ECON 1015 EXAM 1 (ICLICKER) QUESTIONS +
ANSWERS
(GDP vs GDP per capita) Country A has gross GDP of $750,000 and a population of
200. Country B has a GDP of $500,000 and a population of 100. Which of the following
is true? - Answer -The value of per capita GDP is higher in Country B
(Business Cycles) The phase of the business cycle where economic activity is
increasing is called an economic ___? - Answer -Expansion
Which of the following items will be included in the calculation of GDP: - Answer -Loaf
of bread bought at Uprise Bakery by you
What is the biggest component of GDP? - Answer -Consumption
Which of the following is an example fo investment (in a macroeconomic sense)? -
Answer -Facebook purchases a computer for use at its corporate headquarters.
(Components of GDP): The "G" term in C+I+G+NX includes all of the following except: -
Answer -Social Security checks received by retirees.
(Components of GDP): In 2017 Ford produces 500 trucks each worth $40,000 but only
sells 400 to US consumers in 2017 and the rest in 2018. Assume all unsold cars are
kept in inventory. What is the change in consumption and GDP in 2017? - Answer -$16
mil and $20 mil
Suppose nominal gross domestic product (GDP) increased by 10% and real GDP
increased by 5%. This tells us what? - Answer -The price level increased by 5%
Nominal Gross Domestic Product increased form $15.76 trillion to $16.39 trillion, and
the price level increased from 112.6 to 114.8. Which of the following is true? - Answer -
Nominal GDP grew faster than the price level
Nominal gross domestic product (GDP) increases if price decreases by ___ and
quantities produced increase by ___? - Answer -2%,4%
Farmer Ashley produces oranges. She sells half of her inventory to people at her
roadside stand for $5,000 and sells the other half to Tropical Juice Co. for $10,000.
Tropical Juice Co. uses the oranges to make orange juice, which it sells to consumers
for $15,000. The total impact of these transactions on gross domestic product (GDP) is
________ - Answer -$20,000
ANSWERS
(GDP vs GDP per capita) Country A has gross GDP of $750,000 and a population of
200. Country B has a GDP of $500,000 and a population of 100. Which of the following
is true? - Answer -The value of per capita GDP is higher in Country B
(Business Cycles) The phase of the business cycle where economic activity is
increasing is called an economic ___? - Answer -Expansion
Which of the following items will be included in the calculation of GDP: - Answer -Loaf
of bread bought at Uprise Bakery by you
What is the biggest component of GDP? - Answer -Consumption
Which of the following is an example fo investment (in a macroeconomic sense)? -
Answer -Facebook purchases a computer for use at its corporate headquarters.
(Components of GDP): The "G" term in C+I+G+NX includes all of the following except: -
Answer -Social Security checks received by retirees.
(Components of GDP): In 2017 Ford produces 500 trucks each worth $40,000 but only
sells 400 to US consumers in 2017 and the rest in 2018. Assume all unsold cars are
kept in inventory. What is the change in consumption and GDP in 2017? - Answer -$16
mil and $20 mil
Suppose nominal gross domestic product (GDP) increased by 10% and real GDP
increased by 5%. This tells us what? - Answer -The price level increased by 5%
Nominal Gross Domestic Product increased form $15.76 trillion to $16.39 trillion, and
the price level increased from 112.6 to 114.8. Which of the following is true? - Answer -
Nominal GDP grew faster than the price level
Nominal gross domestic product (GDP) increases if price decreases by ___ and
quantities produced increase by ___? - Answer -2%,4%
Farmer Ashley produces oranges. She sells half of her inventory to people at her
roadside stand for $5,000 and sells the other half to Tropical Juice Co. for $10,000.
Tropical Juice Co. uses the oranges to make orange juice, which it sells to consumers
for $15,000. The total impact of these transactions on gross domestic product (GDP) is
________ - Answer -$20,000
