Question 1 of 54 1 0 1 0 Points The value of an economy s total output of goods and services is called A consumption B gross national product C gross domestic product D net national product Answer Key C Question 2 of 54 1 0 1 0 Points Dividing real GDP by the population equals A consumption per capita B average cost of living C real GDP per capita D a measure of happiness Answer Key C Question 3 of 54 1 0 1 0 Points What is the difference between a flow variable and a stock variable A A stock variable is a variable that is measured over a specific period of time while a flow variable is a variable that is independent of time B A flow variable is a variable that is measured in units of current prices while a stock variable is measured using prices from a base period C A flow variable is a variable that is measured over a specific period of time while a stock variable is a variable that is measured at a specific point in time D A stock variable is a variable that is measured in units of current prices while a flow variable is measured using prices from a base period Answer Key C Question 4 of 54 1 0 1 0 Points Which of the following is an example of a flow variable A the balance in your checking account B the value of your stock portfolio C the amount of cash you have in your safe D the interest rate you pay on your auto loan Answer Key D Question 5 of 54 0 0 1 0 Points Changes in nominal GDP A are due to changes in price only while changes in real GDP are attributed to movements in output and price B are due to changes in output and price while changes in real GDP are attributed to movements in output only C are due to changes in output and price while changes in real GDP are attributed to movements in price only D and changes in real GDP are due to changes in output and price Answer Key B Question 6 of 54 1 0 1 0 Points An increase in real GDP from 2002 to 2006 necessarily indicates that A people are better off in 2002 than they were in 2006 B people are happier in 2006 than they were in 2002 C prices increased between 2002 and 2006 D quantities of goods and services produced increased between 2002 and 2006 Answer Key D Question 7 of 54 1 0 1 0 Points Which of the following is an example of a transfer payment A the President s salary B paying a gambling debt C a barber s income D a pension payment to a retired military person Answer Key D Question 8 of 54 1 0 1 0 Points The value of gross domestic product GDP differs from the value of gross national product GNP when A net exports are excluded from GDP but included in GNP B production in one country employs factors of production owned by residents of other countries C production in one country employs only factors of production owned by its residents D when domestic firms that produce in factories abroad are exempt from paying domestic taxes Answer Key B Question 9 of 54 1 0 1 0 Points A trade deficit means that A imports are larger than exports and GDP is thus lower B exports are larger than imports and GDP is thus larger C imports are larger than exports and thus GDP is larger D exports are larger than imports and thus GDP is lower Answer Key A Question 10 of 54 1 0 1 0 Points The official measure of private investment in computing GDP is A personal investment expenditures B capital consumption allowance C net private domestic investment D gross private domestic investment Answer Key D Question 11 of 54 1 0 1 0 Points Which of the following is the best example of a final good or service A crude oil in an oil well B gasoline purchased by Exxon for its pumps C a song you downloaded for a fee from Amazon com D retail floor space at a suburban shopping mall Answer Key C Question 12 of 54 0 0 1 0 Points In the calculation of GDP the value of a new house is included in A personal consumption expenditures B personal saving C the depreciation of capital D private investment Answer Key D Question 13 of 54 1 0 1 0 Points billions of dollars Personal consumption expenditures Gross private domestic investment 500 400 Social Security payments to households Federal government purchases of goods and services State and local government purchases of goods 60 100 200 180 50 Imports Net exports Based on the above table What is the value of GDP A 1 010 billion B 1 060 billion C 1 150 billion D 1 210 billion Answer Key C Question 14 of 54 1 0 1 0 Points A measure of the degree to which capital wears out or becomes obsolete during a period is A net private domestic investment B gross private domestic investment C national income costs D depreciation Answer Key D Question 15 of 54 1 0 1 0 Points In GDP accounting the value of total final output in a given period equals the value of A total income generated by the production of final goods and services in that period B total income less taxes C total income less depreciation D total income plus government purchases Answer Key A Question 16 of 54 1 0 1 0 Points In the generation of GDP pollution often occurs As a result A the value of nominal GDP will always be greater than the value of real GDP B the value of real GDP will always be greater than the value of nominal GDP C GDP is not always a good measure of economic or social welfare D the value of GDP is underestimated Answer Key C Question 17 of 54 1 0 1 0 Points Private investment plays a crucial role in the macro economy because it is A the largest expenditure component of GDP B the smallest expenditure component of GDP C an expenditure that adds to the economy s productive capacity D undertaken by the government and must be funded by tax revenue Answer Key C Question 18 of 54 0 0 1 0 Points Which of the following is counted as consumption A you buy a government bond B you buy a toaster from your neighbor in a garage sale C the purchase of a new home D the purchase of new car Answer Key D Question 19 of 54 1 0 1 0 Points As households eat out more purchase more prepared foods at the grocery store hire out child care services that they once performed themselves what is likely to happen to the value of GDP A The value of GDP is likely to decrease B The value of GDP is likely to increase C GDP will …