【国际经济学专题考试试卷二十三】Measuring a Nation's Income

Chapter 23

Measuring a Nation's Income

TRUE/FALSE

1. In years of economic contraction, firms throughout the economy increase their production of goods and

services, employment rises, and jobs are easy to find.

ANS: F DIF: 1 REF: 23-0

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Economic expansion MSC: Definitional

2. Macroeconomic statistics include GDP, the inflation rate, the unemployment rate, retail sales, and the trade

deficit.

ANS: T DIF: 1 REF: 23-0

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Macroeconomics MSC: Definitional

3. Macroeconomic statistics tell us about a particular household, firm, or market.

ANS: F DIF: 1 REF: 23-0

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Macroeconomics MSC: Definitional

4. Macroeconomics is the study of the economy as a whole.

ANS: T DIF: 1 REF: 23-0

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Macroeconomics MSC: Definitional

5. The goal of macroeconomics is to explain the economic changes that affect many households, firms, and

markets simultaneously.

ANS: T DIF: 1 REF: 23-0

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Macroeconomics MSC: Definitional

6. Microeconomics and macroeconomics are closely linked.

ANS: T DIF: 1 REF: 23-0

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Microeconomics | Macroeconomics MSC: Definitional

7. The basic tools of supply and demand are as central to macroeconomic analysis as they are to microeconomic

analysis.

ANS: T DIF: 1 REF: 23-0

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Demand | Supply MSC: Definitional

8. GDP is the most closely watched economic statistic because it is thought to be the best single measure of a

society’s economic well-being.

ANS: T DIF: 1 REF: 23-0

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Definitional

9. GDP can measure either the total income of everyone in the economy or the total expenditure on the

economy’s output of goods and services, but GDP cannot measure both at the same time.

ANS: F DIF: 2 REF: 23-1

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Interpretive

10. For an economy as a whole, income must exceed expenditure.

ANS: F DIF: 1 REF: 23-1

NAT: Analytic LOC: The study of economics and definitions of economics

Chapter 23 /Measuring a Nation's Income 1559 11. An economy’s income is the same as its expenditure because every transaction has a buyer and a seller. ANS: T DIF: 1 REF: 23-1

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Income | Expenditure MSC: Definitional

12. GDP is the market value of all final goods and s ervices produced by a country’s citizens in a given period of

time.

ANS: F DIF: 1 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Definitional

13. GDP adds together many different kinds of products into a single measure of the value of economic activity by

using market prices.

ANS: T DIF: 1 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Definitional

14. U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing. ANS: F DIF: 2 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Interpretive

15. U.S. GDP excludes the production of most illegal goods.

ANS: T DIF: 2 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Interpretive

16. U.S. GDP includes estimates of the value of items that are produced and consumed at home, such as

housework and car maintenance.

ANS: F DIF: 2 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Applicative

17. GDP includes only the value of final goods because the value of intermediate goods is already included in the

prices of the final goods.

ANS: T DIF: 1 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP | Intermediate goods MSC: Definitional

18. Additions to inventory subtract from GDP, and when the goods in inventory are later used or sold, the

reductions in inventory add to GDP.

ANS: F DIF: 1 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP | Inventory MSC: Definitional

19. While GDP includes tangible goods such as books and bug spray, it excludes intangible services such as the

services provided by teachers and exterminators.

ANS: F DIF: 2 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Applicative

20. At a rummage sale, you buy two old books and an old rocking chair; your spending on these items is not

included in current GDP.

ANS: T DIF: 2 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Applicative

21. When an American doctor opens a practice in Bermuda, his production there is part of U.S. GDP.

ANS: F DIF: 2 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

1560 Chapter 23 /Measuring a Nation's Income

22. If the U.S. government reports that GDP in the third quarter was $12 trillion at an annual rate, then the amount

of income and expenditure during quarter three was $3 trillion.

ANS: T DIF: 2 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Applicative

23. The government computes measures of income other than GDP because these other measures usually tell

different stories about overall economic conditions.

ANS: F DIF: 2 REF: 23-2

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP | Income MSC: Interpretive

24. Expenditures by households on education are included in the consumption component of GDP.

ANS: T DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Consumption MSC: Interpretive

25. Most goods whose purchases are included in the investment component of GDP are used to produce other

goods.

ANS: T DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Investment MSC: Interpretive

26. New home construction is included in the consumption component of GDP.

ANS: F DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Investment MSC: Interpretive

27. Changes in inventory are included in the investment component of GDP.

ANS: T DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Investment MSC: Interpretive

28. The investment component of GDP refers to financial investment in stocks and bonds.

ANS: F DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Investment MSC: Interpretive

29. The government purchases component of GDP includes salaries paid to soldiers but not Social Security

benefits paid to the elderly.

ANS: T DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Government purchases MSC: Interpretive

30. If the value of an economy’s imports exceeds the value of that economy’s exports, then net exports is a

negative number.

ANS: T DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Net exports MSC: Interpretive

31. If someone in the United States buys a surfboard produced in Australia, then that purchase is included in both

the consumption component of U.S. GDP and the net exports component of U.S. GDP.

ANS: T DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Consumption | Net exports MSC: Applicative

32. If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and

investment is $800, then GDP is $5700.

ANS: T DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

Chapter 23 /Measuring a Nation's Income 1561 33. If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is

$800, then consumption is $6200.

ANS: T DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Consumption MSC: Applicative

34. If consumption is $1800, GDP is $4300, government purchases are $1000, imports are $700, and investment is

$1200, then exports are $300.

