ECON Chapter-2 (Part 2)

In 2013, American net borrowings from abroad, per person, in current dollars, amounted to approximately:

$1,600.

If total consumption (measured in billions of current dollars) equals $3,657, consumption of durable goods is $480, and consumption of nondurable goods is $1,194, then consumption of services is:

$1,983.

In 2013, the GDP of the United States totaled about:

$16.8 trillion.

In 2013, GDP per person in the United States was approximately:

$53,000.

Assume that total output consists of 4 apples and 6 oranges and that apples cost $1 each and oranges cost $0.50 each. In this case, the value of GDP is:

$7.

If the unemployment rate is 6 percent and the number of employed is 188 million, then the labor force equals ______ million.

200

If real GDP grew by 6 percent and population grew by 2 percent, then real GDP per person grew by approximately ______ percent.

4

The number of households interviewed in the monthly employment survey of the U.S. Bureau of Labor Statistics is approximately:

60,000.

When a firm sells a product out of inventory, investment expenditures ______ and consumption expenditures ______.

decrease; increase

A woman marries her butler. Before they were married, she paid him $60,000 per year. He continues to wait on her as before (but as a husband rather than as a wage earner). She earns $1,000,000 per year both before and after her marriage. The marriage:

decreases GDP by $60,000.

Imputed values included in GDP are the:

estimated value of goods and services that are not sold in the marketplace

Measuring the rate of inflation using a market basket that excludes food and energy prices is preferred by some analysts because this measure, called core inflation,

gives a better measure of ongoing, sustained price changes.

To compute the value of GDP:

goods and services are valued at market prices.

The market value of all final goods and services produced within an economy in a given period of time is called:

gross domestic product.

Assume that a bakery hires more workers and pays them wages and that the workers produce more bread. GDP increases in all of the following cases except when the bread:

grows stale and is thrown away.

In the United States since the end of World War II:

he labor force participation rate of men has decreased, while the labor force participation rate of women has increased.

The underground economy:

includes domestic workers for whom Social Security tax is not collected.

It is a national income accounting rule that all expenditure on purchases of products in the economy is necessarily equal to:

income of the producers of the products in the economy.

An economy's ______ equals its ______.

income; expenditure on goods and services

In the national income accounts, goods bought for future use are classified as which type of expenditure?

investment

In the national income accounts, consumption expenditures include all of the following except household purchases of:

new residential housing.

In the national income accounts, all of the following are classified as government purchases except:

payments made to Social Security recipients.

National income differs from net national product by an amount called:

statistical discrepancy

All of the following are a flow except:

the government debt.

The value added of an item produced refers to:

the value of a firm's output less the value of the intermediate goods that the firm purchases.

Two equivalent ways to view GDP are as the:

total income of everyone in the economy or the total expenditure on the economy's output of goods and services.

If the number of employed increases while the number of unemployed does not change, the unemployment rate:

will decrease.

The household survey conducted by the Bureau of Labor Statistics provides estimates of the number of workers ______, while the establishment survey provides estimates of the number of workers ______.

with jobs; on firms' payrolls

According to the usual seasonal pattern of the U.S. economy, GDP is highest in the quarter of the year that includes:

October, November, and December.

All of the following actions are investments in the sense of the term used by macroeconomists except:

Sandra Santiago's buying 100 shares of IBM stock.

The labor-force participation rate is the percentage of the:

adult population that is in the labor force.

In the circular flow model, the flow of dollars from firms to households is paid _____ and the flow of dollars from households to firms is paid _____.

as wages and profits; for goods and services

Real GDP means the value of goods and services is measured in ______ prices.

constant

Real GDP is measured in _____ prices ____ time.

constant; per unit of

Nominal GDP means the value of goods and services is measured in ______ prices.

current

Nominal GDP measures the value of goods and services in ______ prices, while real GDP measures the value of goods and services in ______ prices.

current; constant