宏观经济学习题练习(28页).doc

-宏观经济学习题练习-第 28 页Exercise and answerNote: These are based on Principle of Macroeconomics, helping to understand basic concepts. Some contents such as those of Chap 7, 8, 10, may not be covered here. For your final review, please aid also with questions and problems of the Macroeconomics textbook. Multiple ChoiceIdentify the choice that best completes the statement or answers the question._1.Suppose that an apartment complex converts to a condominium where the renters are now owners of their former apartments. Suppose that an estimate of the value of the condominium owners' housing services is now the same as their former rent.a.GDP necessarily increases.b.GDP necessarily decreases.c.GDP is unaffected because neither the rent nor the estimate of the value of housing services is included in GDP.d.GDP is unaffected because previously rent was included in GDP, and now it is replaced by the estimate of the value of housing services._2.GDPa.includes the value of intermediate goods so we can get a measure of sales.b.excludes the value of intermediate goods because they are too difficult to measure.c.excludes the value of intermediate goods because their value is already counted in the value of final goods.d.None of the above are correct._3.Which of the following is included in U.S. GDP?a.goods produced by foreign citizens working in the United Statesb.the difference in the price of the sale of an existing home and its original purchase pricec.known illegal activitiesd.None of the above are correct._4.A firm produces consumer goods and adds some to inventory in the third quarter. In the fourth quarter the firm sells the goods at a retail outlet which leaves their inventory diminished. As a result of these actions, what component(s) of real GDP change in the fourth quarter?a.only investment and it decreases.b.only consumption and it increases.c.Investment decreases and consumption increases.d.None of the above is correct._5.Which of the following is included in the investment component of GDP?a.purchases of newly constructed homesb.purchases of foreign capital goods such as industrial equipmentc.changes in inventoryd.All of the above are correct._6.Which of these things would NOT be included in the components listed after them?a.Ruth buys a motorcycle made in Japan to ride on her weekends off-U.S. consumption and U.S. import.b.Shirley owns her own home which has an estimated rental value-U.S. consumption.c.Beverly buys a newly issued stock in a U.S. corporation-U.S. investment.d.Samantha produces some art work but doesn't sell them all in the current quarter and so adds them to her inventory-investment._7.If in a given year an economy has consumption of $3000, investment of $2000, government purchases of $1500, exports of $500, imports of $600, taxes of $1200, transfer payments of $400, and depreciation of $300, then GDP will equala.$6400.b.$7000.c.$7600.d.$8900.e.$9500._8.Which statement represents most correctly the relationship between nominal GDP and real GDP?a.Nominal GDP measures base-year production using base-year prices, while real GDP measures current production using current prices.b.Nominal GDP measures current production using base-year prices, while real GDP measures current production using current prices.c.Nominal GDP measures current production using current prices, while real GDP measures current production using base-year prices.d.Nominal GDP measures current production using current prices, while real GDP measures base-year production using base-year prices._9.The GDP deflator can be used to identify thea.increase in nominal GDP that is due to an increase in prices rather than an increase in production.b.increase in real GDP that is due to an increase in prices rather than an increase in production.c.increase in the cost of living for typical U.S. consumers.d.reduction in government spending required to balance the federal budget._10.The information below was reported by the World Bank. On the basis of this information, which list below contains the correct ordering of GDP per person from highest to lowest?CountryNominal GDP 2000Population 200Japan$4,800,000 million127 millionSwitzerland$240,000 million7.2 millionUnited States$9,800,000 million280 milliona.Japan, Switzerland, United Statesb.Japan, United States, Switzerlandc.United States, Switzerland, Japand.United States, Japan, Switzerland_11.Suppose that over the last twenty-five years a country's nominal GDP grew to three times its former size. In the meantime population grew 50 percent and prices rose 100 percent. What happened to real GDP per person?a.It more than doubled.b.It rose, but less than doubled.c.It was unchanged.d.It fell._12.The inflation rate is defined as thea.price level.b.change in the price level.c.price level divided by the price level in the previous period.d.percentage change in the price level from the previous period._13.The market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts and 2 pants. In 2001 bread cost $1.00 per loaf, milk cost $1.50 per gallon, shirts cost $6.00 each and pants cost $10.00 per pair. In 2002 bread cost $1.50 per loaf, milk cost $2.00 per gallon, shirts cost $7.00 each and pants cost $12.00 per pair. What was the inflation rate, as measured by the CPI, for Aquilonia between 2001 and 2002?a.30 percentb.24.4 percentc.21.6 percentd.It is impossible to determine without knowing the base year._14.The price index is 180 in one year and 210 in the next. What was the inflation rate?a.16.7 percentb.14.3 percentc.11.1 percentd.None of the above are correct._15.By far the largest category of goods and services in the CPI basket isa.housing.b.recreation.c.transportation.d.food and beverages._16.Which of the following is not a widely acknowledged problem with the CPI as a measure of the cost of living?a.substitution biasb.introduction of new goodsc.unmeasured quality changed.unmeasured price change_17.Which of the following is the most accurate statement about the effects of quality change on the CPI?a.Even though the BLS adjusts prices of products in the CPI basket when the quality of the products change, changes in quality are still a problem, because quality is so hard to measure.b.Because the BLS adjusts prices of products in the CPI basket when the quality of the products change, changes in quality are no longer a problem for the CPI.c.the BLS does not adjust the CPI for quality changes.d.Most economists believe that changes in the quality of goods included in the CPI basket do not bias the CPI as a measure of the cost of living._18.Suppose that lawn mowers are part of the market basket used to compute the CPI. Then suppose that the quality of lawn mowers improves while the price of lawn mowers stays the same. If the Bureau of Labor Statistics precisely adjusts the CPI