Macro Chapter 5 Exam Questions
with Answers
1. GDP includes outputs produced but it does not
include outputs pro- duced .
A)outside the United States by U.S. citizens; inside the United States
by foreign citizens
B) outside the United States by U.S. citizens; inside the United
States by U.S. citizens
C)inside the United States by foreign citizens; outside the United
States by U.S. citizens
D) The GDP includes only goods and services produced by U.S.
citizens within the United States. correct answer: C) inside the United States by foreign
citizens; outside the United States by U.S. citizens
2. Use the following to answer question correct answer:
Category Billions of Dollars
Proprietors' income 300
Capital consumption allowance 440
Federal government purchases of goods and services 200
Compensation of employees 800
Personal consumption expenditures
950 Corporate profits 90
Exports 60
Gross private domestic investment 500
Rental income 30
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64
,State and local government purchases of goods and services
150 Net interest 100
Federal government deficit 250
Imports 90
According to the table, with the income approach, national income is
correct answer:
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64
,A) $1,320 billion.
B) $1,330 billion.
C) $1,570 billion.
D) $1,070 billion. correct answer: B) $1,330 billion.
3. The National Activity Index was developed by correct answer:
A) the National Bureau of Economic Research.
B) the Federal Reserve Bank of Chicago.
C) the U.S. Treasury.
D) the Conference Board. correct answer: B) the Federal Reserve Bank of Chicago.
4. Business cycles correct answer:
A) are always the same duration.
B) are always the same magnitude.
C) are always the same duration and magnitude.
D) vary in duration and magnitude. correct answer: D) vary in duration and
magnitude.
5. Which of the following is an example of an economic investment?
A) building a new sales force training facility
B) putting funds in a certificate of deposit
C) purchasing a share of Google stock
D) trading a bond certificate correct answer: A) building a new sales force training
facility
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64
, 6. Which of the following is included in gross private domestic
investment?
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64
with Answers
1. GDP includes outputs produced but it does not
include outputs pro- duced .
A)outside the United States by U.S. citizens; inside the United States
by foreign citizens
B) outside the United States by U.S. citizens; inside the United
States by U.S. citizens
C)inside the United States by foreign citizens; outside the United
States by U.S. citizens
D) The GDP includes only goods and services produced by U.S.
citizens within the United States. correct answer: C) inside the United States by foreign
citizens; outside the United States by U.S. citizens
2. Use the following to answer question correct answer:
Category Billions of Dollars
Proprietors' income 300
Capital consumption allowance 440
Federal government purchases of goods and services 200
Compensation of employees 800
Personal consumption expenditures
950 Corporate profits 90
Exports 60
Gross private domestic investment 500
Rental income 30
1/
64
,State and local government purchases of goods and services
150 Net interest 100
Federal government deficit 250
Imports 90
According to the table, with the income approach, national income is
correct answer:
2/
64
,A) $1,320 billion.
B) $1,330 billion.
C) $1,570 billion.
D) $1,070 billion. correct answer: B) $1,330 billion.
3. The National Activity Index was developed by correct answer:
A) the National Bureau of Economic Research.
B) the Federal Reserve Bank of Chicago.
C) the U.S. Treasury.
D) the Conference Board. correct answer: B) the Federal Reserve Bank of Chicago.
4. Business cycles correct answer:
A) are always the same duration.
B) are always the same magnitude.
C) are always the same duration and magnitude.
D) vary in duration and magnitude. correct answer: D) vary in duration and
magnitude.
5. Which of the following is an example of an economic investment?
A) building a new sales force training facility
B) putting funds in a certificate of deposit
C) purchasing a share of Google stock
D) trading a bond certificate correct answer: A) building a new sales force training
facility
3/
64
, 6. Which of the following is included in gross private domestic
investment?
4/
64
