Measuring a Nation’s Income 5751
57.
Refer to Table 23-5. In 2017, this country’s
a.
real GDP was $900, and the GDP deflator was 138.9.
b.
real GDP was $1250, and the GDP deflator was 128.0.
c.
real GDP was $900, and the GDP deflator was 128.0.
d.
real GDP was $1250, and the GDP deflator was 138.9.
58.
Refer to Table 23-5. In 2018, this country’s
a.
real GDP was $1080, and the GDP deflator was 156.3.
b.
real GDP was $1080, and the GDP deflator was 177.8.
c.
real GDP was $1920, and the GDP deflator was 177.8.
d.
real GDP was $1920, and the GDP deflator was 156.3.
59.
Refer to Table 23-5. This country’s output grew
a. 31.3% from 2015 to 2016.
b. 42.0% from 2016 to 2017.
c. 15.4% from 2016 to 2017.
d. 53.6% from 2017 to 2018.
60.
Refer to Table 23–5. This country’s inflation rate from 2017 to 2018 was
a. 20.0%.
b. 21.8%.
c. 38.9%.
d. 28.0%.
61.
Refer to Table 23–5. This country’s inflation rate from 2016 to 2017 was
a. 25.0%.
b. 23.1%.
c. 26.1%.
d. 18.8%.
Table 23–10
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of
these goods for the
last several years are shown below. The base year is 2015 .
Year
Price of
Movies
Quantity of
Movies
Price of
Popcorn
Quantity of
Popcorn
2014
$10.00
500
$5
1000
2015
$11.00
600
$4
900
2016
$12.00
650
$5
950
2017
$12.00
625
$6
925
62.
Refer to Table 23–10. In which year was this country’s nominal GDP highest?
a.
2014
b.
2015
c.
2016
d.
2017
63.
Refer to Table 23–10. In which year was this country’s real GDP highest?
a.
2014
b.
2015
c.
2016
d.
2017
64.
Refer to Table 23–10. What was this country’s nominal GDP in 2014?
a. $9,500
b. $10,000
c. $10,200
d. $10,500
65.
Refer to Table 23–10. What was this country’s real GDP in 2016?
a. $10,575
b. $11,250
c. $10,950
d. $12,550
66.
Refer to Table 23–10. What was this country’s GDP deflator in 2017?
a. 123.4
b. 116.7
c. 120.0
d. None of the above is correct.
5756 Measuring a Nation’s Income
Table 23–6
The table below contains data for the country of Batterland, which produces only waffles and
pancakes. The base
year is 2013.
Year
Price of
Waffles
Quantity of
Waffles
Price of
Pancakes
Quantity of
Pancakes
2010
$2.00
80
$1.00
100
2011
$2.00
100
$2.00
120
2012
$2.00
120
$3.00
150
2013
$4.00
150
$3.00
200
67.
Refer to Table 23-6. In 2010, this country’s nominal GDP was
a. $260.
b. $440.
c. $620.
d. $760.
68.
Refer to Table 23-6. In 2011, this country’s nominal GDP was
a. $260.
b. $440.
c. $620.
d. $760.
69.
Refer to Table 23-6. In 2010, this country’s real GDP was
a. $620.
b. $260.
c. $400.
d. $630.
70.
Refer to Table 23-6. In 2011, this country’s real GDP was
a. $320.
b. $440.
c. $760.
d. $770.
71.
Refer to Table 23-6. In 2012, this country’s real GDP was
a. $510.
b. $690.
c. $930.
d. $780.
72.
Refer to Table 23-6. In 2013, this country’s real GDP was
a. $500.
b. $700.
c. $900.
d. $1200.
73.
Refer to Table 23–6. In 2010, this country’s GDP deflator was
a. 41.9.
b. 100.
c. 165.0.
d. This cannot be calculated from the information given.
74.
Refer to Table 23–6. In 2013, this country’s GDP deflator was
a. 1.0.
b. 100.0.
c. 171.4.
d. 240.0.
75.
Refer to Table 23–6. In 2011, this country’s GDP deflator was
a. 57.9.
b. 100.0.
c. 137.5.
d. 169.2.
76.
Refer to Table 23–6. In 2012, this country’s GDP deflator was
a. 74.2.
b. 100.0.
c. 171.4.
d. 240.0.
77.
Refer to Table 23–6. From 2012 to 2013, this country’s output grew
a. 28.2%.
b. 29.0%.
c. 29.6%.
d. 73.9%.
78.
Refer to Table 23–6. This country’s inflation rate from 2010 to 2011 was
a. 1.38%.
b. 38.20%.
c. 138.20%.
d. 41.90.
79.
Refer to Table 23–6. This country’s inflation rate from 2012 to 2013 was
a. 35.6%.
b. 25.8%.
c. 34.8%.
d. 100.0%.
Measuring a Nation’s Income 5763
Table 23–7
The table below contains data for the country of Togogo. The base year is 1974.
Year
Nominal
GDP
GDP
Deflator
1974
$2000
100
1975
$3000
120
1976
$3750
150
1977
$6000
200
80.
Refer to Table 23-7. Which of the following is not correct?
a.
This economy experienced growth from 1974 to 1975.
b.
