经济学原理对应练习--23.doc

Chapter 23/Measuring a Nation's Income v 1011
Chapter 23
Measuring a Nation's Income
Multiple Choice
1. Macroeconomists study
a. decisions of households and firms.
b. the interaction of households and firms.
c. economy-wide phenomena.
d. regulations on firms and unions.
ANS: C PTS: 1 DIF: 1 REF: 23-0
TOP: Economists MSC: Definitional
2. Which of the following newspaper headlines would be more closely related to what microeconomists study than to what macroeconomists study?
a. Unemployment rate rises from 5 percent to 5.5 percent.
b. Real GDP grows by 3.1 percent in the third quarter.
c. Retail sales at stores show large gains.
d. The price of oranges rises after an early frost.
ANS: D PTS: 1 DIF: 1 REF: 23-0
TOP: Economists MSC: Interpretive
3. Statistics that are of particular interest to macroeconomists
a. are widely reported by the media.
b. are largely ignored by the media.
c. include the equilibrium prices of individual goods and services.
d. do not include statistics for countries outside of North America.
ANS: A PTS: 1 DIF: 1 REF: 23-0
TOP: Economists MSC: Definitional
4. Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?
a. Why do prices in general rise by more in some countries than in others?
b. Why do wages differ across industries?
c. Why do production and income increase in some periods and not in others?
d. How rapidly is GDP currently increasing?
ANS: B PTS: 1 DIF: 1 REF: 23-0
TOP: Economists MSC: Interpretive
5. Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?
a. the effect of taxes on the prices of airline tickets, the profitability of automobile-manufacturing firms, and employment trends in the food-service industry
b. the price of beef, wage differences between genders, and antitrust laws
c. how consumers maximize utility, and how prices are established in markets for agricultural products
d. the percentage of the labor force that is out of work, and differences in average income from country to country
ANS: D PTS: 1 DIF: 1 REF: 23-0
TOP: Economists MSC: Interpretive
6. We would expect a macroeconomist, as opposed to a microeconomist, to be particularly interested in
a. explaining how economic changes affect prices of particular goods.
b. devising policies to deal with market failures such as externalities and market power.
c. devising policies to promote low inflation.
d. identifying those markets that are competitive and those that are not competitive.
ANS: C PTS: 1 DIF: 1 REF: 23-0
TOP: Economists MSC: Interpretive
7. The basic tools of supply and demand are
a. useful only in the analysis of economic behavior in individual markets.
b. useful in analyzing the overall economy, but not in analyzing individual markets.
c. central to microeconomic analysis, but seldom used in macroeconomic analysis.
d. central to macroeconomic analysis as well as to microeconomic analysis.
ANS: D PTS: 1 DIF: 1 REF: 23-0
TOP: Demand | Supply MSC: Interpretive
8. Which of the following statistics is usually regarded as the best single measure of a society’s economic well-being?
a. the unemployment rate
b. the inflation rate
c. gross domestic product
d. the trade deficit
ANS: C PTS: 1 DIF: 2 REF: 23-0
TOP: Gross domestic product MSC: Interpretive
9. For an economy as a whole,
a. income is greater than expenditure
b. expenditure is greater than income.
c. income is equal to expenditure.
d. GDP measures income more precisely than it measures expenditure.
ANS: C PTS: 1 DIF: 1 REF: 23-1
TOP: Income | Expenditures MSC: Interpretive
10. Which of the following statements about GDP is correct?
a. GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.
b. Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
c. GDP is to a nation’s economy as household income is to a household.
d. All of the above are correct.
ANS: C PTS: 1 DIF: 2 REF: 23-1
TOP: Gross domestic product MSC: Interpretive
11. Which of the following statements about GDP is correct?
a. GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services.
b. Money continuously flows from households to firms and then back to households, and GDP measures this flow of money.
c. GDP is generally regarded as the best single measure of a society’s economic well-being.
d. All of the above are correct.
ANS: D PTS: 1 DIF: 2 REF: 23-1
TOP: Gross domestic product MSC: Interpretive
12. Gross domestic product serves as a measure of two things:
a. the total spending of everyone in the economy and the total saving of everyone in the economy.
b. the total income of everyone in the economy and the total expenditure on the nation's output of goods and services.
c. the value of the nation's output of goods and services for domestic citizens and the value of the nation's output of goods and services for the rest of the world.
d. the nation's saving and the nation's investment.
