Chapter 9

Question 1

Into thousand and seven the GDP in the United States was almost

Answer 1

14 trillion

Question 2

The net domestic product is usually preferred to GDP by economist because net national product

Answer 2

It excludes depreciation

Question 3

The largest item amount among these listed here is

Answer 3

Net domestic product

Question 4

If the GDP rose from 4,000,000,000,000 to 6,000,000,000,000 and prices rose by 50% over this period.

Answer 4

Real GDP stayed the same

Question 5

If GDP increases faster than the GDP deflator

Answer 5

The real GDP will rise

Question 6

Which one of the following is taken into account by GDP?

Answer 6

None of the choices are correct

Question 7

Per capita real GDP is found by

Answer 7

Dividing real GDP by the population

Question 8

The difference between GDEP and NDP

Answer 8

Depreciation

Question 9

The largest sector of the GDP is

Answer 9

Consumption

Question 10

Which is not counted in the GDP?

Answer 10

A Social Security check sent to a retiree

Question 11

When is their inflation

Answer 11

GDP increases faster than real GDP

Question 12

In the equation see plus I plus G plus X, the eye is defined as

Answer 12

Total investment in new plant and equipment

Question 13

Which one of the following is counted in GDP

Answer 13

Government spending

Question 14

Which of the statements is true? GDP can never be greater than NDP, NDP can never be greater than GDP, GDP and NDP are always equal or none of the statements are true

Answer 14

NDP can never be greater than GDP

Question 15

If GDP doubled between 1990 and 1995, and the prices doubled between 1990 and 1995 what happened to the real GDP between 1990 and 1995?

Answer 15

It stayed the same

Question 16

For the purposes of calculating GDP using the expenditure approach, which of the following payments is not included in the government spending component ?

Answer 16

The Social Security pension

Question 17

Which of the following is the best example of an intermediate product

Answer 17

Steel

Question 18

When there is deflation,

Answer 18

GDP grows more slowly than real GDP

Question 19

If the nations output of goods and services is increasing faster than the rate of inflation, then we can say that

Answer 19

GDP is increasing faster than real GDP

Question 20

National income is the sum of all of the following except

Answer 20

Savings

Question 21

For the purpose of calculating GDP using the expenditure approach which of the following is not included in the government expenditure accounts?

Answer 21

The welfare payment made it to the poor

Question 22

Which of the following circumstances would cause current GDP to overstate economic well-being in the comparison to 60 years ago?

Answer 22

An increase in military expenditures

Question 23

Intermediate products are

Answer 23

Products produced by business firm for resale to other firms

Question 24

Which of the following would not be included in this years GDP?

Answer 24

The purchase of 100 shares of Microsoft stock

Question 25

GDP can be used as an

Answer 25

A rough gauge of the economic activity overtime