macro ch 1 quiz

Use the following table to answer the next question. The base year is 2007. hot dogs baseball soda year 2005 $ 2 | 100 $ 5 | 50 $ 2 | 100 2006 $ 4 | 100 $ 5 | 100 $ 2 | 150 2007 $ 6 | 100 $ 5 | 100 $ 2 | 200 2008 $8 | 150 $ 8 | 200 $ 4 | 200 2009 $ 10 | 200 $ 10 | 200 $ 4 | 250 Real GDP (constant dollars) for 2009 equals _____.

$2,700

use the following table to answer the next question. GDP figures are in billions of dollars. year 1 | 2 | 3 nominal GDP 5,200 | 5,500 | 5,750 real GDP 4,800 | ---- | 5,000 price index --- | 112 | --- What was real GDP in year 2?

$4,911 billion

Use the following table to answer the next question. The following national income data for an economy is in billions of dollars. Consumption $5,100 Investment 1,100 Transfer payments 1,050 Government purchases 1,400 Exports 850 Imports 950 Net foreign factor income 20 GDP for this economy is _____.

$7,500 billion

Assume that the real GDP of a developing nation increases from $120 billion to $140 billion while its population expands from 100 to 110 million. As a result, real GDP per capita has increased by about _____.

$72 per person

Consumers in an economy buy only three general types of products: A, B, and C. Changes in the prices of these items over a period are shown below: product A | B | C quantity 10 | 15 | 8 year 1 10 | 20 | 50 average price per unit year 2 8 | 22 | 55 Using year 1 as the base year, the country's price index in year 2 is _____.

106.3

Use the following table to answer the question below. GDP figures are in billions of dollars. year 1 | 2 | 3 nominal GDP 5,200 | 5,500 | 5,750 real GDP 4,800 | ---- | 5,000 price index --- | 112 | --- What is the GDP price index in year 1?

108.3

Use the following table to answer the next question. year 2008 | 2009 | 2010 | 2011 real GDP 20,000 | 40,000 | 60,000 | 70, 000 population 200 | 400 | 400 | 500

2010

Consider the following data for a nation. year 1 | 2 | 3 | 4 | 5 nominal GDP 35 | 40 | 45 | 48 | 56 price index 90 | 100 | 110 | 120 | 140 The country's real GDP declined between years

3 and 4

Answer the next question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year. year 1 | 2 | 3 | 4 | 5 units of output 8 | 10 | 15 | 18 | 20 price per unit 2 | 3 | 4 | 5 | 6 If year 2 is the base year, then the percentage increase in real GDP from year 2 to year 4 is _____.

80%

GDP does not include which of the following activities?

Couples remodeling their own homes (with their own labor).

If a country's imports of goods and services exceeds its exports, _____.

GDP is less than the sum of consumption, investment, and government purchases

In the second quarter (three-month period) of 2016, U.S. nominal GDP increased but U.S. real GDP declined. What can we conclude?

The price level rose by more than nominal GDP.

The purchase of a computer by a person for household use would be counted in what category of GDP?

The purchase is always counted as consumption.

Use the following graph to answer the next question. (nominal GDP line over real GDP line) The graph suggests that the GDP price index during the period shown was generally _____.

increasing

Suppose the total monetary value of all final goods and services produced in a particular country during 2010 is $500 billion, and the total monetary value of final goods and services sold is $450 billion. We can conclude that _____.

nominal GDP in 2010 is $500 billion

A GDP price index of 130 in year 2 means that _____.

prices in year 2 are on average 30% higher than in the base year

Nominal GDP differs from real GDP because _____.

real GDP results from adjusting for changes in the price level

Use the following table to answer the next question. year 1 | 2 | 3 | 4 | 5 | 6 price index 100 | 95 | 105 | 125 | 125 | 120 If output increases by 8% from year 5 to year 6, then in that period _____.

real GDP will rise faster than nominal GDP

The service a homeowner performs when she mows her yard is not included in GDP because _____.

this is a nonmarket transaction

GDP excludes most nonmarket transactions. Therefore, GDP tends to _____.

underestimate the amount of production in the economy

Use the following table to answer the next question. The following national income data for an economy is in billions of dollars. Consumption $5,100 Investment 1,100 Transfer payments 1,050 Government purchases 1,400 Exports 850 Imports 950 Net foreign factor income 20 What are the net exports for this economy?

−$100 billion