Glendale Community College » Economics » Econ 102 - Principles of Macroeconomics » Winter 2021

Question #1

Which of the following would be counted in GDP?

A. vegetables grown in a backyard

B. imported cheese

C. used furniture

D. vegetables sold in a farmers market

Question #2

If a country has a trade surplus, then the country

A. exports more than it imports

B. imports as much as it exports

C. imports more than it exports

D. does not trade with other countries

Question #3

Why do we not make comparisons of nominal GDP over several years?

A. Nominal GDP does not include imported goods

B. Nominal GDP does not include intermediate goods

C. Nominal GDP does not include childcare

D. Nominal GDP does not take into account the effects of inflation

Question #4

The nominal interest rate on an interest-bearing account is 0.5%. If the inflation rate is 3%, what is the real interest rate?

A. -2.5%

B. 3.5%

C. 2.5%

D. 0.5%

Question #5

Why is GDP an imperfect measure for "standard of living"?

A. it does not include goods sold from home

B. it measures the income of a country

C. it does not include imported goods

D. it does not take into account actual levels of healthcare available