Question 1

Summing the value added of all firms yields the value of final goods and services produced because both measures:

Accepted Answer

A)  exclude the value of capital goods.
B)  exclude the value of intermediate goods and services.
C)  use constant prices.
D)  are adjusted for population growth.E) B) and D)
F) B) and C)

Question 2

Real GDP is measured in ________ prices; nominal GDP is measured in ________ prices.

Accepted Answer

A)  current; base year
B)  base year; current
C)  current; current
D)  base year; base yearE) None of the above
F) A) and B)

Question 3

GDP can be measured as each of the following except:

Accepted Answer

A)  the market value of production.
B)  total expenditure on final goods and services.
C)  incomes of capital and labor.
D)  total business revenues.E) A) and B)
F) B) and C)

Question 4

The total income of capital and labor must equal the value of total:

Accepted Answer

A)  production.
B)  profits.
C)  revenue.
D)  investment.E) B) and D)
F) None of the above

Question 5

Despite some problems with equating GDP with economic well-being, higher real GDP per person does imply greater economic well-being because it tends to be positively associated with:

Accepted Answer

A)  crime, pollution, and economic inequality.
B)  better education, health and life expectancy.
C)  poverty, depletion of nonrenewable resources, and congestion.
D)  unemployment, availability of goods and services, and better education.E) A) and B)
F) A) and C)

Question 6

Each person who is 16 years or older is considered to be in one of the following categories:

Accepted Answer

A)  employed, unemployed, or discouraged worker.
B)  part-time worker, full-time worker, or unemployed.
C)  part-time worker, full-time worker, or out of the labor force.
D)  employed, unemployed, or out of the labor force.E) A) and B)
F) None of the above

Question 7

Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process:  
  Name of Campany  Revenues  Cast af Pur chased Inguts  Citrus Growers Inc. $0.750 Florida Jarn Cormpany $2.00$0.75 The Corner Store $2.50$2.00\begin{array} { | l | c | r | } \hline { 	ext { Name of Campany } } & 	ext { Revenues } & 	ext { Cast af Pur chased Inguts } \\hline 	ext { Citrus Growers Inc. } & \$ 0.75 & \mathbf { 0 } \\hline 	ext { Florida Jarn Cormpany } & \$ 2.00 & \$ 0.75 \\hline 	ext { The Corner Store } & \$ 2.50 & \$ 2.00 \\hline\end{array} Name of Campany  Citrus Growers Inc.  Florida Jarn Cormpany  The Corner Store ​ Revenues $0.75$2.00$2.50​ Cast af Pur chased Inguts 0$0.75$2.00​​  What is the value added of Citrus Growers Inc.?

Accepted Answer

A)  $0.00
B)  $0.50
C)  $0.75
D)  $1.75 E) A) and B)
F) A) and C)

Question 8

The largest expenditure component of U.S. GDP is:

Accepted Answer

A)  consumption.
B)  investment.
C)  government purchases.
D)  exports.E) C) and D)
F) A) and B)

Question 9

The following provides data for an economy in a certain year.  
 Given the data, compute the government purchases component of GDP.

Accepted Answer

A)  $200
B)  $500
C)  $700
D)  $900E) A) and B)
F) All of the above

Question 10

The following provides data for an economy in a certain year.  
 Given the data, compute the investment component of GDP.

Accepted Answer

A)  $300
B)  $400
C)  $800
D)  $900E) A) and D)
F) A) and C)

Question 11

The labor force equals the number of people:

Accepted Answer

A)  employed.
B)  aged 16 years and older.
C)  both employed and unemployed.
D)  employed, unemployed and discouraged.E) B) and C)
F) A) and D)

Question 12

Although GDP is not the same as economic well-being, high levels of GDP are positively correlated with all of the following except:

Accepted Answer

A)  longer life expectancies.
B)  higher rates of literacy.
C)  higher material standards of living.
D)  higher rates of infant mortality.E) A) and C)
F) B) and C)

Question 13

Who from among the following is counted as employed?

Accepted Answer

A)  Ray wants to work forty hours per week, but can only find work for twenty hours per week.
B)  Anna Marie spends all of her time taking care of her children at home.
C)  Frank would like to work, but has not looked for work because he believes no jobs are available.
D)  Martin has been offered several jobs in the past four weeks, but has chosen not to accept any of the offers.E) A) and B)
F) A) and C)

Question 14

Wages and salaries are examples of:

Accepted Answer

A)  consumption.
B)  labor income.
C)  capital income.
D)  profits.E) A) and C)
F) A) and D)

Question 15

Factories and machines are examples of:

Accepted Answer

A)  consumption goods.
B)  non-market goods.
C)  value-added goods.
D)  capital goods.E) C) and D)
F) A) and D)

Question 16

In 2018, Janice Quinn sells a five-year-old car to Used Car, Inc. for $4,000. In the same year, Used Car, Inc. resells the car to Hilda Goner for $4,750. What is the contribution of these transactions to GDP in the year 2015?

