Assess chapter 5

Which of the following statements about the business cycle is​ true? A. A business cycle is periodic but irregular. B. During an​ expansion, real GDP is equal to potential GDP. C. The expansion stage of the business cycle is not the usual condition of the economy. D. An expansion ends when the economy reaches a recession.

A. A business cycle is periodic but irregular.

Item___________________Amount(billions) Consumption expenditure______656 Wages_________________________________593 Indirect taxes less subsidies____138 Investment___________________________193 Net exports of goods and services_______________________________51 Profit___________________________________135 Government expenditure on goods and services_______________253 The table gives data about​ Northland's economy in 2019. What is the value of GDP in Northland in 2019? A. 1,291 billion B. 1,153 billion C. 2,019 billion D. 866 billion

B. 1,153 billion

What information does the Human Development Index​ (HDI) give about countries in​ 2018? A. The United States has the​ world's highest HDI value. B. Australia and Norway have a higher HDI than the United States. C. The HDI gives the identical ranking to countries as does income per person. D. A weak correlation exists between income per person and the HDI.

B. Australia and Norway have a higher HDI than the United States.

Which of the following is an example of​ investment? A. a person investing $250 a month in the stock market B. a firm adding unsold output to inventory C. a person's annual medical checkup D. a student increasing his human capital by attending college

B. a firm adding unsold output to inventory

Gross national product is​ _______. A. the sum of​ wages, interest,​ rent, and profit B. the market value of all the final goods and services produced anywhere in the world in a given time period by the factors of production supplied by the residents of that country C. the market value of all the final goods and services produced within a country in a given time period D. the income received by households minus personal income taxes paid

B. the market value of all the final goods and services produced anywhere in the world in a given time period by the factors of production supplied by the residents of that country

A south sea island produces only coconuts. In​ 2015, the price of a coconut is ​$1.50 and the quantity produced is 350. In 2017​, the price of a coconut is ​$2.50 and the quantity produced is 250. 2015 is the base year. Real GDP in 2017 is​ _______. A. $525 B. $625 C. $375 D. $875

C. $375

Which of the following is included in the measure of U.S.​ GDP? A. the tomato sauce purchased by Pizza Hut and used to make pizzas B. a pizza produced by American workers in Canada C. a pizza produced and sold in the United States D. a pizza produced and sold by Pizza Hut in China

C. a pizza produced and sold in the United States

Gravel purchased by a firm that produces cement is an example of​ _______. Your checking accountYour checking account is an example of​ _______. A. a final good​; neither an intermediate nor a final good B. an intermediate good​; a final good C. an intermediate good​; neither an intermediate nor a final good D. a final good​; a final good

C. an intermediate good​; neither an intermediate nor a final good

During​ 2017, the U.S. economy was​ ______. A. in a recession B. at a business cycle peak C. in an expansion D. at a business cycle trough

C. in an expansion

What is or is not included in the measurement of​ GDP? A. We include a measure of political freedom and social justice in GDP B. The underground​ economy, which is included in GDP is difficult to describe but easy to measure. C. We include a measure of good health and life expectancy in GDP D. The underground​ economy, which is not included in GDP is the part of the economy that is hidden from the view of the government.

D. The underground​ economy, which is not included in GDP is the part of the economy that is hidden from the view of the government.

GDP in the United States increased between 2018 and 2019. Which of the following could NOT account for this​ increase? A. A combination of producing more goods and services and paying higher prices for our goods and services occurred. B. We produced more goods and services and prices remained relatively constant. C. Our disposable income increased. D. We paid lower prices for our goods and services and production remained constant.

D. We paid lower prices for our goods and services and production remained constant.

Net exports of goods and services increase when​ _______. A. consumption expenditure increases B. investment increases C. exports of goods and services increase and imports of goods and services increase D. exports of goods and services increase by more than imports of goods and services increase

D. exports of goods and services increase by more than imports of goods and services increase

Which of the following is a true statement about potential GDP per​ person? Potential GDP per person​ ______. A. grew at a faster rate from 1970 to 2007 than during the 1960s B. is calculated as real GDP divided by the population C. is the market value of the final goods and services produced within a country in a given time period D. grows at a steady pace but not at a constant pace

D. grows at a steady pace but not at a constant pace

In 2020 Item___Quantity___Price Robots____7___________$1 each Pens________9__________$1 each Pizza_______7___________$3 each In 2021 Item___Quantity___Price Robots_____1___________$7 each Pens________4___________$6 each Pizza________3__________$9 each An economy produces only​ robots, pens, and pizza. The table gives the quantities produced and prices in 2020 and 2021. The base year is 2020. What is nominal GDP in 2020 and in​ 2021?

Nominal GDP in 2020 is ​$37. Nominal GDP in 2021 is ​$58.

In 2010​, U.S. exports of goods and services are ​$1,844 billion and imports of goods and services are ​$2,356 billion. What is the value of net​ exports?

The value of net exports in 2010 is −512 billion dollars.