Gross Domestic Product

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The United States produces an equal amount of goods and services. True False
Which of the following would not affect the size of real GDP? A. Consumer purchase of a new car for personal use. B. Government purchase of a new car for the military. C. Business purchase of a new...
Which of the following would be included in U.S. GDP calculations? A. An auto mechanic fixing his dentist's car for a filling B. A stay-at-home dad providing childcare for his children C. A worker...
An American buys an entertainment system that was manufactured in China. How does the U.S. national income accounts treat this transaction? A. Net exports and GDP both fall. B. Net exports and GDP...
Which transactions will not be counted in GDP? A. Pirated DVDs entering the nation illegally B. The services of a physician C. A retiree's social security benefits D. A and C E. B and C
Which of the following would be classified under C when calculating GDP? A. A homeowner mowing her own lawn B. $40.00 spent eating out at a restaurant C. The purchase of new computer software by an...
Gross Domestic Product is a close approximation of: A. national income. B. societal welfare. C. the consumer price index. D. the GDP deflator. E. the current account balance.
Which of the following will have an effect on GDP? A. You lose $20 betting with a friend. B. You fix your sister's car without buying any new parts. C. Your mother's firm makes computers and export...
Which of the following events has no effect on GDP? A. You buy a 1955 Chevy from a friend. B. The Department of Transportation resurfaces a road. C. Your friends make a music CD that doesn't sell a...
GDP measures: I. production. II. income earned during the production process. III. spending by consumers, businesses, governments, and foreigners. A. Only I is correct. B. Only II is correct. C. On...
The cabbages you grow in your summer garden are: a. counted in GDP under C. b. counted in GDP under I. c. counted in GDP but not NDP. d. not counted in GDP. e. counted in final sales but not GDP.
If XYZ Corporation buys an original Matisse painting to hang in its board room, then: a. GDP decreases by the amount of the purchase because C decreases. b. GDP increases by the amount of the purch...
Assume Country T only produces hamburgers and buns. Given the information below, what is the value of GDP in Country T? Hamburgers Production: 5 Price: $2.25 Buns Production: 5 Price: $0.75
Assume Country Z only produces hot dogs and buns. Given the information below, what is the value of GDP in Country Z? Hot dogs Production: 4 Price: $1.00 Buns Production: 4 Price: $0.50
Imagine an economy that produces only two goods, peanut butter and jelly. Calculate GDP for this economy if peanut butter retails for $5 a pound and 17 pounds are produced while jelly sell for $3.2...
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 a...
According to the way in which economists use the word, the bulk of "investment" is done by: A. households. B. businesses. C. government. D. foreigners. E. All of the above
"Flash" estimates of GDP A. are subject to revision. B. do not require revision. C. are available after a thirty-day lag. D. Both A and C E. Both B and C
If the standard of living increases, we can conclude that: A. output must have increased. B. population must have decreased. C. output and population must have increased. D. population must have in...
If real GDP per capita was $20,000 in 1980 and $21,000 in 1990, then we conclude that the standard of living has increased: a. 3.3%. b. 50%. c. 5% d. 0.5% e. More information is required to determi...
The standard of living is measured by: A. GDP. B. GDP per capita. C. actual GDP per capita. D. real GDP per capita. E. the unemployment rate.
If your teacher wins the lottery: a. GDP goes up. b. GDP goes down. c. GDP is not affected. d. the economy will clearly be better off.
Don has built an expansion to his house. This transaction will be: a. not included in GDP because it is not produced for the marketplace. b. included in GDP because Don is a professional builder. c...
Which one of the following equations correctly measures GDP? a. C + I + G + IM - X b. C + I + G + X - IM c. C + I + G + X + IM d. C + I + G - T + TR
You buy 100 shares in XYZ Corporation on the Internet and your broker charges you $29.95. What effect will this have on GDP? A. This will increase the investment component of GDP and therefore over...
Federal government purchases of goods and services are not included in GDP. True False
Imports and exports are not included in GDP. True False
State and local government purchases are included in GDP. True False
An Italian company opens a shoe factory in the U.S. The production from this shoe company is included in: A. the Italian GDP. B. the U.S. GDP. C. both the Italian and U.S. GDP D. both the Italian a...
An increase in the price of forklifts imported into the United States from Belgium will: A. increase the consumer price index and the GDP deflator. B. increase the consumer price index but not the...
