Chapter 18- Review Questions
Measuring National Output and National Income
Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1
1
3)
1
Refer to Table 6.1. Personal consumption expenditures in billions of dollars are
1
A)
1
1650.
1
B)
1
1150.
1
C)
1
1300.
1
D)
1
1550.
1
4)
1
Refer to Table 6.1. The value for gross private domestic investment in billions of dollars is
1
A)
1
325.
1
B)
1
350.
1
C)
1
335.
1
D)
1
275.
1
5)
1
Refer to Table 6.1. The value for net exports in billions of dollars is
1
A)
1
-150.
1
B)
1
400.
1
C)
1
-300.
1
D)
1
350.
1
6)
1
Refer to Table 6.1. The value of gross domestic product in billions of dollars is
1
A)
1
1855.
1
B)
1
2785.
1
C)
1
2875.
1
D)
1
2355.
1
7) Refer to Table 6.1. The value of government spending in billions of dollars is
1
A)
1
300
1
B)
1
250.
1
C)
1
550.
1
D)
1
50.
1
Refer to the information provided in Table 6.2 below to answer the questions that follow.
Table 6.2
1
8)
1
Refer to Table 6.2. Personal consumption expenditures in billions of dollars are
1
A)
1
1500.
1
B)
1
1150.
1
C)
1
1550.
1
D)
1
1050.
1
1
1
9)
1
Refer to Table 6.2. The value for gross private domestic investment in billions of dollars is
1
A)
1
940.
1
B)
1
910.
1
C)
1
900.
1
D)
1
640.
1
1
10)
1
Refer to Table 6.2. The value for net exports in billions of dollars is
1
A)
1
-100.
1
B)
1
400.
1
C)
1
100.
1
D)
1
-50.
1
1
11)
1
Refer to Table 6.2. The value for gross domestic product in billions of dollars is
1
A)
1
2340.
1
B)
1
3690.
1
C)
1
3760.
1
D)
1
3340.
1
1
12)
1
Refer to Table 6.2. The value of government spending in billions of dollars is
1
A)
1
1000.
1
B)
1
1350.
1
C)
1
650.
1
D)
1
350.
1
13)
1
A company produced 8 dishwasher machines in 2005. The company sold 6 in 2005 and added 2 to its inventories. The market value of the dishwasher machines in 2005 was $200 per unit. What is the value of this company's output that will be included in the 2005 GDP?
1
A)
1
$1,600.
1
B)
1
$400.
1
C)
1
$2,000.
1
D)
1
$1,400.
1
Refer to the information provided in Table 6.3 below to answer the questions that follow.
Table 6.3
1
14)
1
Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 1
1
A)
1
is $110.
1
B)
1
is $120.
1
C)
1
is $160
1
D)
1
cannot be determined from this information.
1
1
15)
1
Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 3
1
A)
1
is $240.
1
B)
1
is $250.
1
C)
1
is $260.
1
D)
1
cannot be determined from this information.
1
1
16)
1
Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 2 is
1
A)
1
$155.
1
B)
1
$150.
1
C)
1
$180.
1
D)
1
None of the above
1
1
17)
1
Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's real GDP in year 2 is
1
A)
1
$135.
1
B)
1
$140.
1
C)
1
$180.
1
D)
1
None of the above
1
1
18)
1
Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 1 is
1
A)
1
1.
1
B)
1
100.
1
C)
1
110.
1
D)
1
None of the above
1
1
19)
1
Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 2 is
1
A)
1
100.
1
B)
1
88.9.
1
C)
1
111.
1
D)
1
112.5.
1
1
20)
1
Refer to Table 6.3. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's inflation rate between year 1 and year 2 is
1
A)
1
-11.1%.
1
B)
1
11.1%.
1
C)
1
12..5%.
1
D)
1
100%.
1
1
1