Chapter 18- Review Questions
Measuring National Output and National Income
1) Which of the following is a good or service counted in GDP?
A) Tires Ford buys to put on a car.
B) A used tire you buy for your personal car.
C) A new tire you buy for your personal car.
D) All of the above
2) The equation for GDP using the expenditure approach is
A) GDP = C + I + G + EX - IM.
B) GDP = C + I + G + (IM - EX).
C) GDP = C + I + G + EX + IM.
D) GDP = C + I + G - EX - IM.
Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1
3) Refer to Table 6.1. Personal consumption expenditures in billions of dollars are
A) 1650.
B) 1150.
C) 1300.
D) 1550.
4) Refer to Table 6.1. The value for gross private domestic investment in billions of dollars is
A) 325.
B) 350.
C) 335.
D) 275.
5) Refer to Table 6.1. The value for net exports in billions of dollars is
A) -150.
B) 400.
C) -300.
D) 350.
6) Refer to Table 6.1. The value of gross domestic product in billions of dollars is
A) 1855.
B) 2785.
C) 2875.
D) 2355.
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7) Refer to Table 6.1. The value of government spending in billions of dollars is
A) 300
B) 250.
C) 550.
D) 50.
Refer to the information provided in Table 6.2 below to answer the questions that follow.
Table 6.2
8) Refer to Table 6.2. Personal consumption expenditures in billions of dollars are
A) 1500.
B) 1150.
C) 1550.
D) 1050.
9) Refer to Table 6.2. The value for gross private domestic investment in billions of dollars is
A) 940.
B) 910.
C) 900.
D) 640.
10) Refer to Table 6.2. The value for net exports in billions of dollars is
A) -100.
B) 400.
C) 100.
D) -50.
11) Refer to Table 6.2. The value for gross domestic product in billions of dollars is
A) 2340.
B) 3690.
C) 3760.
D) 3340.
12) Refer to Table 6.2. The value of government spending in billions of dollars is
A) 1000.
B) 1350.
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C) 650.
D) 350.
13) A company produced 8 dishwasher machines in 2005. The company sold 6 in 2005 and
added 2 to its inventories. The market value of the dishwasher machines in 2005 was $200
per unit. What is the value of this company's output that will be included in the 2005 GDP?
A) $1,600.
B) $400.
C) $2,000.
D) $1,400.
Refer to the information provided in Table 6.3 below to answer the questions that follow.
Table 6.3
14) Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y.
The value for this economy's nominal GDP in year 1
A) is $110.
B) is $120.
C) is $160
D) cannot be determined from this information.
15) Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y.
The value for this economy's nominal GDP in year 3
A) is $240.
B) is $250.
C) is $260.
D) cannot be determined from this information.
16) Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y.
The value for this economy's nominal GDP in year 2 is
A) $155.
B) $150.
C) $180.
D) None of the above
17)
Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y.
If year 1 is the base year, the value for this economy's real GDP in year 2 is
A) $135.
B) $140.
C) $180.
D) None of the above
18) Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y.
If year 1 is the base year, the value for this economy's GDP deflator in year 1 is
3
A)
B)
C)
D)
1.
100.
110.
None of the above
19) Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y.
If year 1 is the base year, the value for this economy's GDP deflator in year 2 is
A) 100.
B) 88.9.
C) 111.
D) 112.5.
20) Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y.
If year 1 is the base year, the value for this economy's inflation rate between year 1 and year
2 is
A) -11.1%.
B) 11.1%.
C) 12..5%.
D) 100%.
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