Bài tập trắc nghiệm vĩ mô( tiếng Anh)

4.

3.

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8.

Macroeconomics includes the study of topics such as
a. national output, the inflation rate, and the trade deficit.
b. the price of Cisco stock, wage differences between genders, and antitrust laws.
c. differences in market structure, and how consumers maximize utility.
d. None of the above are correct.
Which of the following questions is more likely to be studied by a microeconomist than a
macroeconomist?
a. Why do prices in general rise by more in some countries than others?
b. Why do wages differ across industries?
c. Why do production and income increase in some periods and not in others?
d. Why has average income increased over time?
Which of the following headlines would be more closely related to what microeconomists
study than what macroeconomists study?
a. Unemployment rate rises from 5 percent to 5.5 percent.
b. Real GDP grows by 3.1 percent in the third quarter.
c. Retail sales at stores show large gains.
d. The price of oranges rises after an early frost.
Which of the following statistics is the best single measure of an economy’s well-being?
a. the unemployment rate
b. the inflation rate
c. GDP

d. the trade deficit
Which of the following is correct for an economy?
a. Income is greater than production.
b. Production is greater than income.


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c. Income always equals production.
d. Income equals production only when saving is zero
Robert works as a lawyer.
a. GDP computations should be made using his income from providing legal services, not his
production of legal services.
b. GDP computations should be made using his production, not his income from providing
legal services.
c. GDP computations should include both his income and his production.
d. GDP computations should include either his income or his production, but not both.
If GDP rises,
a. income and production must both rise.
b. income and production must both fall.
c. income must rise, but production may rise or fall.
d. production must rise, but income may rise or fall.

In a simple circular-flow diagram total income and total expenditure are
a. seldom equal because of the dynamic changes which occur in an economy.
b. equal only when all goods and services produced are sold.
c. always equal because every transaction has a buyer and a seller.
d. always equal because of accounting rules.
In a simple circular-flow diagram, total income and total expenditures in an economy are
a. equal because firms are ultimately owned by households.
b. equal only if there is no saving.
c. equal because every transaction has a buyer and a seller.
d. never equal because some people’s income is not for production
Firms use the money they get from a sale for
a. paying wages.


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b. making a profit.
c. paying rents.
d. All of the above are correct.
The simple circular-flow diagram illustrates that
a. production generates income so that income and production are the same.
b. the economy’s income exceeds its production.

c. the production of an economy exceeds its income.
d. None of the above are necessarily correct
In an economy consisting of only households and firms, GDP can be computed by
a. adding up the total expenditures of households.
b. adding up the total income paid by firms.
c. Either a or b are correct.
d. None of the above are correct
Production equals income because
a. by law firms must pay out all their revenue as income to someone.
b. for every sale there is a buyer and a seller.
c. because ultimately firms are owned by households.
d. None of the above are correct.
Which of the following is the correct definition of GDP?
a. the market value of all goods produced within a country
b. the market value of all final goods and services produced by the citizens of a country
c. the market value of all final goods and services produced within a country
d. None of the above are correct
To compute GDP we


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a. simply sum the number of final goods and services.
b. sum the cost of producing final goods and services.

c. use weights determined by a survey regarding how much people value different sorts of
goods and services to compute GDP as a weighted average.
d. sum the market values of final goods and services
In order to include many different products in an aggregate measure, GDP is computed using
a. values of goods based on surveys of consumers.
b. primarily market prices.
c. primarily costs of production.
d. weights that are computed by how much of a particular good is produced relative to total
output
GDP is computed using market prices as the value of final goods and services because
a. market prices don’t change much, so it is easy to make comparisons between years.
b. if market prices are out of line with how people value goods, the government sets ceilings
and floors on them.
c. market prices reflect the value of goods and services.
d. None of the above are correct; the government does not use market prices to compute
GDP.
Which of the following is not included in GDP?
a. unpaid cleaning and maintenance of houses
b. services such as those provided by lawyers and hair stylists
c. the estimated rental value of owner-occupied housing
d. production of foreign citizens living in the United States
The value of housing service provided by the economy’s stock of houses is
a. not included in GDP since it is not sold on the market.
b. counted and is valued as the mortgage payment made on the house.
c. counted and uses only the purchase price of the house in the year it is sold.
d. counted and is based on an estimate of its rental value.


