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Unit III Macro Review--GDP

Learn about the different measures of economic performance such as nominal GDP, real GDP, and per capita GDP. Understand how GDP is calculated and what counts in GDP. Get insights into the income and expenditure approaches to GDP and the importance of estimating rGDP.

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Unit III Macro Review--GDP

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  1. Unit III Macro Review--GDP Questions provided by students 

  2. Which is the most meaningful measure of economic performance? • A. Nominal GDP • B. Real GDP • C. Per capita GDP • D. Undetermined GDP

  3. Real GDP is • A. The value of final g and s produced and expressed in prices of a base year. • B. Market value of all g and s produced. • C. Total inflammation. • D. The opposite of fake GDP.

  4. To calculate Ig you • A. Add net domestic investment and CFC • B. Subtract CFC from net domestic investment • C. Add net domestic investment and net foreign factor • D. Subtract personal taxes from net domestic investment

  5. The price index • A. Is used to measure inflation by the government. • B. Total market value of all final g and s. • C. Measure of a specific collection of g and s in a given year, as compared with a collection in a reference year. • D. Measures price levels.

  6. The GDP • A. Does not include final goods • B. Includes nonproductive transactions • C. Excludes nonproductive transactions • D. Is not beneficial to the economy

  7. Which of the following counts in GDP? • A. Teaching a child how to read • B. Producing pencils in Indonesia • C. Government hiring new workers • D. You buy 100 shares of Google stock

  8. What is CFC? • A. Consumption of free candy • B. Consumption of fixed capital • C. Corporate fixed capital • D. Corporate foreign capital

  9. What is an example of Ig? • A. Secondhand sales • B. Construction • C. Government hiring workers • D. Purchasing stocks

  10. Which of the following is FALSE about GDP? • A. Includes only final goods • B. Services are produced within a country • C. Is the value of what has been produced • D. Includes unreported activities

  11. When is the GDP measured? • A. Once a month • B. Once a year • C. Every 3 months • D. Every 4 months

  12. What isn’t used in the income approach? • A. Interest • B. Profits • C. Statistical adjustments • D. Transfer fees

  13. GDP excludes all of the following except: • A. Transfer payments • B. Labor • C. Secondhand sales • D. Overseas production

  14. Which of the following counts in GDP? • A. Social Security checks • B. Secondhand sales • C. Broker service • D. Overseas production

  15. What accounts for most of the GDP? • A. C • B. Ig • C. G • D. Xn

  16. Xn has been negative since • A. WWI • B. The Great Depression • C. WWII • D. Vietnam

  17. What do you subtract from PI to get DI? • A. Personal income tax • B. Consumption of fixed capital • C. Net income • D. Transfer payments

  18. The index the gov’t uses to measure inflation is the • A. Consumer price index • B. Personal price index • C. Net price index • D. Domestic price index

  19. What doesn’t count as a part of the “Underground” economy? • A. Smugglers • B. Personal income • C. Stolen goods • D. Gamblers

  20. What does the gov’t use CPI to adjust? • A. Income tax brackets and ss benefits • B. GDP / rGDP • C. Average level of prices • D. Base year prices

  21. To get Xn, what equation do you use? • A. Imports – exports • B. Exports – imports • C. CFC – government spending • D. Exports + imports

  22. Which of the following does NOT count in GDP? • A. Steel used to make car • B. New car • C. Dentist bill • D. New house

  23. What does count in GDP? • A. Stocks • B. Cash tips • C. Big Mac • D. US production overseas

  24. A specific collection of goods and services are a • A. Company • B. Unified trade union • C. GDP • D. Market basket

  25. The income approach does not include: • A. Wages • B. Rents • C. Interest • D. Stocks and bonds

  26. In the expenditures approach, what does G mean? • A. Government spending • B. Gross investment • C. Gross domestic product • D. Government savings

  27. What counts in GDP? • A. Buying 250 shares of Apple Inc. • B. Baby sitting your little sister as a favor • C. Making muffins for your cousin's birthday • D. Buying a cola for a homeless man

  28. The expenditure approach to GDP includes all EXCEPT • A. Personal savings • B. Gross investment • C. Net Exports • D. Government spending

  29. Disposable income is • A. The money in the US gov’t treasury • B. The result of spending on g and s made in the US • C. The income an individual can use for consumption or savings • D. None of the above

  30. When assessing the economy the national income accounts serve • A. To Help other countries realize how much better the US economy is • B. A purpose just as income statements do for a business • C. Provides national deficit reports • D. Nothing concerning GDP or CPI

  31. Which of the following is not a consumer purchase counted in GDP? • A. A box of raisins from Kroger • B. A t-shirt from the mall • C. A pair of shoes from Goodwill • D. A pretzel from Pretzeltime

  32. Name one purpose of estimating rGDP. • A. To compare standard of living over time • B. To compare standard of living by price • C. To compare standard of living over regions • D. To compare standard of living over states

  33. If nGDP rises but rGDP remains unchanged, prices have • A. Decreased • B. Stayed the same • C. Increased • D. None of these

  34. Why do intermediate goods not count in GDP? • A. We can’t track intermediate goods • B. Not counting them avoids multiple counting • C. Mrs. Duez says soD. It is too hard to calculate

  35. CFC = • A. Consumption of fixed capital • B. Depreciation • C. Consumer fixed consumption • D. Both A and B

  36. Intermediate goods are: • A. Good that are neither hard nor easy • B. Goods resold • C. All goods sold to consumers • D. None of the above

  37. The GDP is determined by the value of goods_________, not ________. • A. Sold; produced • B. Consumed; produced • C. Produced; sold • D. Consumed; sold

  38. Who is hurt by inflation? • A. Retirees or those on a fixed income • B. Ninjas • C. People leasing apartments at a fixed rate • D. None of the above

  39. What is Net Domestic Product? • A. C + Ig + G +Xn • B. Imports – exports • C. Exports – imports • D. GDP - CFC

  40. Underground activity could possibly add ___% to the GDP if it could be counted. • A. 7 • B. 8 • C. 9 • D. 10

  41. Are second hand sales calculated in GDP? • A. Yes • B. No • C. Depends on the condition of the product • D. Depends on the seller

  42. What is a COLA? • A. A soft drink • B. Cost of living adjustment • C. Cost of level adjustment • D. Capital of legal activities

  43. What is the formula to find rGDP? • A. PI / nGDP X 10 • B. nGDP / PI X 100 • C. DI / C X 10 • D. G / NI X 100

  44. The CPI has _____ products in the market basket. • A. 30 • B. 300 • C. 400 • D. 500

  45. The formula for the income approach is: • A. W + R + I + P + SA • B. C + Ig + G + Xn • C. PI + NDP • D. CFC + In

  46. CPI is used to measure? • A. GDP • B. Deflation • C. Inflation • D. Distance

  47. The largest part of WRIPSA is? • A. Wages • B. Rents • C. Profits • D. Interests

  48. rGDP is • A. nGDP + inflation • B. nGDP – inflation • C. CPI + inflation • D. Donuts

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