Step 3 – Measuring Output & Income Quiz – MACRO MINI- 2019 SPRING
The key terms in this Step 3 – Measuring Output & Income Quiz – MACRO MINI- 2019 SPRING include
Item 1
In the second quarter (three-month period) of 2016, U.S. nominal GDP increased but U.S. real GDP declined. What can we conclude?
Multiple Choice
- Nominal income declined by more than personal income.
- The price level fell by more than real GDP.
- The price level rose by more than nominal GDP.Correct
- Real wages declined by more than real GDP.
Step 3 – Measuring Output & Income Quiz
Item 2
GDP tends to overstate economic well-being because it takes into account _____.
Multiple Choice
- expenditures undertaken to correct pollution Correct
- illegal activities of individuals and businesses
- nonmarket activities, such as the productive work of homemakers
- improvements in product quality over time
Item 3
Which of the following is not a component of GDP in the expenditures approach?
Multiple Choice
- Government purchases
- The difference between exports and imports
- Workers’ wages and other compensation Correct
- Gross private domestic investment
Step 3 – Measuring Output & Income Quiz
Item 4
A nation’s nominal gross domestic product (GDP) _____.
Multiple Choice
- is always some amount less than C + I + G + NX
- can be found by summing C + I + S + NX
- is the dollar value of all final output produced by its citizens, regardless of where they are living
- is the dollar value of all final output produced within the borders of the nation during a specific period of time Correct
Step 3 – Measuring Output & Income Quiz
Item 5
What is the largest expenditure component of GDP?
Multiple Choice
- Government purchases
- Net exports
- Gross private domestic investment
- Personal consumption spending Correct
Item 6
A nation’s capital stock was valued at $300 billion at the start of the year and $350 billion at the end. Consumption of private fixed capital in the year was $25 billion. Assuming stable prices, gross investment was _____.
Multiple Choice
- $25 billion
- $90 billion
- $75 billion Correct
- $50 billion
Step 3 – Measuring Output & Income Quiz
Item 7
Use the following table to answer the next question. The base year is 2007.
| Hot Dogs | Baseballs | Bottles of Soda | ||||
| Year | Price | Quantity | Price | Quantity | Price | Quantity |
| 2005 | $2.00 | 100 | $5.00 | 50 | $2.00 | 100 |
| 2006 | 4.00 | 100 | 5.00 | 100 | 2.00 | 150 |
| 2007 | 6.00 | 100 | 5.00 | 100 | 2.00 | 200 |
| 2008 | 8.00 | 150 | 8.00 | 200 | 4.00 | 200 |
| 2009 | 10.00 | 200 | 10.00 | 200 | 4.00 | 250 |
Real GDP (constant dollars) for 2009 equals _____.
Multiple Choice
- $5,000
- $3,600
- $2,700 Correct
- $2,300
Item 8
If real GDP in a year was $3,668 billion and the price index was 112, then nominal GDP in that year was approximately _____.
Multiple Choice
- $3,925 billion
- $3,846 billion
- $4,379 billion
- $4,108 billion Correct
Step 3 – Measuring Output & Income Quiz
Item 9
Use the data in the table below to answer the next question. The data describes a hypothetical economy and are denominated in billions of dollars.
| Disposable income | $200 |
| Net private domestic investment | 40 |
| Value of imports | 15 |
| National income | 300 |
| Personal taxes | 31 |
| Net exports | 9 |
| Gross private domestic investment | 55 |
| Net foreign factor income | 10 |
| Statistical discrepancy | 0 |
This nation’s exports are _____.
Multiple Choice
- $9 billion
- $24 billion Correct
- $16 billion
- $28 billion
Item 10
Answer the next question on the basis of the following information: Three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per unit prices of these three goods are A = $2, B = $3, and C = $1.
If the per unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then real GDP in the current year is _____.
Multiple Choice
- $115
- $160
- $45 Correct
- $110
Step 3 – Measuring Output & Income Quiz
Item 11
Use the following table to answer the next question.
| Year | Real GDP | Population |
| 2008 | $20,000 | 200 |
| 2009 | 40,000 | 400 |
| 2010 | 60,000 | 400 |
| 2011 | 70,000 | 500 |
Real GDP per capita __________ between 2008 and 2009.
Multiple Choice
- cannot be calculated
- remains constant Correct
- increases
- decreases
Step 3 – Measuring Output & Income Quiz
Item 12
Assume that the real GDP of a developing nation increases from $120 billion to $140 billion while its population expands from 100 to 110 million. As a result, real GDP per capita has increased by about _____.
Multiple Choice
- $56 per person
- $64 per person
- $72 per person Correct
- $88 per person
Step 3 – Measuring Output & Income Quiz
Item 13
Answer the next question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.
| Year | Units of Output | Price per Unit |
| 1 | 8 | $2 |
| 2 | 10 | 3 |
| 3 | 15 | 4 |
| 4 | 18 | 5 |
| 5 | 20 | 6 |
If year 2 is the base year, then real GDP in year 5 is _____.
Multiple Choice
- $30
- $90
- $60 Correct
- $120
Item 14
In November 2009, Marketopia Motors produced an automobile that was delivered to a local dealership in December 2009. The auto was then sold to Sharon Smith for personal use in February of 2010. Following national income accounting practices, this auto would be counted as part of _____.
Multiple Choice
- negative investment in 2009 and consumption in 2010
- investment in 2009 and negative investment in 2010 Correct
- consumption in 2009 and consumption in 2010
- consumption in 2009 and investment in 2010
Item 15
Use the following table to answer the next question.
| Year | Real GDP | Population |
| 2008 | $20,000 | 200 |
| 2009 | 40,000 | 400 |
| 2010 | 60,000 | 400 |
| 2011 | 70,000 | 500 |
Real GDP per capita __________ between 2009 and 2010.
Multiple Choice
- remains constant
- increases Correct
- decreases
- cannot be calculated