23. Suppose that an apartment complex converts to a condominium where the renters are now
owners of their former apartments.

a. The rent was included in GDP; the purchases of the condominiums are not.
b. The rent was included in GDP, and so is the purchase of the condominiums.
c. The rent was not included in GDP; the purchases of the condominiums are.
d. Neither the rent of the apartments nor the purchases of the condominium are included in
GDP.
24. Suppose that an apartment complex converts to a condominium where the renters are now
owners of their former apartments. Suppose that an estimate of the value of the
condominium owners’ housing services is now the same as their former rent.
a. GDP necessarily increases.
b. GDP necessarily decreases.
c. GDP is unaffected because neither the rent nor the estimate of the value of housing
services is included in GDP.
d. GDP is unaffected because previously rent was included in GDP, and now it is replaced by
the estimate of the value of housing services.
25. Which of the following non-market goods or services is included as an estimate in U.S. GDP?
a. the value of unpaid housework
b. the value of vegetables that people grow in their gardens
c. the estimated rental value of owner-occupied homes
d. None of the above are correct.
26. Over the last few decades Americans have chosen to cook less at home and eat more at
restaurants. This change in behavior, by itself,
a. increased measured GDP.
b. reduced measured GDP.
c. did not affect measured GDP.
d. affected measured GDP only to the extent that people eat more at restaurants than at
home.
27. Over time people have come to rely more on market-produced goods and less on goods that
they produce for themselves. For example people eat at restaurants relatively more and
prepare their own meals at home relatively less. By itself this change would
a. make GDP fall over time.

b. not make any change in GDP over time.
c. make GDP rise over time.


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d. change GDP, but in an uncertain direction.
Ralph pays someone to mow his lawn. Norton mows his own lawn.
a. Only what Ralph pays to have his lawn mowed is included in GDP.
b. What Ralph pays to have his lawn mowed and the estimated value to Norton of mowing
his own lawn are both included in GDP.
c. Neither what Ralph pays nor the estimated value of Norton’s mowing is included in GDP.
d. The answer depends on what Norton reports to survey takers.
Jim is a chef at a restaurant. Sally prepared her own meals during the first quarter of 2002,
and then ate at Jim’s restaurant every day in the second quarter of 2002. Sally’s change of
habit
a. necessarily raises GDP.
b. necessarily reduces GDP.
c. raises GDP only if the restaurant meals are more expensive than the estimated value of
Sally’s meals.
d. has no impact on GDP.
If Susan decides to change the oil in her car herself instead of having Speedy Lube change the

oil for her GDP
a. necessarily rises.
b. necessarily falls.
c. will be unaffected because the same service is produced in either case.
d. will be unaffected because car maintenance is not included in GDP.
A professional gambler moves from a state where gambling is illegal to a state where
gambling is legal. This move
a. necessarily raises GDP.
b. necessarily decreases GDP.
c. doesn’t change GDP because gambling is never included in GDP.
d. doesn’t change GDP because in either case his income is included.
A professional gambler moves from a state where gambling is legal to a state where
gambling is illegal. This move
a. necessarily raises GDP.
b. necessarily decreases GDP.


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c. doesn’t change GDP because gambling is never included in GDP.
d. doesn’t change GDP because in either case his income is included.
If a state made an illegal activity such as gambling or prostitution legal, then other things the

same GDP
a. necessarily increases.
b. necessarily decreases.
c. doesn’t change because both legal and illegal production are included in GDP.
d. doesn’t change because these activities are never included in GDP.
If a state legalized gambling and then reversed its decision and made gambling illegal, then
other things the same GDP
a. necessarily increases.
b. necessarily decreases.
c. doesn’t change because both legal and illegal production are included in GDP.
d. doesn’t change because gambling is never included in GDP.
Roommates Grace and Kelly are sharing household chores and think they have an even
exchange. Other things the same, if instead they paid each other for the chores the other did
GDP would
a. rise.
b. fall.
c. be unaffected because paid or not, household chores are not included in GDP.
d. be unaffected because paid or not, household chores are included in GDP.
Which of the following is correct?
a. The value of all intermediate goods and final goods are included in GDP.
b. The value of intermediate goods are included in GDP only if they were produced in the
previous year.
c. The value of intermediate goods are included in GDP only if they are purchased by firms
rather than households.
d. The value of intermediate goods are not included in GDP.
GDP
a. includes the value of intermediate goods so we can get a measure of sales.


