Introduction to macroeconomics Essay Example | Topics and Well Written Essays - 1750 words

Introduction to macroeconomics - Essay Example However, during recessions, when unemployment rate rises, the demand will still be met by the supply, although the demand level will be lower. This is why in the goods market prices and quantity will settle at the equilibrium but high unemployment can still be present in the economy. This has been termed as the â€Å"Keynesian unemployment†. As what has been described earlier, in determining output to meet the demands, there are two views—the Keynesian and the classical view. The classical view argues that prices and wages are flexible, in such a way that excesses in either demand or supply will quickly be absorbed by the economy and resume full employment of resources after economic shocks—or abrupt changes in the aggregate demand and supply curves. The Keynesian view on the other hand argues, as apparent in its sticky theory of prices and wages which says that these two factors are sticky in the short run because of contractual rigidities such as agreements made with different interest groups such as the labor unions. In the latter situation, the one proposed by Keynes, higher levels of aggregate demands are needed for output to respond positively because aggregate supply curve is relatively flat especially when output levels are low. In this situation, the economy can have long periods of unemployment b ecause prices and wages are slow to adjust to shocks, and reaching full employment of resources is slow to reach. When classical economists argue that unemployment results from the interaction of the labor demand and supply curves, and lowering the wages will spread the labor supply which can curb unemployment in the process, Keynes argue that such is not applicable when unemployment is due to business cycle downturns, when because of lower demands of products in the economy, demand for labor is also low. The lower demand for goods results into lower demands for

Experiences of divorced women versus divorced men Research Paper

Experiences of divorced women versus divorced men - Research Paper Example Because gender differences are constructed and reflected in daily interaction, the experience of marriage is quite different for men and women. The same is likely to be true of divorce.† (Amato, 2004, p.207) It then becomes interesting to look at how divorce affects the two genders. The following passages will argue that despite conventional notions about divorce being more traumatic for women than men, in reality both genders have an equally tough time of it, albeit in different areas. Firstly, statistics released by U.S. Census Bureau shows that while divorce rates hovered around the 2 percent mark during the 1980s, it has shot up to more than 15 percent currently. One should remember that this statistic excludes those people who remarried again. So, if divorce were to be counted even if the current marital status has changed, then a mind-boggling 60 percent of American adults have gone through this painful event in their lives. But since in advanced societies women tend to b e economically independent, they are better able to handle the period post divorce than women in the rest of the world. That women are able to handle the crisis is not to say that their standard of living does not fall. Statistics point out that the responsibility of rearing children can sap away financial resources of the woman, although the ones getting regular alimony stand a better chance of sailing through the crisis. Also, compared to recently divorced men, recently divorced women have less labor force experience, putting them at a disadvantage in availing of job opportunities. (Amato, 2004, p.207) Public support for divorced mothers are also limited, at best offering modest help for a short period of time. As a result of this condition, most divorced women think that the only sustainable solution to their problems is through remarriage, which they usually do within a few years of divorce. Of course, in the case of men, there is no noticeable decrease in their standards of liv ing post divorce. Social adjustment is another area where the genders fare differently. Social acceptance of divorce is gaining ground steadily and today there is less stigma attached to the idea of divorce. But at the same time, in the period following a divorce both men and women are experiencing decreased social support and companionship. This is particularly true if they have custody of children. It is also learnt that there are common problems faced by both divorced men and women: â€Å"Between employment, household management, and child care, single parents have little time left over for establishing and maintaining social networks. Also, divorced people often find that they have less in common with married friends. In addition, whereas married people can draw on the spouse's family for assistance and companionship, divorced individuals typically find that former in-laws withdraw over time. Furthermore, divorced people have a high level of residential mobility which tends to disrupt relationships with neighbors, friends, and community organizations. Overall, divorced and separated individuals report smaller social networks and less social support than do married individuals.† (Amato, 2004, p.208) There is also the important aspect of psychological adjustment post divorce. Divorce can be an emotionally upheaving event and can entail acute emotional distress. Older studies have shown that women are more psychologically affected compared to men,

HRM Essay Example | Topics and Well Written Essays - 1000 words - 3

