AP Macroeconomics Unit 3 GDP Quiz

1.

Multiple Choice

30 sec

1 pt

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

30 sec

1 pt

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

30 sec

1 pt

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

30 sec

1 pt

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

30 sec

1 pt

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

30 sec

1 pt

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

30 sec

1 pt

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

30 sec

1 pt

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

30 sec

1 pt

Expectant parents buy supplies for the nursery. Would this be included in GDP?

Yes - Consumer Spending

Yes - Investment

No - Intermediate goods

No - Non-market activity

10.

Multiple Choice

30 sec

1 pt

Which of the following purchases is included in the calculation of gross domestic product?

A used economics textbook from the bookstore

1,000 shares of stock in a computer firm

A car produced in a foreign country

New harvesting equipment for the farm

11.

Multiple Choice

30 sec

1 pt

Which of the following would be counted as investment when calculating gross domestic product?

The purchase of a used computer by an auto manufacturer

The purchase of a share of IBM stock by an employee

The construction of a new house

The construction of roads by the government

12.

Multiple Choice

30 sec

1 pt

Which of the following would be an example of an intermediate good or service?

A calculator purchased by a college student for taking exams

Gasoline purchased by an insurance agent to visit clients at their homes

A car purchased by a student’s parents and given to the student

Tuition paid by a student at a state university

13.

Multiple Choice

45 sec

1 pt

A 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 5,000,000

2.75 x 2,000,000

14.

Multiple Choice

30 sec

1 pt

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

2 mins

1 pt

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

1 min

1 pt

If Nominal GDP was $36,000 and the GDP deflator was 120. Real GDP is

$43,200

$28,800

$7200

17.

Multiple Choice

45 sec

1 pt

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

30 sec

1 pt

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

1 min

1 pt

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

30 sec

1 pt

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

45 sec

1 pt

If the Nominal interest rate was 12% and inflation was 3%; what was the real interest rate?

12%

15%

9%

22.

Multiple Choice

30 sec

1 pt

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

2 mins

1 pt

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

30 sec

1 pt

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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