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b. excludes the value of intermediate goods because they are too difficult to measure.
c. excludes the value of intermediate goods because their value is already counted in the
value of final goods.
d. None of the above are correct.
The total sales of all firms in the economy for a year
a. equals GDP for the year.
b. is larger than GDP for the year.
c. is smaller than GDP for the year.
d. equals GNP for the year.
Grapes are
a. always counted as an intermediate good.
b. counted as an intermediate good only if they are used to produce another good like wine.
c. counted as an intermediate good only if they are consumed.
d. counted as an intermediate good whether they are used to produce another good or
consumed.
Flour is
a. always counted as an intermediate good.
b. counted as an intermediate good if it is used by a company to make bread.
c. counted as a final good if it is used by a consumer who bakes bread for his own
consumption.
d. Both b and c are correct.

Gasoline is
a. always considered an intermediate good.
b. counted as a final good if a company uses it to provide transportation services.
c. counted as a final good if a consumer uses it to run a lawnmower to mow her yard.
d. Both b and c are correct.
Goods that go into inventory and are not sold during the current period are


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a. counted as intermediate goods and so are not included in current period GDP.
b. counted in current GDP only if the firm that produced them sells them to another firm.
c. included in current period GDP as inventory investment.
d. included in current period GDP as consumption.
The local Chevrolet dealership has an increase in inventory of 25 cars in 2003. In 2004 it
sells all 25 cars.
a. The value of increased inventory will be counted as part of GDP in 2003, but the value of
the cars sold in 2004 will not cause GDP to increase.
b. The value of the increased inventory will not affect 2003 GDP, but will be included in 2004
GDP.
c. The value of the increased inventory will be counted as 2003 GDP and the value of the
cars sold in 2004 will increase 2004 GDP.
d. None of the above are correct.
A movie company makes 500,000 DVDs of one of its latest releases. It sells 300,000 of them

before the end of the second quarter, and holds the others in its warehouse.
a. Since the DVDs will eventually be bought by consumers, they are included as consumption
in the second quarter.
b. Since the DVDs were not purchased this quarter, they will be counted as an increase in
third-quarter GDP.
c. The DVDs will be counted as a change in inventory in the second quarter and so will be
included in second-quarter GDP.
d. The DVDs will be counted as a change in inventory in the second quarter, and when sold in
the third quarter will raise GDP.
George buys and lives in a newly constructed home he paid $200,000 for in 2003. He sells
the house in 2004 for $225,0000.
a. The 2004 sale increases 2004 GDP by $225,000 and does nothing to 2003 GDP.
b. The 2004 sale increases 2004 GDP by $25,000 and does nothing to 2003 GDP.
c. The 2004 sale does not increase 2004 GDP and does nothing to 2003 GDP.
d. The 2004 sale increases 2004 GDP by $225,000 and 2003 GDP is revised upward by
$25,000.
Darla, a Canadian citizen, only works in the United States. The value added to production
from her employment is
a. included in both U.S. GDP and U.S. GNP.
b. included only in U.S. GDP.
c. included only in U.S. GNP.
d. not included in either U.S. GDP or U.S. GNP.


47. Greg, a U.S. citizen, works only in Canada. The value added to production from his
employment is
a. included in both U.S. GDP and U.S. GNP.
b. included only in U.S. GDP.
c. included only in U.S. GNP.
d. not included in either U.S. GDP or U.S. GNP.