ANS: B PTS: 1 DIF: 1 REF: 23-1
TOP: Gross domestic product MSC: Definitional
13. If a nation’s GDP rises, then it must be the case that the nation’s
a. income and expenditure both rise.
b. income and saving both rise.
c. income rises, but expenditure may rise or fall.
d. saving rises, but income may rise or fall.
ANS: A PTS: 1 DIF: 2 REF: 23-1
TOP: Gross domestic product | Income | Expenditures MSC: Interpretive
14. Because every transaction has a buyer and a seller,
a. GDP is more closely associated with a nation’s income than it is with a nation’s expenditure.
b. every transaction contributes equally to an economy’s income and to its expenditure.
c. the number of firms must be equal to the number of households in a simple circular-flow diagram.
d. firms’ profits are necessarily zero in a simple circular-flow diagram.
ANS: B PTS: 1 DIF: 2 REF: 23-1
TOP: Income | Expenditures MSC: Interpretive
15. In a simple circular-flow diagram total income and total expenditure are
a. never equal because total income always exceeds total expenditure.
b. seldom equal because of the ongoing changes in an economy’s unemployment rate.
c. equal only when one dollar is spent on goods for every dollar that is spent on services.
d. always equal because every transaction has a buyer and a seller.
ANS: D PTS: 1 DIF: 1 REF: 23-1
TOP: Gross domestic product | Income | Expenditures MSC: Interpretive
16. Firms use the money they get from a sale to
a. pay wages to workers.
b. pay rent to landlords.
c. pay profit to the firms’ owners.
d. All of the above are correct.
ANS: D PTS: 1 DIF: 1 REF: 23-1
TOP: Income MSC: Interpretive
17. For an economy, expenditure is equal to income because
a. by law firms must pay out all their revenue as income to someone.
b. for every sale there is a buyer and a seller.
c. prices of individual goods and services change, but the average price level stays the same.
d. None of the above is correct; expenditure is not always equal to income for an economy.
ANS: B PTS: 1 DIF: 2 REF: 23-1
TOP: Income | Expenditures MSC: Interpretive
18. For an economy as a whole,
a. wages must equal profit.
b. consumption must equal saving.
c. income must equal expenditure.
d. household spending on goods must equal household spending on services.
ANS: C PTS: 1 DIF: 1 REF: 23-1
TOP: Income | Expenditures MSC: Interpretive
19. When a firm sells a good or a service, the sale contributes to the nation’s income
a. only if the buyer of the good or service is a household.
b. only if the buyer of the good or service is a household or another firm.
c. whether the buyer of the good or a service is a household, another firm, or the government.
d. We have to know whether the item being sold is a good or a service in order to answer the question.
ANS: C PTS: 1 DIF: 2 REF: 23-1
TOP: Income | Expenditures MSC: Interpretive
20. GDP is defined as
a. the market value of all goods and services produced within a country in a given period of time.
b. the market value of all goods and services produced by the citizens of a country, regardless of where they are living in a given period of time.
c. the market value of all final goods and services produced within a country in a given period of time.
d. the market value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time.
ANS: C PTS: 1 DIF: 2 REF: 23-2
TOP: Gross domestic product MSC: Definitional
21. GDP is defined as the market value of all final goods and services produced
a. by the citizens of a country, regardless of where they live, in a given period of time; this definition focuses on GDP as a measure of total income.
b. by the citizens of a country, regardless of where they live, in a given period of time; this definition focuses on GDP as a measure of total expenditure.
c. within a country in a given period of time; this definition focuses on GDP as a measure of total income.
d. within a country in a given period of time; this definition focuses on GDP as a measure of total expenditure.
ANS: D PTS: 1 DIF: 3 REF: 23-2
TOP: Gross domestic product MSC: Interpretive
22. Gross domestic product is defined as
a. the market value of all final goods and services produced within a country in a given period of time.
b. the market value of all tangible goods produced within a country in a given period of time.
c. the quantity of all final goods and services supplied within a country in a given period of time.
d. the quantity of all final goods and services demanded within a country in a given period of time.
ANS: A PTS: 1 DIF: 1 REF: 23-2
TOP: Gross domestic product MSC: Definitional
23. To compute GDP, we
a. add up the wages paid to all workers.
b. add up the costs of producing all final goods and services.
c. add up the market values of all final goods and services.
d. take the difference between the market value of all final goods and services and the cost of producing those final goods and services.
