Unit III Macro Review—GDP Questions provided by students

Unit III Macro Review--GDP Questions provided by students

Which is the most meaningful measure of economic performance? A. l B. l C. l D. l Nominal GDP Real GDP Per capita GDP Undetermined GDP

Real GDP is A. The value of final g and s produced and expressed in prices of a base year. l B. Market value of all g and s produced. l C. Total inflammation. l D. The opposite of fake GDP. l

To calculate Ig you A. Add net domestic investment and CFC l B. Subtract CFC from net domestic investment l C. Add net domestic investment and net foreign factor l D. Subtract personal taxes from net domestic investment l

The price index A. Is used to measure inflation by the government. l B. Total market value of all final g and s. l C. Measure of a specific collection of g and s in a given year, as compared with a collection in a reference year. l D. Measures price levels. l

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

Which of the following counts in GDP? A. l B. l C. l D. l Teaching a child how to read Producing pencils in Indonesia Government hiring new workers You buy 100 shares of Google stock

What is CFC? A. l B. l C. l D. l Consumption of free candy Consumption of fixed capital Corporate foreign capital

What is an example of Ig? A. l B. l C. l D. l Secondhand sales Construction Government hiring workers Purchasing stocks

Which of the following is FALSE about GDP? A. l B. l C. l D. l Includes only final goods Services are produced within a country Is the value of what has been produced Includes unreported activities

When is the GDP measured? A. l B. l C. l D. l Once a month Once a year Every 3 months Every 4 months

What isn’t used in the income approach? A. l B. l C. l D. l Interest Profits Statistical adjustments Transfer fees

GDP excludes all of the following except: l A. Transfer payments l B. Labor l C. Secondhand sales l D. Overseas production

Which of the following counts in GDP? l A. Social Security checks l B. Secondhand sales l C. Broker service l D. Overseas production

What accounts for most of the GDP? l A. C l B. Ig l C. G l D. Xn

Xn has been negative since l A. WWI l B. The Great Depression l C. WWII l D. Vietnam

What do you subtract from PI to get DI? l A. Personal income tax l B. Consumption of fixed capital l C. Net income l D. Transfer payments

The index the gov’t uses to measure inflation is the l A. Consumer price index l B. Personal price index l C. Net price index l D. Domestic price index

What doesn’t count as a part of the “Underground” economy? l A. Smugglers l B. Personal income l C. Stolen goods l D. Gamblers

What does the gov’t use CPI to adjust? l A. Income tax brackets and ss benefits l B. GDP / r. GDP l C. Average level of prices l D. Base year prices

To get Xn, what equation do you use? l A. Imports – exports l B. Exports – imports l C. CFC – government spending l D. Exports + imports

Which of the following does NOT count in GDP? l A. Steel used to make car l B. New car l C. Dentist bill l D. New house

What does count in GDP? l A. Stocks l B. Cash tips l C. Big Mac l D. US production overseas

A specific collection of goods and services are a l A. Company l B. Unified trade union l C. GDP l D. Market basket

The income approach does not include: l A. Wages l B. Rents l C. Interest l D. Stocks and bonds

In the expenditures approach, what does G mean? l A. Government spending l B. Gross investment l C. Gross domestic product l D. Government savings

What counts in GDP? l A. Buying 250 shares of Apple Inc. l B. Baby sitting your little sister as a favor l C. Making muffins for your cousin's birthday l D. Buying a cola for a homeless man

The expenditure approach to GDP includes all EXCEPT l A. Personal savings l B. Gross investment l C. Net Exports l D. Government spending

Disposable income is l A. The money in the US gov’t treasury l B. The result of spending on g and s made in the US l C. The income an individual can use for consumption or savings l D. None of the above

When assessing the economy the national income accounts serve l A. To Help other countries realize how much better the US economy is l B. A purpose just as income statements do for a business l C. Provides national deficit reports l D. Nothing concerning GDP or CPI

Which of the following is not a consumer purchase counted in GDP? l A. A box of raisins from Kroger l B. A t-shirt from the mall l C. A pair of shoes from Goodwill l D. A pretzel from Pretzeltime

Name one purpose of estimating r. GDP. l A. To compare standard of living over time l B. To compare standard of living by price l C. To compare standard of living over regions l D. To compare standard of living over states

If n. GDP rises but r. GDP remains unchanged, prices have l A. Decreased l B. Stayed the same l C. Increased l D. None of these

Why do intermediate goods not count in GDP? l A. We can’t track intermediate goods l B. Not counting them avoids multiple counting l C. Mrs. Duez says so D. It is too hard to calculate

CFC = l A. Consumption of fixed capital l B. Depreciation l C. Consumer fixed consumption l D. Both A and B

Intermediate goods are: l A. Good that are neither hard nor easy l B. Goods resold l C. All goods sold to consumers l D. None of the above

The GDP is determined by the value of goods_____, not ____. l A. Sold; produced l B. Consumed; produced l C. Produced; sold l D. Consumed; sold

Who is hurt by inflation? l A. Retirees or those on a fixed income l B. Ninjas l C. People leasing apartments at a fixed rate l D. None of the above

What is Net Domestic Product? l A. C + Ig + G +Xn l B. Imports – exports l C. Exports – imports l D. GDP - CFC

Underground activity could possibly add ___% to the GDP if it could be counted. l A. 7 l B. 8 l C. 9 l D. 10

Are second hand sales calculated in GDP? l A. Yes l B. No l C. Depends on the condition of the product l D. Depends on the seller

What is a COLA? l A. A soft drink l B. Cost of living adjustment l C. Cost of level adjustment l D. Capital of legal activities

What is the formula to find r. GDP? l A. PI / n. GDP X 10 l B. n. GDP / PI X 100 l C. DI / C X 10 l D. G / NI X 100

The CPI has _____ products in the market basket. l A. 30 l B. 300 l C. 400 l D. 500

The formula for the income approach is: l A. W + R + I + P + SA l B. C + Ig + G + Xn l C. PI + NDP l D. CFC + In

CPI is used to measure? l A. GDP l B. Deflation l C. Inflation l D. Distance

The largest part of WRIPSA is? l A. Wages l B. Rents l C. Profits l D. Interests

r. GDP is l A. n. GDP + inflation l B. n. GDP – inflation l C. CPI + inflation l D. Donuts