Question 1

Which of these is included in personal consumption expenditures?

Accepted Answer

A)   highway construction
B)   the purchase of a new TV by a household
C)   construction of residential housing
D)   purchases of common stock by an investorE) All of the above
F) B) and C)

Question 2

Services constitute approximately _____ of GDP.

Accepted Answer

A)   70%
B)   25%
C)   50%
D)   10%E) B) and D)
F) B) and C)

Question 3

The U.S. Congress has taken an interest in the development of "green" GDP accounts.

Accepted Answer

A) True 
 B)False

Question 4

When investors believe an economic slowdown is likely, they buy short-term bonds to lock in interest rates.

Accepted Answer

A) True 
 B)False

Question 5

Suppose the yield on a 3-month Treasury bill is 0.04% and the 10-year Treasury note yields 2.74%. This yield curve suggests the economy is headed for a recession.

Accepted Answer

A) True 
 B)False

Question 6

The value of cars that the Ford Motor Company produces in a German plant is

Accepted Answer

A)   a part of U.S. GDP.
B)   a part of U.S. GNP.
C)   a part of German GNP.
D)   not a part of German GDP.E) B) and D)
F) A) and D)

Question 7

In the formula for GDP (GDP = C + I + G + (X - M) ) , what does X represent?

Accepted Answer

A)   exports
B)   imports
C)   net exports
D)   government spendingE) A) and B)
F) A) and C)

Question 8

The national income and product accounts are released quarterly to ensure that accurate economic information is readily available.

Accepted Answer

A) True 
 B)False

Question 9

The U.S. gross domestic product is equal to the total market value of all

Accepted Answer

A)   intermediate goods and services produced by resources in the United States.
B)   final goods and services produced by resources in the United States.
C)   final goods and services produced by U.S. citizens in the United States.
D)   intermediate goods and services produced by citizens in the United States.E) A) and B)
F) None of the above

Question 10

It can be said that macroeconomics was born during the Great Depression.

Accepted Answer

A) True 
 B)False

Question 11

Which of these is a nondurable good?

Accepted Answer

A)   Toyota sedan
B)   movie ticket
C)   six-pack of beer
D)   hour with a masseuseE) B) and C)
F) A) and D)

Question 12

A sheep ranch produces $30 worth of wool. A suit manufacturer produces $60 worth of suits. A retail outlet sells a suit to a customer for $180. The change in GDP would be

Accepted Answer

A)   $30.
B)   $180.
C)   $270.
D)   zero because wool suits are worthless.E) B) and C)
F) All of the above

Question 13

A jobless recovery is an economic expansion accompanied by a decrease in the number of unemployed workers.

Accepted Answer

A) True 
 B)False

Question 14

Suppose the National Activity Index of the Federal Reserve Bank of Chicago drops to -0.83 this month after being above +0.36 for the previous three months. This movement in the index indicates that

Accepted Answer

A)   the economy has probably moved into a recession.
B)   the rate of economic growth has slowed, but not enough to suggest that a recession is imminent.
C)   the rate of economic growth has dropped below the historical trend rate of growth, and the economy has reached a trough.
D)   the economy is at its peak this month but will move into the recession stage in the near future.E) C) and D)
F) All of the above

Question 15

An advantage of using GDP per capita to measure the standard of living in a country is that it declines if economic growth results in deterioration of the environment.

Accepted Answer

A) True 
 B)False

Question 16

Over the past few decades, net exports in the United States have been a positive percentage of GDP.

Accepted Answer

A) True 
 B)False

Question 17

Gross domestic product measures the output produced by _____ using resources in the United States, while gross national product measures output produced by resources supplied by _____.

Accepted Answer

A)   foreign citizens only; U.S. citizens
B)   U.S. citizens only; foreign citizens
C)   U.S. or foreign citizens; foreign citizens
D)   U.S. or foreign citizens; U.S. citizensE) None of the above
F) A) and B)

Question 18

When a recession gets under way

Accepted Answer

A)   firms start to lay off workers to reduce costs.
B)   consumer confidence rises because people expect an eventual recovery.
C)   inflation always rises because the government prints more money.
D)   inflation falls because the government reduces its budget deficit.E) C) and D)
F) None of the above

Question 19

Marci is 11 years old. She walks her neighbors' dogs for cash. Her income from this service is probably part of the informal economy.

Accepted Answer

A) True 
 B)False

Question 20

Greenhouse gas emissions are included in the GDP accounts.

Accepted Answer

A) True 
 B)False

Exam 5: Introduction to Macroeconomics

A jobless recovery is an economic expansion accompanied by a decrease in the number of unemployed workers.

Correct AnswerverifiedShow Answer

Over the past few decades, net exports in the United States have been a positive percentage of GDP.

Correct AnswerverifiedShow Answer

Which of these is a nondurable good?

Correct AnswerverifiedShow Answer

Suppose the National Activity Index of the Federal Reserve Bank of Chicago drops to -0.83 this month after being above +0.36 for the previous three months. This movement in the index indicates that

Correct AnswerverifiedShow Answer

Which of these is included in personal consumption expenditures?

Correct AnswerverifiedShow Answer

Marci is 11 years old. She walks her neighbors' dogs for cash. Her income from this service is probably part of the informal economy.

Correct AnswerverifiedShow Answer

When a recession gets under way

Correct AnswerverifiedShow Answer

An advantage of using GDP per capita to measure the standard of living in a country is that it declines if economic growth results in deterioration of the environment.

Correct AnswerverifiedShow Answer

It can be said that macroeconomics was born during the Great Depression.

Correct AnswerverifiedShow Answer

In the formula for GDP (GDP = C + I + G + (X - M) ) , what does X represent?

Correct AnswerverifiedShow Answer

Greenhouse gas emissions are included in the GDP accounts.

Correct AnswerverifiedShow Answer

The national income and product accounts are released quarterly to ensure that accurate economic information is readily available.

Correct AnswerverifiedShow Answer

The U.S. gross domestic product is equal to the total market value of all

Correct AnswerverifiedShow Answer

The U.S. Congress has taken an interest in the development of "green" GDP accounts.

Correct AnswerverifiedShow Answer

Gross domestic product measures the output produced by _____ using resources in the United States, while gross national product measures output produced by resources supplied by _____.

Correct AnswerverifiedShow Answer

Services constitute approximately _____ of GDP.

Correct AnswerverifiedShow Answer

Suppose the yield on a 3-month Treasury bill is 0.04% and the 10-year Treasury note yields 2.74%. This yield curve suggests the economy is headed for a recession.

Correct AnswerverifiedShow Answer

A sheep ranch produces $30 worth of wool. A suit manufacturer produces $60 worth of suits. A retail outlet sells a suit to a customer for $180. The change in GDP would be

Correct AnswerverifiedShow Answer

When investors believe an economic slowdown is likely, they buy short-term bonds to lock in interest rates.

Correct AnswerverifiedShow Answer

The value of cars that the Ford Motor Company produces in a German plant is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Gross domestic product measures the output produced by _ using resources in the United States, while gross national product measures output produced by resources supplied by _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified