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CHAPTER 23: MEASURING A NATION’S INCOME
True/False
Indicate whether the statement is true or false.
The circular flow diagram describes all transactions between households and firms in a simple 1.
economy and shows the equality of expenditures and income.
ANSWER: T POINTS: 0 / 1
Gross domestic product includes most items produced and sold illicitly. 2.
ANSWER: F POINTS: 0 / 1
Net national product is the total income of a nation’s residents minus losses from depreciation. 3.
ANSWER: T POINTS: 0 / 1
4. Disposable personal income is the income that households and unincorporated business have left
after satisfying all their obligations to the government. It equals personal income minus personal taxes and certain non-tax payments to government.
ANSWER: T POINTS: 0 / 1
The purchase of new houses by households is included in the calculation of personal consumption 5.
expenditures of GDP.
ANSWER: F POINTS: 0 / 1
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. When GDP falls,
a. income and expenditure must both fall. b. income and expenditure can both rise.
c. income must fall, but expenditure may rise or fall. d. expenditure must fall, but income may rise or fall.
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ANSWER: A POINTS: 0 / 1
2. Income equals expenditure because
a. firms always pay out all their revenue as income to someone. b. each time a sale is made, there is a buyer and a seller.
c. households own the factors of production used to generate incomes. d. All of the above are correct.
ANSWER: B POINTS: 0 / 1
3. If a province makes the production and sale of illicit drugs legal, then GDP
a. must increase. b. must decrease. c. wouldn't change. d. may increase or decrease.
ANSWER: A POINTS: 0 / 1
4. When a government provides subsidies to encourage growth of small businesses, the subsidies
would
a. be included in GDP because they are invested by businesses. b. be included in GDP because they are a form of government spending. c. not be included in GDP because they are transfer payments.
d. may or may not be included in GDP, depending on how the funds are used.
ANSWER: C POINTS: 0 / 1
5. Diesel fuel is
a. always considered a final good.
b. counted as an intermediate good if a company uses it to provide transportation services. c. counted as a final good if a farmer uses it to run a tractor to grow crops. d. Both b and c are correct.
ANSWER: B POINTS: 0 / 1
6. Gross domestic product
a. is the market value of all final goods and services produced within a country in a given
period (usually a year)
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b. is the income in the hands of individuals after deducting income taxes; income available
to households to spend and save
c. is the value of goods and services purchased by all levels of government— federal,
provincial, and local—in a given period
d. is the market value of all final goods and services produced by permanent residents of a
nation in a given time period
ANSWER: A POINTS: 0 / 1
7. Macroeconomics is that branch of economics that studies
a. the conditions of individual markets
b. the influence of governments on individual markets c. economy-wide phenomena
d. only the private sector of the economy
ANSWER: C POINTS: 0 / 1
8. Suppose that nominal GDP is $6,000 billion and real GDP is $3,000. What is the GDP price deflator?
a. 125 b. 150 c. 200 d. 250
ANSWER: C POINTS: 0 / 1
9. The purchase of final goods and services by households is called
a. investment
b. public sector expenditure c. consumption d. net exports
ANSWER: C POINTS: 0 / 1
10. Investment is the purchase of capital equipment, inventories, and
a. structures b. non-durable goods c. depreciation d. import investment
ANSWER: A
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曼昆宏观经济学英语课后题答案
