Pre-Test Chapter 6 ed17

Pre-Test Chapter 6 ed17 - Pre-Test Chapter 6 ed17 2...

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Pre-Test Chapter 6 ed17 2 Multiple Choice Questions 1. (Last Word) The U.S. government agency responsible for compiling the national income accounts is the: A. Census Bureau. B. Bureau of Labor Statistics (BLS). C. Commerce Department's Bureau of Economic Analysis (BEA). D. Government Accounting Office (GAO). Answer the next question(s) on the basis of the following data. All figures are in billions of dollars. 2. Refer to the above data. Gross domestic product is: A. $395. B. $380. C. $375. D. $360. 3. If real GDP rises and the GDP price index has increased: A. the percentage increase in nominal GDP must have been less than the percentage increase in the price level. B. nominal GDP may have either increased or decreased. C. nominal GDP must have increased. D. nominal GDP must have fallen. Prof Keep Econ Chap 6 ed 17 Prof-Test Chap 6 Page 1 of 8
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Assume an economy that is producing only one product. Output and price data for a three-year period are as follows. Answer the next question(s) on the basis of these data. 4. Refer to the above data. If year 2 is chosen as the base year, in years 1 and 3 the price index values, respectively, are: A. 4 and 6. B. 6 and 4. C. 120 and 100. D. 100 and 150. 5. When an economy's production capacity is expanding: A. nominal GDP, but not necessarily real GDP, is rising. B. net exports is always a positive amount. C. DI exceeds PI. D. domestic investment exceeds depreciation. 6. The fact that nominal GDP has risen faster than real GDP: A. suggests that the base year of the GDP price index has been shifted. B. tells us nothing about what has happened to the price level. C. suggests that the general price level has fallen. D. suggests that the general price level has risen. 7. The concept of net domestic investment refers to: A. the amount of machinery and equipment used up in producing the GDP in a specific year. B. the difference between the market value and book value of outstanding capital stock. C. gross domestic investment less net exports. D. total investment less the amount of investment goods used up in producing the year's output.
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This note was uploaded on 03/29/2010 for the course EDUCATION 111 taught by Professor Jones during the Spring '10 term at Bowling Green.

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Pre-Test Chapter 6 ed17 - Pre-Test Chapter 6 ed17 2...

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