Econ Chapter 23
The value of plant and equipment worn out in the process of manufacturing goods and services is measured by a. depreciation. b. investment. c. intermediate production. d. consumption. e. Net national product
a. depreciation.
If nominal GDP in 2019 exceeds nominal GDP in 2018, then the production of output must have a. risen or fallen because there is not enough information to determine what happened to real output. b. stayed the same. c. risen. d. fallen.
a. risen or fallen because there is not enough information to determine what happened to real output.
An example of a transfer payment is a. unemployment benefits. b. government purchases. c. rent. d. profit. e. wages.
a. unemployment benefits.
The following table contains information about an economy that produces only pens and books. The base year is 2017. Use this information to answer question Year Price of pens Quantity of Pens Price of books Quantity of books 2017 $3 100 $10 50 2018 3 120 12 70 2019 4 120 14 70 What is the value of real GDP for 2018? a. $800 b. $1,060 c. $1,200 d. $1,460 e. none of the above
b. $1,060
The following table contains information about an economy that produces only pens and books. The base year is 2017. Use this information to answer question Year Price of pens Quantity of Pens Price of books Quantity of books 2017 $3 100 $10 50 2018 3 120 12 70 2019 4 120 14 70 What is the percentage increase in prices from 2017 to 2018? a. 16 percent b. 13 percent c. 0 percent d. 38 percent e. 22 percent
b. 13 percent
GDP would include which of the following? a. intermediate sales b. consulting services c. the value of taking a day off from work d. housework e. illegal drug sales
b. consulting services
U.S. gross domestic product (in contrast to gross national product) measures the production and income of a. Americans and their factories no matter where they are located in the world. b. people and factories located within the borders of the United States. c. the domestic service sector only. d. the domestic manufacturing sector only. e. none of the above.
b. people and factories located within the borders of the United States.
The following table contains information about an economy that produces only pens and books. The base year is 2017. Use this information to answer question Year Price of pens Quantity of Pens Price of books Quantity of books 2017 $3 100 $10 50 2018 3 120 12 70 2019 4 120 14 70 What is the value of nominal GDP for 2018? a. $800 b. $1,060 c. $1,200 d. $1,460 e. none of the above
c. $1,200
If a cobbler buys leather for $100 and thread for $50 and uses them to produce and sell $500 worth of shoes to consumers, the contribution to GDP is a. $100. b. $650. c. $500. d. $600. e. $50.
c. $500.
Real GDP is measured in ______ prices while nominal GDP is measured in ______ prices. a. intermediate; final b. current year; base year c. base year; current year d. foreign; domestic e. domestic; foreign
c. base year; current year
Gross domestic product can be measured as the sum of a. net national product, gross national product, and disposable personal income. b. consumption, transfer payments, wages, and profits. c. consumption, investment, government purchases, and net exports. d. final goods and services, intermediate goods, transfer payments, and rent. e. investment, wages, profits, and intermediate production.
c. consumption, investment, government purchases, and net exports.
The following table contains information about an economy that produces only pens and books. The base year is 2017. Use this information to answer question Year Price of pens Quantity of Pens Price of books Quantity of books 2017 $3 100 $10 50 2018 3 120 12 70 2019 4 120 14 70 What is the value of the GDP deflator in 2018? a. 119 b. 116 c. 138 d. 113 e. 100
d. 113
Which of the following would be excluded from 2019 GDP? The sale of a. a 2019 Honda made in Tennessee. b. a haircut. c. a realtor's services. d. a home built in 2018 and first sold in 2019. e. All of the above should be counted in 2019 GDP
d. a home built in 2018 and first sold in 2019.
Gross domestic product is the sum of the market value of the a. normal goods and services. b. manufactured goods. c. intermediate goods. d. final goods and services. e. inferior goods and services.
d. final goods and services
The following table contains information about an economy that produces only pens and books. The base year is 2017. Use this information to answer question Year Price of pens Quantity of Pens Price of books Quantity of books 2017 $3 100 $10 50 2018 3 120 12 70 2019 4 120 14 70 What is the percentage increase in real GDP from 2018 to 2019? a. 7 percent b. 32 percent c. 22 percent d. 27 percent e. 0 percent
e. 0 percent
The following table contains information about an economy that produces only pens and books. The base year is 2017. Use this information to answer question Year Price of pens Quantity of Pens Price of books Quantity of books 2017 $3 100 $10 50 2018 3 120 12 70 2019 4 120 14 70 What is the approximate percentage increase in prices from 2018 to 2019? a. 13 percent b. 0 percent c. 16 percent d. 38 percent e. 22 percent
e. 22 percent
