Macro Economics Chapter 10 Self Test
What is the percentage increase in real GDP from 2008 to 2009?
A. 0%
Gross to Mestic product can be measured as some of
A. Consumption, investment, government purchases, and net exports.
If US GDP exceeds US GNP, then:
A. Foreigners are producing more in the United States then Americans are producing in foreign countries.
What is the value of real GDP for 2008?
B. $1060
What is the value of GDP deflator into thousand eight?
B. 113
What is the percentage of increase in prices from 2007 to 2008?
B. 13%
Real GDP is measured in Prices while nominal GDP is measured in prices.
B. Base year; current year
How is your purchase of a $40,000 BMW automobile that was produced entirely in Germany recorded in the US GDP accounts?
B. Consumption increases by $40,000 in net exports decreased by $40,000.
The value of plant and equipment worn out in the process of manufacturing goods and the Services is measured by Colin
B. Depreciation
If your grandparents buy a new retirement home, this transaction would affect:
B. Investment.
US GDP would exclude which of the following?
B. Lawn care services purchased by a home owner
What is the approximate percentage increase in prices from 2008 to 2009?
D. 22%
Which of the following would be excluded from 2009 GDP? The sale of Colin
D. A home built in 2008 and first sold in 2009
GDP would include which of the following?
D. Consulting services
If nominal GDP in 2010 exceeds nominal GDP in 2009, then the production of output must be or must have:
D. Resin or fallen because there is not enough information to determine what happened to real output.
Gross to Mestic product is the sum of the market value of the
E. Final goods and services.
Example of a transfer payment is:
E. Unemployment benefits.
A new car produced in 2009, but first sold in 2010, should be counted in 2010 GDP because that is when it was first sold as a final good.
False
If nominal GDP in 2010 exceed nominal GDP in 2009, real output must have risen.
False
In the United States, investment is the largest component of GDP.
False
Net national product always exceeds a nation is GNP because of depreciation
False
The production of an apple contributes more to GDP rather than production of a gold ring because food is necessary for life itself.
False
If the lumber yard sales $1000 of lumber to a carpenter and the carpenter uses the lumber to build a garage that he sells for $5000, the contribution to GDP is $6000
Faults
When the city of Chicago purchase a new school building the investment component of GDP increases
Faults
US gross domestic product (in contrast to gross national product) measures the production and income of
P. People in factories located within the borders of the United States.
What is the value of nominal GDP for 2008?
See. $1200
If he called her buys leather for $100 and thread for $50 and uses them to produce and sell $500 worth of shoes to consumers, the contribution to GDP is
See. $500
A country with a large GDP per person generally has a greater standard of living or quality of life that a country with a smaller GDP per person.
True
A recession occurs when real GDP Declines.
True
Cigarettes should be valued in GDP at five dollars and 50 Cent per pack even though one dollar of that price is tax because the buyers pay 550 per pack
True
Depreciation is the value of the wear and tear on the economies equipment and structures.
True
For an economy as a whole, income equals expenditure because the income of the seller must be equal to the expediter of the buyer.
True
If US GDP exceeds US GNP, then foreigners produce more in the United States, then US citizens produce in the rest of the world.
True
Nominal GDP employees current prices to value output well real GDP employees constant base-year prices to value output.
True
Wages are an example of a transfer payment because there is a transfer of payment from the firm to the worker.
false
