Exam 23: Measuring a Nations Income

Identify the immediate effect of each of the following events on U.S.GDP and its components. a.James receives a Social Security check. b.John buys an Italian sports car. c.Henry buys domestically produced tools for his construction company.

Alexandria,a British citizen,owns and manages a fish and chips shop in Washington,D.C. She buys fresh food produced by U.S.workers,pays utilities to a U.S.company,and employs only U.S.citizens.What part,if any,of the restaurant's production is included in U.S.GDP? What part,if any,of the restaurant's production is included in U.S.GNP?

Table 23-1 The country of Batavia produces only chocolates and watches.Below is a table with recent information on Batavia production and prices.The base year is 2009. Prices and Quantities -Refer to Table 23-1. What was nominal GDP,real GDP,and the GDP deflator for 2010? Show your work.

Which government entity computes U.S.GDP every three months?

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 was the growth rate of real GDP for 1930?

The information for 2008 in millions in the table below was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of real GDP per person from highest to lowest?

GDP is the most closely watched economic statistic because it is thought to be the best single measure of a society's economic well-being.

Which of the following statistics is usually regarded as the best single measure of a society's economic well-being?

Rank the countries from highest to lowest based on underground economic activity as a percentage 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.From 2010 to 2011,this country's output grew

During the current quarter,a firm produces consumer goods and adds some of those goods to its inventory rather than selling them.The value of the goods added to inventory is

If a good produced this quarter goes into inventory,then it is included in this period's GDP.If it is sold in the next quarter,it will have no effect on GDP.

In early2010 Molly paid $200,000 for a house built in 2000.She spent $30,000 on new materials to remodel the house.Although Molly lived in the house after she remodeled it,its rental value rose.Which of the following contributed to real GDP in 2010?

The GDP deflator can be used to take inflation out of nominal GDP.

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

An American soldier stationed in North Carolina receives a paycheck from the federal government for $300,which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market.As a result,U.S.GDP increases by

Household spending on education is included in

If the price of a Blu-Ray Disc player is three times the price of an MP3 player,then a Blue-Ray Disc player contributes

GDP adds together many different kinds of products into a single measure of the value of economic activity by using market prices.

An economy recently reported nominal GDP of 3 trillion euro and a GDP deflator of 200.What was real GDP?