HRM - Essay Example Recruitment is the process of attracting, evaluating and hiring employees and includes job analysis, sourcing, employee screening and selection and induction process. Job analysis aims at determining the different roles in the job and includes specifying the job requirements through outlining the job description and job specification (Torrington, 2011). The job description identifies the functions of the job within the organization, employment terms and reporting relationships of the job holder while the job specification sets out the education, skills, attributes and experience that successful candidates for the job should posses (McKenna & Beech, 2008). Google is constantly looking for graduate-level job entrants to join their teams and uses both online and off-line advertisement media to attract suitable job candidates for the position. Google uses various sources in its recruitment and some include Google recruitment events such as Google Games, Google Code Jam competition, Campu s recruitment and Google Ambassador Program. The job adverts are placed in notice boards, company magazines, newspapers and company website. The company shortlists suitable candidates who meet the minimum criteria and invites them for a series of interviews that aim at assessing the candidate’s job knowledge, skills, and behaviors (Redman & Wilkinson, 2009). According to the company website, the hiring process is simple and involves first conversation with the ‘recruiter, a phone interview and onsite interview at the company offices’. The hiring process aims at increasing communication with the prospective candidates. The panel interview aims at discovering the leadership skills, role-related knowledge, conceptual and analytic skills and ‘Googleyness’ (Sutherland, 2012). According to the company website, they are looking to hire the ‘next

Experiment to investigate what affects the size of a crater Essay Example for Free

Experiment to investigate what affects the size of a crater Essay Hypothesis: If the height of which the pendulum ball is dropped increases, then the depth of the crater will increase. There is a theory for this. A higher drop would mean that there is a greater gravitational potential energy. When the ball is dropped, all this energy is converted into kinetic energy and it is used up to create a crater in the ground. Variables: 1. Independent: Height at which the pendulum ball is dropped from A one meter ruler is used to measure the height at which the pendulum ball is dropped from the surface of the sand. Each height is recorded down and tabulated together with the results. 1. Dependent: Depth of the crater A vernier caliper is used to measure the depth of the crater. Push out the bottom until it touches the center of the bottom of the crater. Adjust it until the edges of the caliper touches the surface of the sand. Read the measurement and record it down. Results are tabulated. 1. Controlled: Height of the sand, Volume of the sand, diameter of the pendulum ball Height of sand is measured with the same ruler used in the experiment and marked out with a marker. The volume of same is measured by pouring it into a beaker and then weighed on an electronic weighing balance for further accuracy. The diameter of the pendulum ball was measured before the start of the experiment and noted down. Apparatus: 1. Pendulum Ball x 1 2. 1m Ruler x 1 3. Plastic box x 1 4. Sand 5. 500ml Beaker x 1 6. Vernier Caliper x 1 7. Retort stand 8. Whiteboard Marker 9. Tissue Method: 1. Lay out newspaper on the bench/work area 2. Measure out 250cm3 of sand using the beaker 3. Pour the sand into the plastic container 4. Smoothen the sand with a tissue so that it is leveled 5. Measure the height of the sand and mark it out with the marker on the container 6. Set up the rest of the experiment as drawn on the previous page. 7. Hold the pendulum ball at a height of 10cm with the bottom of it on the 10cm mark 8. Drop the pendulum ball onto the sand 9. Remove the pendulum ball carefully so as not to destroy the crater made in the sand 10. Using a vernier caliper, measure the depth of the crater 11. Record the reading down 12. Repeat steps 4-10 for heights of 20cm, 30cm, 40cm, 50cm, 60cm, 70cm, 80cm, 90cm and 100cm 13. Repeat the whole experiment once Results: Height/cm Depth/cm 1st 2nd Average Evaluation Reliability of method: From the table of results, it can be observed that some results in the first set of data differ greatly from the second set. This shows that the current method is not extremely reliable and changes can be made to improve the experiment. An improvement to the method would be to always measure the volume of the sand used and smooth it down to the marked level on the side of the container. Sand that is not compacted may have a different result from compacted sand. This is because between the particles of non-compacted sand, there will be spaces of air. As the pendulum ball hits the surface of the sand, the kinetic energy will disperse into these spaces. Therefore, a smaller crater would be formed because the pendulum ball has less energy. Validity of method: The method is valid because it measures what is required to be measured in the experiment. The method described above was also followed step-by-step. The volume of the sand and height of the sand is unchanged. The pendulum ball remained unchanged throughout the course of the experiment as well. The vernier caliper measures the depth of the crater in centimeters and it is what the experiment is conducted for. Reliability of results: There are a total of 20 sets of data. The number of data collected makes the results reliable. Also, the average of the data from both sets of experiments were able to form a straight line graph with an outlier for 100. 0cm at 1. 77cm. Therefore, the results of this experiment is somewhat reliable. Analysis The graph is a straight line with increasing gradient. It shows that with an increase in height, the average depth of the crater also increases. The line graph does not pass through the origin (0,0) because the graph paper is too small to accommodate 10 sets of results (average of both sets of data). Conclusion The results of the experiment support the hypothesis. When the height at which the pendulum ball increases, the depth of the crater also increases. This is proven by the fact that the greater the distance between the ball and the ground, the greater the gravitational potential energy that the ball possesses. More gravitational potential energy is converted to more kinetic energy when the ball is dropped. As such, there is more energy to cause a greater damage to the ground, or in this case, sand, therefore resulting in an increase of depth of the crater. Limitations and Improvements Limitations Improvements Pendulum ball does not drop straight down directly from where it is released but deviates from its desired path Drop the pendulum ball using a retort stand instead of by hand Removing the pendulum ball by hand Thread a string through the hole in the pendulum ball and lift it out of the sand using that.

