Question 1

An economy produces 500,000 tables valued at $100 each. Households purchase 100,000 tables, of which 50,000 are imported. Businesses purchase 200,000 domestically produced tables, the government purchases 100,000 domestically produced tables, and 50,000 domestically produced tables are sold abroad. At the end of the year, the table manufacturers hold the unsold tables in inventory. What is value of the investment component of GDP?

Accepted Answer

A)  $10 billion
B)  $20 million
C)  $25 million
D)  $30 millionE) All of the above
F) B) and C)

Question 2

Goods and services provided by state and local governments are:

Accepted Answer

A)  included in GDP at market prices.
B)  included in GDP at cost.
C)  excluded from GDP because they are not sold in markets.
D)  excluded from GDP because they are publicly provided.E) C) and D)
F) A) and B)

Question 3

One way to avoid counting the prices of intermediate goods multiple times in computing the value of GDP is to:

Accepted Answer

A)  sum the value added of only producers of final goods and services.
B)  sum the value added of only producers of intermediate goods and services.
C)  sum the value added of producers of both intermediate and final goods and services.
D)  subtract the value added of producers of intermediate goods and services from the value added of producers of final goods and services.E) B) and D)
F) None of the above

Question 4

The unemployment rate equals the number of people:

Accepted Answer

A)  unemployed.
B)  unemployed divided by the number employed.
C)  unemployed divided by the labor force.
D)  unemployed plus discouraged workers divided by the labor force.E) A) and C)
F) C) and D)

Question 5

Jim Brown would like to work, but has not looked for work in the past four weeks because he does not believe any jobs are available. In the official employment statistics, Jim is classified as:

Accepted Answer

A)  employed.
B)  unemployed.
C)  out of the labor force.
D)  underemployed.E) B) and C)
F) A) and D)

Question 6

An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are sold to consumers, 300,000 are sold to businesses, 300,000 are sold to the government, and 100,000 are sold abroad. No computers are imported. At the end of the year, the computer manufacturers hold the unsold computers in inventory. What is the value of GDP?

Accepted Answer

A)  $0.9 billion
B)  $1.0 billion
C)  $1.8 billion
D)  $2.0 billionE) B) and C)
F) A) and B) D

Question 7

Which of the following transactions would be included in the GDP of the United States?

Accepted Answer

A)  Coca Cola produces soft drinks in England.
B)  Honda produces cars in Ohio.
C)  McDonald's sells hamburgers in Russia.
D)  Ford Motor Company produces cars in Mexico.E) All of the above
F) A) and B)

Question 8

Who from among the following would be classified as out of the labor force?

Accepted Answer

A)  Brenda Smith, an 18 year old college student employed part-time at a fast food restaurant
B)  Mario Faubert, a NHL hockey player at home sick with the flu
C)  Jack Little, a 21 year old new college graduate actively looking for his first job
D)  Amanda Pie, a full-time homemakerE) None of the above
F) A) and D)

Question 9

Real GDP measures the ________ of production; nominal GDP measures the ________ of production.

Accepted Answer

A)  physical volume; current dollar value
B)  current dollar value; current dollar value
C)  current dollar value; market value
D)  current dollar value; physical volumeE) A) and B)
F) B) and D)

Question 10

To compare the change in physical production (GDP) between 2012 and 2018, we should compare ________ GDP in 2012 with ________ GDP in 2018.

Accepted Answer

A)  real; real
B)  real; nominal
C)  nominal; nominal
D)  current dollar; current dollarE) A) and B)
F) None of the above

Question 11

Which of the following is an example of an intermediate good?

Accepted Answer

A)  A new car sold to a family
B)  A metal-stamping machine used to produce cars sold to an automaker
C)  A new speaker system sold to an automaker for installation in a car
D)  A new mobile phone sold to a teenagerE) All of the above
F) None of the above

Question 12

Capital income in the U.S. equals approximately ________ of GDP.

