GDP per capita fully reflects the standard of living of a typical citizen of a country.

Question 1 options:

a)

True

b)

False

Question 2(1 point)

The economy is probably heading into a recession when the National Activity Index equals:

Question 2 options:

a)

0.

b)

0.62.

c)

-0.94.

d)

0.79.

Question 3(1 point)

(Table) Look at the table (Macroeconomic Data for Econoland); what stage of the business cycle would the NBER declare Econoland to be in during the 4th quarter of 2014?

Question 3 options:

a)

expansion

b)

trough

c)

peak

d)

recession

Question 4(1 point)

(Table) Look at the table (Macroeconomic Data for Econoland); which time period covers one complete business cycle with no duplicate stages?

Question 4 options:

a)

4th quarter 2014 through 4th quarter 2016

b)

2nd quarter 2014 through 2nd quarter 2016

c)

2nd quarter 2014 through 1st quarter 2015

d)

4th quarter 2014 through 1st quarter 2016

Question 5(1 point)

(Table) Look at the table of data for two countries; which statement correctly identifies the country in which consumers are better off on average and why?

Question 5 options:

a)

Econoland because its GDP per capita is higher.

b)

Macroland because its consumption purchases per capita is higher.

c)

Macroland because its GDP per capita is higher.

d)

Econoland because its consumption purchases per capita is higher.

Question 6(1 point)

The idea that all income ultimately goes to households, which then use it to buy goods and services from firms, is a central idea of the:

Question 6 options:

a)

classical model.

b)

production possibilities frontier.

c)

supply and demand model.

d)

circular flow diagram.

Question 7(1 point)

A disadvantage of using per capita GDP to measure the standard of living in a country is that it does not accurately reflect the differences in wealth between rich citizens and poor citizens in the same country.

Question 7 options:

a)

False

b)

True

Question 8(1 point)

Which one of the following would be included in GDP calculations?

Question 8 options:

a)

petroleum purchased by a refiner from the company that drilled it

b)

a windshield purchased by General Motors

c)

nails purchased by a building contractor

d)

a hamburger purchased by a hungry restaurant patron

Question 9(1 point)

The _____ is (are) equal to the total market value of all final goods and services produced in the United States.

Question 9 options:

a)

consumer price index

b)

national income and product accounts

c)

GDP

d)

the National Bureau of Economic Research

Question 10(1 point)

One important reason economists track business investment is that:

Question 10 options:

a)

it is a leading indicator of the business cycle.

b)

it helps them decide which stocks to purchase.

c)

business investment is an excellent proxy for government investment.

d)

it shows where the economy has been.