West Los Angeles College » Economics » Econ 002 - Principles of Macroeconomics » Winter 2021

Econ 002 - Principles of Macroeconomics » Winter 2021 » Module 4 Quiz

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Question #1

If you lived in a country where literacy was high and 90% of the children completed their education with a high percentage going on to a higher education, what would probably be the results for the country?

A. More technological breakthroughs would happen in this country.

B. The economic status of the country would continue to fall.

C. There would be both a human and economic loss.

Question #2

Which of the following would be included in Gross National Product?

A. Maple syrup produced by a Canadian firm in New York state.

B. A dresser made in Mexico by USA furniture direct inc.

C. A bottle of Tequila made in Mexico sold by Spec’s Liquor in Texas.

Question #3

Wesley lives in a country with little protection under the law for conducting business or bringing his ideas about a revolutionary new car tire to the market with patent production. Because of the economic conditions what will Wesley most likely do?

A. Find a country where he can develop his tire idea and have it protected under strong patent laws.

B. Keep his ideas in a notebook and sell them to the highest bidder.

C. Develop his tire and bring it to market with ease and minimal cost.

Question #4

Carla just started her new job working at the Department of Commerce. In order to see whether Carla “knows her stuff,” her boss asks her to put together a presentation on the current state of the economy. What is one of the economic indicators Carla could look at?

A. stock market trends over the past few months

B. cost of housing

C. the inflation rate

Question #5

Which of the following would NOT result in capital deepening?

A. Increase in amount of money available to businesses start ups.

B. Increase in quantity and quality of human capital.

C. Increase in quantity and quality of physical capital.

Question #6

One of the important factors supporting economic growth is

A. laws ensuring low prices.

B. an effective system of laws.

C. a strong currency.

Question #7

If you are focusing on the value of output per hour worked you are considering

A. the most important determinant of the average wage level in the economy.

B. the value needed to compute the position in a business cycle.

C. The value of output per hour of government workers.

Question #8

If Nominal GDP is $22,000 billion and the GDP deflator is 110, then Real GDP is ________.

A. $11,000 billion

B. $20,000 billion

C. $24,200 billion

Question #9

A macroeconomic externality occurs when

A. cost is passed onto third parties by producers in certain markets.

B. outcomes at the macroeconomic level are different from the outcomes at the microeconomic level.

C. economic activity that is external to a country’s economy is added such as investment of US firms overseas.

Question #10

To achieve economic growth, a nation should

A. use less capital and more labor in the production process.

B. increase unemployment benefits.

C. promote research and technological innovation.

Question #11

The country of Bolivia had a Gross Domestic Product of $79 billion in 2016 and a population of 11 million people, the GDP per capita would be ________.

A. $7,182

B. about $14,000

C. $7.2

Question #12

Which of the following is included in the computation of GDP in a particular year?

A. social security payments to retirees

B. total value of imports

C. government expenditure on public schools

Question #13

If inflation occurs in a given year,

A. the change in the real measurement (GDP) would be greater than the change in the nominal one.

B. the change in the real measurement (GDP) would be smaller than the change in the nominal one.

C. the change in the real measurement (GDP) would be equal to the change in the nominal one.

Question #14

Cree industrial lighting company is looking to deepen its capital. Which one of these steps should the Cree company take to accomplish this?

A. Refinance their business loans and decrease their carried debt amount.

B. Restructure and reorganize its departments to shorten production time.

C. Invest in additional education and advanced training programs for their employees.

Question #15

The country of Russia had a Gross Domestic Product of about $4 trillion in 2016 and a population of 142 million people, the GDP per capita would be ________.

A. $35,500

B. $2,800

C. $28,000

Question #16

If Nominal GDP is $17,000 billion and the GDP deflator is 75, then Real GDP is ________.

A. $12.75 billion

B. $16.50 billion

C. $22.67 billion

Question #17

GDP includes

A. purchases of U.S. made products by the federal government, consumers and private businesses in the U.S. only.

B. purchases of U.S. made products by consumers, private businesses and the government sector.

C. all purchases of products from the federal government, consumers in the U.S. and around the world.

Question #18

Which of the following is left out of being counted as part of GDP?

A. The purchase of a new snow plough by the city of Minneapolis

B. The purchase of your next door neighbor’s house.

C. The unsold additions to inventory at an appliances store.

Question #19

If a country doubles its Gross Domestic Product in 8 years, its average growth rate would have been

A. 5.8%.

B. 9%.

C. 11%.

Question #20

Janice has calculated the GDP for 2018 by using the total final goods times the 2018 prices of total goods. If Janice wishes to create a real value GDP value for 2018, what must she do?

A. Janice must adjust the total value 2018 GDP for inflation.

B. Janice must divide the total value of consumer goods by the exported goods values.

C. Janice must multiply the total value by the projected GDP for 2019.

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