Humans Impact On Biomes Environmental Sciences Essay

Humans Impact On Biomes Environmental Sciences Essay Human beings have continuously continued with interference of different biomes and thus bringing various modifications to these biomes. If efforts are not enhanced in conserving the natural world, we shall continue experiencing deteriorating weather factors like the global warming. Failure to conserve our biosphere will ultimately hurt the human race. This annotated bibliography gives insight on the resources that provide useful information on impact of human beings on different biomes The authors provide a discussion on the loss and degradation of natural habitats that has continued unabated. It recommends on the assessment of the progress that has been achieved for the last ten years since the World Summit on Environment was last held. Various systems are discussed which are important with economic benefits as per the available data on habitat conservation. The reader will have insight on events discussed during the World summit and issues that were recommended. The events are discussed in a systematic manner providing the reader with easier reading. This article is recommendable to any researcher or student in this field. Carpenter, Stephen. Ecosystems and Human Well-being, Volume 2. Washington D.C., DC: Island Press, 2005 In this book, the author implores various scenarios which provide an important tool for the analysis of complex systems. In addition, they give a good understanding of different outcomes which have a chance of occurring. There is a growing demand for ecosystem services and thus this book provides four approaches which are highly sought. The first is Global Orchestration approach which focuses on equity, the growth of the economy and the issue preventing ecosystem problems. The second is the order from strength which lays an emphasis on security and economic growth. The third is mosaic which focuses on management of ecosystems. Finally, is the technogarden which is concerned with green technology as a form of managing ecosystems? This book is important in giving insights to the learner on different biomes and various management approaches Chapin, Francis. Principles of Ecosystem Stewardship: Resilience-based Natural Resource Management in a Changing World. Stockholm: Stockholm University, 2009. The author implores the implementation of a steady-state theory and policies. This tends to invest in controlling a few selected ecosystem processes, at the expense of long-term social-ecological resilience. Loss of resilience makes systems more vulnerable to both expected and unforeseen changes. Achieving desirable outcomes for humanity, such as those of the UN Millennium Development Goals on poverty, food security, and environmental sustainability, will require new integrated and adaptive approaches to social and economic development. This is where the complex interconnectedness between humans and nature, at all scales, is considered and the existence of uncertainty and surprise accepted as the rule. The author provides a new framework for resource management that is based on the necessity of managing resources in a world dominated by uncertainty and change. This book is essential to readers as it links recent advances in the theory of resilience, sustainability, and vulnerability with practical issues of resource management. Chapin, Stuart, et al. Consequences of Changing Biodiversity. Nature 405.2 (2000): 234-242. The authors outline various activities which causes alterations of the global environment. This has caused major extinctions to be exhibited in the history of man. As a result, there has been a marked change in the distribution and occurrence on various organisms. Ecological habitats have changed as organisms try to adapt to the changing ecosystems. The processes that take place in the ecosystem are altered and the resilience to the environmental changes is affected. As a result, various consequences are faced which are often not good. The huge ecological and societal consequences of altered biodiversity ought to be reduced. This will help in preserving available options for future answers to global environmental problems. The authors use simple language which can be easily understood by readers. It is relevant in providing answers to various global environmental problems. Cowling, Ricky, Richardson, David and Pierce, S. Vegetation of Southern Africa. Cambridge: Cambridge University Press, 2004 The authors provide comprehensive details about different vegetation types that occupy various parts of southern Africa. Despite the region having a cohesive ecological unit, it has different ecosystems which brings a notable diversity. The author presents this book in three parts which are; part one covers historical perspectives providing an understanding to the different ecosystems, part two provides the reader with the different characteristics and the determining factors for the vegetations, part three gives an insight into particular ecological themes like fire, grazing among others. This book provides its reader with profound knowledge on vegetation and effects of various factors. Dickinson, Gordon, Murphy, Kevin J., and Murphy, Kevin. Ecosystems. New York, NY: Routledge, 2007 The authors give a thought provoking introduction about the ecosystems nature. In addition, various ecosystem types are discussed and their interactions with the actions of human beings are given. In this second edition, an update of recent research on this field of ecology is provided giving major discoveries and their addition to this wide field. The authors are able to incorporate a strong theme about the application of functional ecology in providing an understanding of the working nature of ecosystems. Moreover, this book provides the reader with more insight on how to apply the concepts of the ecosystems in the subject of science and applied science. The book contains various chapters like global environmental change and impacts on the ecosystem which serves in the understanding of the biomes in the earths atmosphere. The language used in this book is simple for the reader and the information given is relevant in the study of impacts of human beings on the biomes. Ellis, Erle and Ramankutty, Navin. Putting People in a Map: Anthropogenic Biomes of the World Frontiers in Ecology and the Environment 6. 