Accepted Answer

A)  10 percent
B)  25 percent
C)  50 percent
D)  75 percentE) None of the above
F) All of the above B

Question 13

Based on the information in the table, how big is the labor force?  
  Population 16 and older 1,000,000 Participation Rate 80% Errployed Workers 720,000\begin{array} { | l | r } \hline 	ext { Population } 16 	ext { and older } & 1,000,000 \\hline 	ext { Participation Rate } & 80 \% \\hline 	ext { Errployed Workers } & 720,000 \\hline\end{array} Population 16 and older  Participation Rate  Errployed Workers ​1,000,00080%720,000​​

Accepted Answer

A)  576,000
B)  720,000
C)  800,000
D)  1,000,000 E) B) and D)
F) A) and C)

Question 14

In an economy of 100 people in the labor force, if 10 people are unemployed for 4 weeks during the year, and 30 people are unemployed for 8 weeks during the year, and the rest are employed continuously throughout the year, then the average duration of unemployment in this economy is:

Accepted Answer

A)  5 weeks.
B)  6 weeks.
C)  7 weeks.
D)  8 weeks.E) A) and B)
F) B) and C)

Question 15

Bob's Barber Shop cut 3,000 heads of hair in 2016 and 3,100 in 2017. The price of a haircut was $7 in 2016 and $8 in 2017. If 2016 is the base year, what was Bob's contribution to nominal GDP in 2017?

Accepted Answer

A)  $21,000
B)  $21,700
C)  $24,000
D)  $24,800E) All of the above
F) None of the above

Question 16

People who would like to work full-time, but are able to find only part-time work are:

Accepted Answer

A)  counted as employed.
B)  considered out of the labor force.
C)  counted as unemployed.
D)  discouraged workers.E) A) and B)
F) A) and C)

Question 17

Real GDP is not a perfect measure of economic well-being because it excludes the value of all of the following except:

Accepted Answer

A)  leisure time.
B)  goods and services available in the market economy.
C)  nonmarket economic activity.
D)  goods and services produced in the underground economy.E) A) and B)
F) A) and C)

Question 18

An economy produces only 500,000 tables valued at $100 each. Of these, 100,000 are sold to consumers, 200,000 are sold to businesses, 100,000 are sold to the government, and 50,000 are sold abroad. No tables are imported. At the end of the year, the table manufacturers hold the unsold tables in inventory. What is the value of the investment component of GDP?

Accepted Answer

A)  $2 billion
B)  $10 million
C)  $25 million
D)  $50 millionE) A) and C)
F) All of the above

Question 19

The value of unpaid childcare services provided by a stay-at-home dad ________ included in GDP; the value of daycare services purchased from a licensed childcare provider ________ included in GDP.

Accepted Answer

A)  is; is not
B)  is; is
C)  is not; is not
D)  is not; isE) A) and B)
F) C) and D) D

Question 20

Nominal GDP measures the ________ of production.

Accepted Answer

A)  change in the volume
B)  physical volume
C)  current dollar value
D)  base year valueE) C) and D)
F) A) and C)

Exam 17: Measuring Economic Activity: GDP and Unemployment

Correct Answer
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Goods and services provided by state and local governments are:

Correct Answer
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One way to avoid counting the prices of intermediate goods multiple times in computing the value of GDP is to:

Correct Answer
verified

The unemployment rate equals the number of people:

Correct Answer
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Jim Brown would like to work, but has not looked for work in the past four weeks because he does not believe any jobs are available. In the official employment statistics, Jim is classified as:

Correct Answer
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Correct Answer
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D

Which of the following transactions would be included in the GDP of the United States?

Correct Answer
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Who from among the following would be classified as out of the labor force?

Correct Answer
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Real GDP measures the of production; nominal GDP measures the of production.

Correct Answer
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To compare the change in physical production (GDP) between 2012 and 2018, we should compare GDP in 2012 with GDP in 2018.

Correct Answer
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Which of the following is an example of an intermediate good?

Correct Answer
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Capital income in the U.S. equals approximately ________ of GDP.

