Unit III Macro Review--GDP

Questions provided by students

Which is the most meaningful measure of economic performance?

A. Nominal GDP B. Real GDP C. Per capita GDP D. Undetermined GDP

Real GDP is

A. The value of final g and s produced and expressed in prices of a base year.

B. Market value of all g and s produced. C. Total inflammation. D. The opposite of fake GDP.

To calculate Ig you

A. Add net domestic investment and CFC B. Subtract CFC from net domestic

investment C. Add net domestic investment and net

foreign factor D. Subtract personal taxes from net domestic

investment

The price index

A. Is used to measure inflation by the government.

B. Total market value of all final g and s. C. Measure of a specific collection of g and s

in a given year, as compared with a collection in a reference year.

D. Measures price levels.

The GDP

A. Does not include final goods B. Includes nonproductive transactions C. Excludes nonproductive transactions D. Is not beneficial to the economy

Which of the following counts in GDP?

A. Teaching a child how to read B. Producing pencils in Indonesia C. Government hiring new workers D. You buy 100 shares of Google stock

What is CFC?

A. Consumption of free candy B. Consumption of fixed capital C. Corporate fixed capital D. Corporate foreign capital

What is an example of Ig?

A. Secondhand sales B. Construction C. Government hiring workers D. Purchasing stocks

Which of the following is FALSE about GDP?

A. Includes only final goods B. Services are produced within a country C. Is the value of what has been produced D. Includes unreported activities

When is the GDP measured?

A. Once a month B. Once a year C. Every 3 months D. Every 4 months

Which of the following counts in GDP?

A. Social Security checks B. Secondhand salesC. Broker serviceD. Overseas production

What accounts for most of the GDP?

A. CB. IgC. GD. Xn

Xn has been negative since

A. WWIB. The Great DepressionC. WWIID. Vietnam

What do you subtract from PI to get DI?

A. Personal income taxB. Consumption of fixed capitalC. Net incomeD. Back transfer payments

The index the gov’t uses to measure inflation is the

A. Consumer price indexB. Personal price indexC. Net price indexD. Domestic price index

What doesn’t count as a part of the “Underground” economy?

A. Smuggling salesB. Personal incomeC. Stolen goodsD. Gambling

What does the gov’t use CPI to adjust?

A. Income tax brackets and ss benefitsB. GDP / rGDPC. Average level of pricesD. Base year prices

To get Xn, what equation do you use?

A. Imports – exportsB. Exports – importsC. CFC – government spendingD. Exports + imports

Which of the following does NOT count in GDP?

A. Steel used to make carB. New carC. Dentist billD. New house

What does count in GDP?

A. StocksB. Cash tipsC. Big MacD. US production overseas

A specific collection of goods and services are a

A. CompanyB. Unified trade unionC. GDPD. Market basket

In the expenditures approach, what does G mean?

A. Government spendingB. Gross investmentC. Gross domestic productD. Government savings

What counts in GDP?

A. Buying 250 shares of Apple Inc.B. Baby sitting your little sister as a

favorC. Making muffins for your cousin's

birthdayD. Buying a soda for a homeless man

The expenditure approach to GDP includes all EXCEPT

A. Personal savingsB. Gross investmentC. Net ExportsD. Government spending

Disposable income is

A. The money in the US gov’t treasuryB. The result of spending on g and s

made in the USC. The income an individual can use for

consumption or savingsD. None of the above

When assessing the economy the national income accounts serve

A. To Help other countries realize how much better the US economy is

B. A purpose just as income statements do for a business

C. Provides national deficit reportsD. Nothing concerning GDP or CPI

Which of the following is not a consumer purchase counted in GDP?

A. A box of raisins from KrogerB. A t-shirt from the mallC. A pair of shoes from GoodwillD. A pretzel from Pretzeltime

Name one purpose of estimating rGDP.

A. To compare standard of living over time

B. To compare standard of living by price

C. To compare standard of living over regions

D. To compare standard of living over states

If nGDP rises but rGDP remains unchanged, prices have

A. DecreasedB. Stayed the sameC. IncreasedD. None of these

Why do intermediate goods not count in GDP?

A. We can’t track intermediate goodsB. Not counting them avoids multiple

countingC. Mrs. Duez says so

D. It is too hard to calculate

CFC =

A. Consumption of fixed capitalB. DepreciationC. Consumer fixed consumptionD. Both A and B

The GDP is determined by the value of

goods_________, not ________.

A. Sold; producedB. Consumed; producedC. Produced; soldD. Consumed; sold

Who is hurt by inflation?

A. Retirees or those on a fixed incomeB. NinjasC. People leasing apartments at a fixed

rateD. None of the above

What is Net Domestic Product?

A. C + Ig + G +XnB. Imports – exportsC. Exports – importsD. GDP - CFC

Underground activity could possibly add ___% to the GDP if it could be counted.

A. 7B. 8C. 9D. 10

Are second hand sales calculated in GDP?

A. YesB. NoC. Depends on the condition of the

productD. Depends on the seller

What is a COLA?

A. A soft drinkB. Cost of living adjustmentC. Cost of level adjustmentD. Capital of legal activities

What is the formula to find rGDP?

A. PI / nGDP X 10B. nGDP / PI X 100C. DI / C X 10D. G / NI X 100

The CPI has _____ products in the market basket.

A. 30B. 300C. 400D. 500

CPI is used to measure?

A. GDPB. DeflationC. InflationD. Distance

rGDP is

A. nGDP + inflationB. nGDP – inflationC. CPI + inflationD. Donuts