1. The total production of goods and services in a society is:
a. equal to that society's income since all production simultaneously generates income when the production is sold.
b. Less than total income
c. greater than total income
d. called the income method for calculating gdp
2. When calculating the GDP, the work of housewives is:
A. counted because their work is a service, and services are counted in the GDP.
B. not counted because their work is a service, and services are not counted in GDP. Only manufactured goods get counted.
C. is not counted due to bias against women in the economics profession.
D. not counted since their output is not measured in a market transaction.
3. When calculating the total GDP, the underground economy:
A. gets counted since mining is considered a productive activity.
B. is not counted since the government refuses to report the production of drug dealers and prostitutes when they report their incomes.
C. boosts the calculated GDP by quite a bit since there is much activity in this part of the economy.
D. is not counted. This is due to the transactions being illegal or because of tax evasion. In either case the transactions are not reported to the government to be counted.
4. Given that Mr. Jones earned $40,000 in 2010 and earns $60,000 today, The price index was 100 in 2010. Find the appropriate statement below that is both consistent with economic theory and the data given here.
A. Mr. Jones would have had an increase in his income if the price index had increased by more than his salary had.
B. Mr. Jones has had a decrease in his real income if the price index today ended up at 130.
C. Mr. Jones has had an increase in his real income if the price index today ended up at 130.
D. As long as Mr. Jones' salary has risen he is guaranteed to have a higher real income no matter what the priced index turned out to be.
5. Real GDP differs from Nominal GDP in that:
A. Nominal GDP has inflation removed from the numbers while Real GDP has not.
B. Real GDP has inflation removed from the numbers while Nominal GDP has not.
C. Nominal GDP is a much better measure of income than Real GDP during an inflationary time period.
D.
Real GDP was measured with the actual prices of the goods and services produced in a given year, while the Nominal GDP is the result of manipulation by economists.
1. The total production of goods and services in a society is:
a. equal to that society's income since all production simultaneously generates income when the production is sold.
b. Less than total income
c. greater than total income
d. called the income method for calculating gdp
2. When calculating the GDP, the work of housewives is:
A. counted because their work is a service, and services are counted in the GDP.
B. not counted because their work is a service, and services are not counted in GDP. Only manufactured goods get counted.
C. is not counted due to bias against women in the economics profession.
D. not counted since their output is not measured in a market transaction.
3. When calculating the total GDP, the underground economy:
A. gets counted since mining is considered a productive activity.
B. is not counted since the government refuses to report the production of drug dealers and prostitutes when they report their incomes.
C. boosts the calculated GDP by quite a bit since there is much activity in this part of the economy.
D. is not counted. This is due to the transactions being illegal or because of tax evasion. In either case the transactions are not reported to the government to be counted.
4. Given that Mr. Jones earned $40,000 in 2010 and earns $60,000 today, The price index was 100 in 2010. Find the appropriate statement below that is both consistent with economic theory and the data given here.
A. Mr. Jones would have had an increase in his income if the price index had increased by more than his salary had.
B. Mr. Jones has had a decrease in his real income if the price index today ended up at 130.
C. Mr. Jones has had an increase in his real income if the price index today ended up at 130.
D. As long as Mr. Jones' salary has risen he is guaranteed to have a higher real income no matter what the priced index turned out to be.
5. Real GDP differs from Nominal GDP in that:
A. Nominal GDP has inflation removed from the numbers while Real GDP has not.
B. Real GDP has inflation removed from the numbers while Nominal GDP has not.
C. Nominal GDP is a much better measure of income than Real GDP during an inflationary time period.
D.
| Real GDP was measured with the actual prices of the goods and services produced in a given year, while the Nominal GDP is the result of manipulation by economists. |
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