Question 1

The gross domestic product (GDP) excludes:​

Accepted Answer

A)  the increase in inventories during a given period.
B)  the expenditures by government for newly produced goods and services during a given period.
C)  the value of intermediate goods produced in an economy during a given period.
D)  the value of final output during a given period.
E)  household expenditure on durable goods.F) C) and E)
G) A) and E)

Question 2

Real gross domestic product (GDP) is measured in terms of _____.​

Accepted Answer

A)  current-year prices
B)  base-year prices​
C)  foreign currencies​
D)  the quality of goods produced​
E)  hours of employment​F) B) and D)
G) A) and C)

Question 3

Aggregate income equals:​

Accepted Answer

A)  the sum of income earned by all laborers in the world economy.
B)  the sum of income earned by all workers in the private sector.
C)  the sum of the income earned by all the resource suppliers in an economy.
D)  the total income of all employees after payment of income tax.
E)  the total income of all employees after purchases of necessities.F) None of the above
G) A) and E)

Question 4

Gross domestic product (GDP) is a poor measure of social well-being because:​

Accepted Answer

A)  the value of leisure time is included in GDP accounting.
B)  the revenue earned through exports is ignored.
C)  each dollar of government spending is valued at less than one-half of private spending.
D)  consumer spending is more important than business spending and should be considered more valuable.
E)  it values products at their market prices but ignores services produced.F) C) and E)
G) A) and D)

Question 5

Which of the following is not a component of aggregate expenditure?​

Accepted Answer

A)  Consumption expenditures
B)  Investment​
C)  Imports​
D)  Rent​
E)  Government purchases​F) A) and E)
G) A) and B)

Question 6

Disposable income equals personal income minus net taxes.​

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not true about gross domestic product (GDP) ?​

Accepted Answer

A)  It includes only final goods and services.
B)  It reflects production in a particular year.
C)  Intermediate goods and services are excluded to prevent double counting.
D)  It excludes purchases of financial assets.
E)  It includes transfer payments.F) A) and B)
G) D) and E)

Question 8

The gross domestic product (GDP) excludes:​

Accepted Answer

A)  the value of a new building.
B)  the value of new stocks and shares.
C)  the cost of a new vending machine.
D)  government expenditure on a new bridge.
E)  the money spent on the purchase of legal services by a household.F) B) and E)
G) B) and C)

Question 9

Which of the following actions would increase the consumption spending component of the gross domestic product (GDP) ?​

Accepted Answer

A)  Ann cooking dinner for Tim instead of going out
B)  Ann and Tim buying a used microwave oven​
C)  Ann and Tim buying vegetables to prepare soup at home​
D)  Tim buying Ann a dress​
E)  Tim and Ann painting the garage themselves​F) A) and C)
G) C) and D)

Question 10

The consumer price index (CPI)overstates the true inflation rate because it ignores changes in consumers' purchasing patterns as relative prices change.​

Accepted Answer

A) True 
 B)False

Exam 6: Tracking the Useconomy

Disposable income equals personal income minus net taxes.

Correct Answer
verified

Aggregate income equals:

Correct Answer
verified

Which of the following actions would increase the consumption spending component of the gross domestic product (GDP) ?

Correct Answer
verified

Which of the following is not true about gross domestic product (GDP) ?

Correct Answer
verified

Which of the following is not a component of aggregate expenditure?

Correct Answer
verified

The gross domestic product (GDP) excludes:

Correct Answer
verified

The gross domestic product (GDP) excludes:

Correct Answer
verified

Gross domestic product (GDP) is a poor measure of social well-being because:

Correct Answer
verified

The consumer price index (CPI)overstates the true inflation rate because it ignores changes in consumers' purchasing patterns as relative prices change.

Correct Answer
verified

Real gross domestic product (GDP) is measured in terms of _____.

Correct Answer
verified

Exam 6: Tracking the Useconomy

Disposable income equals personal income minus net taxes.​

Correct AnswerverifiedShow Answer

Aggregate income equals:​

Correct AnswerverifiedShow Answer

Which of the following actions would increase the consumption spending component of the gross domestic product (GDP) ?​

Correct AnswerverifiedShow Answer

Which of the following is not true about gross domestic product (GDP) ?​

Correct AnswerverifiedShow Answer

Which of the following is not a component of aggregate expenditure?​

Correct AnswerverifiedShow Answer

The gross domestic product (GDP) excludes:​

Correct AnswerverifiedShow Answer

The gross domestic product (GDP) excludes:​

Correct AnswerverifiedShow Answer

Gross domestic product (GDP) is a poor measure of social well-being because:​

Correct AnswerverifiedShow Answer

The consumer price index (CPI)overstates the true inflation rate because it ignores changes in consumers' purchasing patterns as relative prices change.​

Correct AnswerverifiedShow Answer

Real gross domestic product (GDP) is measured in terms of _____.​

Correct AnswerverifiedShow Answer

Disposable income equals personal income minus net taxes.

Correct Answer
verified

Aggregate income equals:

Correct Answer
verified

Which of the following actions would increase the consumption spending component of the gross domestic product (GDP) ?

Correct Answer
verified

Which of the following is not true about gross domestic product (GDP) ?

Correct Answer
verified

Which of the following is not a component of aggregate expenditure?

Correct Answer
verified

The gross domestic product (GDP) excludes:

Correct Answer
verified

The gross domestic product (GDP) excludes:

Correct Answer
verified

Gross domestic product (GDP) is a poor measure of social well-being because:

Correct Answer
verified

The consumer price index (CPI)overstates the true inflation rate because it ignores changes in consumers' purchasing patterns as relative prices change.

Correct Answer
verified

Real gross domestic product (GDP) is measured in terms of _____.

Correct Answer
verified