2 (2008): 439-447. The authors discuss how humans have essentially altered global patterns of biodiversity and ecosystem processes. The existing systems for representing these global patterns, including biome classifications, either ignore humans altogether or simplify human influence into, at most, four categories. The authors present the first characterization of terrestrial biomes based on global patterns of sustained, direct human interaction with ecosystems. The authors identify, eighteen anthropogenic biomes through empirical analysis of global population, land use, and land cover. More than 75% of Earths ice-free land showed evidence of alteration as a result of human residence and land use, with less than a quarter remaining as wild lands. This supports just 11% of terrestrial net primary production. Anthropogenic biomes offer a new way forward by acknowledging human influence on global ecosystems and moving us toward models and investigations of the terrestrial biosphere that integrate human a nd ecological systems. The authors present a comprehensive analysis presenting the reader with easier understanding. Goudie, Andrew. The Human Impact on the Natural Environment: Past, Present and Future. Oxford, UK: Wiley-Blackwell, 2006. The author provides a wide coverage of environmental issues that are being exhibited in the current modern world. The book is a good resource to ecology students as it begins by covering past events on human impacts on earth, presents the current issues and finally gives a projection of the future. It tackles impacts man has on the vegetation, water, landforms, and animals among others. In addition, it provides current statistics about human impacts on the environment. The text is presented in a new design which makes it more presentable and easy to be used by the readers. This book is relevant to the topic of the study by giving important information on the past, present and future impacts of humans on the biome. Nilsson, Christer, Reidy, Catherine, Dynesius, Mats and Revenga, Carmen. Fragmentation and Flow Regulation of the Worlds Large River Systems. Science 308. 5720 (2005): 405-408. The authors provide a global overview of dam-based impacts on large river systems which show that over half (172 out of 292) are affected by dams, including the eight most biogeographically diverse. Dam-impacted catchments experience higher irrigation pressure and about 25 times more economic activity per unit of water than do unaffected catchments. In view of projected changes in climate and water resource use, these findings can be used to identify ecological risks associated with further impacts on large river systems. This article is recommended to students learning about different biomes and the impacts of man on them. The discussion is presented in an easily understandable language which students will find useful in their research and readings. Woodruff, David. Declines of Biomes and Biotas and the Future of Evolution PNAS 98. 10 (2007): 5471-5476. The article outlines details of a panel discussing the topic of study. To respond to the declines of biomes and homogenization of biotas, the panelists predicted changes in species geographic ranges, genetic risks of extinction, genetic assimilation, and natural selection and mutation rates. In addition, the shortening of food chains, the increase in nutrient-enriched niches permitting the ascendancy of microbes, and the differential survival of ecological generalists are also discussed. Action taken over the next few decades will determine how impoverished the biosphere will be in 1,000 years when many species will suffer reduced evolvability and require interventionist genetic and ecological management. Whether the biota will continue to provide the dependable ecological services humans take for granted is less clear. The discussants offered recommendations, including two of paramount importance (concerning human populations and education), seven identifying specific scientific act ivities to better equip us for stewardship of the processes of evolution, and one suggesting that such stewardship is now our responsibility. The article is relevant in providing the reader with insights in to the topic on human impacts on biomes.

Standardized Testing and Teacher Cheating Essay -- High-Stakes Standard

In the contemporary American education system high-stakes standardized testing has resulted in a focus on extensive test preparation, as well as a large increase in the numbers of teachers cheating by alternating their students' test scores. Both these phenomena are a direct consequence of the incentives and punishments directly linked to standardized test results. Many teachers have taken acceptable measures in improving their students’ scores, such as simply â€Å"teaching to the test†, and taking class time to teach test taking techniques and procedures often resulting in a significant loss in time for other important standards and benchmarks that are not tested on. Taking a deontologist stance, one would propose that the teachers are merely acting from their duty to help their students succeed, and that if the standardized test is a true reflection of the material a student should have mastered, â€Å"teaching to the test† exactly the course a teacher should take. With the implementation of the No Child Left Behind Act of 2002 teachers are â€Å"implicitly encouraged to reallocate classroom time, because it only requires testing in reading and math in seven grades and science in three† (Phelps) and taking any other form of action would result in failure for the students and the instructor. One can argue that teac hing to the test can easily be squashed by changing and rotating test topics between all of the benchmarks and standards teachers are ethically obligated to teach; however, this arises the question, do administrators and educators really want to stop this well adapted to process? This phenomenon places a utilitarian at a conflict of short term versus long term effects and benefits. When focusing on the short term benefits, a utili... ...2011): 38+. Literature Resource Center. Web. 19 Nov. 2013. Smolin, Andrea, and Jennifer Clayton. "Standardized Testing: How Prepared Are We?." Journal of Cases in Educational Leadership. 12(4). (2009): 29-36. Web. 21 Nov. 2013. Wiliam, Dylan. "Standardized Testing and School Accountability." Educational Psychologist. 45(2). (2010): 107-122. Web. 21 Nov. 2013. Farah, Yara N. "Through Another's Eyes." Gifted Child Today 36.3 (2013): 209-212. Professional Development Collection. Web. 22 Nov. 2013. Was, Christopher A. "Standardized Testing: NOT The Root Of All Evil." Psyccritiques 54.23 (2009): PsycCRITIQUES. Web. 18 Nov. 2013. Jacob, Brian, and Steven Levitt. "Rotten Apples: An Investigation of the Prevalence and Predictors of Teacher Cheating." Oxford University Press. 118.3 (2003): 843-877. Web. 20 Nov. 2013. .

