Question 1

Which is the most accurate statement about the underground economy?

Accepted Answer

A)  The underground economy includes not only street peddlers and low-life entrepreneurs,but also accountants and doctors.
B)  Pirated CD's and videos are part of the underground economy.
C)  The underground economy adds hundreds of billions of dollars of goods and services to our economy.
D)  The underground economy provides employment to hundreds of thousands of illegal immigrants.
E)  All of the statements are truE.F) A) and D)
G) None of the above

Question 2

If GDP and real GDP grew at exactly the same rate,then there would be no ___.

Accepted Answer

The answer of If GDP and real GDP grew at...

Question 3

If national income is $4 trillion,depreciation is $350 billion,direct taxes are $300 billion,and indirect business taxes are $500 billion,how much is NDP and GDP?

Accepted Answer

National income ($4 trillion)+...

Question 4

If our GDP rises by 50 percent,our GDP deflator doubles,and our population stays the same,our real per capita GDP will

Accepted Answer

A)  Decline by 75 percent
B)  Decline by 50 percent
C)  Decline by 25 percent
D)  Stay exactly the same
E)  Rise by 25 percentF) A) and E)
G) All of the above

Question 5

If our output of goods and services rises,then

Accepted Answer

A)  real GDP definitely rose.
B)  real GDP definitely fell.
C)  GDP definitely rose.
D)  GDP definitely stayed the same.E) All of the above
F) A) and B)

Question 6

The growth of GDP may understate the economy's economic well-being if the

Accepted Answer

A)  distribution of income becomes increasingly unequal.
B)  quality of products and services improves.
C)  environment deteriorates because of pollution.
D)  amount of leisure decreases.E) A) and B)
F) A) and C)

Question 7

-Find net domestic product.

Accepted Answer

national income (5,4...

Question 8

GDP is

Accepted Answer

A)  national income after taxes.
B)  the total value of all personal consumption expenditures.
C)  the market value of final goods and services produced in a given year.
D)  equivalent to unemployment.E) A) and B)
F) A) and C)

Question 9

Real GDP changed from $6,138.7 billion in 1990 to $6,079.0 in 1991.Real GDP __________ (increased / decreased)by ________ percent.

Accepted Answer

decreased;...

Question 10

If real GDP grew by 5 percent in real terms during one year and population also grew by 5 percent,it can be stated that

Accepted Answer

A)  real GDP did not change at all.
B)  GDP did not change at all.
C)  the change in real GDP equaled the change in GDP.
D)  real GDP per capita did not change at all.
E)  purchasing power fell.F) A) and B)
G) A) and C)

Question 11

In 2009 our _____ over $14 trillion.

Accepted Answer

A)  GDP and NDP were
B)  NDP,but not our GDP,was
C)  GDP,but not our NDP,was
D)  GDP and NDP were notE) B) and C)
F) A) and D)

Question 12

If our GDP fell,our real GDP fell,and our population remained the same,then our real per capita GDP ___.

Accepted Answer

The answer of If our GDP fell,our real GDP fell,and...

Question 13

Which of the following circumstances would not cause GDP to either understate or overstate economic well-being today in comparison to that which existed 75 years ago?

Accepted Answer

A)  A shorter workweek today
B)  Greater military spending today
C)  A trend toward merger and consolidation of business firms
D)  More air and water pollutionE) A) and C)
F) B) and D)

Question 14

GDP rises from $5 trillion in 1992 to $7 trillion in 1998.The GDP deflator in 1998 is 125.Find real GDP in 1998.Find the percentage increase in real GDP between 1992 and 1998.

Accepted Answer

The answer of GDP rises from $5 trillion in 1992...

Question 15

If real GDP falls from one period to another,we can conclude that

Accepted Answer

A)  deflation occurred.
B)  inflation occurred.
C)  nominal GDP fell.
D)  None of the choices are correct.E) A) and D)
F) A) and C)

Question 16

Which of the following would NOT be included in this year's GDP?

Accepted Answer

A)  The purchase of 100 shares of Microsoft stock
B)  The replacement of a muffler on a 1978 Chevy
C)  The commission charged by a real estate agent
D)  The services of a hair stylist
E)  The tuition fee for a course in economicsF) A) and B)
G) A) and C)

Question 17

Transfer payments are

Accepted Answer

A)  flows of income received by foreigners.
B)  flows of income received by exporters.
C)  included in GDP.
D)  excluded from GDP.
E)  stocks of unplanned inventory produced in prior years.F) B) and E)
G) A) and B)

Question 18

In 1986,the base year,GDP was 4000.In 1989 the GDP deflator was 115.We may conclude that

Accepted Answer

A)  there was some inflation between 1986 and 1989.
B)  there was some deflation between 1986 and 1989.
C)  real GDP declined between 1986 and 1989.
D)  GDP declined between 1986 and 1989.E) None of the above
F) B) and C)

Question 19

In 2009 G was about $_____.

Accepted Answer

The answer of In 2009 G was about $_____....

Question 20

Which of the following statements is true?

Accepted Answer

A)  GDP is greater than national income,which is greater than NDP.
B)  Government spending is the largest sector of GDP.
C)  A Social Security check sent to a retiree is counted as part of GDP.
D)  The purchase of a new factory is counted in the investment sector of GDP.E) All of the above
F) C) and D)

Exam 9: Gross Domestic Product

GDP is

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Which of the following would NOT be included in this year's GDP?

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If national income is $4 trillion,depreciation is $350 billion,direct taxes are $300 billion,and indirect business taxes are $500 billion,how much is NDP and GDP?

Correct AnswerverifiedNational income ($4 trillion)+...View AnswerShow Answer

If our output of goods and services rises,then

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If our GDP fell,our real GDP fell,and our population remained the same,then our real per capita GDP ___.

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If our GDP rises by 50 percent,our GDP deflator doubles,and our population stays the same,our real per capita GDP will

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In 2009 our _____ over $14 trillion.

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The growth of GDP may understate the economy's economic well-being if the

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In 2009 G was about $_____.

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GDP rises from $5 trillion in 1992 to $7 trillion in 1998.The GDP deflator in 1998 is 125.Find real GDP in 1998.Find the percentage increase in real GDP between 1992 and 1998.

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Which of the following statements is true?

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Which of the following circumstances would not cause GDP to either understate or overstate economic well-being today in comparison to that which existed 75 years ago?

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In 1986,the base year,GDP was 4000.In 1989 the GDP deflator was 115.We may conclude that

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Transfer payments are

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If real GDP grew by 5 percent in real terms during one year and population also grew by 5 percent,it can be stated that

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Which is the most accurate statement about the underground economy?

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-Find net domestic product.

Correct Answerverifiednational income (5,4...View AnswerShow Answer

If GDP and real GDP grew at exactly the same rate,then there would be no ___.

Correct AnswerverifiedShow Answer

Real GDP changed from $6,138.7 billion in 1990 to $6,079.0 in 1991.Real GDP __________ (increased / decreased)by ________ percent.

Correct Answerverifieddecreased;...View AnswerShow Answer

If real GDP falls from one period to another,we can conclude that

Correct AnswerverifiedShow Answer

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National income ($4 trillion)+...
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national income (5,4...
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Real GDP changed from $6,138.7 billion in 1990 to $6,079.0 in 1991.Real GDP __ (increased / decreased)by percent.

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decreased;...
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