Week 6 Quiz

  • Question 1

    2 out of 2 points

    Which of the following statements is true?

    Selected Answer:

    The expansions and contractions of real-world business cycles last varying lengths of time and often differ in magnitude.

    Answers:

    A depression is a mild and relatively brief recession.

    The expansions and contractions of real-world business cycles last varying lengths of time and often differ in magnitude.

    The timing of business fluctuations is regular and therefore easily predictable.

    During the contractionary phase of the business cycle, the rate of unemployment is generally quite low.

  • Question 2

    2 out of 2 points

    Which is now the largest single component of the supply side of GDP, representing over half of GDP?

    Selected Answer:

    Services

    Answers:

    Durable goods

    Services

    Nondurable goods

    Structures

  • Question 3

    2 out of 2 points

    What is the difference between nominal GDP and real GDP?

    Selected Answer:

    Real GDP adjusts for inflation.

    Answers:

    Nominal GDP measures actual productivity.

    Nominal GDP adjusts for inflation.

    Real GDP adjusts for inflation.

    Real GDP excludes imports and exports.

  • Question 4

    2 out of 2 points

    Economists would most likely classify which of the following as consumer durable goods?

    Selected Answer:

    automobiles and furniture

    Answers:

    food and clothing

    drugs, toys, magazines, and books

    automobiles and furniture

    stocks and bonds

  • Question 5

    2 out of 2 points

    For most high-income countries of the world, GDP _________________ over time.

    Selected Answer:

    has risen gradually

    Answers:

    has proven to be stable

    has risen gradually

    has declined slightly

    has sharply risen

  • Question 6

    2 out of 2 points

    Which of the following is not included in GDP?

    Selected Answer:

    cash income paid to a day laborer that is not reported to the tax authorities

    Answers:

    payments for a dentistís services

    cash income paid to a day laborer that is not reported to the tax authorities

    replacement of brake pads on your seven-year-old vehicle

    fees for legal services provided by your lawyer

  • Question 7

    2 out of 2 points

    Which of the following is included in Investment (I)?

    Selected Answer:

    the amount spent on new factories and machinery

    Answers:

    the amount spent on new factories and machinery

    the amount spent on stocks and bonds

    the amount spent on consumer goods that last more than a year

    the amount spent on purchases of art

  • Question 8

    2 out of 2 points

    Which of the following is included in GDP calculations?

    Selected Answer:

    the university tuition paid to enroll in a course

    Answers:

    sales revenue received from a garage sale

    cash income received by a self-employed landscaper that is not reported to the IRS

    a $100 bill received on your graduation

    the university tuition paid to enroll in a course

  • Question 9

    2 out of 2 points

    Which of the following does GDP not directly include?

    Selected Answer:

    The value of intermediate goods sold during a period

    Answers:

    The value of goods produced domestically and sold abroad

    The value of intermediate goods sold during a period

    The value of services rendered during a period

    The value of final goods and services produced, but not sold, during a period

  • Question 10

    2 out of 2 points

    Which of these scenarios would be included in GDP?

    Selected Answer:

    fees charged for a stock broker’s services

    Answers:

    revenue from selling a four-year-old car

    fees charged for a stock broker’s services

    receipts from selling land

    value of a leaf-raking service provided by a 16-year-old as part of his chores

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