Order Measurement of Economic Systems

Order Measurement of Economic Systems
Order 59077328
Order Measurement of Economic Systems
1. The circular flow model illustrates
(A) that workers, entrepreneurs, and owners of land and capital offer
their services through product markets
(B) the structures of both command and capitalist economic systems
(C) that workers, entrepreneurs, and owners of land and capital offer
their services through national agencies
(D) how the Federal Reserve buys and sells bonds to stimulate the
economy
(E) that workers, entrepreneurs, and owners of land and capital offer
their services through a resource market
2. In the simple circular flow model
(A) individuals and householders are sellers of resources and
demanders of products
(B) householders are sellers of products and demanders of resources
(C) the GDP is represented by the number of households and
businesses in the economy
(D) businesses are sellers of resources and demanders of products
(E) businesses are sellers of products and sellers of resources
3. If you wanted to understand the relationship between households,
businesses, and resources, you would study
(A) the circular flow model
(B) the equilibrium point of supply and demand
(C) nonmarket transactions
(D) aggregate supply
(E) aggregate demand
Order Measurement of Economic Systems
4. When economists refers to the gross domestic product (GDP), they
mean
(A) all final goods and services produced in an economy in a year
(B) all intermediate and final goods and services produced in an
economy in a year
(C) all final goods and services produced in an economy in a fiveyear time period
(D) all final goods and services produced in an economy in a year,
including overseas branches and divisions
(E) the total expenditure of consumer and government spending in
an economy in a given year
5. The most significant difference between gross domestic product and
gross national product would be
(A) government spending
(B) consumer income
(C) net income from foreign investments
(D) consumer spending minus government investments
(E) A and C
6. The amounts businesses are willing and able to invest at each
possible level of GDP is known as the
(A) investment schedule
(B) aggregate supply schedule
(C) aggregate demand schedule
(D) nominal rate of interest
(E) marginal propensity to consume
Order Measurement of Economic Systems
7. Which of the following are considered leakages from the circular
flow model?
(A) Taxes and savings
(B) Taxes and the price of capital goods
(C) Savings and the price of natural resources
(D) Taxes and interest rates
(E) Interest rates and automatic stabilizers
8. An example of a final good calculated into the GDP for the year
would be
(A) a computer chip bought by IBM to be used in a computer
(B) a used car sold to a consumer
(C) a new car sold to a consumer
(D) the lumber used to construct a new house
(E) all of the above
9. Housing, education, and health insurance are goods and services that
have what in common?
(A) They are all provided in part by consumers and producers.
(B) They are provided only by producers.
(C) They are provided only by the government.
(D) They are provided solely by the private sector.
(E) They are provided solely by the public sector.
10. An example of an intermediate good would be
(A) a new car sold to a consumer
(B) a car engine
(C) a new laptop
(D) a new textbook to use for a college class
(E) all of the above
11. All of the following would be included in the expenditure approach
to calculate GDP EXCEPT
(A) consumer spending
(B) government investments
(C) private investments
(D) consumer spending and savings
(E) net exports
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