Download Grosse Pointe South AP Macro Chapter 6 and 8 Clicker Review 1

Grosse Pointe South
AP Macro
Chapter 6 and 8 Clicker Review
1. National income accounting is
a. a system of accounts designed to measure macroeconomic activity.
b. a system of microeconomic measures that indicates equilibrium conditions for
individual markets.
c. used by business firms to determine the level of profit during a given year.
d. a system of measures that indicates when an economy is experiencing inflation.
e. used by accountants to figure household tax obligations.
2. Which of the following would be included in the calculation of the GDP for the year 2003?
a. Repairs on your car done by yourself.
b. Items sold at a garage sale.
c. The purchase in 2003 of a 1997 Chevrolet.
d. Two students who trade baseball cards with each other.
e. Fresh lemonade sold in a local restaurant.
3. If GDP included intermediate goods and services, then
a. we would obtain a more realistic GDP value.
b. we would be double counting.
c. final goods and services would have to be subtracted to obtain the true GDP value.
d. we would be undercounting.
e. GDP would be understated.
4.
Refer to the table above. What is the contribution to GDP from the production of an economics
book?
a. $7.75
b. $24.50
c. $13.50
d. $71.50
e. $38
5. GDP can be calculated as
a. output.
b. output and income only.
d. expenditures.
e. income.
c. output, expenditures, and income.
Grosse Pointe South
AP Macro
Chapter 6 and 8 Clicker Review
6. C+I+G+X equals
a. disposable personal income.
b. personal income.
c. national income.
d. gross domestic product.
e. net national product.
7. Consider GDP calculated as expenditures. GDP would increase if
a. consumption decreased.
b. imports decreased.
c. exports decreased.
d. government spending decreased.
e. investment decreased.
8. For a hypothetical economy in a given year, GDP was $10,000, consumption equaled $9,800,
investment equaled $125, goods exported equaled $255, and goods imported equaled $500. What
was government spending equal to?
a. $200
b. $245
c. $320
d. $380
e. $120
9. Bill Gate’s recent purchase of a new Rolls-Royce automobile produced in Great Britain will
a. have no effect on either country’s GDP.
b. increase the exports component of U.S. gross domestic product.
c. increase the gross domestic product of the United States.
d. decrease Great Britain’s GDP.
e. have to be subtracted from the U.S. GDP.
10. Nominal GDP
a. measures the real level of output in the economy.
b. measures changes in the output of intermediate goods and services.
c. measures national output based on the current year’s prices.
d. tends to rise by a smaller amount than real GDP when the general price level increases.
e. has been adjusted for changes in the general price level.
Grosse Pointe South
AP Macro
Chapter 6 and 8 Clicker Review
11. What is a consumer price index?
a. A measure of the highest price at which consumers sell their resources.
b. A measure of the average price level in an economy.
c. A measure of the average price dispersion of all final goods.
d. A measure of the average price at which consumers sell their resources.
e. A measure of the price at which consumers sell their resources.
2.
Refer to the table above. What is the price index for the third year?
a. 118
b. 183
c. 100
d. 181
e. 155
13. A business cycle refers to
a. seasonal unemployment patterns.
b. changes in the long-term growth pattern of the CPI.
c. fluctuations in the level of corporate profits.
d. the ups and downs of real GDP.
e. fluctuations in the general price level.
14. The part of a business cycle that follows a peak is the
a. breakeven point of the cycle.
b. expansionary phase of the cycle.
c. recessionary phase of the cycle.
d. trough phase of the cycle.
e. peak period of the cycle.
Grosse Pointe South
AP Macro
Chapter 6 and 8 Clicker Review
15.
The movement from point A to point B in the figure above is most likely associated with
a. lagging economic productivity.
b. an increase in aggregate demand for goods and services.
c. an increase in cyclical unemployment.
d. negative inflation rates.
e. a downward trend in leading economic indicators.
