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- 1. Multiple Choice
The expenditure by all levels of government on goods and services
Imports of goods and services
Investment
Consumer expenditure
Government expenditure on goods and services
- 2. Multiple Choice
The expenditure by households on consumption goods and services.
Business Cycle
Exports of goods and services
Consumption expenditure
Government expenditure on goods and services
- 3. Multiple Choice
The market value of all the final goods and services produced within a country in a given time period.
Gross Domestic Product
Net exports of goods and services
Nominal GDP
Real GDP
- 4. Multiple Choice
The purchase of new capital goods (tools, instruments, machines, buildings) and additions to inventories
Exports of goods and services
Real GDP
Investment
Net exports of goods and services
- 5. Multiple Choice
The value of the final goods and services produced in a given year expressed in terms of the prices in a reference base year.
Real GDP
Gross Domestic Product
Business Cycle
Nominal GDP
- 6. Multiple Choice
The value of the final goods and services produced in a given year expressed in terms of the prices of the same year.
Real GDP
Nominal GDP
Net exports of goods and services
Gross Domestic Product
- 7. Multiple Choice
Items that firms in the United States produce and sell to the rest of the world
Imports of goods and services
Investment
Nominal GDP
Exports of goods and services
- 8. Multiple Choice
The value of exports of goods and services minus the value of imports of goods and services.
Gross Domestic Product
Net exports of goods and services
Investment
Nominal GDP
- 9. Multiple Choice
Expectant parents buy supplies for the nursery. Would this be included in GDP?Yes - Consumer SpendingYes - InvestmentNo - Intermediate goodsNo - Non-market activity - 10. Multiple ChoiceWhich of the following purchases is included in the calculation of gross domestic product?A used economics textbook from the bookstore1,000 shares of stock in a computer firmA car produced in a foreign countryNew harvesting equipment for the farm
- 11. Multiple ChoiceWhich of the following would be counted as investment when calculating gross domestic product?The purchase of a used computer by an auto manufacturerThe purchase of a share of IBM stock by an employeeThe construction of a new houseThe construction of roads by the government
- 12. Multiple ChoiceWhich of the following would be an example of an intermediate good or service?A calculator purchased by a college student for taking examsGasoline purchased by an insurance agent to visit clients at their homesA car purchased by a student’s parents and given to the studentTuition paid by a student at a state university
- 13. Multiple ChoiceA Chik-fil-A milkshake today costs $2.75. The Camden location sold 5,000,000 this year. In 1961, it cost $0.80 and they sold 2,000,000. How do I find the nominal GDP for Chik-fil-A milkshakes in 1961?2.75 x 5,000,000.80 x 2,000,000.80 x 5,000,0002.75 x 2,000,000
- 14. Multiple Choice
Each individual on food stamps in Delaware can receive up to $194 a month. Is this included in government spending?
Yes - Government spending
Yes - Consumer Spending
No - Intermediate Goods
No - Public Transfer Payment
No- Private Transfer Payment
- 15. Multiple Choice
Find changes in Nominal GDP with the following information:
Gavin sells 1000 shares of Microsoft and makes $5000.
Emma purchases a new wardrobe and spends $3000.
Peter was replaced at work by a robot he invented and now collects unemployment valued at $10,000.
Ethan made "Soothing Songs with a Thumping Trumpet" and has international export sales of $10,000.
Wong ordered 1000 Dylan Gergely stickers that were made in Italy and provided them to every student at RCHS $2000.
Jadyn sold some of her used athletic equipment and made $1000.
$11,000
$13,000
$15,000
$16,000
$31,000
- 16. Multiple Choice
If Nominal GDP was $36,000 and the GDP deflator was 120. Real GDP is
$43,200
$28,800
$7200
- 17. Multiple Choice
If Nominal GDP was $20 Billion and Real GDP was $21 Billion when using the prior year as a base year, which of the following is a true statement?
The price level increased that year.
Someone who earned the same amount of income from the year before had more purchasing power.
A dollar would buy less in this year compared to the year before.
Government spending must have fallen in the second year.
- 18. Multiple Choice
How do you determine if real output increased from one year to the next?
The Nominal GDP is higher in year 2 compared to Nominal GDP in year 1.
The Nominal GDP is higher in year 2 compared to real GDP in year 1.
The Nominal GDP is lower in year 2 compared to the Nominal GDP in year 1.
The real GDP in year 2 is higher to the real GDP in year 1.
- 19. Multiple Choice
If the rate of inflation is 40%, which of the following is true?
The GDP Deflator is 40.
One must have an increase income of 30% to have more purchasing power.
If savings grew by 10%, you were better off spending your money on a durable good in the previous year.
Nominal GDP will be lower than Real GDP.
- 20. Multiple Choice
To encourage formation of small businesses, the government could provide subsidies; these subsidies
would be included in GDP because they are part of government purchases.
would not be included in GDP because the government raises taxes to pay for them.
would not be included in GDP because they are transfer payments.
would be included in GDP as an increase in investment and a decrease in taxes.
would be included in GDP because they are part of investment expenditures.
- 21. Multiple Choice
If the Nominal interest rate was 12% and inflation was 3%; what was the real interest rate?
12%
15%
9%
- 22. Multiple Choice
If the inflation rate was 5% and the the nominal interest rate was 5%; what was the real interest rate?
5%
10%
0%
none of the above.
- 23. Multiple Choice
in 1920 a loaf bread cost .05. If the CPI in 1920 was 18 and in 20220 it was 265; what would be true?
A loaf of bread in 1920 was cheaper than a loaf bread that sells for $1 in 2020.
A loaf of bread in 1920 was more valuable than a loaf of bread that sells for $2 in 2020.
A loaf of bread in 1920 at .05 would sell for $3 in 2020 dollars.
A loaf of bread in 1920 would be worth less than a loaf of bread that sells for .50 in 2020 dollars.
- 24. Multiple Choice
Which of the following is NOT a problem that the consumer price index does not account for.
quality of goods that are produced
the number of new goods that are produced
the price changes of goods from one year to the next.
the substitution effect when prices increase for a good that is fixed in the market basket.
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