Economics Quiz
1. A nation's standard of living is best measured by its a. | real GDP. | b. | real GDP per person. | c. | nominal GDP. | d. | nominal GDP per person. |
2. Productivity is defined as the quantity of a. | labor required to produce a nation’s GDP. | b. | labor required to produce one unit of goods and services. | c. | goods and services produced from each unit of labor input. | d. | goods and services produced per unit of time. |
3. The equipment and structures available to produce goods and services are called a. | physical capital. | b. | human capital. | c. | the production function. | d. | technology. | 4. Human capital is the a. | knowledge and skills that workers acquire through education, training, …show more content…
The CPI is more commonly used as a gauge of inflation than the GDP deflator is because a. | the CPI is easier to measure. | b. | the CPI is calculated more often than the GDP deflator is. | c. | the CPI better reflects the goods and services bought by consumers. | d. | the GDP deflator cannot be used to gauge inflation. |
6. If 2002 is the base year, then the inflation rate in 2005 equals a. | | b. | | c. | | d. | | 7. If the price of a Blu-Ray Disc player is three times the price of an MP3 player, then a Blue-Ray Disc player contributes a. | more than three times as much to GDP as does a MP3 player. | b. | less than three times as much to GDP as does a MP3 player. | c. | exactly three times as much to GDP as does a MP3 player. | d. | None of the above is necessarily correct. | 8. A farmer sells $50,000 of apples to individuals who take them home to eat and $75,000 of apples to a company that uses them all to produce cider. How much of the farmer’s sales will be included as apples in GDP? a. | $0 | b. | $50,000 | c. | $75,000 | d. | $125,000 |
9. The consumption component of GDP includes spending on a. | durable goods and nondurable goods, but not spending on services.
2. Productivity is defined as the quantity of a. | labor required to produce a nation’s GDP. | b. | labor required to produce one unit of goods and services. | c. | goods and services produced from each unit of labor input. | d. | goods and services produced per unit of time. |
3. The equipment and structures available to produce goods and services are called a. | physical capital. | b. | human capital. | c. | the production function. | d. | technology. | 4. Human capital is the a. | knowledge and skills that workers acquire through education, training, …show more content…
The CPI is more commonly used as a gauge of inflation than the GDP deflator is because a. | the CPI is easier to measure. | b. | the CPI is calculated more often than the GDP deflator is. | c. | the CPI better reflects the goods and services bought by consumers. | d. | the GDP deflator cannot be used to gauge inflation. |
6. If 2002 is the base year, then the inflation rate in 2005 equals a. | | b. | | c. | | d. | | 7. If the price of a Blu-Ray Disc player is three times the price of an MP3 player, then a Blue-Ray Disc player contributes a. | more than three times as much to GDP as does a MP3 player. | b. | less than three times as much to GDP as does a MP3 player. | c. | exactly three times as much to GDP as does a MP3 player. | d. | None of the above is necessarily correct. | 8. A farmer sells $50,000 of apples to individuals who take them home to eat and $75,000 of apples to a company that uses them all to produce cider. How much of the farmer’s sales will be included as apples in GDP? a. | $0 | b. | $50,000 | c. | $75,000 | d. | $125,000 |
9. The consumption component of GDP includes spending on a. | durable goods and nondurable goods, but not spending on services.