 and $50 billion in 2001. In 2001, accountants would:
add $10 billion to other elements of investment in calculating total investment.
Which of the following best defines national income?
all incomes earned by U.S. resource suppliers for their current contributions to production.
In national income accounting, consumption expenditures include purchases of:
automobiles for personal use, but not houses.
A nation's gross domestic product (GDP):
can be found by summing C+In+S+Xn
Net exports are:
exports minus imports.
In 2001 Trailblazer Bicycle Company produced a mountain bike which was delivered to a retail outlet in November of 2001. The bicycle was sold to E.Z. Ryder in March of 2002. This bicycle is counted as:
investment in 2001 and as disinvestment in 2002.
A nation's gross domestic product (GDP):
is the dollar value of the total output produced within the borders of the nation.
National income accountants can avoid multiple counting by:
only counting final goods.
The term "recession" describes a situation where:
output and living standards decline.
Tom Atoe grows tomatoes for home consumption. This activity is:
productive but is excluded from GDP because no market transaction occurs.
Which of the following is an intermediate good?
the purchase of baseball bats by a professional baseball team.