48. Anna, a U.S. citizen, works only in Germany. The value added to production from her
employment is included
a. only in U.S. GDP.
b. only in German GDP.
c. in both German and U.S. GDP.
d. in neither German nor U.S. GDP.
49. An Italian company opens a pasta company in the U.S. The profits from this pasta company
are included in
a. both U.S. and Italian GNP.
b. both U.S. and Italian GDP.
c. U.S. GDP and Italian GNP.
d. U.S. GNP and Italian GDP.
50. An American company owns a fast food restaurant in Romania. The value of goods and
services it produces is included
a. in both Romanian and U.S. GDP.
b. partly in Romanian GDP and partly in U.S. GDP.
c. in Romanian GDP, but not U.S. GDP.
d. in U.S. GDP, but not Romanian GDP.
1. Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best baseball
players can earn 200 times as much as Babe Ruth in 1931. However, prices have also risen
since 1931. We can conclude that
a. the best baseball players today are about 200 times better off than Babe Ruth was in 1931.
b. because prices have also risen, the standard of living of baseball stars hasn’t changed since
1931.
c. one cannot make judgments about changes in the standard of living based on changes in
prices and changes in incomes.


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d. one cannot determine whether baseball stars today enjoy a higher standard of living than
Babe Ruth did in 1931 without additional information regarding increases in prices since
1931.
When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living.
b. can spend fewer dollars to maintain the same standard of living.
c. finds that its standard of living is not affected.
d. can offset the effects of rising prices by saving more.
The consumer price index is used to
a. track changes in the level of wholesale prices in the economy.
b. monitor changes in the cost of living.
c. monitor changes in the level of real GDP.
d. track changes in the stock market.
The term “inflation” is used to describe a situation in which
a. the overall level of prices in the economy is increasing.
b. incomes in the economy are increasing.
c. stock-market prices are rising.
d. the economy is growing rapidly.
When the overall level of prices in the economy is increasing, we say that the economy is
experiencing
a. economic growth.
b. inflation.

c. unemployment.
d. deflation.
The inflation rate is defined as the
a. price level.
b. change in the price level.


c. price level divided by the price level in the previous period.
d. percentage change in the price level from the previous period.
7. The CPI is a measure of the overall cost of
a. inputs purchased by a typical producer.
b. goods and services bought by a typical consumer.
c. goods and services produced in the economy.
d. stocks on the New York Stock Exchange.
8. Which of the following agencies calculates the CPI?
a. the National Price Board
b. the Department Of Weight and Measurements
c. the Bureau of Labor Statistics
d. the Congressional Budget Office
9. The CPI is calculated
a. weekly.
b. monthly.
c. quarterly.
d. yearly.
10. What is the basket of goods used to construct the CPI?
a. a random sample of all goods and services produced in the economy
b. the goods and services typically bought by consumers, according to Bureau of Labor
Statistics surveys
c. goods and services weighted by the ratio of expenditures on them relative to the
consumption component of GDP

d. the least and the most expensive goods and services in each major category of consumer
expenditures
11. Which goods are supposed to be included in the CPI?
a. all goods and services produced in the economy


b. all goods and services that typical consumers buy
c. all goods and services in the consumption component of the GDP accounts
d. all the goods, but not the services, in the consumption component of the GDP accounts
12. In the CPI, goods and services are weighted according to
a. how much consumers buy of each item.
b. whether the goods and services are necessities or luxuries.
c. the levels of production of the goods and services in the domestic economy.
d. by the expenditures on them in the GDP national income accounts.
13. How are the weights on the various goods and services in the CPI basket determined?
a. All goods and services are weighted equally.
b. A survey is conducted to determine how much of each good and service typical consumers
purchase.
c. the weights equal the ratio of expenditures on each good or service divided by the total
consumption expenditures in the GDP accounts.
d. Each good and service is weighted according to its price.
14. The steps involved in calculating the consumer price index include, in order:
a. choose a base year, fix the basket, compute the inflation rate, compute the basket’s cost,
and compute the index.
b. choose a base year, find the prices, fix the basket, compute the basket’s cost, and compute
the index.
c. fix the basket, find the prices, compute the basket’s cost, choose a base year and compute
the index.
d. fix the basket, find the prices, compute the inflation rate, choose a base year and compute
the index.

