Durable Goods Consumption Expenditures $350 Nondurable Goods Consumption Expenditures $

Durable Goods Consumption Expenditures $350 Nondurable Goods Consumption Expenditures $

Durable Goods Consumption Expenditures	$350
Nondurable Goods Consumption Expenditures	$1,000
Services Consumption Expenditures	$3,000
Business Fixed Investment	$1,500
Change in Inventories	-$100
Government Consumption Expenditures and Gross Investment	$2,000
Exports	$700
Imports	$1,000

41) Refer to Table 11.1. What is the value of GDP?

A) $7,450.

B) $7,250.

C) $7,150.

D) $7,350.

42) The income generated from the sale of the goods and services produced in the economy and paid to the individuals and businesses who supply the factors of production is called:

A) GDP.

B) GNP.

C) national income.

D) NNP.

43) Personal income less personal taxes is called:

A) personal disposable income.

B) national income.

C) compensation of employees.

D) savings.

44) The price of one good in relation to the price of another good is called:

A) absolute prices

B) exchange rate

C) relative prices

D) none of the above

45) What is the difference between inflation and deflation?

A) Inflation is a sustained decrease in the price level whereas deflation is a sustained increase in the price level.

B) Inflation is a sustained increase in the price level whereas deflation is a sustained decrease in the price level.

C) Inflation is a measure of relative prices whereas deflation is a sustained increase in the price level.

D) None of the above.

46) Compared to the GDP deflator, the consumer price index measures:

A) the price of all the goods and services produced in the economy.

B) the price of a fixed market basket of goods and services.

C) the price of exported goods and services.

D) the price of wholesale goods and services.

47) A measure of absolute price changes that excludes changes in energy and food prices is called:

A) fringe rate of inflation.

B) core rate of inflation.

C) overall inflation.

D) none of the above.

48) The producer price index measures:

A) the prices consumers pay for final goods and services.

B) the prices firms pay for crude and intermediate materials as well as finished goods.

C) the prices the government pays for final goods and services.

D) none of the above.

49) Those individuals 16 years of age and over who are working in a job or actively seeking employment are called:

A) the labor force.

B) the employed.

C) the unemployed.

D) none of the above.

50) The unemployment rate is calculated as follows:

A) labor force/number of unemployed.

B) labor force participation rate/number of unemployed.

C) number of unemployed/labor force.

D) number of employed/labor force.