ECO/372T Principles Of Macroeconomics The Latest Version A+ Study Guide **********************************************
ECO 372T Entire Course Link http://www.onlinehelp123.com/eco-372 ********************************************** ECO 372T Wk 1 Apply: Quiz If real GDP in a year was $3,668 billion and the price index was 112, then nominal GDP in that year was approximately Multiple Choice • $3,925 billion. • $4,108 billion. • $3,846 billion. • $4,379 billion. Answer this question based on the given information for an economy in some year. I. II. III. IV.
Dollar value of resource extraction activity = $20 billion Dollar value of production activity = $50 billion Dollar value of distribution activity = $60 billion Dollar value of final output = $110 billion
Gross output for this economy equals Multiple Choice • $240 billion. • $170 billion. • $130 billion. • $110 billion.
Refer to the graphs. Suppose a firm is currently producing 500 computers per week and charging a price of $1,000. What happens to the firm's inventory of computers if there is a negative demand shock and prices are flexible? Multiple Choice
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The firm’s inventory will not change. The firm’s inventory will increase by 200 computers per week. The firm’s inventory will decrease by 150 computers per week. The firm’s inventory will increase by 350 computers per week.
Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $500. Donita sells the dresses for $900 to kids attending the prom. The total contribution to GDP of this series of transactions is Multiple Choice • $900. • $1,700. • $1,800. • $800.
Suppose a small economy produces only smart TVs. In year one, 100,000 TVs are produced and sold at a price of $1,200 each. In year two, 75,000 TVs are produced and sold at a price of $1,200 each. As a result, Multiple Choice • real GDP decreased. • real GDP increased. • nominal GDP increased. • real GDP stayed the same.
Assume that a manufacturer of stereo speakers purchases $10 worth of components for each speaker. The completed speaker sells for $100. The value added by the manufacturer for each speaker is Multiple Choice • $90. • $10. • $1,000. • $110. • $100.
Refer to the graphs. Which of the following best represents a positive demand shock when prices are flexible? Multiple Choice • the shift from D2 to D3 in graph B • the shift from D2 to D3 in graph A
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the shift from D2 to D1 in graph A the shift from D2 to D1 in graph B
If in some year gross investment was $240 billion and net investment was $130 billion, then in that year the country's capital stock Multiple Choice increased by $130 billion. decreased by $110 billion. may have either increased or decreased. increased by $110 billion.
Higher rates of unemployment are linked with Multiple Choice higher rates of heart disease. greater political stability. less crime. better mental health.
Government Purchases $15 Personal Consumption 90 Gross Investment 20 Consumption of Fixed Capital (depreciation)5 Exports 8 Imports 12 Refer to the accompanying data (all figures in billions of dollars). GDP is Multiple Choice • $116. • $121. • $125. • $150.
Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry’s produced 12,000 large pepperoni pizzas (identical to last year's pizzas) but sold them for $10 each. Based on this information, we can conclude that Harry's production of large pepperoni pizzas Multiple Choice • increased real GDP by $20,000. • did not change nominal GDP.
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decreased real GDP by $20,000. did not change real GDP.
Higher rates of unemployment are linked with Multiple Choice • increased social problems. • greater political stability. • less crime. • better mental health.
Gross Private Domestic Investment $1,593 Personal Taxes1,113 Transfer Payments 1,683 Taxes on Production and Imports 695 Corporate Income Taxes 236 Personal Consumption Expenditures 7,304 Consumption of Fixed Capital 1,393 US Exports 1,059 Dividends 434 Government Purchases 1,973 Net Foreign Factor Income 10 Undistributed Corporate Profits 141 Social Security Contributions 748 US Imports 1,483 Statistical Discrepancy 50 Refer to the accompanying national income data (in billions of dollars). Corporate profits are equal to Multiple Choice • $811. • $801. • $670. • $484.
Year Nominal GDP Real GDP 1 4,900 4,800 2 5,000 5,000 112 3 5,400 5,100
Price Index
Refer to the table. (GDP figures are in billions of dollars.) What is the GDP price index in Year 1?
Multiple Choice • 98 • 102.1 • 115.7 • 100