Exam 7: Part B: Measuring the Economys Output

Assume an economy which is producing only one product.Output and price data for a three-year period are as follows. Refer to the above data.If year 2 is chosen as the base year, the price index for year one is:

Net Domestic Income at the factor cost refers to the:

The GDP price index:

GDP may be defined as:

Setup Corporation buys $100,000 of sand, rock, and cement to produce ready-mix concrete.It sells 10,000 cubic yards of concrete at $30 a cubic yard.The value added by Setup Corporation is:

Gross domestic product (GDP) measures and reports output:

For the above economy, the real GDP in year 3 is:

Some of the production of an economy creates pollution.As a result:

In a typical year which of the following measures of aggregate output and income is likely to be the smallest?

GDP in an economy is $4,600 billion.Consumer expenditures are $3,500 billion, government purchases are $900 billion, and gross investment is $400 billion.Net exports are:

Real GDP measures:

GDP excludes expenditures by:

Which of the following is not an economic investment?

In calculating GDP by the income approach, we should sum up:

Based on Canada's 2017 GDP calculation (using the expenditure approach), what areas contributed the most toward Canada's GDP (calculation based on the expenditure approach) in 2017?

A business buys $7,000 worth of resources to produce a product.The business makes 150 units of the product and each of them sells for $90.The value added by the business to these products is:

From an economist's perspective, which is not considered to be an investment?

In one-year nominal GDP was $286 billion and the price index was 88.Real GDP in that year was:

A price index is 100 times the ratio of real GDP to nominal GDP.

Which of the following do national income accountants consider to be "investment"?