1. Country X has an $8000 billion GDP and a population of 200 million. Country Y has a $6000 billion GDP and a population of 150 million. Which of the following is true?
A. Per capita GDP of country X is $40,000.
B. Both countries appear to deliver the same average material standard of living.
C. Per capita GDP of country Y is $40,000.
D. All the above
2. Which of the following would increase GDP?
A. More imports
B. Additional leisure time
C. Government hiring people to remove more litter from highway right of ways
D. People cleaning their own homes and mowing their own yards.
3. Full employment is:
A. where everyone has a job.
B. is the maximum level of GDP that can be sustained without setting off major inflation.
C. is generally at a capacity utilization of about 95%.
D. all of the above.
4. If the GDP deflator is now 125, we may conclude that since the base year prices have
A. risen by 25 percent.
B. risen by 125 percent.
C. fallen by 25 percent.
D. fallen by 125 percent.