Exam 19: Gdp: Measuring Total Production and Income

Debbie makes porcelain plates in her home and sells them to the Opus gallery. She spent $400 last month on supplies and made 50 plates. She sold the plates to the gallery at $25 per plate. The gallery sells all the plates for $40 each. For all of the 50 plates, what is Debbie's total value added? For all the 50 plates, what is the gallery's total value added?

Table 19-16 -Refer to Table 19-16. Given the information above, what can we say has happened in the economy from 2017 to 2018?

If the GDP deflator is 142, by how much have prices changed since the base year?

If nominal GDP rises we can say that

Table 19-17 A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above. -Refer to Table 19-17. What is nominal GDP in 2013?

Table 19-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 19-5. The value added by the automobile dealer equals

If a U.S. firm produces cars in Mexico, that production should count towards

Japan experienced periods of deflation-a declining price level-during the 1990s. During a deflationary period, which would be higher: nominal GDP or real GDP? Why? Assume that the base year of choice is prior to the deflationary period.

Government spending ________ is included in gross domestic product.

Nominal GDP measures the value of all final goods and services at base-year prices.

The GDP deflator is the

For developed countries like the United States, GDP will always exceed GNP.

Transfer payments are subtracted from national income to get to personal income.

The underground economy can be described as

Which of the following statements is true?

Why do we subtract import spending from total expenditures?

A sharp increase in the number of medical errors increases the number of lawyers hired to determine medical malpractice settlements. This will

If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is

Because workers in the United States work fewer hours per week, on average, than they did over 100 years ago

Table 19-21 -Refer to Table 19-21. Consider the data above for a simple economy: Using 2013 as the base year, calculate nominal GDP, real GDP, and the GDP deflator for 2018. Show your work.