Question : 5.2   Measuring U.S. GDP 1) In order to measure gross domestic : 1238453

 

5.2   Measuring U.S. GDP

1) In order to measure gross domestic product, we can follow

A) only one approach: the circular flow approach.

B) only one approach: the national accounts approach.

C) two approaches: the expenditure approach and the income approach.

D) three approaches: the expenditure approach, the income approach, and the production approach.

E) three approaches: the expenditure approach, the income approach, and the market-based approach.

2) In 2011, U.S. GDP was

A) $15 trillion using the expenditure approach.

B) $15 trillion using the income approach.

C) $15 trillion using the expenditure approach and $14 trillion using the income approach.

D) $16 trillion using the income approach and $14 trillion using the expenditure approach.

E) both A and B are correct.

3) The expenditure approach to measuring GDP is done by using data on only

A) consumption expenditure.

B) consumption expenditure and investment.

C) consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services.

D) consumption expenditure, investment, and government expenditures.

E) wages, rent, interest, and profit.

4) In comparing the magnitudes of the components of GDP according to the expenditure approach, we see that in the United States

A) government expenditure on goods and services is the largest category.

B) investment is the largest category.

C) investment is much larger than government expenditure on goods and services.

D) investment is less than government expenditure on goods and services.

E) investment, government expenditure on goods and services, and consumption expenditure are all about the same size.

5) The largest expenditure category in the United States is

A) consumption expenditure.

B) investment.

C) government expenditure on goods and services.

D) net exports of goods and services.

E) wages.

6) If consumption was 70 percent of GDP and investment and government expenditure were both 18 percent each, then we see that

A) GDP can be over 100 percent because it is “gross” rather than “net.”

B) the error is due to rounding.

C) exports must be less than imports.

D) exports must be more than imports.

E) we must subtract depreciation from investment so that the components of GDP do not exceed 100 percent.

7) In recent years, which of the following has been negative?

A) consumption expenditure

B) investment

C) government expenditure on goods and services

D) net exports of goods and services

E) wages

8) In 2009 in the United States, consumption expenditure was $9,996 billion, investment was $1,559 billion, government expenditures on goods and services were $2,927 billion, and total exports were $1,492 billion. GDP equaled

A) $12,641 billion.

B) $10,120 billion.

C) $11,488 billion.

D) $14,415 billion.

E) some amount, but there is not enough information given to calculate GDP.

9) The following table reports transactions that occurred in Whoville. Nominal GDP in Whoville is ________.

 

Item

  Price per Unit

Quantity

  Bottles of French Wine

$20

10

  Boxes of Cereal

$4

20

  Used Tires

$15

5

  Shares of Twitter Stock

$10

15

  Hours of Swimming Lessons

$5

8

 

A) $320

B) $545

C) $120

D) $395

E) $195

 

10) Based on the data in the table above, what does GDP equal?

A) $10,200 billion

B) $10,400 billion

C) $10,000 billion

D) $9,800 billion

E) $8,900 billion