Econ Test #3
Government purchases include...
Federal, State, and Local Expenditures
There are several ways to measure aggregate output. The one favored by the Bureau of Economic Analysis is...
Gross Domestic Product
Which of the following best measures improvements in the standard if living in a nation?
Growth of real GDP per capita
Which of the following does not correctly categorize modern economic growth?
it has not affected the average lifespan of human beings
The intense competition of free trade prevents the investment that generates economic growth.
False
U.S. GDP in 2021 was about...
$23 trillion
In Year 2, the economy's real GDP was...
$420,000
As distinct from the demand and efficiency factors of economic growth, the supply factors are...
1,2,5,6
National income accountants define consumer nondurable goods as products that have an expected life of...
3 Years or Less
National income accountants define consumer durable goods as products that have an expected life of...
3 Years or More
The agency responsible for compiling the National Income and Product Accounts for the U.S. economy is the...
Bureau of Economic Analysis
To manage the problem of adding dissimilar items when calculating GDP, the BEA...
Adds the monetary values of each final good or service produced
Compensation of employees...
All of the answers are correct.
Interest consists of the money households receive on...
All of the answers are correct.
Economic growth in the United States since 1950 has been characterized by...
An average growth rate in real GDP that is slower than the growth rate of the popluation
The U.S. government agency responsible for compiling the national income accounts is the...
Commerce Department's Bureau of Economic Analysis (BEA).
Buying new furniture for your home would increase...
Consumer durable goods and therefore personal consumption expenditures.
Buying a new pair of jeans for yourself would increase...
Consumer nondurable goods and consequently personal consumption expenditures.
A shift outward in the production possibilities curve is the direct result of improvements in the efficiency factor of economic growth.
False
Diagram. What are the reasons for operating at Point 4?
Demand and Efficiency Factors
The main cause for vast differences in per-capita GDP levels seen across the globe today is the...
Different starting dates of modern economic growth in different parts of the world
Government purchases...
Include direct purchases of resources.
What are the two broad categories of the nation's stock of capital?
Informally referred to as "tools" and "recipes."
Which of the following economic regions has experienced the most growth in real GDP per capita since 1820?
Japan
Suppose total output (real GDP) is $10,000 ad hours of work are 20,000. We can conclude that...
Labor productivity must be $0.50
Which of the following statements is most accurate about modern economic growth?
Modern economic growth is characterized by sustained and ongoing increases in living standards
The system that measures the economy's overall performance is formally known as...
National Income Accounting
The Bureau of Economic Analysis compiles the NIPA accounts. The letters NIPA represent...
National Income and Product Accounts
The largest expenditure component of GDP is...
Personal Consumption Expenditures
Suppose that an economy's labor productivity and total worker-hours each grew 3% between Year 1 and Year 2. We could conclude that this economy's
Production Possibilities Curve Shifted Outward
If an economy has 800,000 hours of work, and its labor productivity is $16 per hour, then...
Real GDP must be $12,800,000
Human-made resources that are referred to as "recipes" include...
Spending on new writing that increases the flow of entertainment and education.
Transfer payments are not included in government purchases because...
Such payments generate no production
Which country ranked highest for World Competitiveness in 2021?
Switzerland
Spending that pays for new or improved software is in...
The "recipe" category of investment.
The Industrial Revolution and modern economic growth resulted in...
The average human lifespan more than doubling
A nation's real GDP will increase by increasing the following, except...
The average price level
Modern economic growth has changed...
The cultural, political, and social arrangements in countries
Over the last 250 years of modern economic growth...
The increases in wealth and living standards have given ordinary people significant time for leisure activities and the arts.
To signify government purchases, national income accountants use...
The symbol "G"
Which of the following will be included in U.S. GDP?
The value of the cars produced at a Japanese-owned Toyota factory in Ohio
Modern economic growth since the 1820s has widened the wealth and income disparities between richer and poorer nations
True
The last 250 years of history have been fundamentally different from anything that went before.
True
The perfection of an efficient steam engine started the I.R.
True
The supply factors of economic growth are those that shift a country's production possibilities curve
True
In 2020, the three largest economies in the world were (listed in order)
United States, China, Japan.
