Recent Question

Potential GDP is 1) The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called A) real GDP. B) nominal GDP. C) actual GDP. D) potential GDP. 2) Potential GDP is A) another name for real GDP. B) always different from real GDP. C) the level of GDP not adjusted for price changes. D) the maximum amount of GDP that can be prod ...

Other / Other 26 May 2016

Which of the following best represents an indirect tax 1) An indirect tax is a tax paid by consumers A) to a state or local government. B) when they purchase goods and services. C) on unearned income (as opposed to wages and salaries). D) that is a percentage of the value of their real property. 2) An indirect tax is exemplified by A) an income tax. B) a sales tax. C) a subsidy. D) None of the above answers is correct. 3) Which ...

Other / Other 26 May 2016

A common definition of a recession is a period of time 1) Which of the following are parts of the business cycles? A) peak and potential GDP B) real GDP and potential GDP C) recession and expansion D) inflation and recession 2) Which of the following is TRUE regarding business cycles? I. Cycles are predictable. II. In each cycle, a peak follows an expansion. III. Potential GDP fluctuates around real GDP. A) I and II B) I and III ...

Other / Other 26 May 2016

In the calculation of GDP by the expenditure approach, exports from the United States must be 1) In the calculation of GDP by the expenditure approach, exports from the United States must be A) subtracted because they are included in the consumption of a foreign country. B) ignored because they are not bought by U.S. citizens. C) subtracted if they are bought by foreign firms for investment purposes. D) added. 2) Last year in the coun ...

Other / Other 26 May 2016

Which of the following is included in government expenditures when measuring GDP 1) Which of the following is included in the government expenditure component of the expenditure approach to GDP? A) state government expenditure on local schools B) transfer payments C) changes in inventories D) taxes 2) Which one of the following transactions in a particular year is included in gross domestic product for that year? A) Social Securit ...

Other / Other 26 May 2016

Which of the following is not a phase or turning point of the business cycle 1) Which of the following statements is true? A) Real GDP fluctuates around potential GDP. B) Potential GDP fluctuates around real GDP. C) Potential GDP is the same as real GDP. D) When all of the economyʹs resources are fully employed, the value of production is called real GDP. 2) Real GDP A) fluctuates from year to year but is always below potentia ...

Other / Other 26 May 2016

If we compare the four sources of spending in the economy we see that 1) In the circular flow of income A) households demand goods and services that are supplied by firms, and the firms demand factors that are supplied by intermediate firms. B) households demand goods and services that are supplied by firms, while supplying factors that are demanded by firms. C) households sell goods and services while firms sell factors. D) househol ...

Other / Other 26 May 2016

Gross domestic product (GDP) measures the 1) Gross domestic product is the total ________ produced within a country in a given time period. A) market value of all final and intermediate goods and services B) market value of all goods and services C) amount of final and intermediate goods and services D) market value of all final goods and services 2) Gross domestic product A) includes all the goods and none of the services produced i ...

Other / Other 26 May 2016

Of the following, the largest component of GDP is 1) In the equation, GDP = C + I + G + X - M, G refers to A) federal government expenditures plus all transfer payments. B) local, state, and federal government spending for all purposes. C) the taxes and expenditures of all government units. D) local, state, and federal government expenditure on goods and services, but does not include transfer payments. 2) The components of the exp ...

Other / Other 26 May 2016

A new 2010 Honda Civic produced in 2010 and purchased in 2011 is 1) Goods that are produced this year, stored in inventories, and then sold to consumers next year A) count in this yearʹs GDP. B) count in next yearʹs GDP. C) count in both this yearʹs and next yearʹs GDP. D) are not counted as a part of GDP. 2) A new 2010 Honda Civic produced in 2010 and purchased in 2011 is A) part of GDP in 2010. B) part of GDP in 2011 ...

Other / Other 26 May 2016