16. Which of the following would be considered a member of the U.S. labor force?
a. A carpenter who hasn’t looked for work during the past year
b. A person in a mental institution
c. A 14-year-old boy who mows lawns for money on the weekends
d. An anthropologist whose search for a job has been unsuccessful
e. An inmate in a state prison who makes license plates
17. Scenario 1
An independent firm recently predicted that in the year 2020, the total number of residents in the
United States will be 315.5 million, the number of residents under 16 years of age will be 85
million, the number of institutionalized adults will be 17 million, the number of adults not
actively looking for work will be 39 million, and the number of unemployed will be 21.5 million.
Refer to the data in Scenario 1. What will be the size of the labor force in the United States in
the year 2020?
a. 315.5 million
b. 294 million c. 153 million d. 198 million e. 174.5 million
Grosse Pointe South
AP Macro
Chapter 6 and 8 Clicker Review
18. Including discouraged workers in the labor market statistics would
a. affect neither the size of the labor force nor the unemployment rate.
b. reduce the labor force and decrease the unemployment rate.
c. reduce the labor force and increase the unemployment rate.
d. increase the labor force and increase the unemployment rate.
e. increase the labor force and reduce the unemployment rate.
19. This type of unemployment arises as one of the worst effects of a recession.
a. Cyclical unemployment
b. Frictional unemployment
c. Static unemployment
d. Seasonal unemployment
e. Structural unemployment
20. Potential GDP minus actual GDP
a. is the difference between real and nominal GDP.
b. is the difference between the peak and the trough of a business cycle.
c. measures the inflation rate.
d. measures the difference between the full employment rate and the natural rate of
unemployment.
e. is defined as the GDP gap.
21. A sustained increase in the average price level is known as
a. depression. b. deflation.
c. inflation.
d. recession.
e. contraction.
22.
Refer to the table above. By how much did consumer prices rise between 1980 and 2003
(rounded to the first decimal place)?
a. 76.2 percent
e. 31.2 percent
b. 13.3 percent
c. 34.5 percent
d. 10.5 percent
Grosse Pointe South
AP Macro
Chapter 6 and 8 Clicker Review
23. If the average price level was 0.64 in 1990, then the purchasing power of one dollar in that
year relative to the 2002 base year was
a. $1.56.
b. $0.56.
c. $0.44.
d. $2.27.
e. $6.64.
24. When the real interest rate is less than zero, then
a. a creditor will just break even on his or her real loan return.
b. a creditor will lose purchasing power.
c. a creditor will gain purchasing power.
d. a creditor will benefit from inflation.
e. a creditor’s purchasing power will not be affected because the nominal interest rate is
greater than zero.
25. Cost-push inflation is caused by
a. full employment of resources in the economy.
b. the demand side of the market.
c. the supply side of the market.
d. excess raw materials.
e. excessive government spending.
Grosse Pointe South
AP Macro
Chapter 6 and 8 Clicker Review
Reference: [11.1.2]
[1] [A]
Reference: [11.2.11]
[2] [E]
Reference: [11.2.14]
[3] [B]
Reference: [11.2.23]
[4] [E]
Reference: [11.2.27]
[5] [C]
Reference: [11.2.35]
[6] [D]
Reference: [11.2.38]
[7] [B]
Reference: [11.2.39]
[8] [C]
Reference: [11.2.44]
[9] [E]
Reference: [11.3.128]
[10] [C]
Reference: [11.3.141]
[11] [B]
Reference: [11.3.149]
[12] [B]
Reference: [15.2.2]
[13] [D]
Grosse Pointe South
AP Macro
Chapter 6 and 8 Clicker Review
Reference: [15.2.6]
[14] [C]
Reference: [15.2.14]
[15] [B]
Reference: [15.3.44]
[16] [D]
Reference: [15.3.45]
[17] [E]
Reference: [15.3.58]
[18] [D]
Reference: [15.3.74]
[19] [A]
Reference: [15.3.89]
[20] [E]
Reference: [15.4.120]
[21] [C]
Reference: [15.4.125]
[22] [E]
Reference: [15.4.130]
[23] [A]
Reference: [15.4.143]
[24] [B]
Reference: [15.4.168]
[25] [C]