Exam 19: Gdp: Measuring Total Production and Income

In 2018, Kendall Ford, an automobile dealership, spent $20,000 on a new car lift for its repair shop, $2,000 on a new copy machine for its sales division, and $600,000 on Ford Motor company stock. Unsold cars and trucks were valued at $400,000 on January 1, 2018 and unsold cars and trucks were valued at $900,000 on December 31, 2018. What is Kendall Ford's total investment spending in 2018?

Consumption spending is $4.5 billion, gross private domestic investment is $3 billion, and government purchases are $2 billion. If GDP is $14 billion, which of the following could be true regarding exports and imports in the economy?

Recent estimates put the size of the underground economy in the United States at ________ of measured GDP.

How are intermediate goods treated in the calculation of GDP?

An example of a transfer payment is

Which of the following would increase disposable personal income?

Which of the following goods is directly counted in GDP?

Which of the following is not a durable good?

Which of the following transactions represents the purchase of a final good?

The GDP deflator is a measure of the

Caroline is an artist. She purchases canvases, paints, brushes, and accessories for $75. She sells one of her original paintings to an art gallery for $1,500, even though an art lover would pay $4,500 for that painting. How much market value does Caroline add?

Table 19-19 -Refer to Table 19-19. Given the information above, calculate the rate of increase in the price level from 2017 to 2018.

In 2016, Ford's sales were rising, but in early 2017, Ford's sales declined. Ford and the U.S. automobile industry were experiencing the effects of

Suppose that in 2018, the national income in the United States was $200 billion, depreciation was $15 billion, personal taxes were $20 billion, and transfer payments were $10 billion. Gross domestic product in 2018 is

Which of the following transactions would take place in the "underground economy"?

Which of the following statements about the underground economy is true?

Table 19-4 -The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product.

Use the formula for the GDP deflator to explain how it is affected by an increase in prices in the economy. If the value of the deflator equals 100, what does that tell you about that year with respect to the base year?

If the GDP deflator is less than 100, which will be higher: nominal GDP or real GDP? Why?

What are the differences between national income, personal income, and disposable personal income?