Measuring a Nation's Income

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Chapter 23
Measuring a Nation's Income

TRUE/FALSE

1.In years of economic contraction, firms throughout the economy increase their production of goods and services, employment rises, and jobs are easy to find. ANS:FDIF:1REF:23-0
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:Economic expansionMSC:Definitional

2.Macroeconomic statistics include GDP, the inflation rate, the unemployment rate, retail sales, and the trade deficit. ANS:TDIF:1REF:23-0
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:MacroeconomicsMSC:Definitional

3.Macroeconomic statistics tell us about a particular household, firm, or market. ANS:FDIF:1REF:23-0
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:MacroeconomicsMSC:Definitional

4.Macroeconomics is the study of the economy as a whole.
ANS:TDIF:1REF:23-0
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:MacroeconomicsMSC:Definitional

5.The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously. ANS:TDIF:1REF:23-0
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:MacroeconomicsMSC:Definitional

6.Microeconomics and macroeconomics are closely linked.
ANS:TDIF:1REF:23-0
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:Microeconomics | MacroeconomicsMSC:Definitional

7.The basic tools of supply and demand are as central to macroeconomic analysis as they are to microeconomic analysis. ANS:TDIF:1REF:23-0
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:Demand | SupplyMSC:Definitional

8.GDP is the most closely watched economic statistic because it is thought to be the best single measure of a society’s economic well-being. ANS:TDIF:1REF:23-0
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:GDPMSC:Definitional

9.GDP can measure either the total income of everyone in the economy or the total expenditure on the economy’s output of goods and services, but GDP cannot measure both at the same time. ANS:FDIF:2REF:23-1

NAT:AnalyticLOC:The study of economics and definitions of economics TOP:GDPMSC:Interpretive

10.For an economy as a whole, income must exceed expenditure. ANS:FDIF:1REF:23-1
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:Income | ExpenditureMSC:Definitional

11.An economy’s income is the same as its expenditure because every transaction has a buyer and a seller. ANS:TDIF:1REF:23-1
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:Income | ExpenditureMSC:Definitional

12.GDP is the market value of all final goods and services produced by a country’s citizens in a given period of time. ANS:FDIF:1REF:23-2
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:GDPMSC:Definitional

13.GDP adds together many different kinds of products into a single measure of the value of economic activity by using market prices. ANS:TDIF:1REF:23-2
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:GDPMSC:Definitional

14.U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing. ANS:FDIF:2REF:23-2
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:GDPMSC:Interpretive

15.U.S. GDP excludes the production of most illegal goods.
ANS:TDIF:2REF:23-2
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:GDPMSC:Interpretive

16.U.S. GDP includes estimates of the value of items that are produced and consumed at home, such as housework and car maintenance. ANS:FDIF:2REF:23-2
NAT:AnalyticLOC:The study of economics and definitions of economics TOP:GDPMSC:...
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