Econ Quiz 12
Suppose, in 2012, you purchased a house built in 2003. Which of the following would be included in the gross domestic product for 2012?
the value of the real estate agent
Depreciation is
the value of worn-out equipment, machinery, and buildings
If prices rise on average in the U.S. economy, the purchasing power of the dollar declines
tru
Real GDP is GDP in a given year
valued in the prices of the base year
Which of the following could cause nominal GDP to decrease, but real GDP to increase?
The price level rises and the quantity of final goods and services produced falls.
Increases in real GDP would understate the well-being of a country over time if, over that time period, the
amount of pollution decreased
The GDP deflator is a measure of the
average level of prices of final goods and services in the economy
Investment, as defined by economists, would not include which of the following? Ford
buys U.S. government bonds
Which of the following is not a durable good?
clothing
National income equals gross national product minus
depreciation
The best measure of the income households actually have available to spend is
disposable personal income
Real GDP per capita is calculated by dividing the value of real GDP for a country by the country's adult population
false
Transfer payments are subtracted from national income to get personal income
false
The output of U.S. citizens who work in Canada would be included in the
gross domestic product of Canada
The size of the underground economy would tend to increase if the government of a country
increased income rate taxes
Which of the following is not directly counted in GDP?
intermediate goods
The purchase of a new house is included in
investment expenditures
The Philippines and Vietnam have roughly the same size population. Suppose the GDP of the Philippines is $1,000 billion and the GDP of Vietnam is $10,000 billion. You should conclude
it is not possible to make a good comparison of the economic well being of a typical individual in the 2 countries without additional information.
In 2010, which component of GDP had a negative value?
net exports
The purchase by a foreign government of an airplane produced in the United States is included in U.S.
net exports
The GDP deflator is the
ratio of nominal GDP to real GDP multiplied by 100
Which of the following is not true about the consumption of GDP in 2010?
the majority of consumer spending is on durable goods
Gross domestic product is calculated by summing up
the total market value of final goods and services produced in the economy during a period of time
Gross domestic product understates the total production of final goods and services because of the omission of
the underground economy
In calculating gross domestic product, the Bureau of Economic Analysis uses the sum of the market value of final goods and services produced. This means that the BEA
values goods and services at their market prices, multiplies them by the quantity produced, and then adds them up.
