econ test 4 quizes

GDP is: A. Dthe total value of all consumer expenditures within a given period B. national income after taxes C.the total value of all final goods and services plus intermediate goods and services produced domestically within a given period. D. the value of all final goods and services produced domestically within a given period.

Final goods or services used to compute GDP refer to: the factors of production used to produce output, goods and services purchased by the ultimate users, the sum of all exports plus imports.

Intermediate products: A. produced domestically are not directly reflected in a nation's GDP B. are imported retail products C. are goods that are purchased by the ultimate user

Net exports are defined as: A. exports plus imports B. exports minus imports. C. imports minus exports.

What is the measure of the income received by owners of resources used in making final goods and services? factor payments, product payments, indirect earnings, direct earnings

The prosperity of a nation today is typically measured by its: A. total output or gross national product B. output per capita C. gold reserves

A country will roughly double its GDP in twenty years if its annual growth rate is: 2.5%, 3.5%, 7.5%

As more capital per worker is added, a per worker production function generally becomes: A. flatter because capital is subject to diminishing marginal returns B. flatter because labor is subject to diminishing marginal returns. C. flatter because capital is subject to increasing marginal returns.

In a fully employed economy, invention and discovery: are automatic, achieved through sacrifices in current consumption, have negative op. cost, all of the above

T/F: a piece of glass bought by a consumer to fix a broken window would be counted toward GDP

T/F: a sheet of glass purchased by General Motors for the side window of a new car would be counted toward GDP

Which of the following products are not included in current U.S. GDP? A. a Washington apple B. a Ford Mustang produced last year and sold this year C. a physical examination at a California health clinic D. All of the above

GDP does not directly include: A. the value of final goods and services produced, but not sold, during a period B. the value of services rendered during a period C. the value of intermediate goods sold during a period D. any E. either a or c

The most volatile GDP category under the expenditure approach is: wages/salaries, investment, consumption, gov purchases, net exports

The investment component of GDP includes: A. funds in individual retirement accounts. B. construction of a new steel mill C. the sale of shares of Coca-Cola stock D. the purchase of a refrigerator by a household.

If a nation's imports exceed its exports: A. net exports will be positive. B. GDP will be less than the sum of consumption, investment, and government purchases C. GDP will be greater than the sum of consumption, investment, and government purchases. D. none of the above apply.

The services rendered by a special agent with the Federal Bureau of Investigation is included in which expenditure category of GDP: consumption, investment, government purchases, net exports, none of the above

In 2008, U.S. Nominal GDP totaled approximately: $2.1 tril, 2.8, 14.3, 10.1, none 

If the price index is now 120, it means: A. prices are 120 percent higher than in the base year. B. prices are 20 percent higher than in the base year. C. prices are 1.2 percent higher than in the base year
D. nominal GDP will be less than real GDP. E. that both b. and d. are true.

Which of the following is a problem with using real GDP as a measure of economic well-being? A. does not account for inflation B. does not account for production within the household C. does not account for production by foreign firms producing inside the U.S. D. all of the above

Estimates of the size of the underground economy range from: A. 4 to 20 percent. B. 2 to 5 percent. C. 7 to 10 percent. D. 45 to 60 percent.