- Description
ECO 372T Wk 1 – Apply: Quiz
If real GDP in a year was $3,668 billion and the price index was 112, then nominal GDP in that year was approximately
Multiple Choice
- $3,925 billion.
- $4,108 billion.
- $3,846 billion.
- $4,379 billion.
Answer this question based on the given information for an economy in some year.
- Dollar value of resource extraction activity = $20 billion
- Dollar value of production activity = $50 billion
III. Dollar value of distribution activity = $60 billion
- Dollar value of final output = $110 billion
Gross output for this economy equals
Multiple Choice
- $240 billion.
- $170 billion.
- $130 billion.
- $110 billion.
Refer to the graphs. Suppose a firm is currently producing 500 computers per week and charging a price of $1,000. What happens to the firm’s inventory of computers if there is a negative demand shock and prices are flexible?
Multiple Choice
- The firm’s inventory will not change.
- The firm’s inventory will increase by 200 computers per week.
- The firm’s inventory will decrease by 150 computers per week.
- The firm’s inventory will increase by 350 computers per week.
Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $500. Donita sells the dresses for $900 to kids attending the prom. The total contribution to GDP of this series of transactions is
Multiple Choice
- $900.
- $1,700.
- $1,800.
- $800.
Suppose a small economy produces only smart TVs. In year one, 100,000 TVs are produced and sold at a price of $1,200 each. In year two, 75,000 TVs are produced and sold at a price of $1,200 each. As a result,
Multiple Choice
- real GDP decreased.
- real GDP increased.
- nominal GDP increased.
- real GDP stayed the same.
Assume that a manufacturer of stereo speakers purchases $10 worth of components for each speaker. The completed speaker sells for $100. The value added by the manufacturer for each speaker is
Multiple Choice
- $90.
- $10.
- $1,000.
- $110.
- $100.
Refer to the graphs. Which of the following best represents a positive demand shock when prices are flexible?
Multiple Choice
- the shift from D2 to D3 in graph B
- the shift from D2 to D3 in graph A
- the shift from D2 to D1 in graph A
- the shift from D2 to D1 in graph B
If in some year gross investment was $240 billion and net investment was $130 billion, then in that year the country’s capital stock
Multiple Choice
increased by $130 billion.
decreased by $110 billion.
may have either increased or decreased.
increased by $110 billion.
Higher rates of unemployment are linked with
Multiple Choice
higher rates of heart disease.
greater political stability.
less crime.
better mental health.
Government Purchases $15
Personal Consumption 90
Gross Investment 20
Consumption of Fixed Capital (depreciation) 5
Exports 8
Imports 12
Refer to the accompanying data (all figures in billions of dollars). GDP is
Multiple Choice
- $116.
- $121.
- $125.
- $150.
Harry’s Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry’s produced 12,000 large pepperoni pizzas (identical to last year’s pizzas) but sold them for $10 each. Based on this information, we can conclude that Harry’s production of large pepperoni pizzas
Multiple Choice
- increased real GDP by $20,000.
- did not change nominal GDP.
- decreased real GDP by $20,000.
- did not change real GDP.
Higher rates of unemployment are linked with
Multiple Choice
- increased social problems.
- greater political stability.
- less crime.
- better mental health.
Gross Private Domestic Investment $1,593
Personal Taxes 1,113
Transfer Payments 1,683
Taxes on Production and Imports 695
Corporate Income Taxes 236
Personal Consumption Expenditures 7,304
Consumption of Fixed Capital 1,393
US Exports 1,059
Dividends 434
Government Purchases 1,973
Net Foreign Factor Income 10
Undistributed Corporate Profits 141
Social Security Contributions 748
US Imports 1,483
Statistical Discrepancy 50
Refer to the accompanying national income data (in billions of dollars). Corporate profits are equal to
Multiple Choice
- $811.
- $801.
- $670.
- $484.
Year Nominal GDP Real GDP Price Index
1 4,900 4,800
2 5,000 5,000 112
3 5,400 5,100
Refer to the table. (GDP figures are in billions of dollars.) What is the GDP price index in Year 1?
Multiple Choice
- 98
- 102.1
- 115.7
- 100