Question 1

Refer to Table 12.2 for the following questions.
Table 12.2
 
-Refer to Table 12.2.Calculate the rate of increase in the price level from 2012 to 2013.

Accepted Answer

A)   8.6 per cent
B)   7.9 per cent
C)   -7.9 per cent
D)   -8.6 per centE) A) and C)
F) C) and D)

Question 2

The 'underground economy' can be described as

Accepted Answer

A)   production of intermediate goods and services.
B)   economic production that includes mining.
C)   economic activity that is hidden from the government to avoid taxes or because the activity is illegal.
D)   production of infrastructure that spurs growth in the rest of the economy.E) A) and C)
F) All of the above

Question 3

If real GDP increases,we know for sure that

Accepted Answer

A)   prices have risen.
B)   output has risen.
C)   prices have risen but output has remained constant.
D)   prices have remained constant.E) A) and D)
F) C) and D)

Question 4

The economic growth rate is measured using

Accepted Answer

A)   nominal GDP.
B)   the unemployment rate.
C)   the CPI.
D)   real GDP.E) None of the above
F) All of the above

Question 5

For how long does a patent give a firm the exclusive legal right to a product in Australia?

Accepted Answer

A)   10 years
B)   17 years
C)   20 years
D)   50 yearsE) All of the above
F) A) and D)

Question 6

According to new growth theory,the accumulation of ________ capital is subject to diminishing returns at the ________ level,but not at the level of the economy as a whole.

Accepted Answer

A)   physical; firm
B)   technological; personal
C)   knowledge; firm
D)   physical; productionE) B) and D)
F) None of the above

Question 7

Figure 12.1 
-Suppose the economy gains more capital per hour worked and experiences technological change.This is shown in Figure 12.1 by the movement from

Accepted Answer

A)   E to B to D.
B)   A to B to C.
C)   A to E.
D)   A to D.E) B) and C)
F) A) and B) D

Question 8

________ is/are the payment for the factor of production ________.

Accepted Answer

A)   Wages; capital
B)   Interest; labour
C)   Profit; entrepreneurship
D)   Rent; capitalE) A) and B)
F) A) and C)

Question 9

An example of an 'intermediate good' would be

Accepted Answer

A)   the bread that goes into a sandwich sold by a lunch bar.
B)   a can of cool drink sold by a supermarket.
C)   a microwave oven used at home.
D)   the petrol purchased by consumers for their cars.E) A) and C)
F) B) and D)

Question 10

What is meant by 'intermediate goods' and are they included in the measure of GDP?

Accepted Answer

These are goods that are used ...

Question 11

The 'underground economy' refers to the

Accepted Answer

A)   buying and selling of goods that is concealed from the government.
B)   production of goods and services used by the government for covert spy operations.
C)   sector of the economy that earns profits that are higher than average.
D)   formal sector of the economy in developing countries.E) B) and C)
F) A) and D) A

Question 12

An example of a transfer payment is

Accepted Answer

A)   a teacher's pay being transferred electronically from the government to the teacher.
B)   interest repayments on a loan.
C)   an unemployment benefit.
D)   the purchase of a new government office block.E) All of the above
F) None of the above C

Question 13

In a small economy,consumption spending in 2012 is $6000,government spending is $1200,gross investment is $1500,exports are $2000,and imports are $1000.What is gross domestic product in 2012?

Accepted Answer

A)   $9 700
B)   $9 800
C)   $10 800
D)   $11 700E) B) and C)
F) All of the above

Question 14

Which of the following would not be included in the expenditure category called 'investment expenditures'?

Accepted Answer

A)   Spending on new houses.
B)   The purchase of shares in a company.
C)   The purchase of a photocopy machine by the Commonwealth Bank.
D)   Cars held in inventory by a local Ford car dealer.E) A) and B)
F) None of the above

Question 15

Which of the following is counted in GDP?

Accepted Answer

A)   The value of goods and services produced in the underground economy.
B)   The cost of a speed boat purchased at Bob's Boats used by drug smugglers.
C)   The value of do-it-yourself work.
D)   The value of leisure.E) All of the above
F) B) and C)

Question 16

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

Accepted Answer

A) True 
 B)False

Question 17

Technological change will

Accepted Answer

A)   shift up the per-worker production function.
B)   shift down the per-worker production function.
C)   move the economy to a point beneath the per-worker production function.
D)   move the economy along a given per-worker production function.E) A) and B)
F) A) and C)

Question 18

Which of the following is considered a durable good?

Accepted Answer

A)   Medical care
B)   Clothing
C)   Food
D)   A washing machineE) B) and C)
F) A) and C)

Question 19

Which of the following will result in an increase in labour productivity?

Accepted Answer

A)   A decrease in the number of people attending institutions of higher education.
B)   A decline in the amount of human capital per worker.
C)   An increase in technology.
D)   A decline in the capital stock per hour worked.E) B) and C)
F) None of the above

Question 20

Explain the shortcomings of GDP as a measure of total production in an economy,and as a measure of economic wellbeing.

Accepted Answer

The measure of GDP leaves out production...

Exam 12: GDP: Measuring Total Production and Income

Refer to Table 12.2 for the following questions. Table 12.2 -Refer to Table 12.2.Calculate the rate of increase in the price level from 2012 to 2013.

Correct AnswerverifiedShow Answer

The 'underground economy' can be described as

Correct AnswerverifiedShow Answer

If real GDP increases,we know for sure that

Correct AnswerverifiedShow Answer

The economic growth rate is measured using

Correct AnswerverifiedShow Answer

For how long does a patent give a firm the exclusive legal right to a product in Australia?

Correct AnswerverifiedShow Answer

According to new growth theory,the accumulation of ________ capital is subject to diminishing returns at the ________ level,but not at the level of the economy as a whole.

Correct AnswerverifiedShow Answer

Figure 12.1 -Suppose the economy gains more capital per hour worked and experiences technological change.This is shown in Figure 12.1 by the movement from

Correct AnswerverifiedD

________ is/are the payment for the factor of production ________.

Correct AnswerverifiedShow Answer

An example of an 'intermediate good' would be

Correct AnswerverifiedShow Answer

What is meant by 'intermediate goods' and are they included in the measure of GDP?

Correct AnswerverifiedThese are goods that are used ...View AnswerShow Answer

The 'underground economy' refers to the

Correct AnswerverifiedA

An example of a transfer payment is

Correct AnswerverifiedC

In a small economy,consumption spending in 2012 is $6000,government spending is $1200,gross investment is $1500,exports are $2000,and imports are $1000.What is gross domestic product in 2012?

Correct AnswerverifiedShow Answer

Which of the following would not be included in the expenditure category called 'investment expenditures'?

Correct AnswerverifiedShow Answer

Which of the following is counted in GDP?

Correct AnswerverifiedShow Answer

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

Correct AnswerverifiedShow Answer

Technological change will

Correct AnswerverifiedShow Answer

Which of the following is considered a durable good?

Correct AnswerverifiedShow Answer

Which of the following will result in an increase in labour productivity?

Correct AnswerverifiedShow Answer

Explain the shortcomings of GDP as a measure of total production in an economy,and as a measure of economic wellbeing.

Correct AnswerverifiedThe measure of GDP leaves out production...View AnswerShow Answer

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According to new growth theory,the accumulation of capital is subject to diminishing returns at the level,but not at the level of the economy as a whole.

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D

is/are the payment for the factor of production .

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These are goods that are used ...
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A

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C

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The measure of GDP leaves out production...
View Answer