Income and Analytic Skills

Principles of Macroeconomics, 9e – TB1 (Case/Fair/Oster) Chapter 6 Measuring National Output and National Income 6. 1 Gross Domestic Product 1 Multiple Choice 1) The total market value of all final goods and services produced within a given period by factors of production located within a country is A) gross domestic product. B) gross national product. C) net national product. D) net national income. Answer: A Diff: 1 Topic: Gross Domestic Product Skill: Definition 2) Gross domestic product measures A) the total spending of everyone in the economy. B) the value of all output in the economy. C) he total income of everyone in the economy. D) all of the above Answer: D Diff: 2 Topic: Gross Domestic Product Skill: Definition 3) Which of the following is an example of a final good or service? A) wheat a bakery purchases to make bread B) coffee beans Starbucks purchases to make coffee C) lumber purchased by a construction company to used in building houses D) a computer purchased by Federal Express to track shipments Answer: D Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 4) Which of the following is a good or service counted in GDP? A) tires Ford buys to put on a car B) used tire you buy for your personal car C) a new tire you buy for your personal car D) used tires bought by a used car dealer to put on a car on his lot Answer: C Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 5) Which of the following is an example of an intermediate good? A) the dough you buy to fix yourself a pizza for dinner B) the chocolate you buy to make yourself some cookies C) the pizza sauce you purchase to make pizzas to sell for a fund-raiser for an organization you belong to D) lumber you buy to build a house for your dog Answer: C Diff: 2 Topic: Gross Domestic ProductSkill: Conceptual AACSB: Reflective Thinking 6) Double counting can be avoided by A) including the value of intermediate goods in the current y ear. B) not counting the value of intermediate goods in GDP. C) including the value of intermediate goods in the GNP but not in the GDP. D) including the value of intermediate goods in the production year but not in the selling year of those goods. Answer: B Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 7) Which of the following would NOT be counted in 2007's GDP? A) the value of a 2005 boat you purchase from a boat dealer in 2007 B) he 2007 salary of a used motorcycle salesperson C) the commissions earned by a real estate agent in selling condominiums built prior to 2007 D) the value of a refrigerator manufactured in 2007 but not sold in 2007 Answer: A Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 8) Which of the following would be counted in 2003's GDP? A) the value of a loan you take in 2003 B) the value of a TV that was produced in 2002 but not sold until 2003 C) the bonus check a stockbroker gets from his /her company in 2003 D) the value of a bond sold by the federal government Answer:C Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 9) Which of the following is NOT included in 2008's GDP? A) the value of a motorcycle produced in the United States and exported to Japan B) the profit earned in 2008 from selling a stock that you purchased in 2005 C) the value of a motor that is used in the production of a lawn mower D) the commission earned by a headhunter when she locates a job for a client Answer: B Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 10) Gross national product is the total market value ofA) all final and intermediate goods and service produced by resources owned by a country in a given year. B) all final and intermediate goods and services produced in a country, regardless of who owns the resources. C) all final goods and services produced in a country in a given year, regardless of who owns the resou rces. D) all final goods and services produced by resources owned by a country, regardless of where production takes place. Answer: D Diff: 1 Topic: Gross Domestic Product Skill: Definition 11) If no foreign companies produce in a country, but many of the country's companies produce abroad, then A) he country's GNP will tend to exceed its GDP. B) the country's GDP will tend to exceed its GNP. C) the country's GNP and GDP will tend to be equal. D) the country's GDP will tend to be equal to its domestic income. Answer: A Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 12) Which of the following is included in both the U. S. GDP and GNP? A) The value of all cars produced by Ford in Mexico. B) The value of all cars produced by General Motors in the U. S. C) The value of all cars produced by Toyota in the U. S. D) The value of cars produced by Nissan in Japan and the U. S. Answer:B Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflectiv e Thinking 13) Which of the following is NOT counted in the GNP of the United States? A) The wage of a U. S. citizen who works in a foreign country for a foreign firm. B) The interest earned by a U. S. bank on loans to a business firm located in Brazil. C) The profit earned by a restaurant located in the United States but owned by a Mexican company. D) The value of services that are produced by state and local governments in the United States. Answer: C Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 14)The value of what KFC produces in Japan is included in the U. S. ________ and in the Japanese ________. A) GDP; GDP B) GNP; GNP C) GNP; GDP D) GDP; GNP Answer: C Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 15) Profits earned in the United States by foreign-owned companies are included in A) the U. S. GDP but not GNP. B) neither the U. S. GDP nor GNP. C) the U. S. GNP but not GDP. D) both the U. S. GDP and GNP. Answer: A Diff: 1 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 16) The GDP of the U. S. in 2002 was around $10 trillion. This means A) hat the value of output in the U. S. in 2002 was around $10 trillion. B) that total income in the U. S. in 2002 was around $10 trillion. C) that total spending on final goods and services in the U. S. in 2002 was around $10 trillion. D) all of the above Answer: D Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 17) The GDP includes A) the value of all intermediate goods and services. B) the value of all final goods and services. C) the value of both intermediate and final goods and services. D) the value of all transactions. Answer: B Diff: 2 Topic: Gross Domestic Product Skill: ConceptualAACSB: Reflective Thinking 18) Income Mexican citizens earn in the U. S. counts in A) U. S. GNP. B) Mexican GNP. C) Mexican GDP. D) both U. S. and Mexican GDP. Answer: B Diff: 2 Topic: Gross Domestic Pr oduct Skill: Conceptual AACSB: Reflective Thinking 2 True/False 1) GDP measures the total income of everyone and the total spending by everyone in the economy. Answer: FALSE Diff: 1 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 2) Total income in the economy can sometimes be greater than total spending. Answer: FALSE Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking ) The income of U. S. citizens working abroad counts in U. S. GDP. Answer: FALSE Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 4) Stock market transactions are part of GNP. Answer: FALSE Diff: 2 Topic: Gross Domestic Product Skill: Conceptual AACSB: Reflective Thinking 5) Value added is the difference between the value of good as they leave a stage of production and cost of the goods as they entered that stage of production. Answer: TRUE Diff: 2 Topic: Gross Domestic Product Skill: Definition 6. 2 Calculating GDP 1 Multiple Choice 1) The equation for GDP using the expenditure approach isA) GDP = C + I + G + EX – IM. B) GDP = C + I + G + (IM – EX). C) GDP = C + I + G + EX + IM. D) GDP = C + I + G – EX – IM. Answer: A Diff: 1 Topic: Calculating GDP Skill: Definition 2) The single largest expenditure component in GDP is A) government spending. B) investment. C) consumption. D) net exports. Answer: C Diff: 1 Topic: Calculating GDP Skill: Fact Refer to the information provided in Table 6. 1 below to answer the questions that follow. Table 6. 1 [pic] 3) Refer to Table 6. 1. Personal consumption expenditures in billions of dollars are A) 1,000. B) 1,300. C) 1,500. D) 2,000. Answer: D Diff: 2Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 4) Refer to Table 6. 1. The value for gross private domestic investment in billions of dollars is A) 300. B) 375. C) 425. D) 450. Answer: C Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 5) Refer to Table 6. 1. The value for net exports in billions of dollars is A) 150. B) 250. C) 650. D) 800. Answer: A Diff: 1 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 6) Refer to Table 6. 1. The value of gross domestic product in billions of dollars is A) 3,000. B) 3,075. C) 3,125. D) 3,750. Answer:B Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 7) Refer to Table 6. 1. The value of government spending in billions of dollars is A) 100. B) 200. C) 300. D) 500. Answer: D Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills Refer to the information provided in Table 6. 2 below to answer the questions that follow. Table 6. 2 [pic] 8) Refer to Table 6. 2. Personal consumption expenditures in billions of dollars are A) 900. B) 1,100. C) 1,400. D) 1,600. Answer: C Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 9) Refer to Table 6. 2.The value for gross private domestic investment in billions of dollars is A) 740. B) 810. C) 850. D) 890. Answer: D Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 10) Refer to Table 6. 2. The value for net exports in billions of dollars is A) -200. B) -150. C) 50. D) 250. Answer: B Diff: 1 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 11) Refer to Table 6. 2. The value for gross domestic product in billions of dollars is A) 2,900. B) 3,140. C) 3,440. D) 3,650. Answer: B Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 12) Refer to Table 6. 2.The value of government spending in billions of dollars is A) 200. B) 600. C) 800. D) 1,000. Answer: D Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 13) A company produced 8 dishwasher machines in 2005. The company sold 6 in 2005 and added 2 to its inventories. The market value of the dishwasher machines in 2005 was $200 per unit. What is the value of this company's output that will be included in the 2005 GDP? A) $400. B) $1,400. C) $1,600. D) $2,000. Answer : C Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 14) A farmer buys a new tractor from John Deere to use on her cotton farm.This tractor is included in GDP as A) part of gross private domestic investment. B) a durable consumption good. C) a service. D) a nondurable consumption good. Answer: A Diff: 2 Topic: Calculating GDP Skill: Conceptual AACSB: Reflective Thinking 15) The change in business inventories is measured as A) final sales minus GDP. B) final sales plus GDP. C) GDP minus final sales. D) the ratio of final sales to GDP. Answer: C Diff: 2 Topic: Calculating GDP Skill: Conceptual AACSB: Reflective Thinking 16) In 2007 final sales equal $200 billion, and the change in business inventories is $50 billion. GDP in 2007 A) s $250 billion. B) is $200 billion. C) is $150 billion. D) is $40 billion. Answer: A Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 17) In 2006 final sales equal $350 billion and the change in business inventories is -$60 billion. GDP in 2006 A) is $290 billion. B) is $295 billion. C) is $410 billion. D) cannot be determined from this information. Answer: A Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 18) In 2008 the change in business inventories is -$70 billion and GDP is $200 billion. Final sales in 2008 A) are $130 billion. B) are $200 billion.C) are $270 billion. D) are $340 billion. Answer: C Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 19) In 2007, GDP was exactly equal to final sales. This implies that A) there was accumulation of inventories that year. B) there was a decline in inventories that year. C) there was no change in inventories that year. D) GDP did not grow that year compared to the year before. Answer: C Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 20) If