Download Unit III Macro Review--GDP

Unit III Macro Review--GDP
Questions provided by students 
Which is the most meaningful
measure of economic performance?

A.
 B.
 C.
 D.
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.
 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.
 B.
 C.
 D.
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.
 B.
 C.
 D.
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.
 B.
 C.
 D.
Consumption of free candy
Consumption of fixed capital
Corporate fixed capital
Corporate foreign capital
What is an example of Ig?

A.
 B.
 C.
 D.
Secondhand sales
Construction
Government hiring workers
Purchasing stocks
Which of the following is FALSE
about GDP?

A.
 B.
 C.
 D.
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.
 B.
 C.
 D.
Once a month
Once a year
Every 3 months
Every 4 months
Which of the following counts in
GDP?
A.
 B.
 C.
 D.

Social Security checks
Secondhand sales
Broker service
Overseas production
What accounts for most of the
GDP?
A.
 B.
 C.
 D.

C
Ig
G
Xn
Xn has been negative since
A.
 B.
 C.
 D.

WWI
The Great Depression
WWII
Vietnam
What do you subtract from PI to get
DI?
A.
 B.
 C.
 D.

Personal income tax
Consumption of fixed capital
Net income
Back transfer payments
The index the gov’t uses to measure
inflation is the
A.
 B.
 C.
 D.

Consumer price index
Personal price index
Net price index
Domestic price index
What doesn’t count as a part of the
“Underground” economy?
A.
 B.
 C.
 D.

Smuggling sales
Personal income
Stolen goods
Gambling
What does the gov’t use CPI to
adjust?
A.
 B.
 C.
 D.

Income tax brackets and ss benefits
GDP / rGDP
Average level of prices
Base year prices
To get Xn, what equation do you
use?
A.
 B.
 C.
 D.

Imports – exports
Exports – imports
CFC – government spending
Exports + imports
Which of the following does NOT
count in GDP?
A.
 B.
 C.
 D.

Steel used to make car
New car
Dentist bill
New house
What does count in GDP?
A.
 B.
 C.
 D.

Stocks
Cash tips
Big Mac
US production overseas
A specific collection of goods and
services are a
A.
 B.
 C.
 D.

Company
Unified trade union
GDP
Market basket
In the expenditures approach, what
does G mean?
A.
 B.
 C.
 D.

Government spending
Gross investment
Gross domestic product
Government savings
What counts in GDP?
A. Buying 250 shares of Apple Inc.
 B. Baby sitting your little sister as a
favor
 C. Making muffins for your cousin's
birthday
 D. Buying a soda for a homeless man

The expenditure approach to GDP
includes all EXCEPT
A.
 B.
 C.
 D.

Personal savings
Gross investment
Net Exports
Government spending
Disposable income is
A. The money in the US gov’t treasury
 B. The result of spending on g and s
made in the US
 C. The income an individual can use for
consumption or savings
 D. 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 reports
 D. Nothing concerning GDP or CPI

Which of the following is not a
consumer purchase counted in GDP?
A.
 B.
 C.
 D.

A box of raisins from Kroger
A t-shirt from the mall
A pair of shoes from Goodwill
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.
 B.
 C.
 D.

Decreased
Stayed the same
Increased
None of these
Why do intermediate goods not
count in GDP?
A. We can’t track intermediate goods
 B. Not counting them avoids multiple
counting
 C. Mrs. Duez says so
D. It is too hard to calculate

CFC =
A.
 B.
 C.
 D.

Consumption of fixed capital
Depreciation
Consumer fixed consumption
Both A and B
The GDP is determined by the value of
goods_________, not ________.
A.
 B.
 C.
 D.

Sold; produced
Consumed; produced
Produced; sold
Consumed; sold
Who is hurt by inflation?
A. Retirees or those on a fixed income
 B. Ninjas
 C. People leasing apartments at a fixed
rate
 D. None of the above

What is Net Domestic Product?
A.
 B.
 C.
 D.

C + Ig + G +Xn
Imports – exports
Exports – imports
GDP - CFC
Underground activity could possibly add
___% to the GDP if it could be counted.
A.
 B.
 C.
 D.

7
8
9
10
Are second hand sales calculated in
GDP?
A. Yes
 B. No
 C. Depends on the condition of the
product
 D. Depends on the seller

What is a COLA?
A.
 B.
 C.
 D.

A soft drink
Cost of living adjustment
Cost of level adjustment
Capital of legal activities
What is the formula to find rGDP?
A.
 B.
 C.
 D.

PI / nGDP X 10
nGDP / PI X 100
DI / C X 10
G / NI X 100
The CPI has _____ products in the
market basket.
A.
 B.
 C.
 D.

30
300
400
500
CPI is used to measure?
A.
 B.
 C.
 D.

GDP
Deflation
Inflation
Distance
rGDP is
A.
 B.
 C.
 D.

nGDP + inflation
nGDP – inflation
CPI + inflation
Donuts