Test Bank for Essentials of Economics 10th Edition By Gregory Mankiw (All Chapters, 100% Original Verified, A+ Grade)

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Chapter 02_Test Bank KEY
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1. Inlorderltolmeasurelwhatlalcountrylproduces,lwe:
A. Summarizeltotalloutputlinlphysicallterms.
B. Countlunitslofloutput.
C. Countlthelweightlofldifferentlproducts.
D. Summarizelthelmonetarylvaluelofloutput.

Usinglmonetarylvaluelinsteadloflphysicallunitsltolcompareltotalloutput,lthelaccountinglisleasier.

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lUnderstandl
Difficulty:l1lEasy
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

2. GDPlcanlbelfoundlby:
A. Addinglthelmonetarylvalueloflalllfinallgoodslandlserviceslproducedlduringlalgivenlperiodlofltime
.
B. Addinglthelphysicallamountloflalllfinallgoodslandlserviceslproducedlduringlalgivenlperiodlofltime.
C. Takingltheldifferencelbetweenlexportslandlimportslduringlalgivenlperiodlofltime.
D. Addinglthelvalueloflalllfinalloutputlproducedlandlmeasuringlitlinlconstantlpriceslduringlalgive
nlperiodlofltime.

GDPlislalsummarylmeasureloflalnation’sloutput.

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lUnderstandl
Difficulty:l2lMedium
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

3. CeterislparibuslGDPlmostlcloselylmeasures:
A. Outputlperlworker.
B. Alsummaryloflthelworld'sloutput.
C. Theltotallvalueloflalllfinallgoodslandlserviceslproducedlwithinlalnation'slborderslinlalgivenlyear.
D. Thelrateloflchangelinlcapitallstock.

GDPlcanlbelfoundlbyladdinglthelmonetarylvalueloflalllfinallgoodslandlservices.

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lUnderstandl
Difficulty:l2lMedium
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

4. TheloutputloflcelllphoneslcanlbeladdedltoltheloutputloflrefrigeratorslinlorderltolcomputelGDPlby:




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A. Multiplyingltheloutputlofleachlbylthelcorrespondinglpriceslandladdingltheseldollarlvalues.
B. Dividingltheloutputlofleachlbylpricelandladdingltheseldollarlvalues.
C. Addingluplthelphysicallnumberloflcelllphoneslandlrefrigeratorslproduced.
D. Dividingldollarlvalueslofloutputlforleachlbylpricelandladdinglthelresults.

Bylmultiplyinglthelphysicalloutputlofleachlgoodlbylitslpriceltheltotallvaluelofleachlgoodlproduced
lcanlbeldetermined.



AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lUnderstandl
Difficulty:l2lMedium
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

5. Country’slGDPlis:
A. Thelsumloflthelphysicallamountsloflgoodslandlserviceslinltheleconomy.
B. Aldollarlmeasurelofloutputlproducedlwithinlalnation'slborderslduringlalgivenltimelperiod.
C. Almeasureloflthelperlcapitaleconomiclgrowthlratelofltheleconomy.
D. Alphysicallmeasureloflthelcapitallstocklofltheleconomy.

GDPlenableslusltolsumlproductionloflalllgoodslandlservices

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lRememberl
Difficulty:l1lEasy
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

6. WhichloflthelfollowinglislNOTlincludedlinlU.S.lGDP?
A. ToyslproducedlbylalU.S.lfirmllocatedlinlChina.
B. BeerlbrewedlinlColoradolandlpurchasedlbylalGermanltourist.
C. AlcarlmadelbylalJapaneselautolproducerlinlKansas.
D. CornlgrownlinlIowalandlexportedltolAfrica.

GDPlmeasureslonlylthoselproductslproducedlwithinlalnation’slborders.

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lAnalyzel
Difficulty:l3lHard
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

7. WhichloflthelfollowinglislNOTlincludedlinlU.S.lGDP?
A. ThelconstructionloflnewlhomesltolreplacelthoseldestroyedlbylfireslinlCalifornia.
B. ThelsalaryloflthelPresidentloflthelUnitedlStates.
C. ShoeslproducedlabroadlandlimportedlbylalU.S.lcompany.
D. ThelpurchaseloflU.S.lsoybeanslbylalfoodlmanufacturerlinlCanada.

