chapter_04_-_gross_domestic_product

chapter_04_-_gross_domestic_product - Test Bank...

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Page 1 of 12 Test Bank Macroeconomics: Theory and Policy Chapter 04: Gross Domestic Product B. Modjtahedi Question 1 The GDP deflator is not a good measure of cost of living because: A. It excludes the values of changes in inventories. B. It excludes the prices of intermediate goods. C. It includes the prices of goods households do not buy. D. It excludes the prices of a lot of things households buy. E. None of the above. Question 2 Some economists believe that not all the increase in the U.S. GDP that resulted from a higher participation of women in the labor force represents a larger amount of production made possible by these women. Their reason is most probably that: A. It is the GDP per capita that is a reliable measure of welfare. B. Women are less productive than men. C. Part of the increase in GDP is due to the fact that housework was replaced by market activity. D. The increase in women’s participation rate reduced the overall labor productivity in the U.S. E. Women work mostly in the services industry. Question 3 Which of the following is included in 2007 GDP? A. The value of the old 2001 Chevy you bought from me. B. The value of the used book you bought from bookstore in 2007. C. The government bought some new books for the students in public schools. D. The value of the time you spent fixing your car. E. None of the above. Question 4 The value of which of the following will NOT be included in the 2007 GDP? A. You bought stock of the GM Corporation issued in 2007. B. I bought a DELL laptop built in 2007. C. Jim had a haircut in June 2007. D. You had your car fixed in August 2007. E. None of the above. Year Price of Good 1 Quantity of Good 1 Price of Good 2 Quantity of Good 2 2006 $2 5 $4 10 2007 $4 10 $8 5 Question 5
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Page 2 of 12 The table above shows the prices and quantities of two goods produced in a country in 2006 and 2007. These are the only goods produced in the country. What is the nominal GDP in 2007? A. $40 B. $80 C. $100 D. $200 E. None of the above Year Price of Good 1 Quantity of Good 1 Price of Good 2 Quantity of Good 2 2006 $2 5 $4 10 2007 $4 10 $8 5 Question 6 The table above shows the prices and quantities of two goods produced in a country in 2006 and 2007. These are the only goods produced in the country. What is the real GDP in 2007 (base year = 2006)? A. $40 B. $80 C. $100 D. $200 E. None of the above Year Price of Good 1 Quantity of Good 1 Price of Good 2 Quantity of Good 2 2006 $2 5 $4 10 2007 $4 10 $8 5 Question 7 The table above shows the prices and quantities of two goods produced in a country in 2006 and 2007. These are the only goods produced in the country. What is the GDP deflator in 2007 (base year = 2006)? A. $40
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This note was uploaded on 03/24/2010 for the course ECON Econ1B taught by Professor Baghermodjtahedi during the Spring '09 term at UC Davis.

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chapter_04_-_gross_domestic_product - Test Bank...

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