Exam 23: Measuring a Nations Income

Bountiful Harvest Bakery buys $4.00 of flour from Grinkers' Mill and uses the flour to make bread sold to the public for $12.00.Taking these two transactions into account,what is the effect on GDP?

Which of the following is included in the investment component of GDP?

Table 10-6 The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2009. Prices and Quantities -Refer to Table 10-6.In 2010,this country's real GDP was

Table 10-4 The table below reports nominal and real GDP for the U.S.from 1929 to 1932. -Refer to Table 10-3.What is the GDP deflator and the inflation rate for 1931?

For an economy as a whole,income must equal expenditure because

The information below for 2008 in millions was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of GDP per person from highest to lowest? Country GDP (Constant US$) GDP(Current US$) Population Argentina $394,595 $328,465 39)88 Bolivia $11,373 $16,674 9)69 Peru $84,241 $129,109 28)84

In the economy of Ukzten in 2010,consumption was $1000,GDP was $1950,government purchases were $500,and investment was $700.What were Ukzten's net exports in 2010?

Retained earnings is income that

In computing GDP,market prices are used to value final goods and services because

If Brazil buys $100 million of tractors from the U.S. ,then U.S.net exports will decrease.

The income that households and noncorporate businesses receive is called

The term economists use to describe a situation in which the economy's overall price level is rising is

In 2010 a country had nominal GDP of 6 trillion euro and real GDP of 5 trillion euro.In 2011 it had nominal GDP of 6.5 trillion euro and real GDP of 5.2 trillion euro.What was its inflation rate in 2011? Show your work.

Table 10-7 The table below contains data for the country of Togogo.The base year is 1974. -Refer to Table 10-7.Which of the following is not correct?

When a U.S.citizen buys $500 of Chinese-made parts for a motorcycle,

Gross domestic product adds together many different kinds of goods and services into a single measure of the value of economic activity.To do this,GDP makes use of

If total spending rises from one year to the next,then which of the following could not be true?

Table 10-1 The table below contains data for Bahkan for the year 2010. -Refer to Table 10-1.Gross national product for Bahkan in 2010 is

Gross domestic product includes all

Ralph pays someone to mow his lawn,while Mike mows his own lawn.Regarding these two practices,which of the following statements is correct?