National Income Accounting Overview Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Tommy's Tweezers has had a change in inventory, increasing by 100,000. What component of the GDP would this affect?

Question 2 2. If you needed to increase the GDP, why might you focus on consumption to do this?

Question 3 3. Which of the following would NOT be included in consumption?

Question 4 4. The GDP deflator measures the effects of what on a country's GDP?

Question 5 5.

Here is some new data on the economy of Pantonia:

Nominal GDP - $600,000

Real GDP - $200,000

What is the GDP deflator for Pantonia?

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Question 6 6. Real GDP has been adjusted to reflect what?

Question 7 7. What is an expenditure?

Question 8 8. Who earns money and spends their income on goods and services?

Question 9 9. What is the role of firms in the circular flow of income?

Question 10 10. Consumption is largely impacted by_____?

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Question 11 11. In general, consumption can be defined as____?

Question 12 12. Disposable Income is_____?

Question 13 13. What equation do economists often use to measure national income accounting?

Question 14 14. What measures the health and activity of the economy?

Question 15 15. What does aggregate mean?

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Question 16 16. What is the value of using real GDP?

Question 17 17. Real GDP evaluates _____ production at _____ prices.

Question 18 18. When economists want to measure current production of an economy at current prices, they use which of the following?

Question 19 19. Of the following, which may be the BEST way by which to measure a nation's quality of life?

Question 20 20.

Which of the following intangible assets are calculated as part GDP in the U.S.?

I. Software

II. R&D

III. Goodwill

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Question 21 21. Some intangible assets are included in GDP. What are intangible assets?

Question 22 22. Which of the following is a common measure of economic output used today?

Question 23 23. If you are using the value-added approach to calculate GDP, how do you calculate it?

Question 24 24. If you calculate GDP by adding up the value of income payments and costs related to the production of goods and services, what approach are you using?

Question 25 25. If a Japanese company makes cars in Japan, the value of those vehicles should be included in which of the following?

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Question 26 26. What is one of the main uses of GNP?

Question 27 27. If a United States company manufactures widgets in Malaysia, the value of those widgets should be included in which of the following?

Question 28 28. What does the word domestic in Gross Domestic Product refer to?

Question 29 29. This year, the country of Pantonia produced $500,000 in goods. This number is an example of what?

Question 30 30. What is money called that is added to the circular flow of income?

National Income Accounting Overview Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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