the change in business inventories is zero, then final sales are A) zero. B) less than GDP. C) greater than GDP. D) qual to GDP. Answer: D Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 21) If in a year there is a positive inventory investment, then final sales A) exceed GDP. B) are less than GDP. C) equal GDP. D) are zero. Answer: B Diff: 1 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 22) Net investment equals A) GDP minus final sales. B) gross investment minus final sales. C) gross investment minus depreciation. D) depreciation plus GDP. Answer: C Diff: 1 Topic: Calculating GDP Skill: Definition 23) If net investment is zero, then A) gross investment is greater than depreciation.B) gross investment is less than depreciation. C) gross investment equals depreciation. D) depreciation is zero. Answer: C Diff: 1 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 24) Suppose that net investment in 2008 was $20 billion and depreciation was $4 billion. Gross investment in 2008 was A) $16 billion. B) $20 billion. C) $24 billion. D) $28 billion. Answer: C Diff: 1 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 25) The total value of all capital goods newly produced in a given period is A) the change in business inventories. B) depreciation. C) net investment. D) ross investment. Answer: D Diff: 1 Topic: Calculating GDP Skill: Definition 26) The change in capital stock in a period is equal to A) the ratio of the amount of the capital at the beginning of the period to the amount of depreciation. B) the amount of the capital stock at the beginning of the period plus gross investment minus depreciation. C) the amount of the capital at the beginning of the period plus gross investment. D) the amount of the capital at the beginning of the period minus net investment. Answer: B Diff: 2 Topic: Calculating GDP Skill: Definition 27) Net investment is A) gross investment minus depreciation.B) gross investment plus depreciation. C) depreciation minus gross investment. D) GNP minus final sales. Answer: A Diff: 1 Topic: Calculating GDP Skill: Definition 28) D epreciation is A) the decrease in the overall price level. B) the additional capital stock in a year. C) the amount of used up machinery in a year. D) the amount of decline in business inventories. Answer: C Diff: 1 Topic: Calculating GDP Skill: Definition 29) If net investment in 2007 is $350 billion and gross investment in 2007 is $500 billion, depreciation in 2007 is A) $0. 7 billion. B) $150 billion. C) $175 billion. D) $250 billion.Answer: B Diff: 1 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 30) If net investment in 2008 is $500 billion and gross investment in 2008 is $900 billion, depreciation in 2008 is A) -$500 billion. B) $0. C) $400 billion. D) $1,400 billion. Answer: C Diff: 1 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 31) If gross investment in 2008 is $750 billion and depreciation in 2008 is $850 billion, net investment in 2008 is A) -$50 billion. B) -$100 billion. C) -$800 billion. D) -$1,600 billion. Answer: B Diff: 1 Topic: Calcu lating GDP Skill: Analytic AACSB: Analytic Skills 32)If gross investment in 2008 is $200 billion and depreciation in 2008 is $1,000 billion, net investment in 2008 is A) -$900 billion. B) -$800 billion. C) $1,000 billion. D) $1,200 billion. Answer: B Diff: 1 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 33) Exports equal A) imports – net exports. B) net exports + imports. C) net exports – imports. D) imports + (exports + imports). Answer: B Diff: 1 Topic: Calculating GDP Skill: Definition 34) When calculating GDP, exports are ________ and imports are ________. A) added; added B) added; subtracted C) subtracted; added D) subtracted; subtracted Answer: BDiff: 1 Topic: Calculating GDP Skill: Conceptual AACSB: Reflective Thinking 35) If the value of net exports is negative, then A) exports exceed imports. B) imports exceed exports. C) exports equal imports. D) imports are zero. Answer: B Diff: 1 Topic: Calculating GDP Skill: Conceptual AACSB: Reflective Thi nking 36) The largest income component of GDP is A) proprietors' income. B) rental income. C) compensation of employees. D) corporate profit. Answer: C Diff: 2 Topic: Calculating GDP Skill: Fact 37) What should be subtracted from GDP to calculate national income? A) depreciation B) indirect taxes C) personal income taxes.D) net factor payments to the rest of the world Answer: A Diff: 2 Topic: Calculating GDP Skill: Conceptual AACSB: Reflective Thinking 38) Proprietors' income is A) the income of unincorporated businesses. B) the income of all businesses? incorporated and unincorporated. C) the income of sole proprietorships. D) the income of partnerships. Answer: A Diff: 2 Topic: Calculating GDP Skill: Definition 39) Net interest is the interest on loans paid by A) businesses, households, and the government. B) businesses and households. C) businesses and the government. D) businesses. Answer: D Diff: 3 Topic: Calculating GDP Skill:Definition 40) Interest paid by households and by t he government is A) counted in national income, but not in GDP. B) not counted in GDP because it is not assumed to flow from the production of goods and services. C) not counted in GDP but is counted in GNP because it is paid by U. S. citizens to people living in the United States. D) included in both GDP and GNP because it represents an expenditure by one group and a receipt of income by another group. Answer: B Diff: 3 Topic: Calculating GDP Skill: Conceptual AACSB: Reflective Thinking 41) What type of tax affects the amount of money you pay for a product? A) direct taxB) income tax C) indirect tax D) all of the above Answer: C Diff: 2 Topic: Calculating GDP Skill: Conceptual 42) Depreciation is A) subtracted from national income to get GDP. B) added to national income to get GDP. C) subtracted from GNP to get NNP. D) added to GNP to get NNP. Answer: C Diff: 2 Topic: Calculating GDP Skill: Conceptual AACSB: Reflective Thinking Refer to the information provided in Table 6. 3 below to answer the questions that follow. Table 6. 