TolbelcountedlinlGDPlgoodslmustlbelproducedlwithinlalnation’slborders.



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Copyrightl©l2016lMcGraw-HilllEducation.lAlllrightslreserved.lNolreproductionlorldistributionlwithoutlthelpriorlwrittenlconsent
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,DOWNLOAD THE Test Bank for Essentials of Economics 10th Edition Schiller
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AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lAnalyzel
Difficulty:l3lHard
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

8. ThelvaluelofloutputlproducedlinlthelUnitedlStateslinlcurrentlpriceslmeasures:
A. GDPlgrowth.
B. ReallGDP.
C. PerlcapitalGDP.
D. NominallGDP.

NominallGDPlislthelvaluelofloutputlmeasuredlinlcurrentlprices.

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lRememberl
Difficulty:l1lEasy
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

9. NominallGDPlmeasureslthe:
A. Inflation-adjustedlvaluelofloutput.
B. Reallvaluelofloutputlperlworker.
C. Valuelofloutputlproducedlinlcurrentlprices.
D. Valuelofloutputlproducedlinlconstantlprices.

NominallGDPlislthelvaluelofloutputlinlthelU.S.linlcurrentlprices.

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lRememberl
Difficulty:l1lEasy
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

10. NominallGDPlislaffectedlbylchangeslin:
A. Outputlonly.
B. Outputlandlprices.
C. Incomeltransfers.
D. Priceslonly.

NominallGDPlmeasureslthelvaluelofloutputlproducedlinlcurrentlprices.

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lUnderstandl
Difficulty:l2lMedium
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

11. ChangeslinlreallGDPlservelaslalbetterlmeasureloflthelhealthlofltheleconomylthanlchangeslinlnomi
nallGDPlbecauselreallGDPlislaffectedlbylchangeslin:
A. Outputlonly.
B. Priceslandloutput.

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C. Priceslonly.
D. Averagelwages.

ReallGDPlislthelinflationladjustedlvalueloflGDP.

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lUnderstandl
Difficulty:l2lMedium
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

12. Thelinflation-
adjustedlvalueloflfinallgoodslandlserviceslproducedlinlthelUnitedlStateslmeasures:
A. NominallGDP.
B. ReallGDP.
C. PerlcapitalGDP.
D. GDPlperlworker.

ReallGDPlisladjustedlforlinflation.

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lRememberl
Difficulty:l1lEasy
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

13. ReallGDPlislalmorelaccuratelmeasurelofleconomiclgrowthlthanlnominallGDPlbecause:
A. NominallGDPlislaltotalldollarlmeasurement.
B. NominallGDPlonlylincreaseslbecauseloflanlincreaselinlproduction.
C. NominallGDPlcanlincreaseldueltolanlincreaselinlproductionlorlpriceslorlboth.
D. ReallGDPlislalmeasurementlofltheloveralllpricellevel.

ReallGDPladjustlforlchangeslinlpricelorlinflation.

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lUnderstandl
Difficulty:l2lMedium
LearninglObjective:l02-01lExplainlhowlanleconomy'slsizelislmeasured.
Topic:lWHATlAMERICAlPRODUCES

14. Whichloflthelfollowinglislthelbestlmeasureloflanlincreaselinlactualloutput?
A. NominallGDP.
B. ReallGDP.
C. PerlcapitalGDP.
D. GDPlperldollar.

ReallGDPlislthelbestlmeasurelbecauselitladjustslforlchangeslinlpriceldueltolinflation.

AACSB:lAnalyticl
Accessibility:lKeyboardlNavigation
Blooms:lRememberl
Difficulty:l1lEasy


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Copyrightl©l2016lMcGraw-HilllEducation.lAlllrightslreserved.lNolreproductionlorldistributionlwithoutlthelpriorlwrittenlconsent
mynursytest.store