Multiple Choice Questions

_________ are now the largest single component of the supply side of GDP, representing over half of GDP.
  • Economic growth
  • Inventories
  • Consumption
  • Services
If imports exceed exports, as in recent years, then __________ exists.
  • Selected Answer:
  • a trade deficit
Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP.
  • Selected Answer:
  • 45%
To compare the GDP of two different countries with different currencies, it is necessary to use _________________________.
  • trade balance
  • has risen gradually
  • a trade deficit
  • an exchange rate
_______________, which can be approximated by the growth of gross domestic product, ultimately determines the prevailing standard of living in a country.
  • Inventories
  • Consumption
  • Services
  • Economic growth
Consumption in the United States is about ____________ of GDP, and it moves relatively little over time.
  • 45%
  • 68%
  • households.
  • 0.5%
The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.
  • production
  • NNP; GNP
  • real value
  • households
The change in inventories, a component of aggregate supply, comprises roughly __________ of GDP.
  • 68%
  • 0.5%
  • $5000
  • 45%
Which of the following is included in GDP calculations?
  • the university tuition paid to enroll in a course
  • the purchase of 100 shares of AT&T stock by your grandfather.
  • the fees charged for a stock broker's services
  • cash income paid to a day laborer that is not reported to the tax authorities
The Czech Republic has a GDP of 2,000 billion koruny. The exchange rate is 20 koruny per U.S. dollar. The Czech population is 20 million. Calculate the per capita GDP of the Czech Republic in U.S. dollars.
  • $418
  • $5000
  • 0.5%
  • real value
Which of the following is included in GDP?
  • cash income paid to a day laborer that is not reported to the tax authorities
  • the university tuition paid to enroll in a course
  • the fees charged for a stock broker's services
  • A local ice cream store sells $17,000 worth of cones and sundaes on July 1.
In 1990, the GDP of Canada was $680 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 85 U.S. cents. In 2000, the GDP of Canada was $1000 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 69 U.S. cents. By what percentage did the GDP of Canada increase from 1990 to 2000 in Canadian dollars?
  • $418
  • 68%
  • 45%
  • 47%
The demand measure of GDP accounting adds together:
  • consumption, investment, government purchases, and trade balance.
  • cash income paid to a day laborer that is not reported to the tax authorities
  • the value of intermediate goods sold during a period.
  • the university tuition paid to enroll in a course
On the demand side of GDP, consumption by _____________ is the largest component of GDP, accounting for about two-thirds of the GDP in any year.
  • households.
  • real value
  • production
  • households
GDP does not directly include:
  • Selected Answer:
  • the value of intermediate goods sold during a period.
The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.
  • Selected Answer:
  • production
India has a GDP of 23,000 billion Indian rupees, and a population of 1.1 billion. The exchange rate is 50 rupees per U.S. dollar. Calculate the GDP per capita of India as measured in U.S. dollars.
  • Selected Answer:
  • $418
GDP is:
  • Selected Answer:
  • the value of all final goods and services produced domestically.
For most high-income countries of the world, GDP _________________ over time.
  • automobiles, furniture
  • an exchange rate
  • a trade deficit
  • has risen gradually
Middle-income countries, which include much of Latin America, Eastern Europe, and some countries in East Asia, have per capita GDP in the range of ___________.
  • households
  • an exchange rate
  • Economic growth
  • $6,000 to $12,000
Which of the following is included in the calculated Gross Domestic Product?
  • A local ice cream store sells $17,000 worth of cones and sundaes on July 1.
  • the university tuition paid to enroll in a course
  • GDP includes spending on recreation and travel, but it does not cover leisure time.
  • cash income paid to a day laborer that is not reported to the tax authorities
Ethiopia has a GDP of $8 billion (measured in U.S. dollars) and a population of 55 million. Costa Rica has a GDP of $9 billion (measured in U.S. dollars) and a population of 4 million. Calculate per capita GDP for each country.
  • Ethiopia = $145.00 Costa Rica = $2250.00
  • expansion, peak, recession, trough
  • $418
  • imports exceed exports by $50 billion.
Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:
  • expansion, peak, recession, trough
  • imports exceed exports by $50 billion.
  • households
  • Ethiopia = $145.00 Costa Rica = $2250.00
Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance.
  • 10 years
  • an exchange rate
  • Services
  • households
___________ is about two-thirds of the demand side of GDP, but it moves relatively little over time.
  • Services
  • Consumption
  • Inventories
  • Economic growth
Consumption is the purchase of goods and services by:
  • households
  • households.
  • Consumption
  • 68%
Which of the following are most likely classified by economists as consumer durable goods?
  • A local ice cream store sells $17,000 worth of cones and sundaes on July 1.
  • the purchase of 100 shares of AT&T stock by your grandfather.
  • automobiles, furniture
  • cash income paid to a day laborer that is not reported to the tax authorities
___________ is a small category that refers to the goods produced by one business that have yet to be sold to consumers, and are either still sitting in warehouses and on store shelves.
  • Inventories
  • NNP; GNP
  • Consumption
  • Economic growth
0 h : 0 m : 1 s

Multiple Choice Questions
Answered Not Answered Not Visited Correct : 0 Incorrect : 0