ECON 2301 Final Exam Study Guide – Master
Macroeconomics
GDP is: - the total value of all final goods and services plus intermediate goods and
services produced domestically within a given period.
Final goods or services used to compute GDP refer to: - goods and services
purchased by the ultimate users.
Intermediate products - produced domestically are not directly reflected in a nation's
GDP.
Consumption is the purchase of goods and services by: - households
Consumption is the largest single component of GDP. In recent years it represents
approximately ____ percent of GDP. - 70%
The expenditure method of measuring GDP is calculated by adding up: - -the final
goods and services produced domestically during a given period.
-Consumption + Investment + Government Spending + (Exports-Imports).
-domestic production of final goods and services for consumers, firms, government,
and the international sector (through net exports).
Net exports are defined as: - exports minus imports
Transfer payments are included in which category under the expenditure approach
to GDP accounting? - Transfer payments are not directly included in GDP
calculations
What is the measure of the income received by owners of resources used in making
final goods and services? - factor payments
Which of the following is NOT part of U.S. GDP - the value of a Toyota manufactured
in Japan and sold in the United States
Given a constant rate of growth of real GDP, what would cause a fall in real GDP per
capita? - a rate of population growth that is greater than the rate of growth of real
GDP
The prosperity of a nation today is typically measured by its: - output per capita
A country will roughly double its GDP in twenty years if its annual growth rate is: - 3.5
percent.
As more capital per worker is added, a per worker production function generally
becomes: - flatter because capital is subject to diminishing marginal returns.
The faster the rate of technological progress - the greater the rate of economic
growth
, In a fully employed economy, invention and discovery: - are achieved through
sacrifices in current consumption
Which of the following best describes the relationship between economic growth and
literacy? - Increased literacy stimulates economic growth by raising labor
productivity, and as the economy grows, people consume more education.
Sergei has developed a new fat substitute that has no calories and produces no side
effects. In order for him to be encouraged to bring this innovation to the marketplace
he is likely to want which of the following the most? - A patent
The goods and services that are used in the production of other goods and services
are called - Intermediate goods
Which of the following would not be counted as a final good for inclusion in GDP? - a
sheet of glass purchased by General Motors for the side window of a new car
Which of the following products are not included in current U.S. GDP? - a Ford
Mustang produced last year and sold this year
GDP does not directly include - the value of intermediate goods sold during a period
The total dollar value of purchases in the economy is far larger than GDP primarily
because: - GDP excludes the value of intermediate goods exchanged
The largest single expenditure component of GDP is: - Consumption
The most volatile GDP category under the expenditure approach is: - Investment
The investment component of GDP includes - construction of a new steel mill
If a nation's imports exceed its exports: - GDP will be less than the sum of
consumption, investment, and government purchases.
The services rendered by a special agent with the Federal Bureau of Investigation is
included in which expenditure category of GDP? - Government purchases
In 2008, U.S. Nominal GDP totaled approximately: - $14.3 trillion
If the price index is now 120, it means: - prices are 20 percent higher than in the
base year.
Which of the following is a problem with using real GDP as a measure of economic
well-being? - does not account for production within the household
Estimates of the size of the underground economy range from: - 4 to 20 percent
Which of the following factors that affect our well-being does GDP fail to adequately
account for? - -changes in the quality of goods
-externalities
Macroeconomics
GDP is: - the total value of all final goods and services plus intermediate goods and
services produced domestically within a given period.
Final goods or services used to compute GDP refer to: - goods and services
purchased by the ultimate users.
Intermediate products - produced domestically are not directly reflected in a nation's
GDP.
Consumption is the purchase of goods and services by: - households
Consumption is the largest single component of GDP. In recent years it represents
approximately ____ percent of GDP. - 70%
The expenditure method of measuring GDP is calculated by adding up: - -the final
goods and services produced domestically during a given period.
-Consumption + Investment + Government Spending + (Exports-Imports).
-domestic production of final goods and services for consumers, firms, government,
and the international sector (through net exports).
Net exports are defined as: - exports minus imports
Transfer payments are included in which category under the expenditure approach
to GDP accounting? - Transfer payments are not directly included in GDP
calculations
What is the measure of the income received by owners of resources used in making
final goods and services? - factor payments
Which of the following is NOT part of U.S. GDP - the value of a Toyota manufactured
in Japan and sold in the United States
Given a constant rate of growth of real GDP, what would cause a fall in real GDP per
capita? - a rate of population growth that is greater than the rate of growth of real
GDP
The prosperity of a nation today is typically measured by its: - output per capita
A country will roughly double its GDP in twenty years if its annual growth rate is: - 3.5
percent.
As more capital per worker is added, a per worker production function generally
becomes: - flatter because capital is subject to diminishing marginal returns.
The faster the rate of technological progress - the greater the rate of economic
growth
, In a fully employed economy, invention and discovery: - are achieved through
sacrifices in current consumption
Which of the following best describes the relationship between economic growth and
literacy? - Increased literacy stimulates economic growth by raising labor
productivity, and as the economy grows, people consume more education.
Sergei has developed a new fat substitute that has no calories and produces no side
effects. In order for him to be encouraged to bring this innovation to the marketplace
he is likely to want which of the following the most? - A patent
The goods and services that are used in the production of other goods and services
are called - Intermediate goods
Which of the following would not be counted as a final good for inclusion in GDP? - a
sheet of glass purchased by General Motors for the side window of a new car
Which of the following products are not included in current U.S. GDP? - a Ford
Mustang produced last year and sold this year
GDP does not directly include - the value of intermediate goods sold during a period
The total dollar value of purchases in the economy is far larger than GDP primarily
because: - GDP excludes the value of intermediate goods exchanged
The largest single expenditure component of GDP is: - Consumption
The most volatile GDP category under the expenditure approach is: - Investment
The investment component of GDP includes - construction of a new steel mill
If a nation's imports exceed its exports: - GDP will be less than the sum of
consumption, investment, and government purchases.
The services rendered by a special agent with the Federal Bureau of Investigation is
included in which expenditure category of GDP? - Government purchases
In 2008, U.S. Nominal GDP totaled approximately: - $14.3 trillion
If the price index is now 120, it means: - prices are 20 percent higher than in the
base year.
Which of the following is a problem with using real GDP as a measure of economic
well-being? - does not account for production within the household
Estimates of the size of the underground economy range from: - 4 to 20 percent
Which of the following factors that affect our well-being does GDP fail to adequately
account for? - -changes in the quality of goods
-externalities
