Question 1

A farmer buys a new tractor from John Deere to use on her cotton farm. This tractor is included in GDP as

Accepted Answer

A)   part of gross private domestic investment.
B)   a durable consumption good.
C)   a service.
D)   a nondurable consumption good.E) B) and D)
F) A) and B)

Question 2

The GDP deflator in year 3 is 135 using year 1 as a base year. This means that, on average, the price of goods and services is

Accepted Answer

A)   135% higher in year 3 than in year 1.
B)   17.5% higher in year 3 than in year 1.
C)   35% higher in year 3 than in year 1.
D)   17.5% higher in year 1 than in year 3.E) A) and B)
F) All of the above

Question 3

In 2016 final sales equal $400 billion, and the change in business inventories is $100 billion. GDP in 2016 is

Accepted Answer

A)   $100 billion.
B)   $300 billion.
C)   $400 billion.
D)   $500 billion.E) All of the above
F) B) and D)

Question 4

Refer to the information provided in Table 6.2 below to answer the questions that follow.
Table 6.2 
-Refer to Table 6.2. The value of government spending in billions of dollars is

Accepted Answer

A)   200.
B)   600.
C)   800.
D)   1,000.E) A) and B)
F) A) and C)

Question 5

Double counting can be avoided by using the value-added approach when calculating GDP.

Accepted Answer

A) True 
 B)False

Question 6

Refer to the information provided in Table 6.2 below to answer the questions that follow.
Table 6.2 
-Refer to Table 6.2. The value for gross private domestic investment in billions of dollars is

Accepted Answer

A)   740.
B)   810.
C)   850.
D)   890.E) A) and D)
F) B) and D)

Question 7

The GDP deflator is the

Accepted Answer

A)   difference between real GDP and nominal GDP multiplied by 100.
B)   difference between nominal GDP and real GDP multiplied by 100.
C)   ratio of nominal GDP to real GDP multiplied by 100.
D)   ratio of real GDP to nominal GDP multiplied by 100.E) A) and D)
F) A) and C)

Question 8

What type of tax affects the amount of money you pay for a product?

Accepted Answer

A)   direct tax
B)   income tax
C)   indirect tax
D)   all of the aboveE) A) and D)
F) C) and D)

Question 9

Refer to the information provided in Table 6.8 below to answer the questions that follow.
Table 6.8 
-Refer to Table 6.8. The value for GNP in billions of dollars is

Accepted Answer

A)   990.
B)   1,050.
C)   1,080.
D)   1,200.E) B) and C)
F) A) and B)

Question 10

A company produced 8 dishwasher machines in 2015. The company sold 6 in 2015 and added 2 to its inventories. The market value of the dishwasher machines in 2015 was $200 per unit. What is the value of this company's output that will be included in the 2015 GDP?

Accepted Answer

A)   $400
B)   $1,400
C)   $1,600
D)   $2,000E) A) and D)
F) A) and C)

Question 11

If real GDP in 2016 using 2015 prices is higher than nominal GDP of 2016, then

Accepted Answer

A)   prices in 2016 are higher than prices in 2015.
B)   nominal GDP in 2016 equals nominal GDP in 2015.
C)   prices in 2016 are lower than prices in 2015.
D)   real GDP in 2016 is smaller than real GDP in 2015.E) A) and B)
F) A) and C)

Question 12

Suppose that net investment in 2016 was $20 billion and depreciation was $4 billion. Gross investment in 2016 was

Accepted Answer

A)   $16 billion.
B)   $20 billion.
C)   $24 billion.
D)   $28 billion.E) B) and C)
F) A) and C)

Exam 6: Measuring National Output and National Income

What type of tax affects the amount of money you pay for a product?

Correct Answer
verified

Refer to the information provided in Table 6.2 below to answer the questions that follow. Table 6.2 -Refer to Table 6.2. The value of government spending in billions of dollars is

Correct Answer
verified

Double counting can be avoided by using the value-added approach when calculating GDP.

Correct Answer
verified

A company produced 8 dishwasher machines in 2015. The company sold 6 in 2015 and added 2 to its inventories. The market value of the dishwasher machines in 2015 was $200 per unit. What is the value of this company's output that will be included in the 2015 GDP?

Correct Answer
verified

In 2016 final sales equal $400 billion, and the change in business inventories is $100 billion. GDP in 2016 is

Correct Answer
verified

The GDP deflator in year 3 is 135 using year 1 as a base year. This means that, on average, the price of goods and services is

Correct Answer
verified

A farmer buys a new tractor from John Deere to use on her cotton farm. This tractor is included in GDP as

Correct Answer
verified

If real GDP in 2016 using 2015 prices is higher than nominal GDP of 2016, then

Correct Answer
verified

Refer to the information provided in Table 6.8 below to answer the questions that follow. Table 6.8 -Refer to Table 6.8. The value for GNP in billions of dollars is

Correct Answer
verified

Suppose that net investment in 2016 was $20 billion and depreciation was $4 billion. Gross investment in 2016 was

Correct Answer
verified

Refer to the information provided in Table 6.2 below to answer the questions that follow. Table 6.2 -Refer to Table 6.2. The value for gross private domestic investment in billions of dollars is

Correct Answer
verified

The GDP deflator is the

Correct Answer
verified

Exam 6: Measuring National Output and National Income

What type of tax affects the amount of money you pay for a product?

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.2 below to answer the questions that follow. Table 6.2 -Refer to Table 6.2. The value of government spending in billions of dollars is

Correct AnswerverifiedShow Answer

Double counting can be avoided by using the value-added approach when calculating GDP.

Correct AnswerverifiedShow Answer

A company produced 8 dishwasher machines in 2015. The company sold 6 in 2015 and added 2 to its inventories. The market value of the dishwasher machines in 2015 was $200 per unit. What is the value of this company's output that will be included in the 2015 GDP?

Correct AnswerverifiedShow Answer

In 2016 final sales equal $400 billion, and the change in business inventories is $100 billion. GDP in 2016 is

Correct AnswerverifiedShow Answer

The GDP deflator in year 3 is 135 using year 1 as a base year. This means that, on average, the price of goods and services is

Correct AnswerverifiedShow Answer

A farmer buys a new tractor from John Deere to use on her cotton farm. This tractor is included in GDP as

Correct AnswerverifiedShow Answer

If real GDP in 2016 using 2015 prices is higher than nominal GDP of 2016, then

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.8 below to answer the questions that follow. Table 6.8 -Refer to Table 6.8. The value for GNP in billions of dollars is

Correct AnswerverifiedShow Answer

Suppose that net investment in 2016 was $20 billion and depreciation was $4 billion. Gross investment in 2016 was

Correct AnswerverifiedShow Answer

Refer to the information provided in Table 6.2 below to answer the questions that follow. Table 6.2 -Refer to Table 6.2. The value for gross private domestic investment in billions of dollars is

Correct AnswerverifiedShow Answer

The GDP deflator is the

Correct AnswerverifiedShow Answer

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