Exam 23: Measuring a Nations Income

Suppose there are only two firms in an economy: Rolling Rawhide produces rawhide and sells it to Chewy Chomp,Inc. ,which uses the rawhide to produce and sell dog chews.With each $2 of rawhide that it buys from Rolling Rawhide,Chewy Chomp,Inc.produces a dog chew and sells it for $5.Neither firm had any inventory at the beginning of 2008.During that year,Rolling Rawhide produced enough rawhide for 1000 dog chews.Chewy Chomp,Inc.bought 75% of that rawhide for $1500 and promised to buy the remaining 25% for $500 in 2009.Chewy Chomp,Inc.produced 750 dog chews during 2008 and sold each one during that year for $5.What was the economy's GDP for 2008?

Real GDP per person tells us the income and expenditure of the average person in the economy.

Since it is counted as investment,why doesn't the purchase of earthmoving equipment from China by a U.S.corporation increase U.S.GDP?

Table 10-7 The table below contains data for the country of Togogo.The base year is 1974. -Refer to Table 10-7.From 1976 to 1977,

Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?

An American retailer purchased 100 pairs of shoes from a company in Denmark in the second quarter of 2010 but does not sell them to a consumer until the third quarter of 2010.Which of the following components of U.S.GDP is affected by this transaction in the third quarter of 2010?

Which of the following domestically produced items is not included in GDP?

Which of the following is not an example of a durable good?

In 2009,U.S.GDP was almost

Which of the following always uses prices and quantities from the same period?

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009.It also reported a GDP deflator of 100 in 2010 and 105 in 2009.Between 2009 and 2010,

In the economy of Ukzten in 2010,exports were $500,GDP was $6400,government purchases were $1500,imports were $600,and investment was $2000.What was Ukzten's consumption in 2010?

GDP excludes the value of intermediate goods because their value is included in the value of final goods.

Periods during which real GDP rises are called recessions.

The purchase of rice produced this period is included in GDP if the rice is

Most goods and services produced at home

The inflation rate is the

JR sells RV's.In 2010 she added $400,000 to her inventory.$100,000 of this addition was from used RV's she purchased while the remaining $300,000 was from her purchases of newly manufactured RV's.How much of JR's inventory is included in 2010 GDP?

Both the value of hamburgers sold by a restaurant and the value of the beef it used to make these hamburgers are included in GDP.

What three types of goods are included in investment spending?