Taking the nation's economic pulse - English, Cryptocurrencies

Taking the nation’s economic pulse

Taking the nation’s economic pulse refers to the process of measuring and analyzing the current state of the economy. This includes gathering and analyzing data on various economic indicators such as GDP, inflation, employment, and trade, in order to gain a comprehensive understanding of the economy’s performance.

There are several key economic indicators that are used to take the nation’s economic pulse, such as:

Gross Domestic Product (GDP) which measures the total value of goods and services produced in a country
Consumer Price Index (CPI) which measures the change in prices of a basket of goods and services consumed by households
Employment data such as the unemployment rate and the number of non-farm payrolls, which measure the number of people who are unemployed and the number of jobs created
Interest rates, which measure the cost of borrowing money

These indicators are closely watched by policymakers, economists, and investors, as they provide a snapshot of the economy’s performance and help to identify trends and patterns.

Additionally, other indicators such as consumer and business confidence surveys, as well as data on manufacturing, retail sales, housing, and international trade can also be used to take the nation’s economic pulse.

Overall, taking the nation’s economic pulse is an ongoing process that involves regularly monitoring and analyzing a wide range of economic data in order to gain a comprehensive understanding of the economy’s performance and identify trends that may have implications for future growth and stability.

1.National income is:

the value of all final goods and services produced within the boundaries of a country during a specific period by its citizens

the value of all final goods and services produced within a country during a specific period

the sum of proprietors’ income, rents, corporate profits, and interest minus depreciation

the sum of employee compensation, proprietors’ income, rents, corporate profits, and interest income

2.Which of the following best explains why the chained consumer price index generally results in a lower rate of inflation than the regular consumer price index (CPI)?

The chained index makes allowance each month for shifts away from goods that have become relatively more expensive; the regular CPI does not adjust for this factor

The chained index is based on a comprehensive bundle of goods and services, while the regular CPI considers only changes in the prices of food and energy

The chained consumer price index considers the impact of both rising and falling prices, whereas the regular consumer price index considers only the impact of goods and services with rising prices during the period

The chained consumer price index considers only the prices of goods and services purchased by households, whereas the regular CPI also includes the price changes of investment assets such as stocks and real estate

3.Which of the following is included in the gross national product of the U.S.?

An American buying antique furniture from the local garage sale

Dell and its partners buying stocks of EMC2

An American photographer receiving a paycheck for exhibiting his photographs in Singapore

A Japanese singer receiving a paycheck for performing in a concert in New York

4.A decrease in the sales of Lumina Technology’s widgets increases its unsold stock of inventory at the end of the year. This is most likely to:

decrease the firm’s unplanned inventory investment

keep the firm’s contribution to the gross domestic product of the country unchanged

increase the firm’s contribution to the gross domestic product of the country

decrease the firm’s contribution to the gross domestic product of the country

5.Corporate profits are earned by:

governments

parties who extend loans to producers

resource owners

stockholders

6.An increase in the net investment in an economy results in a(n):

upward movement along the economy’s production possibility frontier

rightward shift of the economy’s production possibility frontier

downward movement along the economy’s production possibility frontier

leftward shift of the economy’s production possibility frontier

7.Identify the correct statement about government expenditures.

They overstate the value derived from an item because transfer payments are excluded from government expenditures

They understate the value derived from an item because transfer payments are excluded from government expenditures

They overstate the value derived from an item when the value of the item to citizens is high relative to the tax cost of providing it

They overstate the value derived from an item when the value of the item to citizens is low relative to the tax cost of providing it

8.An increase in investment in an economy is most likely to increase the future income of the economy if:

the size of the population increases

there is an increase in the total demand of the economy

the funds invested are channeled into wealth-creating projects

there is an increase in the rate of interest prevailing in the economy

9.Which of the following is true of a decline in a firm’s inventories?

It results in an increase in the firm’s depreciation expenditure

It results in an increase in the firm’s inventory investment

It occurs when the firm’s sales of goods and services exceed its current production

It occurs when the firm’s current production of goods and services exceeds its sales

10.Which of the following is most likely to increase Japan’s gross domestic product (GDP)?

An American firm outsourcing some of its production facilities to Japan

A Japanese firm outsourcing some of its production facilities to China

An American firm selling some of its shares to a Japanese firm

An American firm buying some of the shares of a Japanese firm

11.Which of the following transactions is most likely to increase the U.S. gross domestic product (GDP)?

An American student receiving a $500 check from a relative

An American software firm buying 30 percent of the shares of another American firm

An American buying a sculpture from Zambia

An American selling a pizza to a Mexican in the U.S.

12.Which of the following is true of the U.S. government’s total expenditure?

It is the largest component of U.S. GDP

It does not include the U.S. government’s expenditure on national defense

It is substantially higher than the U.S. government’s total consumption and investment expenditures

It does not include transfer payments by the U.S. government

13.Identify the correct equation for the gross national product (GNP) of a nation.

