Exam 19: Gdp: Measuring Total Production and Income

Home Depot sells new and used doors to contractors who build new homes. Home Depot also sells new and used doors to homeowners. Which of the following would be counted in GDP?

Which of the following would not be included in the expenditure category called investment expenditures?

GDP is not a complete measure of well-being.

Which of the following is not an example of a transfer payment?

Since real GDP is adjusted for inflation and nominal GDP is not, nominal GDP must always be higher than real GDP. Do you agree or disagree? Why?

Table 19-18 A very simple economy produces three goods: cameras, legal services, and books. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above. -Refer to Table 19-18. What is nominal GDP in 2018 when 2013 is the base year?

Total income in an economy is equal to

Table 19-20 -Refer to Table 19-20. Consider the following data for a simple economy: Calculate nominal GDP and real GDP for 2018, using 2016 as the base year. Show your work.

Table 19-4 -Which of the following is not true about the composition of GDP in 2016?

Table 19-9 -Refer to Table 19-9. Suppose that the above table represents the goods and services produced in a very simple economy in 2018. Assume that steel is used as an input in the production of autos. Using that information, calculate GDP for the year 2018.

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, which, in turn, sells it to an art lover for $4,500. How much market value does the gallery add?

Which of the following equations correctly measures GDP in an economy?

The largest component of spending in GDP is

In 2016, Ford Motor Company's sales were rising. These events were caused by

An example of an intermediate good would be

To make the calculation of real GDP more accurate, in 1996 the BEA switched to using

Table 19-6 -Refer to Table 19-6. Consider the table of production and price statistics for a small economy in 2018. If the economy only produces the four goods listed below, what is GDP for 2018?

The factors of production include

If income is unequally distributed in an economy, increases in GDP may not raise well-being in an economy.

To calculate GDP using the value-added method, one would add up