econ 201 Exam 2

econ 201 Exam 2 - ECON 201 EXAM 2 Chapters 6 8 Sample...

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ECON 201 - EXAM 2 - Chapters 6 - 8 Sample Student: ___________________________________________________________________________ 1. Real GDP refers to: A. the value of the domestic output after adjustments have been made for environmental pollution and changes in the distribution of income. B. GDP data that embody changes in the price level, but not changes in physical output. C. GDP data that reflect changes in both physical output and the price level. D. GDP data that have been adjusted for changes in the price level. 2. Nominal GDP is: A. the sum of all monetary transactions that occur in the economy in a year. B. the sum of all monetary transactions involving final goods and services that occur in the economy in a year. C. the amount of production that occurs when the economy is operating at full employment. D. money GDP adjusted for inflation. Answer the next question(s) on the basis of the following data. All figures are in billions of dollars. 1 3. Refer to the above data. GDP is: A. $390. B. $417. C. $422. D. $492. E. $512. 4. Growth is advantageous to a nation because it: A. promotes faster population growth. B. lessens the burden of scarcity. C. eliminates the economizing problem. D. slows the growth of wants. 5. For comparing changes in potential military strength and political preeminence, the most meaningful measure of economic growth would be: A. changes in total nominal output. B. changes in total real output. C. changes in per capita output. D. changes in per family output. 6. Which of the following best measures improvements in the standard of living of a nation? A. growth of nominal GDP B. growth of real GDP C. growth of real GDP per capita D. growth of national income 7. Refer to the above data. NDP is: A. $116. B. $121. C. $125. D. $150. 2 Answer the next question(s) on the basis of the following data. All figures are in billions of dollars: 8. Refer to the above data. GDP is: A. $116. B. $121. C. $125. D. $150. 9. GDP excludes: A. the market value of unpaid work in the home. B. the production of services. C. the production of nondurable goods. D. positive changes in inventories.
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10. Consumption of fixed capital (depreciation) can be determined by: A. adding taxes on production and imports to NDP. B. subtracting NDP from GDP. C. subtracting net investment from GDP. D. adding net investment to gross investment. 11. If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, it real GDP per capita will: A. remain constant. B. fall by 6 percent. C. rise by 6 percent. D. fall by 12 percent. 3 12. Economic growth is best defined as an increase in: A. either real GDP or real GDP per capita. B. nominal GDP.
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econ 201 Exam 2 - ECON 201 EXAM 2 Chapters 6 8 Sample...

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