Use the table below to answer the following two questions.
year
2000
2001

peaches
$11 per bushel
$9 per bushel

pecans
$6 per bushel
$10 per bushel

15. Suppose that the typical consumer basket consists of 10 bushels of peaches and 15 bushels
of pecans and that the base year is 2000. What is the consumer price index for 2001?
a. 100
b. 120
c. 200
d. 240
16. What was the inflation rate in 2001?
a. 20 percent
b. 16.7 percent
c. 10 percent
d. 8 percent
Use the table below to answer the following two questions.
year
2003
2004

price of

pork
$20
$20

price of
corn
$20
$30


17. Suppose that the basket of goods in the CPI consisted of 3 units of pork and 2 units of corn.
What is the consumer price index for 2004 if the base year is 2003?
a. 100
b. 105
c. 115
d. 120
18. Suppose that the basket of goods in the CPI consisted of 3 units of pork and 2 units of corn.
What is the inflation rate for 2004?
a. 33.3 percent
b. 25 percent
c. 20 percent
d. 15 percent
19. The market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of
milk, 2 shirts and 2 pants. In 2001 bread cost $1.00 per loaf, milk cost $1.50 per gallon, shirts
cost $6.00 each and pants cost $10.00 per pair. In 2002 bread cost $1.50 per loaf, milk cost
$2.00 per gallon, shirts cost $7.00 each and pants cost $12.00 per pair. What was the
inflation rate, as measured by the CPI, for Aquilonia between 2001 and 2002?
a. 30 percent
b. 24.4 percent
c. 21.6 percent

d. It is impossible to determine without knowing the base year.
Use the following information to answer the next four questions.
In the country of Shem, the CPI is calculated using a market basket consisting of 5 apples, 4
loaves of bread, 3 robes and 2 gallons of gasoline. The per-unit prices of these goods have been as
follows:

Year
199

Apples
$1.00

9
200

$1.00

0
200

$2.00

1
200

$3.00

Bread Robes
$2.00 $10.0

Gasoline
$1.00

$1.50

0
$9.00

$1.50

$2.00

$11.0

$2.00

$3.00

0
$15.0

$2.50

2
0
20. What was the inflation rate, as measured by the CPI, between 1999 and 2000?
a. –8.89 percent
b. –7.14 percent

c.

3.75 percent

d. It is impossible to determine without knowing the base year.
21. What was the inflation rate, as measured by the CPI, between 2000 and 2001?
a. 28.5 percent
b. 34.2 percent
c.

47 percent

d. It is impossible to determine without knowing the base year.
22. What was the inflation rate, as measured by the CPI, between 2001 and 2002?
a. 40 percent
b. 40.25 percent
c.

46.46 percent

d. It is impossible to determine without knowing the base year.


23. For the CPI, the base year is
a. the benchmark against which other years are compared, and it changes each year.
b. the benchmark against which other years are compared, and it changes occasionally.
c. the year the CPI first appeared.
d. always 1989.
24. For any given year, the CPI is the price of the basket of goods and services in the
a. given year divided by the price of the basket in the base year, then multiplied by 100.

b. given year divided by the price of the basket in the previous year, then multiplied by 100.
c. base year divided by the price of the basket in the given year, then multiplied by 100.
d. previous year divided by the price of the basket in the given year, then multiplied by 100.
25. The inflation rate is calculated
a. from a survey of consumer spending.
b. by adding up the price increases of all goods and services.
c. by computing a simple average of the price increase in all goods and services.
d. by determining the percentage increase in the price index from the preceding period.
26. If this year the CPI is 125 and last year it was 120, then we know that
a. all goods have become more expensive.
b. the price level has increased.


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c. the inflation rate has increased.
d. All of the above are correct.
If the consumer price index was 100 in the base year and 107 the following year, the inflation
rate was
a. 107 percent.
b. 10.7 percent.
c. 7 percent.

d. None of the above are correct.
If the price index in the first year was 90, in the second year was 100, and in the third year
was 95, the economy experienced
a. 10 percent inflation between the first and second years and 5 percent inflation between
the second and third years.
b. 10 percent inflation between the first and second years and 5 percent deflation between
the second and third years.
c. 11 percent inflation between the first and second years and 5 percent inflation between
the second and third years.
d. 11 percent inflation between the first and second years and 5 percent deflation between
the second and third years.
The price index in the first year is 100, in the second year is 90, and in the third year is 80.
What is the deflation rate between the first and second year, and between the second and
third year?
a. 11 percent between the first and second year, 11 percent between the second and third
year
b. 11 percent between the first and second year, 12 percent between the second and third
year
c. 10 percent between the first and second year, 11 percent between the second and third
year
d. 10 percent between the first and second year, 12 percent between the second and third
year
The price index in the first year is 125, in the second year is 150, and in the third year is 200.
What is the inflation rate between the first and second year and between the second and
third year?
a. 20 percent between the first and second year, 33 percent between the second and third
year
b. 25 percent between the first and second year, 75 percent between the second and third
year
c. 25 percent between the first and second year, 50 percent between the second and third

