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Measuring Economic Performance MCQ

Hubble's law was discovered using measurements of two properties of a galaxy: _ and _.

Distance; recession velocity

The viewing angle

Supernova luminosity

Cepheid variables

Answer

Correct Answer: Distance; recession velocity

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Externalities are the effects caused by ______.

Environmental incidents

Nonmarket transactions

The exchange of illegal goods

The production of goods

Answer

Correct Answer: The production of goods

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GDP fails to take into account which of the following?

Market transactions

Government spending

Quality of goods

Foreign sales

Answer

Correct Answer: Quality of goods

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Which of the following is an accurate statement about nonmarket transactions?

They usually include leisure activities.

They avoid the exchange of money.

They are included in the GDP.

They often involve illegal activities.

Answer

Correct Answer: They avoid the exchange of money.

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What is the only measurement that can be used to compare GDP over time?

Bonds

Commodities

Money

Stocks

Answer

Correct Answer: Money

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The real output of goods and services per person is called the real ______ per capita.

GDP

GNP

NNP

NDP

Answer

Correct Answer: GDP

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Which of the following often makes comparing GDP over time misleading?

Deflation

Inflation

Government subsidies

Government loans

Answer

Correct Answer: Inflation

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If GNP is $15,000 and depreciation is $3,000, NNP is ______.

$5,000

$8,000

$12,000

$18,000

Answer

Correct Answer: $12,000

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______ are annual allowances set aside to replace worn-out capital.

Depreciation payments

Appreciation payments

Factor payments

Inventory payments

Answer

Correct Answer: Depreciation payments

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X – M is the equation for ______.

Fixed investment

Inventory investment

Net imports

Net exports

Answer

Correct Answer: Net exports

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Cheese is an example of a ______ good.

Fixed

Nonfixed

Durable

Nondurable

Answer

Correct Answer: Nondurable

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With the expenditure approach, what abbreviation represents exports?

Answer

Correct Answer: X

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In economics, an investment refers to the creation of ______.

Factor payments

Commodities

Capital goods

Stock certificates

Answer

Correct Answer: Capital goods

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Since 1929, consumption has been ______ of total expenditures for goods and services for the GDP.

More than 50%

More than 75%

Less than 40%

Less than 20%

Answer

Correct Answer: More than 50%

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For the economy as a whole, which of the following must equal spending?

Demand

Supply

Quality

Income

Answer

Correct Answer: Income

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The ______ is used to measure the value of goods and services for GDP.

Gallon

Meter

Dollar

Mile

Answer

Correct Answer: Dollar

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Real output of goods and services per person is real gross domestic product per capita

True

False

Answer

Correct Answer: True

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Capital goods that increase future production capabilities are producer goods.

True

False

Answer

Correct Answer: True

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The amount of income received by households before personal taxes is called

Main income

Personal income

Good income

All of these

Answer

Correct Answer: Personal income

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____ items consumed in a short period of time, such as food

Are nondurable goods

Intangible

Tangible

Proper

Essential

Answer

Correct Answer: Intangible

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Net national product is GNP ___ depreciation

Plus

Minus

Multiply

Subtract

Answer

Correct Answer: Minus

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A uniform means of measuring economic performance is national income accounting

True

False

Answer

Correct Answer: True

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____ income is measure of income earned by owners of the factors of production

National

Rational

Fractional

Profit

Answer

Correct Answer: National

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The creation of capital goods to augment future production is called

Deposits

Investment

Income

Transaction

Answer

Correct Answer: Investment

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Purchases that add to the stocks of goods kept by the firm to meet consumer demand is ____ investment

Good

Inventory

Profit

Loss

Answer

Correct Answer: Inventory

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Taxes, such as sales tax, levied on goods and services sold is ___ business taxes

Direct

Indirect

Main

All of these

Answer

Correct Answer: Indirect

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Gross domestic product is measure of economic performance based on the value of all final goods and services produced within a country during a given period

True

False

Answer

Correct Answer: True

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All new spending on capital goods by producers is ___ investment

Fixed

Changed

Constant

All of these

Answer

Correct Answer: Fixed

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Wages (salaries), rent, interest payments, and profits paid to the owners of productive resources are factor payments

True

False

Answer

Correct Answer: True

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The calculation of GDP by adding the expenditures of market participants on final goods and services over a given period is expenditure approach

True

False

Answer

Correct Answer: True

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Longer-lived consumer goods, such as automobiles are durable goods

True

False

Answer

Correct Answer: True

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Adding the value of a good or service more than once by mistakenly counting the intermediate goods and services in GDP is ____ counting

Single

Double

Constant

Zero

Answer

Correct Answer: Double

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Disposable personal income is the personal income available after personal taxes

True

False

Answer

Correct Answer: True

Note: This Question is unanswered, help us to find answer for this one

Annual allowance set aside to replace worn-out capital is called

Depreciation

Consumption

Expansion

Destruction

Answer

Correct Answer: Depreciation

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Purchases of final goods and services is called

Depreciation

Consumption

Expansion

Destruction

Answer

Correct Answer: Consumption

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Measuring Economic Performance MCQ

Hubble's law was discovered using measurements of two properties of a galaxy: _______ and _______.

Externalities are the effects caused by ______.

GDP fails to take into account which of the following?

Which of the following is an accurate statement about nonmarket transactions?

What is the only measurement that can be used to compare GDP over time?

The real output of goods and services per person is called the real ______ per capita.

Which of the following often makes comparing GDP over time misleading?

If GNP is $15,000 and depreciation is $3,000, NNP is ______.

______ are annual allowances set aside to replace worn-out capital.

X – M is the equation for ______.

Cheese is an example of a ______ good.

With the expenditure approach, what abbreviation represents exports?

In economics, an investment refers to the creation of ______.

Since 1929, consumption has been ______ of total expenditures for goods and services for the GDP.

For the economy as a whole, which of the following must equal spending?

The ______ is used to measure the value of goods and services for GDP.

Real output of goods and services per person is real gross domestic product per capita

Capital goods that increase future production capabilities are producer goods.

The amount of income received by households before personal taxes is called

____ items consumed in a short period of time, such as food

Net national product is GNP ___ depreciation

A uniform means of measuring economic performance is national income accounting

____ income is measure of income earned by owners of the factors of production

The creation of capital goods to augment future production is called

Purchases that add to the stocks of goods kept by the firm to meet consumer demand is ____ investment

Taxes, such as sales tax, levied on goods and services sold is ___ business taxes

Gross domestic product is measure of economic performance based on the value of all final goods and services produced within a country during a given period

All new spending on capital goods by producers is ___ investment

Wages (salaries), rent, interest payments, and profits paid to the owners of productive resources are factor payments

The calculation of GDP by adding the expenditures of market participants on final goods and services over a given period is expenditure approach

Longer-lived consumer goods, such as automobiles are durable goods

Adding the value of a good or service more than once by mistakenly counting the intermediate goods and services in GDP is ____ counting

Disposable personal income is the personal income available after personal taxes

Annual allowance set aside to replace worn-out capital is called

Purchases of final goods and services is called

Hubble's law was discovered using measurements of two properties of a galaxy: _ and _.