8. Which of the following items is included in the calculation of GDP?
a.Purchase of a used car.
b.Purchase of 100 shares of General Motors stock.
c.Purchase of an intermediate good.
d.None of the above would be included
9. Difference between Real and Nominal GDP is:
a.Change in price level from base year to current year
b.Measured by excluding some of the sectors
c.That real GDP is always smaller than Nominal GDP
d.None of the above
10. GDP in an economy is $11,050 billion. Consumer expenditures are $7,735 billion, government purchases are $1,989 billion, and gross investment is $1,410 billion. Net exports are:
a.+$53 billion
b.-$84 billion
c.-$47 billion
d.-$161 billion
11. Equality (As a tool of measurement for quality of life) refers to a balance of Economic and Political Power between which two groups?
a.Homeless and Employed
b.Men and Women
c. Different ethnic groups
d. Rich and Poor
12.What is inflation?
a.A fall in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter
b.A rise in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter
c.A rise in the general level of prices occurs, workers need less money to pay for goods, clothing and shelter
d.A fall in the general level of prices occurs, workers need less money to pay for goods, clothing and shelter
13.Which of the following is the best measure of how inflation affects consumers?
A.The increase in the price of gold
B. The increase in the consumer price index
C. The increase in the price of a single product
D. The decrease in the consumer price index
14. The Consumer Price Index (CPI)
a. Measures the rate of output in the economy over one year.
b.Measures the increase in wholesale prices since a base year.
c.Is deficient because it does not include medical prices.
d.Is used to calculate the rate of inflation over a given period.
15.How is the unemployment rate computed?
a. Number of unemployed persons divided by the number of economically active (i.e. employed and unemployed) persons aged fifteen years and over.
b.Number of unemployed persons divided by the number of people aged fifteen years and over.
c.Number of unemployed persons divided by the number of employed persons aged fifteen years and over.
d.None of the above
8. Which of the following items is included in the calculation of GDP?
a.Purchase of a used car.
b.Purchase of 100 shares of General Motors stock.
c.Purchase of an intermediate good.
d.None of the above would be included
9. Difference between Real and Nominal GDP is:
a.Change in price level from base year to current year
b.Measured by excluding some of the sectors
c.That real GDP is always smaller than Nominal GDP
d.None of the above
10. GDP in an economy is $11,050 billion. Consumer expenditures are $7,735 billion, government purchases are $1,989 billion, and gross investment is $1,410 billion. Net exports are:
a.+$53 billion
b.-$84 billion
c.-$47 billion
d.-$161 billion
11. Equality (As a tool of measurement for quality of life) refers to a balance of Economic and Political Power between which two groups?
a.Homeless and Employed
b.Men and Women
c. Different ethnic groups
d. Rich and Poor
12.What is inflation?
a.A fall in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter
b.A rise in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter
c.A rise in the general level of prices occurs, workers need less money to pay for goods, clothing and shelter
d.A fall in the general level of prices occurs, workers need less money to pay for goods, clothing and shelter
13.Which of the following is the best measure of how inflation affects consumers?
A.The increase in the price of gold
B. The increase in the consumer price index
C. The increase in the price of a single product
D. The decrease in the consumer price index
14. The Consumer Price Index (CPI)
a. Measures the rate of output in the economy over one year.
b.Measures the increase in wholesale prices since a base year.
c.Is deficient because it does not include medical prices.
d.Is used to calculate the rate of inflation over a given period.
15.How is the unemployment rate computed?
a. Number of unemployed persons divided by the number of economically active (i.e. employed and unemployed) persons aged fifteen years and over.
b.Number of unemployed persons divided by the number of people aged fifteen years and over.
c.Number of unemployed persons divided by the number of employed persons aged fifteen years and over.
d.None of the above
