Economics CC 2 Sec ON 1 Week 1 Quiz

Economics CC 2 Sec ON 1 Week 1 Quiz | chatbot las positas community college

Question 1

The expenditure approach to measuring GDP sums  

·         consumption, investment, government purchases, and net exports.  

·         sales, revenues, income, and wages.  

·         profits, compensation of employees, consumption, and investment.  

·         net exports, consumption, wages, and salaries.  

·         consumption, interest, net exports, and federal government purchases

Question 2

Which of the following would definitely not be included in the measurement of GDP?  

·         value of the services of a painter who paints your garage  

·         value of the services of a person who mows his or her own lawn  

·         value of the services of a maid who cleans your house  

·         value of the services of a plumber who fixes your kitchen sink

Question 3

Nominal GDP is computed by using

·         base-year prices.  

·         previous-year prices.  

·         current-year prices.

Question 4

Real GDP is always measured in

·         quality of goods produced.  

·         base-year constant price.  

·         current prices.

Question 5

Real GDP is the value of all __________ goods and services produced in a given year in __________ prices.

·         intermediate; that year's  

·         intermediate; base-year  

·         final; that year's  

·         final; base-year

Question 6

Nominal GDP is $10,000 billion in 2011, but real GDP is only $9,000. It follows that:    

·         the GDP deflator (GDP price index) is equal to 111.    

·         the GDP deflator (GDP price index) is equal to 100.    

·         the GDP deflator (GDP price index) is equal to 90.    

·         prices must have decreased relative to the base year.

Question 7    

the base year market value of all final goods and services produced domestically during a given period.    

·         the current year market value of all final goods and services produced domestically during a given period.    

·         usually greater than nominal GDP.  

·         the current year market value of domestic production of intermediate goods.

Question 8

If nominal GDP in 2011 is greater than nominal GDP in 2010, the economy's real output of goods and services must have risen.    

·         True  

·         False

Question 9

GDP that has been adjusted for changes in the price level is called:    

·         nominal GDP.    

·         real GDP.    

·         personal income.    

·         net GDP.

Question 10

If nominal GDP rises from $5 billion to $6 billion, when the GDP deflator goes from 100 to 110, real

·         GDP    

·         rises.    

·         falls.    

·         stays the same.