Macroeconomics Practice Quiz Questions

10 Questions | Total Attempts: 443

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Macroeconomics Quizzes & Trivia

Practice test I created out of quizzes to help me study.


Questions and Answers
  • 1. 
    In the U.S. system of accounting, which of the following measures of income will have the highest value?
    • A. 

      NNP (Net National Product)

    • B. 

      NI (National Income)

    • C. 

      GDP (Gross Domestic Product)

    • D. 

      PI (Personal Income)

  • 2. 
    To avoid double counting in the computation of our GDP, we either count only the final sale price of an item or apply the concept of ______ to intermediate sales.
    • A. 

      Capital consumption

    • B. 

      Disposable income

    • C. 

      Value added.

    • D. 

      Price deflation.

  • 3. 
    National income may be estimated by
    • A. 

      Adding up categories (types) of income.

    • B. 

      Adding up the value of products and subtracting 1) depreciation (capital consumption allowance, 2) indirect business taxes, and 3) statistical discrepancies.

    • C. 

      Both a and b.

    • D. 

      None of the above

  • 4. 
    Which one of the following is not part of the Expenditure Approach of computing GDP.
    • A. 

      Consumption

    • B. 

      Investment

    • C. 

      Government spending

    • D. 

      Wages and salaries

  • 5. 
    Only Currently Produced goods and services are counted in our GDP.
    • A. 

      True

    • B. 

      False

  • 6. 
    Our National Income is underestimated because we do not
    • A. 

      Place a value on owner-occupied housing

    • B. 

      Count do-it-yourself production

    • C. 

      Count corporate profits

    • D. 

      All of the above

  • 7. 
    To change nominal values (current dollars) to real value (constant dollars) we must:
    • A. 

      Multiply nominal values by a price index

    • B. 

      Divide nominal values by a price index

  • 8. 
    The “implicit price deflator of GDP” and the “consumer price index” (CPI) are exactly the same thing.
    • A. 

      True

    • B. 

      False

  • 9. 
    A real wage rate is a wage rate that is
    • A. 

      Higher than any other wage rate

    • B. 

      Adjusted for changes in the price level

  • 10. 
    If a man marries his maid, and she continues working at home (assuming that the man never pays his wife) then it is safe to say that measured GDP
    • A. 

      Will not be affected

    • B. 

      Will go down

    • C. 

      Will go up

    • D. 

      May go up or down

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