year
d. 50 percent between the first and second year, 100 percent between the second and third
year
Which change in the price index shows the greatest rate of inflation: 100 to 110, 150 to 165,
or 180 to 198?
a. 100 to 110


b. 150 to 165
c. 180 to 198
d. All changes show the same rate of inflation.
32. Which change in the price index shows the greatest rate of inflation: 80 to 100, 100 to 120,
or 150 to 170?
a. 80 to 100
b. 100 to 120
c. 150 to 170
d. All changes show the same rate of inflation.
33. From October 2001 to October 2002 the CPI in Canada rose from 116.5 to 119.8. In Mexico it
rose from 97.2 to 102.3. What were the inflation rates for Canada and Mexico?
a. 3.3 percent and 6.7 percent
b. 3.3 percent and 5.1 percent
c. 2.8 percent and 6.7 percent
d. 2.8 percent and 5.2 percent
34. The price index in 2001 is 120, and in 2002 the price index is 127.2. What is the inflation
rate?
a. 5 percent
b. 6 percent
c. 8 percent
d. The inflation rate is impossible to determine without knowing the base year.
35. The price index is 320 in one year and 360 in the next. What was the inflation rate?

a. 6.7 percent
b. 8 percent
c. 11.1 percent
d. 12.5 percent
36. The price index is 270 in one year and 300 in the next. What was the inflation rate?
a. 9.3 percent
b. 10 percent
c. 11.1 percent
d. None of the above are correct.
37. The price index is 180 in one year and 210 in the next. What was the inflation rate?
a. 16.7 percent
b. 14.3 percent
c. 11.1 percent
d. None of the above are correct.
38. An inflation rate calculated using the CPI shows the rate of change of
a. all prices.
b. the prices of all final goods and services.
c. the prices of all consumer goods.
d. the prices of some consumer goods.
39. From 2000 to 2001 the CPI for medical care rose from 260.8 to 272.8. What was the inflation
rate for medical care?
a. 12 percent
b. 11.1 percent
c. 4.9 percent
d. 4.6 percent
For the next two questions consider the table below.


Food and Beverages
Housing

2000
168.4
169.6

2001
173.6
176.2


Transportation

153.3

154.3

40. Among these categories, what was the highest rate of inflation?
a. 6.6 percent
b. 5.2 percent
c. 3.9 percent
d. 3.1 percent
41. Of those categories, which one had the highest increase and which one had the lowest rate of
inflation?
a. Food and Beverages, Housing
b. Food and Beverages, Transportation
c. Housing, Food and Beverages
d. Housing, Transportation
42. By far the largest category of goods and services in the CPI basket is
a. housing.
b. recreation.

c. transportation.
d. food and beverages.
43. Categories of U.S. consumer spending, ranked from largest to smallest are:
a. food and beverages, housing, transportation, and medical care.
b. medical care, housing, food and beverages, and transportation.
c. housing, food and beverages, transportation, and medical care.
d. housing, transportation, food and beverages, and medical care.
44. About what percentage of U.S. consumer spending does food and drink make up?
a. 6 percent


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b. 12 percent
c. 16 percent
d. 20 percent
Of the following, which makes up the smallest category of consumer spending in the United
States?
a. food and beverages
b. transportation
c. housing
d. apparel

In U.S. consumer spending, housing, food and beverage, and medical expenditures each make
up what percent of total consumption?
a. 41, 16, 6
b. 41, 6,16
c. 16, 41, 6
d. 6, 41, 16
If the cost of housing increases by 10 percent, then, other things the same, the CPI is likely to
increase by about
a. 10 percent.
b. 8.5 percent.
c. 6 percent.
d. 4 percent.
If the cost of medical care increases by 50 percent, then, other things the same, the CPI is
likely to increase by about
a. 3 percent.
b. 6 percent.
c. 9 percent.
d. 18 percent.
If the cost of transportation and the cost of food and beverages both increase by 30 percent,
other things the same, the CPI is likely to increase by about


a. 3 percent.
b. 6 percent.
c. 10 percent.
d. 16 percent.
50. The producer price index measures the cost of a basket of goods and services
a. typical of those produced in the economy.
b. produced for a typical consumer.
c. sold by producers.

