Chapter 3 Quiz
Don has built an expansion to his house. This transaction will be: A) not included in GDP because it is not produced for the marketplace B) included in GDP because Don is a professional builder C) not included in GDP because it is an intermediate good D) included in GDP because building is Don's hobby
A
A simple economy produces only peanut butter and jelly. Using the data in the attached table, in 2011, nominal GDP was ______ and real GDP was ______. A) $450; $400 B) $525; $ 450 C) $525; $400 D) $450; $575
B
Goods that are produced in a particular period but not sold in that period: A) count as consumption in the next year B) are included in investment C) are treated like exports D) are classified as purely financial transactions
B
A country's living standard is best measured by the: A) per capita nominal GDP B) real GDP C) nominal GDP D) per capita real GDP
D
Gross domestic product is defined as: A) consumer spending + government purchases + financial spending + exports - imports B) consumer spending + government transfers + investment pending + exports - imports C) disposable income + taxes + investment spending + exports + imports D) consumer spending + government purchases + investment spending + exports - imports
D
A simple economy produces only peanut butter and jelly. Using the data in the attached table, from 2010 to 2011 real GDP ______ by ______% A) increase; 12.5 B) decreased; 50 C) increase; 43.75 D) decreased 12.5
A
Intermediate goods are not counted in the calculation of GDP because: A) to do so involves double counting B) these goods are not produced for the market C) these goods are produced in the underground economy D) these goods involve financial transactions
A
If nominal GDP of 2012 is higher than nominal GDP of 2011, we can state that: A) production in 2012 is higher than production in 2011, while prices remain unchanged B) production or prices or both are higher in 2012 than in 2011 C) prices in 2012 are higher than prices in 2011, while production remains unchanged D) production in 2012 has gone down and prices have increased
B
The inflation-adjusted measure of aggregate output typically used by economists is called: A) aggregated output B) nominal gross national product C) net domestic product D) real gross domestic product
D
Which one of the following transactions will be included in the official measurement of GDP? A) Stan sold his house at a huge gain B) Monica illegally downloaded movies to her laptop C) Ben won the state lottery D) Sean bought a new iPhone
D