Chapter 7 Quiz of Econ 201
Chapter 7 Quiz: AP Economics
1. A nation's gross domestic product (GDP):
A. is the dollar value of all final output produced within the borders of the nation.
B. is the dollar value of all final output produced by its citizens, regardless of where they are living.
C. can be found by summing C + In + S + Xn.
D. is always some amount less than its C + Ig+ G + Xn.
2. A nation's gross domestic product (GDP):
A. can be found by summing C + Ig + G + Xn.
B. is the dollar value of the total output produced by its citizens, regardless of where they are living.
C. can be found by summing C + S + G + Xn.
D. is always some amount less than its NDP.
3. Suppose Smith pays $100 to Jones.
A. We can say with certainty that the GDP has increased by $100.
B. We can say with certainty that the GDP has increased, but we cannot determine the amount.
C. We can say with certainty that the nominal GDP has increased, but we can't say whether real GDP has increased or decreased.
D. We need more information to determine whether GDP has changed.
4. Suppose the total monetary value of all final goods and services produced in a particular country in 2008 is $500 billion and the total monetary value of final goods and services sold is $450 billion. We can conclude that:
A. GDP in 2008 is $450 billion.
B. NDP in 2008 is $450 billion.
C. GDP in 2008 is $500 billion.
D. inventories in 2008 fell by $50 billion.
5. Final goods and services refer to:
A. goods and services that are unsold and therefore added to inventories.
B. goods and services whose value has been adjusted for changes in the price level.
C. goods and services purchased by ultimate users, rather than for resale or further processing.
D. the excess of U.S. exports over U.S. imports.
6. If intermediate goods and services were included in GDP:
A. the GDP would be overstated.
B. the GDP would then have to be deflated for changes in the price level.
C. nominal GDP would exceed real GDP.
D. the GDP would
1. A nation's gross domestic product (GDP):
A. is the dollar value of all final output produced within the borders of the nation.
B. is the dollar value of all final output produced by its citizens, regardless of where they are living.
C. can be found by summing C + In + S + Xn.
D. is always some amount less than its C + Ig+ G + Xn.
2. A nation's gross domestic product (GDP):
A. can be found by summing C + Ig + G + Xn.
B. is the dollar value of the total output produced by its citizens, regardless of where they are living.
C. can be found by summing C + S + G + Xn.
D. is always some amount less than its NDP.
3. Suppose Smith pays $100 to Jones.
A. We can say with certainty that the GDP has increased by $100.
B. We can say with certainty that the GDP has increased, but we cannot determine the amount.
C. We can say with certainty that the nominal GDP has increased, but we can't say whether real GDP has increased or decreased.
D. We need more information to determine whether GDP has changed.
4. Suppose the total monetary value of all final goods and services produced in a particular country in 2008 is $500 billion and the total monetary value of final goods and services sold is $450 billion. We can conclude that:
A. GDP in 2008 is $450 billion.
B. NDP in 2008 is $450 billion.
C. GDP in 2008 is $500 billion.
D. inventories in 2008 fell by $50 billion.
5. Final goods and services refer to:
A. goods and services that are unsold and therefore added to inventories.
B. goods and services whose value has been adjusted for changes in the price level.
C. goods and services purchased by ultimate users, rather than for resale or further processing.
D. the excess of U.S. exports over U.S. imports.
6. If intermediate goods and services were included in GDP:
A. the GDP would be overstated.
B. the GDP would then have to be deflated for changes in the price level.
C. nominal GDP would exceed real GDP.
D. the GDP would