Chapter 19 - Intro Macroeconomics and Gross Domestic Product (Inquisitive)
What data do economists use to calculate the real GDP of a nation?
Data Economists Use: Market Value Price Level Not Data Economists Use: Unemployment Rate Income Tax Rate
Which of the following are examples of nonmarket services?
Correct: Changing the oil in your car yourself. Cutting your own hair Incorrect: Taking your car to the mechanic for routine maintenance. Going to the barber.
The real GDP of Country A grew by only 1% from 2016 to 2018 while the real GDP of Country B grew by 5% during that same time span. Based on the data, what can we say definitely about the two countries?
Correct: Country B will eventually have a higher real GDP than Country A if the economy of each country continues to grow this way. Incorrect: Country A has a modestly high quality of life. Country A's economy has been in a period of contraction. Country A has a high real GDP. Country B has a very high quality of life.
What might a decrease in sales of new cars indicate about the state of the economy?
Correct: The economy is weak. GDP is going to decrease in the near future. Incorrect: The economy is strong. GDP rose in the recent past.
Which of the following by definition directly adds to a country's GDP (gross domestic product)?
Increased commercial travel
Fill in the blanks to complete the passage about GDP and economic health.
small; per capita GDP; real GDP growth rate.
According to the table, Canada has the tenth-highest GDP among the countries with the largest economies in the world. Does this mean Canada also has the tenth-best standard of living? Fill in the blanks to complete the passage.
does not indicate; per capita GDP; average income.
Which of the following are examples of investment?
Correct: A mechanic buys a new wrench. A professional painter buys new brushes. A photojournalist buys a new camera. Incorrect: Your neighbor buys a new television. Your friend buys a new set of golf clubs.
Match the use of GDP data to the appropriate situation.
Leia examines real per capita GDP over a ten-year period to determine whether the economy of a particular country is in decline or on the rise. Measuring long-term economic growth Lupe examines the real per capita GDP of seven nations to determine which country might have the wealthiest citizens. Measuring living standards Brad looks at real per capita GDP to determine what impact the recent recession has had on economic activity Measuring business cycles
Calculate the real GDP of the United States for the year 2017. Use 2012 as the base period and round to the nearest whole number.
Look at Image
Underground economies are the smallest in countries with strong economies. T or F
True
Which questions explore microeconomic topics and which explore macroeconomic topics? Apply the correct label to each question.
What effect did the interest rate have on inflation? Macroeconomics What effect did falling home values have on unemployment? Macroeconomics Why did Billi buy a new house? Microeconomics Why did Company C increase its advertising budget? Microeconomics
