Question 1

If the U.S. government reports that GDP in the third quarter was $16 trillion at an annual rate, then the amount of income and expenditure during quarter three was $4 trillion.

Accepted Answer

A) True 
 B)False

Question 2

Disposable personal income is the income that

Accepted Answer

A)  households have left after paying taxes and non-tax payments to the government.
B)  businesses have left after paying taxes and non-tax payments to the government.
C)  households and noncorporate businesses have left after paying taxes and non-tax payments to the government.
D)  households and businesses have left after paying taxes and non-tax payments to the government.E) B) and C)
F) A) and C)

Question 3

Table 23-2
The following table contains data for country Mindalion for the year 2019.
​
   Household purchases of durable goods $1,695 Household purchases of nondurable goods $1,717 Household purchases of services $400 Household purchases of new housing $704 Purchases of capital equipment $310 Inventory changes $399 Purchases of new structures $611 Depreciati on $117 Salaries of government workers $1,422 Government expenditures on public works $589 Transfer payments $777 Foreign purchases of domestically produced goods $88 Domestic purchases of foreign goods $140\begin{array} { | l | l | } \hline 	ext { Household purchases of durable goods } & \$ 1,695 \\hline 	ext { Household purchases of nondurable goods } & \$ 1,717 \\hline 	ext { Household purchases of services } & \$ 400 \\hline 	ext { Household purchases of new housing } & \$ 704 \\hline 	ext { Purchases of capital equipment } & \$ 310 \\hline 	ext { Inventory changes } & \$ 399 \\hline 	ext { Purchases of new structures } & \$ 611 \\hline 	ext { Depreciati on } & \$ 117 \\hline 	ext { Salaries of government workers } & \$ 1,422 \\hline 	ext { Government expenditures on public works } & \$ 589 \\hline 	ext { Transfer payments } & \$ 777 \\hline 	ext { Foreign purchases of domestically produced goods } & \$ 88 \\hline 	ext { Domestic purchases of foreign goods } & \$ 140 \\hline\end{array} Household purchases of durable goods  Household purchases of nondurable goods  Household purchases of services  Household purchases of new housing  Purchases of capital equipment  Inventory changes  Purchases of new structures  Depreciati on  Salaries of government workers  Government expenditures on public works  Transfer payments  Foreign purchases of domestically produced goods  Domestic purchases of foreign goods ​$1,695$1,717$400$704$310$399$611$117$1,422$589$777$88$140​​ 
-Refer to Table 23-2. What were country Mindalion's exports in 2019?

Accepted Answer

A)  ?$52
B)  $52
C)  $88
D)  $140 E) B) and D)
F) A) and B)

Question 4

GDP adds together many different kinds of products into a single measure of the value of economic activity by using market prices.

Accepted Answer

A) True 
 B)False

Question 5

GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality.

Accepted Answer

A) True 
 B)False

Question 6

The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.

Accepted Answer

A) True 
 B)False

Question 7

Figure 23-1 
-Refer to Figure 23-1. Which of the following pairs correctly identify X and Z?

Accepted Answer

A)  Markets for factors of production and markets for goods and services
B)  Firms and households
C)  GDP deflator and CPI
D)  Flow of dollars and flow of inputs and outputsE) None of the above
F) A) and B)

Question 8

In a simple circular-flow diagram, total income and total expenditure are

Accepted Answer

A)  never equal because total income always exceeds total expenditure.
B)  seldom equal because of the ongoing changes in an economy's unemployment rate.
C)  equal only when the government purchases no goods or services.
D)  always equal because every transaction has a buyer and a seller.E) None of the above
F) B) and D)

Question 9

Table 23-6
The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009.
Prices and Quantities
 
-Refer to Table 23-6. What was nominal GDP, real GDP, and the GDP deflator for 2011? Show your work.

Accepted Answer

Nominal GDP was $6x80 + $65x12...

Question 10

Table 23-3
The following table reports nominal and real GDP for the U.S. from 1929 to 1932.
​
   Year  Nominal GDP  (Billions of dollars)   Real GDP  (Billions of dollars)  1929103.6977193091.2892.8193176.5834.9193258.7725.8\begin{array} { | c | c | c | } \hline 	ext { Year } & \begin{array} { c } 	ext { Nominal GDP } \	ext { (Billions of dollars)  }\end{array} & \begin{array} { c } 	ext { Real GDP } \	ext { (Billions of dollars)  }\end{array} \\hline 1929 & 103.6 & 977 \\hline 1930 & 91.2 & 892.8 \\hline 1931 & 76.5 & 834.9 \\hline 1932 & 58.7 & 725.8 \\hline\end{array} Year 1929193019311932​ Nominal GDP  (Billions of dollars)  ​103.691.276.558.7​ Real GDP  (Billions of dollars)  ​977892.8834.9725.8​​ 
-Refer to Table 23-3. What are the GDP deflator and the inflation rate for 1931?

Accepted Answer

A)  9.16, ?11.5
B)  9.16, ?10.3
C)  1091.37, 10.3
D)  1091.37, 11.5 E) A) and B)
F) A) and C)

Question 11

Because every transaction has a buyer and a seller,

Accepted Answer

A)  GDP is more closely associated with an economy's income than it is with an economy's expenditure.
B)  every transaction contributes equally to an economy's income and to its expenditure.
C)  the number of firms must be equal to the number of households in a simple circular-flow diagram.
D)  firms' profits are necessarily zero in a simple circular-flow diagram.E) A) and B)
F) A) and C)

Exam 23: Measuring a Nations Income

GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

GDP adds together many different kinds of products into a single measure of the value of economic activity by using market prices.

Correct Answer
verified

Disposable personal income is the income that

Correct Answer
verified

Figure 23-1 -Refer to Figure 23-1. Which of the following pairs correctly identify X and Z?

Correct Answer
verified

The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.

Correct Answer
verified

In a simple circular-flow diagram, total income and total expenditure are

Correct Answer
verified

If the U.S. government reports that GDP in the third quarter was $16 trillion at an annual rate, then the amount of income and expenditure during quarter three was $4 trillion.

Correct Answer
verified

Because every transaction has a buyer and a seller,

Correct Answer
verified

Table 23-6 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-6. What was nominal GDP, real GDP, and the GDP deflator for 2011? Show your work.

Correct Answer
verified
Nominal GDP was $6x80 + $65x12...
View Answer

Exam 23: Measuring a Nations Income

GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

GDP adds together many different kinds of products into a single measure of the value of economic activity by using market prices.

Correct AnswerverifiedShow Answer

Disposable personal income is the income that

Correct AnswerverifiedShow Answer

Figure 23-1 -Refer to Figure 23-1. Which of the following pairs correctly identify X and Z?

Correct AnswerverifiedShow Answer

The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.

Correct AnswerverifiedShow Answer

In a simple circular-flow diagram, total income and total expenditure are

Correct AnswerverifiedShow Answer

If the U.S. government reports that GDP in the third quarter was $16 trillion at an annual rate, then the amount of income and expenditure during quarter three was $4 trillion.

Correct AnswerverifiedShow Answer

Because every transaction has a buyer and a seller,

Correct AnswerverifiedShow Answer

Table 23-6 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-6. What was nominal GDP, real GDP, and the GDP deflator for 2011? Show your work.

Correct AnswerverifiedNominal GDP was $6x80 + $65x12...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Nominal GDP was $6x80 + $65x12...
View Answer