Macroeconomics Homework #3 PDF

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Homework 3 -- Econ 131(1) -- UH-Manoa -Spring 2016 Each multiple choice question has just ONE answer.

GDP is: ○

A. the sum of all currency and coins in circulation.

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B. the value of all final goods and services produced by a government.

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C. the value of all final good and services produced anywhere in the world by a nation's firms.

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D. the value of all final goods and services produced domestically.

The demand measure of GDP accounting adds together: ○ A. wages and salaries, rent, interest, and profit. ○ B. consumption, investment, government purchases, and trade balance.

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C. consumption, government purchases, wages and salaries, and trade balance.

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D. consumption, interest, government purchases, and trade balance.

Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then: ○ A. exports exceed imports by $50 billion.

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B. imports exceed exports by $50 billion. C. imports exceed exports by $150 billion.

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D. exports exceed imports by $150 billion.

In order to avoid double counting, statisticians just count the __________________. ○ A. final inventories ○ B. final goods and services

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C. intermediate goods and services

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D. durable goods and nondurable goods

_________ is calculated by taking _________ and then subtracting the value of how much physical capital is worn out, or reduced in value because of aging, over the course of a year. ○ A. GNP; NNP

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B. NNP; GNP C. GDP; NNP

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D. NNP; GDP

The difference between nominal GDP and real GDP is: ○ A. nominal GDP measures actual productivity

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B. nominal GDP adjusts for inflation

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C. real GDP adjusts for inflation D. real GDP excludes imports and exports

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India has a GDP of 23,000 billion Indian rupees, and a population of 1.1 billion. The exchange rate is 50 rupees per U.S. dollar. Calculate the GDP per capita of India as measured in U.S. dollars. ○ A. $20.90 ○

B. $20,909

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C. $418 D. $4.18

_______________, which can be approximated by the growth of gross domestic product, ultimately determines the prevailing standard of living in a country. ○ A. Trade balance ○ B. Inflation

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C. Education

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D. Economic growth

For most high-income countries of the world, GDP _________________ over time. ○ A. has proven to be stable

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B. has risen gradually

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C. has declined slightly D. has sharply risen

_____________________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s. ○ A. GDP per capita

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B. The Industrial Revolution

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C. The living standard

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D. Investment and inventions

The value of what is produced per worker, or per hour worked, is called ____________. ○ A. economic growth

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B. human capital

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C. productivity D. GDP per capita

A nation can achieve higher economic growth if: ○ A. it devotes more resources to research and development. ○ B. the productivity of labor declines

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C. taxes are imposed on investment in capital.

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D. more resources are allocated to consumption goods.

A nation's prosperity is sometimes measured in terms of ___________. ○ A. GNP ○

B. GDP

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C. GDP per capita

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D. economic output

Which of the government policies below is most unlikely to encourage per capita economic growth? ○ A. high taxes on companies that spend a lot on capital formation

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B. the use of tax revenues for investment and capital formation C. special subsidies for capital-intensive forms of production

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D. promotion of education and training programs for workers

Since the late 1950s, economists have performed “growth accounting” studies in the United States. These have determined that ________________ is typically the most important contributor to U.S. economic growth. ○ A. human capital

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B. physical capital

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C. technology D. a market orientation

What is an aggregate production function? ○ http://catalog.flatworldknowledge.com/bookhub/reader/2498?e=coopermacroch16_s15 One danger for the statisticians who calculate GDP is to avoid the mistake of double counting. Define "double counting" and describe why it may be dangerous. 

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 What is capital deepening?

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What do economists mean when they refer to improvements in technology?

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 Explain the difference between property rights and contractual rights. Why do they matter to economic growth?...