Macroeconomics Midterm Exam Practice
11.
Using the expenditure approach, which of the following would be included in U.S. GDP? a. The value of the groceries you buy at the store. b. The value of an automobile purchased by Hertz to be rented out later to customers. c. The value of steel that was produced but not sold during the year. d. All of the above. e. None of the above.
12.
Which of the following would be considered "government purchases" when measuring GDP? a. The salary of a city police officer. b. U.S. government social security payments to retired workers. c. The groceries that a U.S. postal worker buys at the store. d. All of the above. e. None of the above.
13.
Suppose that, in a given year, consumption spending is $5 trillion, exports are $3.2 trillion, imports are $4 trillion, government transfer payments to households are $2 trillion, business spending on plant and equipment is $1 trillion, new housing construction is $0.5 trillion, government purchases of goods and services are $3 trillion, taxes are $3.5 trillion, and inventories of unsold goods during the year decline from $4 trillion to $3.3 trillion. Then using the expenditure approach, GDP during the year is a. $6 trillion. b. $8 trillion. c. $10 trillion. d. $11.2 trillion. e. $12 trillion
14.
Suppose that, in a given year, a country's GDP using the expenditure approach is $5 trillion. Then, during that year, the total income earned by the owners of the country's resources (or factors of production) will be a. $5 trillion. b. $5 trillion minus total payments made for intermediate goods. c. $5 trillion minus total taxes paid by households and businesses. d. $5 trillion minus both payments for intermediate goods and taxes paid by households and businesses. e. $5 trillion minus the sum of total rent, total profit and total interest.
15.
In order to build each of its DVD players, a firm buys $100 of components, pays out $200 in salaries, and sells each player to the public for $600, earning $300 in profit.
Using the expenditure approach, which of the following would be included in U.S. GDP? a. The value of the groceries you buy at the store. b. The value of an automobile purchased by Hertz to be rented out later to customers. c. The value of steel that was produced but not sold during the year. d. All of the above. e. None of the above.
12.
Which of the following would be considered "government purchases" when measuring GDP? a. The salary of a city police officer. b. U.S. government social security payments to retired workers. c. The groceries that a U.S. postal worker buys at the store. d. All of the above. e. None of the above.
13.
Suppose that, in a given year, consumption spending is $5 trillion, exports are $3.2 trillion, imports are $4 trillion, government transfer payments to households are $2 trillion, business spending on plant and equipment is $1 trillion, new housing construction is $0.5 trillion, government purchases of goods and services are $3 trillion, taxes are $3.5 trillion, and inventories of unsold goods during the year decline from $4 trillion to $3.3 trillion. Then using the expenditure approach, GDP during the year is a. $6 trillion. b. $8 trillion. c. $10 trillion. d. $11.2 trillion. e. $12 trillion
14.
Suppose that, in a given year, a country's GDP using the expenditure approach is $5 trillion. Then, during that year, the total income earned by the owners of the country's resources (or factors of production) will be a. $5 trillion. b. $5 trillion minus total payments made for intermediate goods. c. $5 trillion minus total taxes paid by households and businesses. d. $5 trillion minus both payments for intermediate goods and taxes paid by households and businesses. e. $5 trillion minus the sum of total rent, total profit and total interest.
15.
In order to build each of its DVD players, a firm buys $100 of components, pays out $200 in salaries, and sells each player to the public for $600, earning $300 in profit.