Macroeconomics Practice Quiz Questions
Practice test I created out of quizzes to help me study.
- 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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