Correct Answer
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B

Based on the information in the table, how big is the labor force? $\begin{array} { | l | r } \hline \text { Population } 16 \text { and older } & 1,000,000 \\\hline \text { Participation Rate } & 80 \% \\\hline \text { Errployed Workers } & 720,000 \\\hline\end{array}$

Correct Answer
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In an economy of 100 people in the labor force, if 10 people are unemployed for 4 weeks during the year, and 30 people are unemployed for 8 weeks during the year, and the rest are employed continuously throughout the year, then the average duration of unemployment in this economy is:

Correct Answer
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Bob's Barber Shop cut 3,000 heads of hair in 2016 and 3,100 in 2017. The price of a haircut was $7 in 2016 and $8 in 2017. If 2016 is the base year, what was Bob's contribution to nominal GDP in 2017?

Correct Answer
verified

People who would like to work full-time, but are able to find only part-time work are:

Correct Answer
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Real GDP is not a perfect measure of economic well-being because it excludes the value of all of the following except:

Correct Answer
verified

Correct Answer
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The value of unpaid childcare services provided by a stay-at-home dad included in GDP; the value of daycare services purchased from a licensed childcare provider included in GDP.

Correct Answer
verified
D

Nominal GDP measures the ________ of production.

Correct Answer
verified

Exam 17: Measuring Economic Activity: GDP and Unemployment

Correct AnswerverifiedShow Answer

Goods and services provided by state and local governments are:

Correct AnswerverifiedShow Answer

One way to avoid counting the prices of intermediate goods multiple times in computing the value of GDP is to:

Correct AnswerverifiedShow Answer

The unemployment rate equals the number of people:

Correct AnswerverifiedShow Answer

Jim Brown would like to work, but has not looked for work in the past four weeks because he does not believe any jobs are available. In the official employment statistics, Jim is classified as:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedD

Which of the following transactions would be included in the GDP of the United States?

Correct AnswerverifiedShow Answer

Who from among the following would be classified as out of the labor force?

Correct AnswerverifiedShow Answer

Real GDP measures the ________ of production; nominal GDP measures the ________ of production.

Correct AnswerverifiedShow Answer

To compare the change in physical production (GDP) between 2012 and 2018, we should compare ________ GDP in 2012 with ________ GDP in 2018.

Correct AnswerverifiedShow Answer

Which of the following is an example of an intermediate good?

Correct AnswerverifiedShow Answer

Capital income in the U.S. equals approximately ________ of GDP.

Correct AnswerverifiedB

Correct AnswerverifiedShow Answer

In an economy of 100 people in the labor force, if 10 people are unemployed for 4 weeks during the year, and 30 people are unemployed for 8 weeks during the year, and the rest are employed continuously throughout the year, then the average duration of unemployment in this economy is:

Correct AnswerverifiedShow Answer

Bob's Barber Shop cut 3,000 heads of hair in 2016 and 3,100 in 2017. The price of a haircut was $7 in 2016 and $8 in 2017. If 2016 is the base year, what was Bob's contribution to nominal GDP in 2017?

Correct AnswerverifiedShow Answer

People who would like to work full-time, but are able to find only part-time work are:

Correct AnswerverifiedShow Answer

Real GDP is not a perfect measure of economic well-being because it excludes the value of all of the following except:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The value of unpaid childcare services provided by a stay-at-home dad ________ included in GDP; the value of daycare services purchased from a licensed childcare provider ________ included in GDP.

Correct AnswerverifiedD

Nominal GDP measures the ________ of production.

Correct AnswerverifiedShow Answer

Correct Answer
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D

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Correct Answer
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Real GDP measures the of production; nominal GDP measures the of production.

Correct Answer
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To compare the change in physical production (GDP) between 2012 and 2018, we should compare GDP in 2012 with GDP in 2018.

Correct Answer
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Correct Answer
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Correct Answer
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B

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The value of unpaid childcare services provided by a stay-at-home dad included in GDP; the value of daycare services purchased from a licensed childcare provider included in GDP.

Correct Answer
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D

Correct Answer
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