Biology Forums - Study Force

The circular flow diagram validates the fact that the different sectors in the economy are independent.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

National income accounting fills in the dollar values in the circular flow of income.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 3

The producer price index was earlier known as _____.
 a. the retail price index
  b. the commodity market index
  c. the Fischer index
  d. the wholesale price index
  e. the cost of living index

Question 4

The consumer price index:
 a. tracks the value of output over time.
  b. is not tied to cost-of-living adjustments.
  c. doubles every five years in the economy.
  d. is a weighted average of consumer prices.
  e. is a broader price index measure than the implicit GDP deflator.

Question 5

In terms of price indexes, what is a COLA?
 a. A measure of the quality of living
  b. A consumer price adjustment
  c. An increase in wages designed to match consumer price increases
  d. An estimate of gross domestic product
  e. A measure of producer surplus

Question 6

Suppose the current price of DVDs is 16, while its base-year price is 11.50 . The value of the price index for the current year is approximately:
 a. 139
  b. 39
  c. 25
  d. 160
  e. 172

Question 7

Suppose the price index is 100 in the base year and the price of a pound of oranges in that year is 1.96 . Now, if the price index changes to 105 in the following year, how much would a pound of oranges cost?
 a. 2.45
  b. 0.25
  c. 1.96
  d. 2.06
  e. 1.50

Question 8

The price index for the current year is 180 . This means that, on average, prices in the current year are:
 a. 80 percent of prices in the base year.
  b. 1.80 higher than prices in the base year.
  c. 180 percent higher than prices in the base year.
  d. 0.80 higher than prices in the base year.
  e. 80 percent higher than prices in the base year.

Question 9

Which of the following industrial countries experienced a relatively slower growth of real GDP in the latter half of the 1990s?
 a. Canada
  b. United States
  c. Italy
  d. France
  e. Japan

Question 10

If both real GDP and nominal GDP of a country increased at the same rate in a particular year, which of the following is most likely to have taken place?
 a. Output increased and the price level increased
  b. Output increased and the price level decreased
  c. Output decreased and the price level increased
  d. Output decreased and the price level decreased
  e. Output increased and the price level remained constant

Question 11

If nominal GDP of a country increased and real GDP remained unchanged in a particular year, which of the following is most likely to have taken place?
 a. Output increased and the price level increased
  b. Output increased and the price level decreased
  c. Output remained constant and the price level increased
  d. Output decreased and the price level decreased
  e. Output increased and the price level remained constant

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