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. There would be both a human and economic loss.

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

Question #2

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

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

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

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

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

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

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

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. cost of housing

B. stock market trends over the past few months

C. the inflation rate

Question #5

Which of the following would NOT result in capital deepening?

A. Increase in quantity and quality of physical capital.

B. Increase in quantity and quality of human capital.

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

Question #6

One of the important factors supporting economic growth is

A. a strong currency.

B. an effective system of laws.

C. laws ensuring low prices.

Question #7

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

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

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

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

Question #8

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

A. $20,000 billion

B. $11,000 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. promote research and technological innovation.

B. increase unemployment benefits.

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

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. $7.2

B. about $14,000

C. $7,182

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 equal to 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 greater than 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. Invest in additional education and advanced training programs for their employees.

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

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. $2,800

B. $28,000

C. $35,500

Question #16

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

A. $22.67 billion

B. $12.75 billion

C. $16.50 billion

Question #17

GDP includes

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

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

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

Question #18

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

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

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

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

Question #19

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

A. 9%.

B. 5.8%.

C. 11%.

Question #20

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

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

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

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