Question

1.      According to most estimates, the size of the "underground" economy in the United States could be as large as

a.       The “above-ground” economy

b.      The economy of China

c.       10% of GDP

d.      The state of Rhode Island

2.      The GDP per capita tells us

a.       The amount of output each person would get if the economic pie were sliced evenly.

b.      The amount of output each worker would get if the economic pie were sliced evenly.

c.       The ratio of the maximum amount of output any person gets to the minimum amount of output each person gets.

d.      The median amount of output each person gets, adjusted for inequality.

3.      In the early 1940s, military planners needed to know the size of the economy so they could determine

a.       The size of the tax base in the case of war

b.      How many tanks and planes the economy could produce

c.       The military budget for the next five years

d.      Whether military spending was too large

4.      Government social benefits paid to individuals are

a.       Known as transfer payments, and are counted as part of government consumption and investment

b.      Known as transfer payments, and are typically used to fund personal consumption

c.       Known as output of government, and are counted as pert government consumption and investment

d.      Known as output of government, and are typically used to fund personal consumption

5.      GDP is defined as the dollar value of __________ in a given year.

a.       The total output of the economy

b.      All outputs used in the economy

c.       All intermediate and final goods produced in the economy

d.      The total purchases made in the economy

6.      In GDP calculations, the work of stay-at-home parents is

a.       Counted only for equivalent hours

b.      Not counted

c.       Counted as intermediate inputs

d.      Counted at 50%

7.      Government consumption includes all

a.       Salaries paid to factory workers

b.      Fuel for nuclear submarines

c.       Cola served in a company cafeteria

d.      Pencils bought by a private university

8.      Imports enter the calculation of GDP

a.       With a positive sign

b.      With a negative sign

c.       As an addition to changes in private inventories

d.      Through the personal consumption category

9.      Which of the following is NOT an element of the underground economy?

a.       Off the books babysitting

b.      Illegal drug deals

c.       Commissioned salespeople

d.      Cash only under the table businesses

10. If gross domestic purchases are ________, then net exports are ________.

a.       Greater than gross domestic product; greater than net imports

b.      Equal to zero; also equal to zero

c.       Greater than gross domestic product; positive

d.      Less than gross domestic product; positive

11. Gross domestic product does NOT include

a.       Personal consumption

b.      Intermediate inputs

c.       Residential investment

d.      Net exports

12. If a foreign car manufacturer builds a plant in the United States, the new plant will

a.       Increase U.S. GDP by the amount produced

b.      Have no effect on GDP because it is a foreign company

c.       Decrease U.S. GDP by the amount produced because of foreign ownership

d.      Increase U.S. GDP by the net exports of the company

Answer 1

According to most estimates, the size of the "underground" economy in the United States could be as large as

Correct Answer:-

The GDP per capita tells us

Correct Answer:- The amount of output each person would get if the economic pie were sliced evenly.

In the early 1940s, military planners needed to know the size of the economy so they could determine

Correct Answer:- How many tanks and planes the economy could produce

Government social benefits paid to individuals are

Correct Answer:- Known as transfer payments, and are typically used to fund personal consumption

GDP is defined as the dollar value of __________ in a given year.

Correct Answer:- The total output of the economy

In GDP calculations, the work of stay-at-home parents is

Correct Answer:-Not counted

Government consumption includes all

Correct Answer:- Fuel for nuclear submarines

Which of the following is NOT an element of the underground economy?

Correct Answer:- Commissioned salespeople

Gross domestic product does NOT include Gross domestic product does NOT include

Correct Answer:- Intermediate inputs

If a foreign car manufacturer builds a plant in the United States, the new plant will

Correct Answer:- Increase U.S. GDP by the amount produced