2004TEST Irev1

2004TEST Irev1 - PART I: Multiple Choice. 10 points (each...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
PART I: Multiple Choice. 10 points (each question worth ½ point) 1. Which of the following statements about gross domestic product (GDP) is correct? a) GDP measures the market value of final goods and services produced within a country. b) GDP measures the market value of goods and services produced by U.S. owned companies. c) GDP measures physical quantity of goods produced in the United States. Because there is no common unit for measuring services, they are excluded from GDP. d) GDP measures the market value of both intermediate and final goods and services produced within a country. Ans: a 2. Which of the following is considered part of consumption spending in the calculation of GDP for 2001? a) The construction of a new house in Dallas, Texas in 2001 b) The purchase of bootleg CD’s of your favorite rock band on June 2001. c) The payment for a haircut on May 21 st 2001 d) The purchase of a baseball that was signed by legendary player Babe Ruth in 1920. Ans: c 3. Nominal GDP is higher this year than last. We can conclude that: a) Production levels are higher this year. b) Price levels are higher this year. c) There is less unemployment this year. d) We need more information before commenting. Ans: d
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4. Which of the following measures is the best indicator of changes in the well-being of individuals in a country? a) An increase in nominal GDP b) An increase in real per-capita GDP c) An increase in real GDP d) An increase in the money supply Ans: b 5. Every payment from one individual to another: a) increases GDP b) decreases GDP c) increases national income d) none of the above Ans: d 6. The natural rate of unemployment is equal to: a) The minimum unemployment rate consistent with price stability b) The long-run average unemployment rate around which the short-run unemployment rate fluctuates c) The deviation of the unemployment rate from its long-run average d) The cyclical unemployment rate Ans: a or b 7. Which type of unemployment is most likely to be affected by more information about available jobs? a) Frictional b) Structural
Background image of page 2
d) Seasonal Ans: a 8. If CPI =132 for this quarter (Q1 2004), by how much have prices risen over the last decade. The base year is Q1 1994. a) By 132%
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/05/2011 for the course ECON 1120 at Cornell.

Page1 / 14

2004TEST Irev1 - PART I: Multiple Choice. 10 points (each...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online