for the improvement in quality, then, other things equal,a.the CPI will rise.b.the CPI will fall.c.the CPI will stay the same.d.lawn mowers will no longer be included in the market basket._19.In 1931, President Herbert Hoover was paid a salary of $75,000. The price index for 1931 is 15.2, and the price index for 2001 is 177. The President's salary today is $400,000.a.President Hoover's salary equivalent in 2001 dollars is much smaller than that of the current U.S. president.b.President Hoover's salary equivalent in 2001 dollars is about the same as that of the current U.S. president.c.President Hoover's salary equivalent in 2001 dollars is much larger than that of the current U.S. president.d.One cannot make a meaningful comparison of 2001 salaries and 1931 salaries.The following questions are based on the following information:Scenario 11-1Grant Smith was a doctor in 1944 and made about $12,000 a year. His daughter Lisa Smith also is a doctor and last year she made about $175,000 in 2001. The price index in 1950 was 17.6 and the price index was 177 in 2001._20.Refer to Scenario 11-1. What is Lisa's income in 1945 dollars?a.$15,667b.$17,401c.$19,322d.None of the above are correct._21.Ingrid takes a university teaching job as an assistant professor in 1974 at a salary of $10,000. By 2003, she has been promoted to full professor, with a salary of $50,000. If the price index in 1974 is 50, and the price index in 2003 is 180, what is Ingrid's 2003 salary in 1974 dollars?a.$13,889b.$18,000c.$26,000d.$36,000_22.Which is the most accurate statement about the relationship between inflation and interest rates?a.There is no relationship between inflation and interest rates.b.The interest rate is determined by the rate of inflation.c.In order to fully understand inflation, we need to know how to correct for the effects of interest rates.d.In order to fully understand interest rates, we need to know how to correct for the effects of inflation._23.In the United States, as measured by real GDP per person, average income is about how many times as high as average income a century ago?a.2b.4c.6d.8_24.Which of the following is true?a.Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries.b.Productivity is not closely linked to government policies.c.The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress.d.Productivity may be measured by the growth rate of real GDP per person._25.Which of the following does the level of real GDP measure?a.total real incomeb.productivityc.the standard of livingd.All of the above are correct._26.In 2002 real GDP per person in Olympus was 4,500. In 2001 it was 4,250. What was the growth rate of real GDP per person?a.5.6 percentb.5.9 percentc.6.5 percentd.None of the above are correct to the nearest tenth._27.In 2002 real GDP in Oceania was 561.0 billion and the population was 2.2 million. In 2001 real GDP was 500.0 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person?a.12 percentb.10 percentc.4 percentd.2 percent_28.Which of the following is NOT correct?a.Countries that have had higher output growth per person have typically not done so with higher productivity growth.b.A country's standard of living and its productivity are closely related.c.Productivity refers to output produced per hour of work.d.Increases in productivity can be used to increase output or leisure._29.Human capital is thea.knowledge and skills that workers acquire through education, training, and experience.b.stock of equipment and structures that is used to produce goods and services.c.total number of hours worked in an economy.d.same thing as technological knowledge._30.Your company discovers a better way to produce mousetraps, but your better methods are not apparent from the mousetraps themselves. Your knowledge of how to more efficiently produce mousetraps isa.common technological knowledge.b.common, but not technological, knowledge.c.proprietary technological knowledge.d.proprietary, but not technological, knowledge._31.If your firm has constant returns to scale, then if you doubled all your inputs your firm's output woulda.not change.b.increase, but by less than double.c.double.d.more than double._32.Other things equal, relatively poor countries tend to growa.slower than relatively rich countries; this is called the poverty trap.b.slower than relatively rich countries; this is called the Malthus effect.c.faster than relatively rich countries; this is called the catch-up effect.d.faster than relatively rich countries; this is called the constant-returns-to-scale effect._33.The logic behind the catch-up effect is thata.workers in countries with low incomes will work more hours than workers in countries with high incomes.b.the capital stock in rich countries deteriorates at a higher rate because it already has a lot of capital.c.new capital adds more to production in a country that doesn't have much capital than in a country that already has much capital.d.None of the above are correct._34.An organization that tries to encourage the flow of investment to poor countries is thea.World Bank.b.Organization of Less Developed Countries.c.Alliance of Developing Countries.d.International Development Alliance._35.Which of the following is generally an opportunity cost of investment in human capital?a.future job securityb.forgone wages at presentc.increased earning potentiald.All of the above are correct._36.Gary Becker has proposed programs like Mexico's Progressa to reduce child labor and increase educational levels.a.If successful, these programs will raise productivity by increasing human capital.b.In Mexico these programs have decreased differences in the level of education obtained by girls and boys.c.Such programs might be funded by reducing money spent on universities and education of the elite.d.All of the above are correct._37.Which of the following statements is FALSE?a.The catch-up effect is based on the assumption of diminishing returns to capital.b.Investment in poor countries from rich countries is one way poor countries can learn new technologies.c.Malthus argued that charity and government aid was an effective way to reduce poverty.d.Adam Smith argued that peace, light taxes and a tolerable administration of justice are the keys to growth._38.Which of the following is an observation made by Kremer?a.World growth rates increased as the population increased.b.Technological progress allows for increasing population because of advances in agriculture.c.World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline.d.All of the above are correct._39.Typically, countries in Africaa.have high tax rates.b.have laws and geography that encourage trade.c.had low but positive growth of real GDP per person between 1978 and 1994.d.All of the above are correct._40.If the government's expenditures exceeded its re