Microeconomics: The Measurement of Income, Prices, and Unemployment
Macroeconomics, 12e (Gordon)
Chapter 2 The Measurement of Income, Prices, and Unemployment
2.1 Why We Care About Income
1) Job openings are plentiful when the
A) actual real GDP is above the natural real GDP.
B) natural real GDP is above the actual real GDP.
C) natural real GDP is increasing rapidly.
D) None of the above.
Question Status: Previous Edition
2) The real income per capita is a measure of the
A) well-being of every individual in the nation.
B) well-being of the average individual in the nation.
C) well-being of the average employed person in the nation.
D) total well-being of the nation.
Question Status: Previous Edition
2.2 The Circular Flow of Income and Expenditure
1) GDP can be measured by the
A) total value of all sales in the economy.
B) total market value of final goods and services produced in the economy.
C) total value of all intermediate goods produced in the economy.
D) net national product plus investment.
Question Status: Previous Edition
2) Assume a simple economy without a government and that saving and borrowing behavior is never observed. Then the value of
A) production is equal to income.
B) expenditures is less than the value of production.
C) production is less than the value of expenditures.
D) production is less than income.
Question Status: Previous Edition
3) From the last five recessions, the mildest two were
A) 1975 and 2008-09 recessions.
B) 1981-82 and 2008-09 recessions.
C) 1990-91 and 2001 recessions.
D) 1975 and 2001 recessions.
Question Status: New
4) The circular flow of income describes the
A) flow of income from domestic firms to the nonproduction sector and back again.
B) amount of money in the economy.
C) sum of all injections into the economy.
D) sum of all withdrawals from the economy.
Question Status: Previous Edition
5) Changes in business inventories
A) are included in gross but not in net investment.
B) can either be positive or negative.
C) are not included in GDP because they are not sold
Chapter 2 The Measurement of Income, Prices, and Unemployment
2.1 Why We Care About Income
1) Job openings are plentiful when the
A) actual real GDP is above the natural real GDP.
B) natural real GDP is above the actual real GDP.
C) natural real GDP is increasing rapidly.
D) None of the above.
Question Status: Previous Edition
2) The real income per capita is a measure of the
A) well-being of every individual in the nation.
B) well-being of the average individual in the nation.
C) well-being of the average employed person in the nation.
D) total well-being of the nation.
Question Status: Previous Edition
2.2 The Circular Flow of Income and Expenditure
1) GDP can be measured by the
A) total value of all sales in the economy.
B) total market value of final goods and services produced in the economy.
C) total value of all intermediate goods produced in the economy.
D) net national product plus investment.
Question Status: Previous Edition
2) Assume a simple economy without a government and that saving and borrowing behavior is never observed. Then the value of
A) production is equal to income.
B) expenditures is less than the value of production.
C) production is less than the value of expenditures.
D) production is less than income.
Question Status: Previous Edition
3) From the last five recessions, the mildest two were
A) 1975 and 2008-09 recessions.
B) 1981-82 and 2008-09 recessions.
C) 1990-91 and 2001 recessions.
D) 1975 and 2001 recessions.
Question Status: New
4) The circular flow of income describes the
A) flow of income from domestic firms to the nonproduction sector and back again.
B) amount of money in the economy.
C) sum of all injections into the economy.
D) sum of all withdrawals from the economy.
Question Status: Previous Edition
5) Changes in business inventories
A) are included in gross but not in net investment.
B) can either be positive or negative.
C) are not included in GDP because they are not sold