Measuring Economic Performance MCQs
Measuring Economic Performance MCQs
These Measuring Economic Performance multiple-choice questions and their answers will help you strengthen your grip on the subject of Measuring Economic Performance. You can prepare for an upcoming exam or job interview with these Measuring Economic Performance MCQs.
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1: Purchases of final goods and services is called
A. Depreciation
B. Consumption
C. Expansion
D. Destruction
2: Annual allowance set aside to replace worn-out capital is called
A. Depreciation
B. Consumption
C. Expansion
D. Destruction
3: Disposable personal income is the personal income available after personal taxes
A. True
B. False
4: Adding the value of a good or service more than once by mistakenly counting the intermediate goods and services in GDP is ____ counting
A. Single
B. Double
C. Constant
D. Zero
5: Longer-lived consumer goods, such as automobiles are durable goods
A. True
B. False
6: The calculation of GDP by adding the expenditures of market participants on final goods and services over a given period is expenditure approach
A. True
B. False
7: Wages (salaries), rent, interest payments, and profits paid to the owners of productive resources are factor payments
A. True
B. False
8: All new spending on capital goods by producers is ___ investment
A. Fixed
B. Changed
C. Constant
D. All of these
9: 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
A. True
B. False
10: Taxes, such as sales tax, levied on goods and services sold is ___ business taxes
A. Direct
B. Indirect
C. Main
D. All of these
11: Purchases that add to the stocks of goods kept by the firm to meet consumer demand is ____ investment
A. Good
B. Inventory
C. Profit
D. Loss
12: The creation of capital goods to augment future production is called
A. Deposits
B. Investment
C. Income
D. Transaction
13: ____ income is measure of income earned by owners of the factors of production
A. National
B. Rational
C. Fractional
D. Profit
14: A uniform means of measuring economic performance is national income accounting
A. True
B. False
15: Net national product is GNP ___ depreciation
A. Plus
B. Minus
C. Multiply
D. Subtract
16: ____ items consumed in a short period of time, such as food
A. Are nondurable goods
B. Intangible
C. Tangible
D. Proper
E. Essential
17: The amount of income received by households before personal taxes is called
A. Main income
B. Personal income
C. Good income
D. All of these
18: Capital goods that increase future production capabilities are producer goods.
A. True
B. False
19: Real output of goods and services per person is real gross domestic product per capita
A. True
B. False
20: The ______ is used to measure the value of goods and services for GDP.
A. Gallon
B. Meter
C. Dollar
D. Mile
21: For the economy as a whole, which of the following must equal spending?
A. Demand
B. Supply
C. Quality
D. Income
22: Since 1929, consumption has been ______ of total expenditures for goods and services for the GDP.
A. More than 50%
B. More than 75%
C. Less than 40%
D. Less than 20%
23: In economics, an investment refers to the creation of ______.
A. Factor payments
B. Commodities
C. Capital goods
D. Stock certificates
24: With the expenditure approach, what abbreviation represents exports?
A. E
B. X
C. EX
D. XP
25: Cheese is an example of a ______ good.
A. Fixed
B. Nonfixed
C. Durable
D. Nondurable
26: X – M is the equation for ______.
A. Fixed investment
B. Inventory investment
C. Net imports
D. Net exports
27: ______ are annual allowances set aside to replace worn-out capital.
A. Depreciation payments
B. Appreciation payments
C. Factor payments
D. Inventory payments
28: If GNP is $15,000 and depreciation is $3,000, NNP is ______.
A. $5,000
B. $8,000
C. $12,000
D. $18,000
29: Which of the following often makes comparing GDP over time misleading?
A. Deflation
B. Inflation
C. Government subsidies
D. Government loans
30: The real output of goods and services per person is called the real ______ per capita.
A. GDP
B. GNP
C. NNP
D. NDP
31: What is the only measurement that can be used to compare GDP over time?
A. Bonds
B. Commodities
C. Money
D. Stocks
32: Which of the following is an accurate statement about nonmarket transactions?
A. They usually include leisure activities.
B. They avoid the exchange of money.
C. They are included in the GDP.
D. They often involve illegal activities.
33: GDP fails to take into account which of the following?
A. Market transactions
B. Government spending
C. Quality of goods
D. Foreign sales
34: Externalities are the effects caused by ______.
A. Environmental incidents
B. Nonmarket transactions
C. The exchange of illegal goods
D. The production of goods
35: Hubble's law was discovered using measurements of two properties of a galaxy: _______ and _______.
A. Distance; recession velocity
B. The viewing angle
C. Supernova luminosity
D. Cepheid variables
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