This economy experienced growth from 1975 to 1976.
c.
This economy experienced growth from 1976 to 1977.
d.
This economy experienced inflation from 1974 to 1975, from 1975 to 1976, and from 1976 to
1977.
81.
Refer to Table 23–7. From 1975 to 1976,
a.
inflation was 25% and output did not grow.
b.
inflation was 25% and output grew.
c.
inflation was 50% and output did not grow.
d.
inflation was 50% and output grew.
5764 Measuring a Nation’s Income
82.
Refer to Table 23–7. From 1976 to 1977,
a.
inflation was 33.3% and output grew at a rate of 20%.
b.
inflation was 33.3% and output grew at a rate of 60%.
c.
inflation was 50% and output grew at a rate of 20%.
Table 23–8
A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as
the base year.
Year
Price of
Potatoes
Price of
Meat
Quantity of
Meat
2011
$2.00
$20
6
2012
$2.50
$22
7
2013
$3.50
$25
8
83.
Refer to Table 23–8. In 2012, nominal GDP is
a.
$191.50, and real GDP is $170.
b.
$157, and real GDP is $170.
c.
$191.50, and real GDP is $157.
d.
$170, and real GDP is $227.50.
84.
Refer to Table 23-8. In 2012, GDP deflator is
a. 122.
b.
134.
c.
92.
d.
113.
Table 23–9
A country produces only ice cream and pie. Quantities and prices of these goods for the last
several years are
shown below. The base year is 2008.
Prices and Quantities
Year
Price of Ice
Cream
Quantity of Ice
Cream
Price of Pie
Quantity of
Pie
2008
$2.50
40
$5.00
20
2009
$3.00
50
$6.00
25
2010
$4.00
40
$6.00
30
85.
Refer to Table 23-9. In 2009, this country’s
a.
real GDP was $250, and the GDP deflator was 125.
b.
real GDP was $250, and the GDP deflator was 120.
c.
real GDP was $240, and the GDP deflator was 125.
d.
real GDP was $240, and the GDP deflator was 120.
86.
Refer to Table 23-9. This country’s inflation rate from 2009 to 2010 to the nearest tenth was
a.
2.9%
b.
8.8%
c. 13.3%
d. None of the above is correct.
87.
Which of the following is not a correct statement about the growth of real GDP in the U.S.
economy?
a.
Real GDP in 2009 was almost four times its 1965 level.
b.
Growth was steady between 1965 and 2009.
c.
Continued growth in real GDP enables the typical American to enjoy greater economic
prosperity than his or
her parents and grandparents did.
d.
The output of goods and services produced grew on average about 3 percent per year between
1965 and
2009.
88.
A recession has traditionally been defined as a period during which
a.
nominal GDP declines for two consecutive quarters.
b.
nominal GDP declines for four consecutive quarters.
c.
real GDP declines for two consecutive quarters.
d.
real GDP declines for four consecutive quarters.
89.
Recessions are not associated with which of the following?
a.
increased bankruptcies
b.
falling profits
c.
falling incomes
d.
falling unemployment
90.
A recession is always associated with
a.
the end of a war.
b.
slowly growing real GDP.
c.
rising inflation.
d.
declining real GDP.
91.
Much of macroeconomics attempts to explain
a.
changes in the price of oil and gasoline.
b.
long-run growth and short-run fluctuations in real GDP.
c.
changes in the growth rate of state government spending.
d.
changes in the prices and quantities of individual goods and services.
92.
Which of the following statements about recessions is true?
a.
An old rule of thumb defining recession is two consecutive quarters of falling nominal GDP.
b.
Recessions occur at regular intervals and last standard amounts of time.
c.
There is no ironclad rule for the declaration of recessions.
d.
Recessions are associated with low unemployment and high income.
Measuring a Nation’s Income 5769
Multiple Choice – Section 05:
Is GDP a Good Measure of Economic Well-Being?
1.
GDP per person tells us the income and expenditure of the
a.
richest person in the economy.
b.
poorest person in the economy.
c.
average person in the economy.
d.
entire economy.
2.
GDP is used as the basic measure of a society’s economic well-being. A better measure of the
economic well-being
of individuals in society is
a.
saving per person.
b.
GDP per person.
c.
government expenditures per person.
d.
investment per business firm.
3.
Which of the following is a true statement?
a.
International data leave few doubts that a nation’s GDP per person is associated with its
citizens’ standard of living.
b.
Rich and poor countries often have vastly different standards of living, but similar levels of real
GDP per
person.
c.
The value of leisure time is included in the calculation of GDP per person.
d.
International data indicate that measures on the distribution of income are closely associated
with GDP per
person.
4.
Many things that society values, such as good health, high-quality education, enjoyable recreation
opportunities, and
desirable moral attributes of the population, are not measured as part of GDP. It
follows that
a.
GDP is not a useful measure of society’s welfare.
b.
GDP is still a useful measure of society’s welfare because providing these other attributes is the
responsibility
of government.
c.
GDP is still a useful measure of society’s welfare because it measures a nation’s ability to
purchase the inputs
that can be used to help produce the things that contribute to welfare.
d.
GDP is still the best measure of society’s welfare because these other values cannot actually be
measured.