Accepted Answer

A)  $0
B)  $750
C)  $4,000
D)  $8,750E) A) and B)
F) None of the above

Question 17

A cost of unemployment typically borne by society at large rather than the unemployed themselves is:

Accepted Answer

A)  feelings of loss of control over one's life.
B)  lost tax revenue.
C)  lost self-esteem.
D)  lost income.E) C) and D)
F) A) and B)

Question 18

The value of goods produced, but unsold, in the current period is:

Accepted Answer

A)  excluded from GDP.
B)  counted in GDP as inventory investment.
C)  counted in GDP as consumption spending.
D)  allocated to GDP in future periods when the goods are sold.E) A) and B)
F) B) and D)

Question 19

An "unemployment spell" is a period during which:

Accepted Answer

A)  the unemployment rate is less than 10 percent.
B)  the unemployment rate exceeds 15 percent.
C)  an unemployed individual leaves the labor force and then returns.
D)  an individual is continuously unemployed.E) A) and D)
F) A) and C)

Question 20

Who of the following would be considered a discouraged worker?

Accepted Answer

A)  Ray wants to work forty hours per week, but can only find work for twenty hours per week.
B)  Anna Marie has been looking for a job every day for the last month, but has not been hired.
C)  Frank would like to work, but has not looked for work because he believes no jobs are available.
D)  Melissa has a Ph.D. in physics, but is currently employed full time driving a taxi.E) A) and C)
F) A) and B)

Exam 17: Measuring Economic Activity: GDP and Unemployment

Summing the value added of all firms yields the value of final goods and services produced because both measures:

Correct Answer
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Correct Answer
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Who from among the following is counted as employed?

Correct Answer
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GDP can be measured as each of the following except:

Correct Answer
verified

An "unemployment spell" is a period during which:

Correct Answer
verified

The total income of capital and labor must equal the value of total:

Correct Answer
verified

Despite some problems with equating GDP with economic well-being, higher real GDP per person does imply greater economic well-being because it tends to be positively associated with:

Correct Answer
verified

A cost of unemployment typically borne by society at large rather than the unemployed themselves is:

Correct Answer
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Each person who is 16 years or older is considered to be in one of the following categories:

Correct Answer
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The largest expenditure component of U.S. GDP is:

Correct Answer
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The following provides data for an economy in a certain year. Given the data, compute the government purchases component of GDP.

Correct Answer
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Factories and machines are examples of:

Correct Answer
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The labor force equals the number of people:

Correct Answer
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Although GDP is not the same as economic well-being, high levels of GDP are positively correlated with all of the following except:

Correct Answer
verified

Wages and salaries are examples of:

Correct Answer
verified

In 2018, Janice Quinn sells a five-year-old car to Used Car, Inc. for $4,000. In the same year, Used Car, Inc. resells the car to Hilda Goner for $4,750. What is the contribution of these transactions to GDP in the year 2015?

Correct Answer
verified

The following provides data for an economy in a certain year. Given the data, compute the investment component of GDP.

Correct Answer
verified

Real GDP is measured in prices; nominal GDP is measured in prices.

Correct Answer
verified

The value of goods produced, but unsold, in the current period is:

Correct Answer
verified

Who of the following would be considered a discouraged worker?

Correct Answer
verified

Exam 17: Measuring Economic Activity: GDP and Unemployment

Summing the value added of all firms yields the value of final goods and services produced because both measures:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Who from among the following is counted as employed?

Correct AnswerverifiedShow Answer

GDP can be measured as each of the following except:

Correct AnswerverifiedShow Answer

An "unemployment spell" is a period during which:

Correct AnswerverifiedShow Answer

The total income of capital and labor must equal the value of total:

Correct AnswerverifiedShow Answer

Despite some problems with equating GDP with economic well-being, higher real GDP per person does imply greater economic well-being because it tends to be positively associated with:

Correct AnswerverifiedShow Answer

A cost of unemployment typically borne by society at large rather than the unemployed themselves is:

Correct AnswerverifiedShow Answer

Each person who is 16 years or older is considered to be in one of the following categories:

Correct AnswerverifiedShow Answer

The largest expenditure component of U.S. GDP is:

Correct AnswerverifiedShow Answer

The following provides data for an economy in a certain year. Given the data, compute the government purchases component of GDP.

Correct AnswerverifiedShow Answer

Factories and machines are examples of:

Correct AnswerverifiedShow Answer

The labor force equals the number of people:

Correct AnswerverifiedShow Answer

Although GDP is not the same as economic well-being, high levels of GDP are positively correlated with all of the following except:

Correct AnswerverifiedShow Answer

Wages and salaries are examples of:

Correct AnswerverifiedShow Answer

In 2018, Janice Quinn sells a five-year-old car to Used Car, Inc. for $4,000. In the same year, Used Car, Inc. resells the car to Hilda Goner for $4,750. What is the contribution of these transactions to GDP in the year 2015?

Correct AnswerverifiedShow Answer

The following provides data for an economy in a certain year. Given the data, compute the investment component of GDP.

Correct AnswerverifiedShow Answer

Real GDP is measured in ________ prices; nominal GDP is measured in ________ prices.

Correct AnswerverifiedShow Answer

The value of goods produced, but unsold, in the current period is:

Correct AnswerverifiedShow Answer

Who of the following would be considered a discouraged worker?

Correct AnswerverifiedShow Answer

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Real GDP is measured in prices; nominal GDP is measured in prices.

Correct Answer
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Correct Answer
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Correct Answer
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