Trắc nghiệm kinh tế vĩ mô 4.3

1 All of the following are included in gross private domestic investment expenditure EXCEPT a businesss purchase of a fleet of cars households purchase of a new house businesss purchase of another.

1 All of the following are included in gross private domestic investment expenditure

EXCEPT a

business's purchase of a fleet of cars

household's purchase of a new house

business's purchase of another company's stock

a retail store's purchase of shoes to add to its inventory

2

In the national income accounts, government expenditure on goods and services refer to those purchases made by

federal and state governments only

the federal government only

state and local governments only

all levels of government

3

In the national income accounts, government expenditure on goods and services exclude transfer payments

state and local government purchases

local government purchases but include state government purchases

spending on national defense

4 Which of the following is included in the government expenditure component of the expenditure approach to GDP?

state government expenditure on local schools

transfer payments

changes in inventories

taxes

5 Which one of the following transactions in a particular year is included in gross domestic product for that year?

Social Security payments to retirees

The government pays a computer services company that assisted in the delivery of Social Security payments to retirees

A car is produced in the previous year and remains in inventory for the entire year under consideration

A stay-a t-home parent performs housework that the family would otherwise have paid a maid $20,000 a year to perform

6 Which of the following is included in government expenditures when measuring GDP? Social Security payments

unemployment compensation payments

pension payment made to past presidents

the current president's salary

7 Transfer payments

are included in the government expenditure category in gross domestic product refer to all payments made to households by governments

refer to payments made by the government that are not made to purchase a good or service

are made by households to firms in exchange for goods and services

8

In the computation of GDP, social security payments count as

transfer payments and are included in GDP

transfer payments and are not included in GDP

government expenditure on goods and services and are included in GDP

government expenditure on goods and services and are not included in GDP

9 Which of the following items is NOT part of government expenditure on goods and services in the GDP accounts?

gasoline purchases for government car pools

Social Security expenditures

new computer hardware for use by the IRS

drapes to brighten up the president's office

10 Transfer payments are not included in GDP because

their market value cannot be accurately determined

they do not generate additional income

they are not purchases of goods or services

their value is included in government expenditure

11 Which of the following transfer payments is included in GDP?

Social Security payments

welfare payments

veteran's benefits

none of the above

12 Which of the following is NOT part of GDP calculated using the expenditure approach? General Motors' purchases of new capital equipment

expenditures by the federal government for national defense

social security payments made to the elderly

the purchase of new homes by consumers

13 Transfer payments are not part of government expenditure on goods and services because transfer payments

are not predictable given the nature of their appropriation and allocation

do not represent the purchase of a final good or service

are not always spent on goods produced in the U.S

The premise of the question is incorrect because transfer payments are part of

government purchases of goods and services

14 Government expenditures included in the expenditure approach to GDP include

social security and education

net exports

buying a new bomber

Both answers A and C are correct

15 Net exports of goods and services equal the

exports of goods and services divided by the imports of goods and services

exports of goods and services plus the imports of goods and services

exports of goods and services minus the imports of goods and services

imports of goods and services minus the exports of goods and services

16 Net exports is negative if

the value of exports exceeds the value of imports

the value of imports exceeds the value of exports

the tariff payments are included in the value of imported and exported items

too much production occurs in the exporting country during the year

In 2010, net exports in the United States were

zero

positive

negative

greater than personal consumption expenditures

18

To calculate GDP using the expenditure approach, in part it is necessary to

add imports and exports

add imports and subtract exports

add exports and subtract imports

subtract both exports and imports

19

An increase in exports of goods or services with no change in imports of goods or

services

decreases GDP

increases GDP

may increase or decrease GDP depending on whether it is the export of goods or the export of services that increased

has no effect on GDP

20

By itself, an increase in exports

increases GDP

decreases GDP

means imports decrease by the same amount

can either increase or decrease GDP, depending on whether the exports are durable or nondurable

21

If Ford sells 200 Explorers for a total of $400,000 to Germany, while the United States imports 100 BMWs for a total of $500,000 from Germany

U.S GDP increases because it sells more Explorers

U.S GDP decreases because net exports are negative

Germany's GDP decreases

U.S net exports is positive

An U.S firm buys a new industrial sewing machine from a company located in France Which of the following is true?