GNP = National income − Indirect business taxes

GNP = National income − Depreciation

GNP = Gross domestic product − Depreciation

GNP = National income + Depreciation + Indirect business taxes

14.Which of the following is true of government purchases?

They include Social Security payments and other transfer payments

They include only the purchase of long-lasting capital goods

They are counted at their cost to taxpayers

They are counted at their value to the citizens receiving them

15.The gross domestic product (GDP) measures the market value of:

all intermediate goods and services produced by the citizens of a country during a year

all final goods and services produced by the citizens of a country during a year

all final goods and services that flow through a country’s factories and stores each year

all financial transactions and income transfers occurring in a country during a year

16.Identify the correct statement about net investment.

Countries with a large net investment rate will tend to grow more rapidly than those with a low rate of net investment

Net investment excludes net additions to the stock of capital assets and allowances for depreciation of machinery and equipment

A low rate of net investment or a negative net investment implies a growing economy

Increases in business inventories are not included in net investment

17.Which of the following is included in the calculation of real gross domestic product of an economy?

Final goods and services

Leisure and human costs

Economic “bads”

Illegal activities

18.Which of the following is not an example of indirect business taxes?

Excise tax

Sales tax

Property tax

Income tax

19.The consumer price index (CPI) is designed to measure:

the percentage change in the general level of prices from one year to the next

the impact of price changes on the cost of the typical bundle of goods purchased by households

the impact of price changes on the quantities of the typical market basket purchased by households each month

the change in the average price of the market basket of goods included in the gross domestic product

20.Based on the expenditure approach, the major components of gross domestic product (GDP) are:

personal consumption expenditures, indirect business taxes, depreciation, and net income of foreigners

corporate profits, interest income, depreciation, government consumption and gross investment, and net exports to foreigners

personal consumption expenditures, gross private domestic investment, government consumption and gross investment, and net exports to foreigners

wages and salaries, rents, corporate profits, interest income, indirect business taxes, and depreciation

21.Why is it important to use real rather than nominal GDP figures when making comparisons of output across time periods?

The real GDP figures adjust for changes in the level of employment

The real figures will reflect changes in the general level of prices as well as changes in the quantity of output

The real GDP figures are a better measure of changes in the general level of prices

The real figures will reflect changes in the quantity of output and not changes in the general level of prices

22.Using the resource cost-income approach, indirect business taxes have to be added to get gross domestic product because the

selling price includes these taxes which are actually not income to any sector of the economy

selling price of a product excludes these taxes and therefore they have to be added

selling price of a product includes these taxes, which are income to the government

selling price of a product includes these taxes, which are resource payments

23.If the GDP deflator in 2015 was 134.1 and 100 in 2014, the annual rate of inflation in 2015 was:

34.1 percent

10 percent

15.4 percent

20.3 percent

24.Depreciation is:

not a direct payment to a resource owner

included in the calculation of gross domestic product using the expenditure approach

not included in the calculation of gross national product

a direct income component of gross domestic product using the resource cost-income approach

25.Which of the following is most likely to be included in the gross domestic product (GDP) calculations of a country?

Kayla buying more grocery items following an increase in welfare payments

The government of Palladia increasing welfare payments to laid-off workers during the 2020 recession

Nick buying old furniture from a garage sale in his locality

Paulina’s mother giving her $50 for watching a movie in a newly opened IMAX theater

26.Net exports are:

the product of total exports and total imports

the ratio of total exports to total imports

the sum of total exports and total imports

the difference between total exports and total imports

27.Net investment is the:

ratio of gross investment to depreciation

product of gross investment and depreciation

difference between gross investment and depreciation

sum of gross investment and depreciation

28.The gross domestic product reflects the:

value of all final goods and services produced by the citizens of a country during a specific period

market value of all final goods and services produced within a country during a specific period

compensation received during a period for labor services plus interest, rents, and corporate profits

market value of all final goods and services produced by the factors of production of a country during a specific period minus depreciation

29.The net income of foreigners is equal to:

the income foreigners earn abroad minus the income that foreigners earn in the United States

the income Americans earn abroad minus the income that foreigners earn in the United States

the income foreigners earn in the United States minus the income that Americans earn abroad

the income foreigners earn in the United States minus the income that foreigners earn abroad

30.Which of the following is likely to increase the nominal value of the gross domestic product (GDP) of a country?

Higher interest rates

An increase in financial transactions

Higher prices

An increase in income transfers

31.Identify the correct statement about a country’s gross domestic product (GDP).

A country’s GDP includes the market value of all domestic assets owned by both citizens and foreigners

A country’s GDP includes the value of sales at intermediate stages of production

Only final goods and services are counted in a country’s GDP

Financial transactions and income transfers are counted in a country’s GDP

32.If the GDP deflator of a country increased from 100 in 2005 to 150 in 2015 and the nominal GDP of the country in 2015 was $7,000, then the country’s real GDP for 2015 in terms of 2005 dollars was approximately equal to:

$4,666.70

$5,774.50

$3,215.60

$6,245.70

Taking the nation’s economic pulse

Taking the nation’s economic pulse

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