Exam 6: Measuring Total Output and Income

Table 6.1 provides data on the components of GDP for an economy. Table 6-1 -Refer to Table 6-1. What is the total value of government purchases of goods and services?

Net national product equals:

A Canadian resident runs a corner store in New York, U.S. His monthly income from the store is included in the Canadian GNP.

Table 6-3 shows data relating to the stages of production of toy model airplanes. Table 6-3 -Refer to Table 6-3. The final value of a model airplane is _____.

Table 6-3 shows data relating to the stages of production of toy model airplanes. Table 6-3 -Refer to Table 6-3. The total value added in the production of a model airplane is _____.

Executive salaries and bonuses are included in gross domestic income under:

Table 6.1 provides data on the components of GDP for an economy. Table 6-1 -Refer to Table 6-1. What is the value of GDP?

Which of the following is an advantage of a value added tax (VAT) compared to a final tax on retail sales?

Table 6.2 shows data on the components of GDP in an economy. Use the table to answer questions . Table 6-2 -Refer to Table 6-2. What is the value of GDP?

Pfeister Inc., a firm located in New York, is a German manufacturer of heavy-duty glass doors. It uses glass-cutting machinery imported from Germany in production. The firm's output of glass doors will be counted in:

Suppose that in the country of Welworth, most residents supply factors of production to foreign firms, while producers in Welworth never employ factors owned by residents of other countries. Which of the following statements is true of the economy of Welworth?

Table 6-3 shows data relating to the stages of production of toy model airplanes. Table 6-3 -Refer to Table 6-3. The value added by the sale of a model airplane to the customer is _____.

Suppose the clothing manufacturer, Eddie Bauer, produced 10,000 pairs of jeans in 2005 but sold only 9,200 pairs. How will this be recorded in GDP accounts?

In the generation of GDP, pollution often occurs. So, we can infer that

In the long run, a country's material standard of living is determined by:

Table 6-6 shows the different stages in the production of an office building. A mining firm extracts iron from the earth. A steel mill converts the iron to steel beams for use in construction. A construction company uses the steel beams to make a building. Assume that the total product of these firms represents the only components of the building and that they will have no other uses. Table 6-6 -Refer to Table 6-6. Suppose the value-added tax is 10%. What is the amount paid by Crane Construction to Fuller Mill?

The value of goods and services purchased by households during a particular period is called:

GDP is the sum of:

Of the following, which statistic do economists use to measure the business cycle?

A trade deficit occurs when: