C1: NATIONAL INCOME ACCOUTING & BOP

Over the decade from 1991 to 2000,

• A. Japan’s national product grew at an annual average rate of only 3.0 percent

  while that of the United States grew by nearly 3.5 percent per year.

• B. Japan’s national product grew at an annual average rate of only 1.5 percent

  while that of the United States grew by nearly 3.5 percent per year.

• C. The United States’ national product grew at an annual average rate of only 1.

  percent while that of Japan grew by nearly 3.5 percent per year.

• D. Japan’s national product grew at the same annual average rate as that of the

  United States.

• E. Japan’s national product grew at an annual average rate of 3.5 percent while

  that of the United States grew only by 1.5 percent per year.

Q2: A country’s gross national product (GNP) is

• A. the value of all final goods and services produced by its factors of production

  and sold on the market in a given time period.

• B. the value of all intermediate goods and services produced by its factors of

  production and sold on the market in a given time period.

• C. the value of all final goods produced by its factors of production and sold on

  the market in a given time period.

• D.the value of all final goods and services produced by its factors of production

  and sold on the market.

Over the decade from 1991 to 2000,

• A. Japan’s unemployment rate rose, reaching nearly 3 percent.

• B. Japan’s unemployment rate rose, reaching nearly 4 percent.

• C. Japan’s unemployment rate rose, reaching nearly 5 percent and overtaking

  that of the United States for the first time in fifty years.

• D. Japan’s unemployment rate rose, reaching nearly 8 percent and overtaking

  that of the United States for the first time in fifty years.

• E. Japan’s unemployment rate rose, reaching nearly 5 percent.

For most macroeconomists,

• A. national income accounts and national output accounts are equal to each other.

• B. national income accounts exceed national output accounts.

• C. national output accounts exceed national income accounts.

• D. it is impossible to tell whether national income accounts are equal to national

  output accounts.

• E. None of the above

For most macroeconomists,

• A. gross national income and gross national product are the same.

• B. gross national income exceeds gross national product.

• C. gross national product exceeds gross national product.

• D. it is hard to tell whether gross national income equals gross national product.

• E. None of the above

The highest component of GNP is

• A. the current account.

• B. investment.

• C. consumption.

• D. None of the above.

The GNP of the United States in 2000 was about

• A. 7 trillion dollars.

• B. 8 trillion dollars.

• C. 1 trillion dollars.

• D. 5 trillion dollars.

• D. 10 trillion dollars.

In 2000, the United States had

• A. a surplus in the current account.

• B. a balanced current account.

• C. a deficit in the current account.

• D. It is hard to tell from the data whether in 2000 the United States had a deficit

  or a surplus in the current account.

• E. None of the above.

In order to move from units expressed in trillion to units expressed in billions, you

need to multiple the number in billions by

• A. 100.

• B. 10,000.

• C. 100,000.

• D. 1,000,000.

• 1,000.

The sale of

• A. a used textbook does enter GNP.

• B. a used textbook does not enter GNP, but the sale of a used house does.

• C. both a used textbook and a used house do not enter GNP.

• D. a used house does not enter GNP, but the sale of a used book does.

• None of the above