Chapter 6 Econ Assignment Answers Study Guide Graded A
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Course
NURSING 706
Institution
NURSING 706
Chapter 6 Econ Assignment Answers Study Guide Graded A+
The value of an economy's total output of goods and services is called _____.
A) consumption
B) investment
C) gross domestic product
D) exports
The gross domestic product of a nation can be measured:
A) as the total value of consumer e...
1). The value of an economy's total output of goods and services is called _____.
a) consumption
b) investment
c) gross domestic product
d) exports
Ans: gross domestic product
2). The gross domestic product of a nation can be measured:
a) as the total value of consumer expenditures on goods and services.
b) as the total value of income generated in producing total output.
c) as the total cost of producing of that output excluding profit
d) as the total value of inputs used to produce a nation's output.
Ans: as the total value of income generated in producing total output
3). Of the following, which statistic do economists use to measure the business cycle?
a) changes in the inflation rate
b) changes in real gross domestic product
c) changes in the value of imports
d) changes in the implicit price deflator
Ans: Changes in real gross domestic product
4). In the long run, a country's material standard of living is determined by:
a) the difference between its exports and imports.
b) the average level of prices and the average income of its population.
c) its output relative to its population.
d) the amount of money supply relative to its population.
Ans: its output relative to its population
5). Let c = consumption, i = private investment, g = government purchases, and xn = net
exports. which of the following best represents the equation for gdp?
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, a) gdp = c+ i + g − xn
b) gdp = c + i + g + xn
c) gdp = c + i + g + net imports
d) gdp = c + i + g + tax revenues + xn
Ans: GDP = C + I + G + Xn
6). Gdp is the sum of:
a) personal consumption, private investment, government purchases, and imports.
b) personal consumption, private investment, government purchases, and net exports.
c) personal consumption, private investment, government purchases, and net imports.
d) personal consumption, private investment, government purchases, and foreign
remittances.
Ans: personal consumption, private investment, government purchases, and net
exports.
7). What is the difference between a flow variable and a stock variable?
a) a stock variable is a variable that is measured over a specific period of time while a flow
variable is a variable that is independent of time.
b) a flow variable is a variable that is measured in units of current prices while a stock
variable is measured using prices from a base period.
c) a flow variable is a variable that is measured over a specific period of time while a stock
variable is a variable that is independent of time.
d) a stock variable is a variable that is measured in units of current prices while a flow
variable is measured using prices from a base period
Ans: A flow variable is a variable that is measured over a specific period of time while
a stock variable is a variable that is independent of time
8). Which of the following is an example of a flow variable?
a) the balance in your checking account
b) the value of your stock portfolio
c) the amount of cash you have in your safe
d) the interest amount you pay on your auto loan
Ans: The interest amount you pay on your auto loan
9). Which of the following is an example of a stock variable?
a) your monthly utilities bill
b) the value of your stock portfolio
c) your annual salary
d) the interest amount you pay on a mortgage
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, Ans: The value of your stock portfolio
10). The gross domestic product of a nation:
a) is a flow variable.
b) is a stock variable.
c) could either be a flow variable or a stock variable depending on the time period
considered.
d) could either be a flow variable or a stock variable depending on the share of personal
consumption.
Ans: is a flow variable
11). All of the following items are a flow variable except _____.
a) a savings account balance
b) consumption expenditure
c) government purchases
d) gross private investment
Ans: a savings account balance
12). Which of the following items is a stock variable?
a) expenditure on consumer goods
b) private investment
c) labor wage
d) government debt
Ans: Government debt
13). The value of goods and services purchased by households during a particular period is
called:
a) personal consumption.
b) private investment.
c) gross domestic purchases.
d) net imports.
Ans: personal consumption
14). Which of the following is counted as consumption expenditure?
a) a person buying a government bond
b) a person buying a toaster from your neighbor in a garage sale
c) a firm renting a two-storied building
d) a person buying a new car
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