d. bought by firms.
1. A nation’s standard of living is measured by its
a. real GDP.
b. real GDP per person.
c. nominal GDP.
d. nominal GDP per person.
2. Income in developing countries like India and Indonesia
a. is 1/10th or less of that in developed countries like Japan and the United States.
b. is about 1/8th of that in developed countries like Japan and the United States.
c. is about 1/5th of that in developed countries like Japan and the United States.
d. is about 1/3 to 1/2 of that in developed countries like Japan and the United States.
3. Over the past century in the United States, real GDP per person has grown by about
a. 1 percent per year.
b. 2 percent per year.
c. 4 percent per year.
d. 6 percent per year.
4. During the past century the average growth rate of U.S. real GDP per person implies that it
doubled about every
a. 100 years on average.
b. 70 years.
c. 35 years.
d. 25 years.
5. Over the past 100 years, U.S. real GDP per person has doubled about every 35 years. If in the
next 100 years it doubles every 25 years, then a century from now U.S. real GDP per person
will be
a. 4 times higher than it is now.
b. 8 times higher than it is now.
c. 12 times higher than it is now.
d. 16 times higher than it is now.
ANSWER: d. 16 times higher than it is now.

TYPE: M DIFFICULTY: 2 SECTION: 12.0


6.

7.

8.

The level of real GDP person
a. differs widely across countries, but the growth rate of real GDP per person is similar
across countries.
b. is very similar across countries, but the growth rate of real GDP per person differs widely
across countries.
c. and the growth rate of real GDP per person are similar across countries.
d. and the growth rate of real GDP per person vary widely across countries.
Over the past century in the United States, average income as measured by real GDP per
person has grown about
a. 3.5 percent per year, which implies a doubling about every 20 years.
b. 2 percent per year, which implies a doubling about every 35 years.
c. 4 percent per year, which implies a doubling about every 17.5 years.
d. none of the above are correct.
In the United States, as measured by real GDP per person, average income is about how
many times as high as average income a century ago?
a. 2


9.

10.

11.

12.

13.

b. 4
c. 6
d. 8
New products are invented every year. Consequently real GDP growth
a. probably underestimates the rate of real economic growth.
b. probably overestimates the rate of real economic growth.
c. probably accurately estimates the rate of real economic growth.
d. is rarely used.
In recent decades, average income in some East Asian countries, such as Hong Kong,
Singapore, and Taiwan, has risen about
a. 2 percent per year.
b. 4 percent per year.
c. 7 percent per year.
d. 10 percent per year.
In some East Asian countries, average income, as measured by real GDP per person, has
grown at an average annual rate that implies output should double about every
a. 10 years.
b. 15 years.
c. 20 years.
d. 25 years.
In the length of one generation, which of the following countries has gone from being among
the poorest countries in the world to being among the richest?
a. Chad

b. Ethiopia
c. India
d. South Korea
Average income has been stagnant for many years in


14.

15.

16.

17.

a. Ireland.
b. Singapore.
c. Ethiopia.
d. All of the above are correct.
Which of the following is true?
a. Although levels of real GDP per person vary substantially from country to country, the
growth rate of real GDP per person is similar across countries.
b. Productivity is not closely linked to government policies.
c. The level of real GDP per person is a good gauge of economic prosperity, and the growth
rate of real GDP per person is a good gauge of economic progress.
d. Productivity may be measured by the growth rate of real GDP per person.
Which of the following does the level of real GDP measure?
a. total real income
b. productivity
c. the standard of living
d. All of the above are correct.

The average amount of goods and services produced from each hour of a worker's time is
called
a. per capita GDP
b. per capita GNP
c. productivity
d. human capital
A nation's standard of living is determined by
a. its productivity.
b. its gross domestic product.
c. its national income.
d. how much it has relative to others.