Homework answers / question archive / Virginia Tech EC 201 EC201 Chapter 2 Practice Quiz 1)The GDP is: A)The sum of the physical amounts of goods and services in the economy

Virginia Tech EC 201 EC201 Chapter 2 Practice Quiz 1)The GDP is: A)The sum of the physical amounts of goods and services in the economy

Economics

Share With

---

Virginia Tech

EC 201

EC201 Chapter 2 Practice Quiz

1)The GDP is:

A)The sum of the physical amounts of goods and services in the economy. B)         A dollar measure of output produced during a given time period.

C)            A measure of the per capita economic growth rate of the economy.

D)           A physical measure of the capital stock of the economy.

2.            The per capita GDP is:

A)           The sum of consumer goods, investment goods, government services, and net exports.

B)            A dollar measure of the economic growth rate of a country.

C)            The value of the factors of production used to produce output in a country. D)  A measure of output divided by the total population.

3.            Per capita GDP will rise if GDP:

A)           Increases more rapidly than the population increases.

B)            Increases at the same rate as the population increases.

C)            Decreases and the population increases.

D)           Increases more slowly than the population increases.

4.            Which of the following sectors contributes the largest absolute amount to GDP in the United States?

A)           Farming.              B) Manufacturing.           C) Services.         D) Exports.

5.            Which of the following is considered a service in the calculation of GDP?

A)           A rock concert.  C)            A physical exam by a medical doctor.

B)            Education.           D)           All of the above are services.

6.            The GDP is equal to the sum of consumption, investment, government purchases, and: A)          Net exports.                B) The factors of production.      C) Saving.            D) Capital stock.

7.            The purchase of investment goods:

A)           Allows a country to maintain its production possibilities.

B)            Allows a country to produce more goods and services in the future.

C)            Means that we must forgo the production of some consumer goods and services

today.

D)           All of the above.

8.            Comparative advantage refers to the ability to produce a good at a: A)   Lower opportunity cost than your trading partner.

B)            Higher opportunity cost than your trading partner.

C)            Lower absolute cost of production than your trading partner.

D)           Higher absolute cost than your trading partner.

9.            Greater productivity refers to:

A)           Lower labor cost per unit of output.        C)            Lower output per worker.

B)            Higher labor cost per unit of output. D)  Higher output per worker.

10.          Factor mobility refers to:

A)           Technological change in the use of capital. C)      The ease of reallocating

resources.

B)            Technological change in the use of labor.              D)           The increase in labor

productivity.

 

 

11.          The term externalities refers to:

A)           Black-market economic activity.

B)            The impact on markets of imported goods.

C)            The costs and benefits of a market activity borne by a third party.

D)           The inequitable distribution of income.

12.          A monopoly exists when:

A)           A small number of firms are the only producers of a good.

B)            Consumers are being exploited.

C)            The government intervenes on behalf of consumers.

D)           One firm produces the entire market of a good or service.