ANS: F DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Exports MSC: Applicative

35. U.S. GDP was almost $14 billion in 2007.

ANS: F DIF: 1 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Definitional

36. In 2007, government purchases was the largest component of U.S. GDP.

ANS: F DIF: 2 REF: 23-3

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Interpretive

37. If total spending rises from one year to the next, then the economy must be producing a larger output of goods

and services.

ANS: F DIF: 2 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Interpretive

38. An increase in nominal U.S. GDP necessarily implies that the United States is producing a larger output of

goods and services.

ANS: F DIF: 2 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Nominal GDP MSC: Interpretive

39. Nominal GDP uses constant base-year prices to place a value on the economy’s production of goods and

services, while real GDP uses current prices to place a value on the economy’s production of goods and

services.

ANS: F DIF: 1 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Nominal GDP | Real GDP MSC: Definitional

40. Real GDP evaluates current production using prices that are fixed at past levels and therefore shows how the

economy’s overall production of goods and services changes over time.

ANS: T DIF: 1 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Real GDP MSC: Definitional

41. The term real GDP refers to a country’s actual GDP as opposed to its estimated GDP.

ANS: F DIF: 2 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Real GDP MSC: Interpretive

42. Changes in real GDP reflect only changes in the amounts being produced.

ANS: T DIF: 1 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Real GDP MSC: Definitional

43. Real GDP is a better gauge of economic well-being than is nominal GDP.

ANS: T DIF: 1 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

1562 Chapter 23 /Measuring a Nation's Income

44. Changes in the GDP deflator reflect only changes in the prices of goods and services.

ANS: T DIF: 2 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP deflator MSC: Interpretive

45. If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125.

ANS: T DIF: 2 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP deflator MSC: Applicative

46. If nominal GDP is $12,000 and the GDP deflator is 80, then real GDP is $15,000.

ANS: T DIF: 2 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Real GDP MSC: Applicative

47. Economists use the term inflation to describe a situation in which the economy’s overall prod uction level is

rising.

ANS: F DIF: 1 REF: 23-4

NAT: Analytic LOC: Unemployment and inflation TOP: Inflation

MSC: Definitional

48. If the GDP deflator in 2006 was 160 and the GDP deflator in 2007 was 180, then the inflation rate in 2007 was

12.5%.

ANS: T DIF: 2 REF: 23-4

NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate

MSC: Applicative

49. If the GDP deflator in 2004 was 150 and the GDP deflator in 2005 was 120, then the inflation rate in 2005 was

25%.

ANS: F DIF: 2 REF: 23-4

NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate

MSC: Applicative

50. The GDP deflator can be used to take inflation out of nominal GDP.

ANS: T DIF: 1 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP deflator MSC: Definitional

51. In 2004, the level of U.S. real GDP was close to four times its 1965 level.

ANS: T DIF: 1 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Real GDP MSC: Definitional

52. The output of goods and services produced in the United States has grown on average 3.2 percent per year. ANS: T DIF: 1 REF: 23-4

NAT: Analytic LOC: Productivity and growth T OP: Growth

MSC: Definitional

53. Periods during which real GDP rises are called recessions.

ANS: F DIF: 1 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Recessions MSC: Definitional

54. Recessions are associated with lower incomes, rising unemployment, and falling profits.

ANS: T DIF: 1 REF: 23-4

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Recessions MSC: Definitional

Chapter 23 /Measuring a Nation's Income 1563 55. If real GDP is higher in one country than in another, then we can be sure that the standard of living is higher in

the country with the higher real GDP.

ANS: F DIF: 2 REF: 23-5

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Real GDP | Standard of living MSC: Interpretive

56. Real GDP per person tells us the income and expenditure of the average person in the economy.

ANS: T DIF: 1 REF: 23-5

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: Real GDP per person MSC: Definitional

57. GDP does not directly measure those things that make life worthwhile, but it does measure our ability to

obtain many of the inputs into a worthwhile life.

ANS: T DIF: 1 REF: 23-5

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Definitional

58. GDP does not make adjustments for leisure time, environmental quality, or volunteer work.

ANS: T DIF: 2 REF: 23-5

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Interpretive

59. Other things equal, in countries with higher levels of real GDP per person, life expectancy and literacy rates

are higher than in countries with lower levels of real GDP per person.

ANS: T DIF: 2 REF: 23-5

NAT: Analytic LOC: The study of economics and definitions of economics

TOP: GDP MSC: Interpretive

SHORT ANSWER

1. GDP is defined as the market value of all final goods and services produced within a country in a given period

of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.

ANS:

GDP excludes some products because they are so difficult to measure. These products include services performed by individuals for themselves and their families, and most goods that are produced and consumed at home and, therefore, never enter the marketplace. In addition, illegal products are not included in GDP even if they can be measured because, by society's definition, they are bads, not goods.

DIF: 2 REF: 23-2 NAT: Analytic

LOC: The study of economics and definitions of economics TOP: GDP

MSC: Interpretive

2. Explain why it is the case that the value of intermediate goods produced and sold during the year is not

included directly as part of GDP, but the value of intermediate goods produced and not sold is included

directly as part of GDP.

ANS:

Intermediate goods produced and sold during the year are not included separately as part of GDP because the value of those goods is included in the value of the final goods produced from them. If the intermediate good is produced but not sold during the year, its value is included as inventory investment for the year in which it was produced. If inventory investment was not included as part of GDP, true production would be underestimated for the year the intermediate good went into inventory, and overestimated for the year the intermediate good is used or sold.

DIF: 2 REF: 23-2 NAT: Analytic

LOC: The study of economics and definitions of economics TOP: GDP | Intermediate goods

MSC: Interpretive