ANS: C PTS: 1 DIF: 2 REF: 23-2
TOP: Gross domestic product MSC: Definitional
24. In order to include many different goods and services in an aggregate measure, GDP is computed using, primarily,
a. values of goods and services based on surveys of consumers.
b. market prices.
c. consumer and producer surpluses.
d. costs of producing goods and services.
ANS: B PTS: 1 DIF: 1 REF: 23-2
TOP: Gross domestic product MSC: Interpretive
25. In computing GDP, market prices are used to value final goods and services because
a. market prices reflect the values of goods and services.
b. market prices do not change much over time, so it is easy to make comparisons between years.
c. if market prices are out of line with how people value goods, the government sets price ceilings and price floors.
d. None of the above is correct; market prices are not used in computing GDP.
ANS: A PTS: 1 DIF: 2 REF: 23-2
TOP: Gross domestic product | Value MSC: Interpretive
26. Which of the following is not included in GDP?
a. unpaid cleaning and maintenance of houses
b. services such as those provided by lawyers and hair stylists
c. the estimated rental value of owner-occupied housing
d. production of foreign citizens living in the United States
ANS: A PTS: 1 DIF: 2 REF: 23-2
TOP: Gross domestic product MSC: Definitional
27. Which of the following transactions adds to U.S. GDP for 2006?
a. In 2006, Ashley sells a car that she bought in 2002 to William for $5,000.
b. An American management consultant works in Mexico during the summer of 2006 and earns the equivalent of $30,000 during that time.
c. When John and Jennifer were both single, they lived in separate apartments and each paid $750 in rent. John and Jennifer got married in 2006 and they bought a house that, according to reliable estimates, could be rented for $1,600 per month.
d. None of the above transactions adds to GDP for 2006.
ANS: C PTS: 1 DIF: 3 REF: 23-2
TOP: Gross domestic product MSC: Applicative
28. Which of the following transactions adds to U.S. GDP for 2006?
a. In 2006, Marvin Windows manufactures 20 windows that will eventually be installed in an office building in Minneapolis. The windows remain in Marvin’s inventory at the end of 2006.
b. An Irish marketing consultant works in Boston during the summer of 2006 and earns $30,000 during that time.
c. When John and Jennifer were both single, they lived in separate apartments and each paid $750 in rent. John and Jennifer got married in 2006 and they bought a house that, according to reliable estimates, could be rented for $1,600 per month.
d. All of the above transactions adds to GDP for 2006.
ANS: D PTS: 1 DIF: 3 REF: 23-2
TOP: Gross domestic product MSC: Applicative
29. The value of the housing services provided by the economy's owner-occupied houses is
a. included in GDP and the estimated rental values of the houses is used to place a value on these housing services.
b. included in GDP and the actual mortgage payments made on the houses is used to estimate the value of these rental services.
c. excluded from GDP since these services are not sold in any market.
d. excluded from GDP since the value of these housing services cannot be estimated with any degree of precision.
ANS: A PTS: 1 DIF: 2 REF: 23-2
TOP: Gross domestic product MSC: Definitional
30. Suppose an apartment complex converts to a condominium, so that the former renters are now owners of their housing units.
a. The rent was included in GDP; the purchases of the condominiums are not included in GDP.
b. The rent was included in GDP, and so are the purchases of the condominiums.
c. The rent was not included in GDP; the purchases of the condominiums are included in GDP.
d. The rent was not included in GDP, and neither are the purchases of the condominiums.
ANS: A PTS: 1 DIF: 2 REF: 23-2
TOP: Gross domestic product MSC: Applicative
31. Suppose an apartment complex converts to a condominium, so that the former renters are now owners of their housing units. Suppose further that a current estimate of the value of the condominium owners' housing services is the same as the rent they previously paid. What happens to GDP as a result of this conversion?
a. GDP necessarily increases.
b. GDP necessarily decreases.
c. GDP is unaffected because neither the rent nor the estimate of the value of housing services is included in GDP.
d. GDP is unaffected because previously the rent payments were included in GDP, and now the rent payments are replaced in GDP by the estimate of the value of housing services.
ANS: D PTS: 1 DIF: 2 REF: 23-2
TOP: Gross domestic product MSC: Applicative
32. Estimates of the values of which of the following non-ma