chapter17 and 18 please ( economics)

Question 6 GDP at market prices in an economy one year is E1,500 billion, Net income from abroad is 20 billion, net current transfers paid abroad are E15 billion, and capital consumption is (150 billion, Which of the following statements is false? a) Gross national income at market prices is $1,520 billion b) Gross national disposable income at market prices is E1,535 billion. c) Net domestic product at market prices is f1,350 billion. d) Net national income at market prices is 21,370 billion Question 7 Country A uses sterling and has a GDP per head of E30,000. Country Buses another currency. If this is converted to sterling at the current exchange rate, its GDP per head is $5,000. Which of the following statements is false? a) To get a better comparison of output per head, it would be better to convert country B's currency into sterling using purchasing power parities (PPPs). b) If PPPs were used, it is most likely that B's output per head would seem closer than it does using exchange rates. c) Exchange rates generally settle so that the prices of tradable products in each country are similar. d) PPPs are the rates which ensure that the prices of all products in each country are similar. Question 8 Suppose that, over time, the share of manufacturing industry in a country's GDP falls. Which of the following statements is true? 1. The quantity of the goods and services produced by manufacturing industry must be falling. 2. The value of the goods and services produced by manufacturing industry must be falling a) Both 1 and 2 b) 1 only c) 2 only d) Neither 1 nor 2 Question 9 Which of the following statements is true? 1. Total welfare is affected by many factors including economic welfare. 2. Economic welfare refers to living standards. a) Both 1 and 2 b) 1 only c) 2 only d) Neither 1 nor 2 Question 10 Suppose that over the course of a decade an economy had a stable population and real GNDI increased by 20%. However, an economist estimates that economic welfare increased by less than 20%. Which of the following would not be a factor that could help to explain this? a) Household production (excluding owner-occupied property) increased by less than 20% b) Output by the underground economy increased by less than 20%. c) Leisure time increased by less than 20%. d) Prices increased by more than 20%.Chapter 18 Instructions Answer the following questions and then press 'Submit to get your score. Question 1 One week, a firm receives $9,000 from its customers. It has to pay $1,000 in taxes on products and 6500 in other taxes on production, and it receives $100 in subsidies on products and 650 in other subsidies. Which of the following equals E7,650? a) The value of its products sold at market prices b) The value of its products sold at basic prices c) The value of its products sold at factor cost d) None of the above Question 2 Return to the firm in question 1. Suppose that in the week concerned it adds $350 worth finished products to its inventories. Also, it buys $3,000 worth of intermediate products from other firms but adds $300 worth of these to its inventories What is its value added factor cost? a) $8.000 b) 65,300 c) 64.700 d) $4,000 Question 3 Return to the firm in questions 1 and 2. Suppose that in the week concerned it pays compensation to its employees of $5,000. What is its operating surplus? a) $300 b) $650 c) E650 d) 1950 Question 4 GDP at factor cost equals the total value added at factor cost of all producers. Which of the following can be used to discover this total? a) The total operating surpluses of all producers b) The total compensation of employees of all producers c) The total compensation of employees of all producers minus the total operating surpluses of all producers d) The total compensation of employees of all producers plus the total operating surpluses of all producers Question 5 Expenditure in an economy for one quarter of a year is as follows, all figures being at market prices and in f billion: Consumption expenditure by households 80, consumption expenditure by non-profit institutions 5. consumption expenditure by general government 35, gross domestic fixed capital formation 20, changes in inventories 6, acquisition less disposals of valuables 1, exports 40, imports 45. What is GDP at market prices for that quarter? a) 6140 billion b) f142 billion c) E240 billion d) $242 billionQuestion 7 Which of the following statements is false? a) Even in the worst recorded cases of hyperinflation, the price level always took at last a week to double. b) Some people lose out if actual inflation turns out to be below the rate they expected. c) Some people lose out if actual inflation turns out to be above the rate they expected. 'd) Some people lose out if actual inflation turns out to be equal the rate they expected. Question 8 Which of the following statements is false? a) The GDP deflator is a price index that covers all goods and services included in GDP. b) The RPI is a price index that covers a wide range of goods and services bought by households c) The CPI is a price index that covers a wide range of goods and services bought by households. d) The CPI generally rises more quickly than the RPI. Question 9 In which of the following situations would real GDP increase while the price level stayed the same? a) The aggregate demand and aggregate supply curves both shifted up by the same amount. b) The aggregate demand and aggregate supply curves both shifted right by the same amount. c) The aggregate demand curve stayed put but aggregate supply shifted right. d) The aggregate demand curve shifted right but the aggregate supply curve stayed put. Question 10 Which of the following statements is false? a) Between 1990 and 2010, the UK had a higher average rate of economic growth than any other G7 country b) Between 1990 and 2010, the UK had a lower average rate of unemployment than any other G7 country. c) Since 1855, the average rate of economic growth in the UK has been about 2%. d) Since 1855, the average rate of unemployment in the UK has been about 6%,Chapter 17 Instructions Answer the following questions and then press Submit to get your score Question 1 Which of the following statements about economic growth is false? a) Economic growth solves the economic problem b) Economic growth can be helped by having new technology c) Economic growth can be helped with more education. d) Economic growth can be helped by using tidal power. Question 2 Each of the following statements includes two terms. In three cases, the two terms mean the same as each other. In which case do the two terms not mean the same as each other? a) Nominal GDP and GDP at current prices. b) Real GDP and GDP at constant prices. c) The base period and the reference period. d) Changes in real GDP and the GDP deflator Question 3 Suppose year 1 is taken as a base period. Nominal GDP that year is $500 billion. By a later year 2, nominal GDP has reached $700 billion but the GDP deflator is 125. What will real GDP be each year? a) 1625 billion in year 1 and $560 billion in year 2. b) 1625 billion in year 1 and $700 billion in year 2. c) $500 billion in year 1 and $560 billion in year 2. d) 1500 billion in year 1 and $700 billion in year 2. Question 4 In what circumstances is an economy said to be in recession? a) If real GDP falls in one quarter compared with the quarter before. b) If real GDP falls for two consecutive quarters. c) If real GDP falls in one year compared with the year before. d) If real GDP falls for two consecutive years. Question 5 Which one of the following are regarded as being in the labour force? a) People aged 60 who have retired early. b) Full-time students who do not have paid employment. c) People who have chosen to care for their families or homes rather than seek paid employment. d) People who have lost their jobs because of the recession and cannot at present find another job. Question 6 Measures of unemployment based on people who receive Job-Seekers' Allowance make no allowance for the four groups of people listed below. Which of these four groups is also excluded from the international measure? a) Unemployed people aged 16-17 who have left school. b) Unemployed people aged 60 or more. c) People who work part-time but want to work full-time. d) Unemployed people who have not worked long enough to be entitled to Job-Seekers Allowance