Econ 101 - Principles of Macroeconomics » Fall 2021 » Chapter Quiz Chapter 10

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Question #1
An example of a transfer payment is
A.   profit.
B.   government purchases.
C.   unemployment benefits.
D.   wages.
E.   rent.
Question #2
The value of plant and equipment worn out in the process of manufacturing goods and services is measured by
A.   depreciation.
B.   consumption.
C.   investment.
D.   Net national product.
E.   intermediate production.
Question #3
Which of the following would be excluded from 2019 GDP? The sale of
A.   a home built in 2018 and first sold in 2019.
B.   a haircut.
C.   a realtor's services.
D.   a 2019 Honda made in Tennessee.
E.   a 2019 Honda made in Tennessee and a realtor's services
Question #4
Gross domestic product can be measured as the sum of
A.   consumption, investment, government purchases, and net exports.
B.   consumption, transfer payments, wages, and profits.
C.   final goods and services, intermediate goods, transfer payments, and rent.
D.   investment, wages, profits, and intermediate production.
E.   net national product, gross national product, and disposable personal income.
Question #5
U.S. gross domestic product (in contrast to gross national product) measures the production and income of
A.   people and factories located within the borders of the United States.
B.   Americans and their factories no matter where they are located in the world.
C.   the domestic service sector only.
D.   the domestic manufacturing sector only.
E.   none of the above
Question #6
Gross domestic product is the sum of the market value of the
A.   manufactured goods.
B.   intermediate goods.
C.   inferior goods and services.
D.   normal goods and services.
E.   final goods and services.
Question #7
If nominal GDP in 2019 exceeds nominal GDP in 2018, then the production of output must have
A.   fallen.
B.   risen or fallen because there is not enough information to determine what happened to real output.
C.   stayed the same.
D.   risen.
Question #8
If a cobbler buys leather for $100 and thread for $50 and uses them to produce and sell $500 worth of shoes to consumers, the contribution to GDP is
A.   $650
B.   $100
C.   $50
D.   $500
E.   $600
Question #9
GDP would include which of the following?
A.   illegal drug sales
B.   the value of taking a day off from work
C.   housework
D.   intermediate sales
E.   consulting services
Question #10
Real GDP is measured in ______ prices while nominal GDP is measured in ______ prices.
A.   intermediate; final
B.   domestic; foreign
C.   foreign; domestic
D.   current year; base year
E.   base year; current year
Question #11
If U.S. GDP exceeds U.S. GNP, then
A.   real GDP exceeds nominal GDP
B.   Americans are producing more in foreign countries than foreigners are producing in the United States.
C.   foreigners are producing more in the United States than Americans are producing in foreign countries.
D.   real GNP exceeds nominal GNP.
E.   intermediate production exceeds final production.
Question #12
U.S. GDP would exclude which of the following?
A.   cotton purchased by Lee Jeans
B.   the purchase of a new Mazda produced in Illinois
C.   lawn care services purchased by a homeowner
D.   a new bridge purchased by the state of Texas
E.   lawyer services purchased by a home buyer
Question #13
How is your purchase of a $40,000 BMW automobile that was produced entirely in Germany recorded in the U.S. GDP accounts?
A.   Net exports decrease by $40,000.
B.   Investment increases by $40,000 and net exports increase by $40,000.
C.   Net exports increase by $40,000.
D.   There is no impact because this transaction does not involve domestic production.
E.   Consumption increases by $40,000 and net exports decrease by $40,000.
Question #14
If your grandparents buy a new retirement home, this transaction would affect
A.   investment.
B.   consumption.
C.   net exports.
D.   government purchases.
E.   none of the above

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