3 [pic] 43) Refer to Table 6. 3. The value for national income in billions of dollars is A) 585. B) 600. C) 635. D) 850. Answer: C Diff: 2 Topic:Calculating GDP Skill: Analytic AACSB: Analytic Skills 44) Refer to Table 6. 3. The value for gross domestic product in billions of dollars is A) 485. B) 680. C) 685. D) 710. Answer: D Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 45) Refer to Table 6. 3. The value of net factor payments to the rest of the world is A) 5. B) 15. C) 25. D) 35. Answer: A Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 46) Refer to Table 6. 3. The value of disposable income A) is 505. B) is 560. C) is 605. D) cannot be calculated given the information in Table 6. 3. Answer: D Diff: 2Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 47) If receipts of factor income from the rest of the world exceed payments of factor income to the rest of the world, then A) GD P is greater than GNP. B) GDP equals GNP. C) GNP equals NNP. D) GNP is greater than GDP. Answer: D Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills Refer to the information provided in Table 6. 4 below to answer the questions that follow. Table 6. 4 [pic] 48) Refer to Table 6. 4. The value for GDP in billions of dollars is A) 910. B) 920. C) 950. D) 1,050. Answer: C Diff: 2 Topic: Calculating GDPSkill: Analytic AACSB: Analytic Skills 49) Refer to Table 6. 4. The value for GNP in billions of dollars is A) 900. B) 930. C) 980. D) 1,010. Answer: B Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 50) Refer to Table 6. 4. The value for NNP in billions of dollars is A) 890. B) 910. C) 940. D) 970. Answer: A Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 51) Refer to Table 6. 4. The value for national income in billions of dollars is A) 890. B) 910. C) 940. D) 970. Answer: A Diff: 2 Topic: Calculating GDP Skill: Analytic AACS B: Analytic Skills 2) Refer to Table 6. 4. The value for personal income in billions of dollars is A) 870. B) 890. C) 950. D) 960. Answer: A Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 53) Refer to Table 6. 4. The value for disposable personal income in billions of dollars is A) 750. B) 770. C) 820. D) 990. Answer: A Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 54) If GNP is $600 billion, receipts of factor income from the rest of the world are $50 billion, and payments of factor income to the rest of the world are $30 billion, then GDP is A) $520 billion. B) 580 billion. C) $620 billion. D) $680 billion. Answer: B Diff: 3 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 55) If GNP is $200 billion, receipts of factor income from the rest of the world are $10 billion, and payments of factor income to the rest of the world are $30 billion, then GDP is A) $160 billion. B) $210 billion. C) $220 billion. D) $240 billion. Ans wer: C Diff: 3 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 56) If GDP is $500 billion and depreciation is $40 billion, then net national product A) is $460 billion. B) is $500 billion. C) is $540 billion. D) annot be determined from this information. Answer: D Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 57) If GDP is $300 billion, depreciation is $30 billion, and net factor income from the rest of the world is -$40 billion, then net national product is A) $230 billion. B) $270 billion. C) $290 billion. D) $310 billion. Answer: D Diff: 3 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 58) If GNP is $800 billion and depreciation is $90 billion, then net national product is A) $710 billion. B) $845 billion. C) $890 billion. D) $980 billion. Answer: A Diff: 1 Topic:Calculating GDP Skill: Analytic AACSB: Analytic Skills 59) If GNP is $200 billion and depreciation is $20 billion, then net national product is A) $100 billion. B) $18 0 billion. C) $210 billion. D) $220 billion. Answer: B Diff: 1 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 60) If depreciation equals zero and retained earnings equal $5 billion, then A) GNP is less than net national product by $5 billion. B) GNP equals net national product. C) Net national product is less than GNP by $5 billion. D) GNP is greater than GDP by $5 billion. Answer: B Diff: 1 Topic: Calculating GDP Skill:Analytic AACSB: Analytic Skills 61) Net national product is A) GDP plus depreciation. B) GDP minus depreciation. C) GNP minus depreciation. D) GNP plus depreciation. Answer: C Diff: 1 Topic: Calculating GDP Skill: Definition 62) The total income of households is A) net national product. B) personal income. C) national income. D) production income. Answer: B Diff: 1 Topic: Calculating GDP Skill: Definition 63) Personal income is national income minus A) depreciation. B) net factor income to the rest of the world. C) the amount of national income not goi ng to households. D) imports. Answer: C Diff: 2 Topic: Calculating GDPSkill: Fact 64) If national income is $600 billion, personal income is $400 billion, personal taxes are $120 billion, then disposable income equals A) $480 billion. B) $320 billion. C) $280 billion. D) $80 billion. Answer: C Diff: 2 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 65) Which of the following is subtracted from national income to get to personal income? A) retained earnings B) personal interest income C) depreciation D) personal Taxes Answer: A Diff: 2 Topic: Calculating GDP Skill: Conceptual AACSB: Reflective Thinking 66) Personal income A) is always less than national income. B) s always greater than national income. C) may be greater than or less than national income. D) will always equal national income. Answer: C Diff: 2 Topic: Calculating GDP Skill: Conceptual AACSB: Reflective Thinking 67) If personal income is $925 billion and personal income taxes are $70 billion, the value of disposable personal income is A) $835 billion. B) $855 billion. C) $890 billion. D) $995 billion. Answer: B Diff: 1 Topic: Calculating GDP Skill: Analytic AACSB: Analytic Skills 68) If personal saving is -$10 billion and disposable personal income is $370 billion, then personal consumption spending A) is $360 billion.