AP Macroeconomics Practice Test: The National Economic Accounts

Test Information

15 questions

18 minutes

1. GDP is calculated for each by

2. "Flash" estimates of GDP

3. According to the way in which economists use the word, the bulk of "investment" is done by

4. In the equation GDP = C + I + G + X, X stands for

5. GDP measures

6. National income measures

7. Imagine an economy that produces only two goods, cheese and crackers. Calculate GDP for this economy if cheese retails for \$3 a pound and 10 pounds are produced while crackers sell for \$2 a pound and 20 pounds are produced.

8. Assume Country Z only produces hot dogs and buns. Given the table below, what is the value of GDP in Country Z?

Production      Price

4 hot dogs      \$1.00

4 buns      \$0.50

9. If XYZ Corporation buys an original Matisse painting to hang in its board room, then

10. The cabbages you grow in your summer garden are

11. Suppose transfer payments are greater than Social Security contributions, corporate taxes, and retained earnings combined. In that case,

12. GDP measures

I. production

II. income earned during the production process

III. spending by consumers, businesses, governments, and foreigners

13. Real GDP

14. Which of the following events has no effect on GDP?

15. Which of the following will have an effect on GDP?