I U.S net exports decrease

II U.S investment increases

only I

only II

both I and II

neither I nor II

23

If an American firm produces goods that are sold to a German household, then

German GDP increases but not U.S GDP

U.S GDP increases

the transaction is considered an export in the German GDP accounts

net exports in the United States will not change because an export immediately generates an offsetting import

24

In the calculation of GDP by the expenditure approach, exports from the United States must be

subtracted because they are included in the consumption of a foreign country ignored because they are not bought by U.S citizens

subtracted if they are bought by foreign firms for investment purposes

added

25

Using the information in the table above, calculate the value of GDP

$185 million

$145 million

$195 million

$140 million

26 Use the information in the table above to calculate the value of net exports

$10 million

$0

-$10 million

$30 million

27 Last year in the country of Nerf imports equaled exports Nerf's GDP was $500 million, its consumer expenditure was $380 million, and its investment was $20 million Nerf's government expenditure on goods and services were

$100 million

$900 million

$500 million

zero

28

The above table shows some (but not all) national income accounting data for a

hypothetical country According to these data, the value of GDP is billion

$2100

$1850

$2000

$2050

Based on the data in the above table, gross domestic product equals

$2,190

$2,840

$2,465

$2,750

30 The above table shows data from the GDP accounts of Hypothetica Hypothetica's GDP

is billion

$270

$210

$190

$160

31

If imports are $100 million less than exports, government expenditures are $500 million, consumer expenditures are $1 billion, and gross investment spending is $500 million, then GDP is

$1 billion

$1.9 billion

$2 billion

$2.1 billion

32

If consumption expenditures are $500 million, net investment is $100 million,

depreciation equals $5 million, imports are $50 million, exports are $55 million,

government expenditure on goods and services is $220 million, and government transfer payments are $20 million, then GDP is

$790 million

$800 million.

$830 million

$850 million

33

Using the data in the table above, what is the value of GDP?

$13,516 billion

$10,679 billion

$9,541 billion

$8,403 billion

34

Using the data in the above table, what is the value of net exports? -$181 billion

$181 billion

$957 billion

-$957 billion

Using the data in the above table, what is the value of national saving?

$1,202 billion

$2,837 billion

$1,053 billion

-$85 billion

36

Using the information in the table above, calculate gross domestic product

$118

$108

$86

$78

37

Using the information in the table above, calculate the government's budget deficit or surplus

$2

-$4

-$10

$4

38

Using the information in the table above, calculate gross domestic product

$5,130 billion

$5,320 billion

$4,760 billion

$4,690 billion

39

Using the information in the table above, net exports equals

$1,370 billion

$650 billion

$20 billion

-$70 billion.

40

Using the information in the table above, depreciation equals

-$90 billion

$90 billion

-$70 billion

some amount that cannot be determined

41 From the data in the above table, GDP equals

$1,120

$1,280

$1,290

$1,360

42 The approach to GDP that sums compensation of employees, rental income, corporate profits, net interest, proprietors' income, depreciation, and indirect taxes and subtracts subsidies is the

opportunity cost approach.

expenditure approach

added cost approach

income approach

43 The income approach to measuring GDP sums together

compensation of employees, rental income, corporate profits, net interest, proprietors' income, subsidies paid by the government, indirect taxes paid, and depreciation

compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and depreciation and subtracts subsidies paid by the

government

the sales of each firm in the economy

the costs of each firm in the economy and then subtracts indirect business taxes and depreciation

44 Proprietors' income is a component of which approach to measuring GDP?

incomes approach

expenditure approach

cost approach

output approach

45 The income approach to measuring GDP

determines the cost of production, then adjusts it to equal the market value of

production

sums all incomes earned in the United States and makes no other adjustments because other adjustments are not necessary

measures the cost of producing GDP rather than the market value

sums the value at each stage of production plus the value of depreciation

46 The five categories of income used in the income approach to the measurement of GDP are

consumption, saving, rental income, corporate profits, and investment

employee compensation, net interest, rental income, corporate profits, and

proprietor's income

employee compensation, consumption, rental income, corporate profits, and

proprietor's income

employee compensation, saving, rental income, corporate profits, and investment

47 Which of the following expressions equals GDP?

compensation of employees + consumption + depreciation + net investment

compensation of employees + net interest + rental income + depreciation + corporate profits + proprietors' income + indirect taxes - subsidies

compensation of employees + net exports + depreciation + corporate profits

compensation of employees + gross investment + rental income + depreciation + corporate profits + indirect taxes – subsidies

48 Which of the following is a component of the incomes approach to GDP?

consumption expenditure

wages and salaries

investment

government expenditure on goods and services

49 The income approach measures GDP by adding together compensation of employees, proprietors' income,

net investment, saving, and farmers' income

net interest, rental income, and corporate profits

net investment, rental income, and corporate profits

net saving, investment income, and profits

50 Which of the following items is NOT a component of the income approach to measuring U.S GDP?

interest earned on savings deposits

profits made by businesses

income earned by businesses that export goods

investment