Author: Anonymous

Imported goods purchased in the United States are counted as part of U.S. GDP.

Economic growth in China has led to more Chinese people owning cars, which:   a.  increased demand for oil, causing oil prices to rise.   b.  decreased demand for oil, causing oil prices to rise.   c.  increased demand for oil but decreased supply, causing oil prices to increase rapidly.   d.  increased demand and supply of oil, causing oil prices to increase rapidly.

Exam #1 Q#24.docx   (Table: Three-Good Economy II) Suppose an economy produces only the three finished goods shown in the table. The table gives information on the quantities produced and the prices of goods sold in 2008 and 2009. If 2008 prices are used in the calculation of real GDP, then nominal GDP in 2009 is _____ and real GDP in 2009 is _____.   a.  $34,310; $33,700   b.  $35,350; $34,310   c.  $33,700; $35,000   d.  $35,000; $33,700

Exam #1 Q1 CH26.docx  (Table: Three-Good Economy I) Suppose an economy produces only the three finished goods shown in the table. The table gives information on the quantities produced and price of goods sold in 2008 and 2009. What is the nominal GDP in 2009? a.  $20,134 b.  $21,134 c.  $26,260 d.  $31,400  

In 2010, real GDP was $13.2 trillion (using 2005 prices) and nominal GDP was $14.6 trillion. Based on the GDP deflator, prices in 2010 were about _____ than prices in 2005.   a.  9.6% lower   b.  9.6% higher   c.  10.6% lower   d.  10.6% higher

If nominal GDP rose in 2016, we can conclude that:   a.  production rose in 2016.   b.  the price level rose in 2016.   c.  either production or the price level, or both, rose in 2016.   d.  neither production nor the price level rose in 2016.

A decrease in supply raises the price of a good, but it also decreases the quantity demanded, which lowers the price of a good. The net effect on price is ambiguous.

A change in price is reflected by a movement along the same demand curve, while a change in demand refers to a shift of the entire demand curve.

The value of goods exported from the United States to other countries is included in GDP for:   a.  the United States.   b.  the country that purchases the goods.   c.  both the United States and the country that produces the goods.   d.  no country.

As the price of lead falls (a key input in the production of automobile batteries), the costs of producing batteries decreases, shifting the supply curve of batteries:   a.  down and to the left.   b.  up and to the right.   c.  down and to the right.   d.  up and to the left.