If 200 computers with a retail value of $100,000 are domestically produced in 2005, but not sold until 2006, then GDP in 2005 is: A. $100,000 higher because of the computers. B. 200 higher because...
GDP measures a country's level of I. production. II. stability. III. income. A. I only B. II only C. III only D. I and II E. I and III
If Real GDP equals $200 billion and the price index equals 200, Nominal GDP is: A. $4 billion. B. $400 billion. C. $200 billion. D. $2 billion. E. Impossible to determine since the base year is not...
Which of the following transactions would be counted in GDP? A. The cash you receive from babysitting your neighbor?s kids B. The sale of illegal drugs C. The sale of cucumbers to a pickle manufact...
Which of the following events most likely increases real GDP? A. An increase in the real rate of interest B. An increase in taxes C. A decrease in net exports D. An increase in government spending...
An American firm moves a manufacturing plant from the United States to Brazil. How will this affect gross domestic product (GDP) in the United States and in Brazil? A. U.S. GDP falls and Brazil's G...
Which of the following transactions would be included in the official computation of gross domestic product? A. Josh buys a new pair of running shoes. B. Nancy offers to babysit her granddaughter....
Consider the economy of Hermes, which produces agricultural products using only land and labor. The following table shows the supply of land, population size, and real GDP for this economy from 201...
In the first stage of manufacturing each final unit of a product, a firm purchases a key input at a price of $6 per unit. The firm then pays a wage rate of $4 for the time that labor is exerted, co...
Assuming the level of investment is $19 billion an independent of the level of total output, complete the following table and determine the equilibrium levels of output employment in the private cl...
The table below represents an income-expenditure table. Fill in the missing numbers and then identify the equilibrium levels of GDP and planned aggregate spending. What is the equilibrium level of...
Use the Information in the following table to calculate GDP. Market Value of Goods and Services Produced in 1993 Wheat $4,500,000 Automobiles 8,500,000 Tires used in production of automobiles 9...
Should GDP take into account environmental issues, distributional issues, and health and welfare issues? Which issues should be included if any?
Describe three macroeconomic variables in the U.S. that impact supply and demand of Walmart apparel.
Consider an economy characterized by the following facts : i) The official budget deficit is 4% of GDP ii) The debt-to-GDP ratio is 100% iii) The nominal interest rate is 10% The primary deficit/su...
Suppose the following transactions occur during the current year: 1. Bob orders 30 cases of beer from a Dutch distributor at a price of $40.00 per case. 2. A U.S company sells 100 textbooks to a C...
The table shows the values of various economic variables of a coubtry during a particular year. If exports increase by $4,000 in the next year,....,all other variables remaining unchanges. - Trade...
The country of Northland produced $1,000 billion of output in one year. The population of Northland was 50 million, 30 million of whom were employed. What was average labour productivity in Northla...
Assume that there are no surprises, with all economic agents and the central bank having full information about shocks that are hitting the economy. Suppose that the central bank adopts a nominal G...
Explain how a country calculates its GDP and who supervises them.
A nation's gross domestic product is stated in U.S. dollars at $40 million. The dollar value of one unit of the nation's currency (FC) is $0.25. A) Determine the value of GDP in FCs. B) How would y...
The tables below show the spending and revenue for Little land in 2010. Use the tables and other information below to answer the questions that follow.How much money in millions did Littleland need...
Based of the definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the US in 2017 within the United States in a given period of time....
Suppose the United States economy is represented by the following equations: Z = C + I + G C = 500 + .5YD T = 600 I = 300 YD = Y - T G = 2000 a. Given the above variables, calculate the equilibr...
The following table shows prices an quantities for two goods over three different time periods. You may assume all households in the economy ate the same bundle/are the same. Which of the following...
The economy of Tuland produces only two products books and calculators. The following information is available for production and prices of Tulands products the years 2009 and 2010.Using the above...
ANSWER THE NEXT THREE QUESTIONS USING THIS TABLE Do work out CONSUMPTION $200 BILLION GOV ERNMENT SPENDING $88 BILLION IMPORTS $17 BILLION INVESTMENT SPENDING $70 BILLION EXPORTS $10 BILLION 1...
The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions of 2005 dollars), and population (in thousands) of the United States in 1960? 1970, 1990, 2000, and...
Answer the following questions about components of demand in GDP: a. List the components of demand from the most important to the least important. b. What component of demand fluctuates the most?...
Consumption in year three is $200, investment in year three is $100, government spending in year three is $150, exports in year three are $100, imports in year three are $150. Prices for everything...
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