Question 3 (1 point) Saved 5-- The Marginal Propensity to Consume (MPC) is dened as the change in @ C over the change in D1. 0 income over the change in disposable income. 0 DI over the change in C. 0 total income over the change in net income. Question 4 (1 point) Saved 5 'D Listen b Is GDP an accurate measure of a country's well being? 0 Yes, it is the best measure of national well being. 0 Yes, provided we use real GDP and not nominal GDP. 0 The answer is uncertain, depending on whether GDP is rising or falling. @ No, it is not. Question 5 (1 point) E-II The aggregate demand curve shows the quantity of domestic product 0 produced at each possible price level. 0 demanded and produced at each possible price level. 0 that is exported at each possible price level. 0 demanded at each possible price level. Question 6 (1 point) E-II The relationship between consumer spending and disposable income is called the O conjunction function. 0 consumption function. 0 aggregate demand function. 0 marginal spending function. Question 7 (1 point) E '3) Listen u The system of measurement for expressing macroeconomic data is called 0 national income accounting. 0 balance of payment accounting. 0 generally accepted accounting principles. 0 double entry bookkeeping. Question 8 (1 point) E (3) Listen u Gross Domestic Product is the 0 least inclusive aggregate used to measure the economy. 0 total of goods and services desired by consumers. 0 most comprehensive measure of total output in the United States. 0 most accurate measure of the trade balance of the United States. Question 9 (1 point) E-Il The numerical value of the MPC is typically 0 less than 1. 0 equal to l. O greater than 1. O unpredictable. Question 10 (1 point) E-Il The largest component of aggregate demand is 0 investment spending. 0 consumer spending. 0 government spending. 0 total imports. Question 11 (1 point) a mu-n I: Figure 8-2 In Figure 8-2, which of the following moves can be explained by a decrease in disposable income? Question 12 (1 point] E-Il Real GDP differs from nominal GDP in that nominal GDP measures 0 output adjusted for ination. 0 real output of goods and services. 0 output of goods and services at current prices. 0 real income adjusted for changes in the price level. Question 13 (1 point) Listen Intermediate goods, like milk sold by a farmer to a supermarket, are included in GDP. OO included in GDP at market value. C included if it is imported. O are not included in GDP. Question 14 (1 point) Listen Aggregate demand is the sum of OC+I+G+(X - IM). OC + I+x. OC+I+X -IM. O C+ ItG. Previous Page Next Page Page 7 of 10Question 15 (1 point) E-ll Gross Domestic Product is calculated by adding together 0 the number of goods and services produced in the economy. 0 money value of nal goods and services. 0 number of workers employed in national production. 0 all commodities but not services produced in the economy. Question 16 (1 point) 5-\" The clearest sign of economic growth is a(n) 0 increase in nominal GDP. 0 increase in real GDP. 0 decrease in nominal GDP. 0 increase in nominal GDP. Previous Page Page 8 of 10 Question 17 (1 point) E-Il IfHonda (a Japanbased firm) produces a car in Ohio and exports it to Japan, in which country's GDP will the car be counted? 0 Japan's, because Honda is a Japanese company O Japan's because that is where the car is purchased O The GDP of the United States because that is where it was built 0 Both Japan and the United States Question 18 (1 point) -II An example of an intermediate good would be a(n) 0 new car. 0 used car. 0 new tire for a used car. O tire for a new car. O All ofthe above. Question 19 (1 point) E-Il The nation's disposable income increases by $400 billion and, as a result, consumer spending increases by $320 billion. Therefore, the MPC equals Question 20 (1 point) e um I! General Motors Corporation (a U.S.-based firm) produces a Saab vehicle in Sweden, and sells it in the United States. In which country's GDP is it included? 0 Sweden and the United States 0 The United States because it was sold there 0 The United States because GM is a US. company 0 Sweden because it was produced there Previous Page Next Page Page 10 of 10