Economics 002 - Principles of Economics II » Fall 2020 » Week 3 Quiz

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Question #1
The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.
A.   real value
B.   adjusted value
C.   net value
D.   empirical value
Question #2
In 1990, the GDP of Canada was $680 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 85 U.S. cents. In 2000, the GDP of Canada was $1000 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 69 U.S. cents. By what percentage did the GDP of Canada increase from 1990 to 2000 in Canadian dollars?
A.   147%
B.   47%
C.   68%
D.   19.4%
Question #3
_________ is calculated by taking _________ and then subtracting the value of how much physical capital is worn out, or reduced in value because of aging, over the course of a year.
A.   NNP; GDP
B.   GNP; NNP
C.   NNP; GNP
D.   GDP; NNP
Question #4
GDP is:
A.   the sum of all currency and coins in circulation.
B.   the value of all final good and services produced anywhere in the world by a nation's firms.
C.   the value of all final goods and services produced domestically.
D.   the value of all final goods and services produced by a government.
Question #5
GDP does not directly include:
A.   the value of services rendered during a period.
B.   the value of final goods and services produced, but not sold, during a period.
C.   the value of intermediate goods sold during a period.
D.   the value of goods produced domestically and sold abroad.
Question #6
In 1980 Denmark had a GDP of $70 billion (measured in U.S. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of $160 billion (measured in U.S. dollars) s and a population of 5.3 million. By what percentage did Denmark’s GDP per capita rise between 1980 and 2000?
A.   219%
B.   45.4%
C.   128%
D.   120%
Question #7
Which of the following are most likely classified by economists as consumer durable goods?
A.   food, clothing
B.   drugs, toys, magazines, books
C.   stocks, bonds
D.   automobiles, furniture
Question #8
_______________, which can be approximated by the growth of gross domestic product, ultimately determines the prevailing standard of living in a country.
A.   Economic growth
B.   Education
C.   Trade balance
D.   Inflation
Question #9
Which of the following is included in GDP calculations?
A.   the university tuition paid to enroll in a course
B.   a crisp $50 bill received on your birthday
C.   sales revenue received from a yard sale
D.   cash income received by a self-employed landscaper that is not reported to the IRS
Question #10
Middle-income countries, which include much of Latin America, Eastern Europe, and some countries in East Asia, have per capita GDP in the range of ___________.
A.   $600 to $1200
B.   $6,000 to $12,000
C.   $60 to $120
D.   $60,000 to $120,000
Question #11
Which of the following is included in the calculated Gross Domestic Product?
A.   A local ice cream store sells $17,000 worth of cones and sundaes on July 1.
B.   Mr. Farkle buys a used lawn mower from his neighbor, Mr. Sparkle.
C.   Suzanne buys a love seat and chair for $85 at the yard sale on the corner.
D.   Farmer Freddie sells his second tractor to his son.
Question #12
To compare the GDP of two different countries with different currencies, it is necessary to use _________________________.
A.   per capita GDP
B.   currency rates
C.   an exchange rate
D.   foreign currency
Question #13
The gap between exports and imports in a nation's economy is called the ___________.
A.   trade surplus
B.   trade inventory
C.   trade balance
D.   trade deficit
Question #14
India has a GDP of 23,000 billion Indian rupees, and a population of 1.1 billion. The exchange rate is 50 rupees per U.S. dollar. Calculate the GDP per capita of India as measured in U.S. dollars.
A.   $4.18
B.   $418
C.   $20,909
D.   $20.90
Question #15
Which of the following statements is true?
A.   GDP does not include production that is exchanged in the market, but it does cover production that is not exchanged in the market.
B.   GDP includes spending on recreation and travel, but it does not cover leisure time.
C.   GDP does not include newly produced goods and services, but counts the buying and selling of previously existing assets
D.   GDP includes production that is not exchanged in the market

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