Exam 23: Measuring a Nations Income

Table 23-1 A country produces only ice cream and pie.Quantities and prices of these goods for the last several years are shown below.The base year is 2008. Prices and Quantities -Refer to Table 23-1.This country's inflation rate from 2009 to 2010 to the nearest tenth was

When an Egyptian firm purchases a cement mixer from Slovakia,

Total income from the domestic production of final goods and services equals

Which of the following is always measured in prices from a base-year?

James owns two houses.He rents one house to the Johnson family for $10,000 per year.He lives in the other house.If he were to rent the house in which he lives,he could earn $12,000 per year in rent.How much do the housing services provided by the two houses contribute to GDP?

Suppose an economy produces only eggs and ham.In 2009,100 dozen eggs are sold at $3 per dozen and 50 pounds of ham sold at $4 per pound.In 2010,the base year,eggs sold at $1.50 per dozen and ham sold at $5 per pound.For 2009,

An American company operates a fast food restaurant in Paris,France.Which of the following statements is accurate?

The local Chevrolet dealership has an increase in inventory of 25 newly produced cars in 2006.In 2007,it sells all 25 cars.Which of the following statements is correct?

Ryan lives in an apartment where he pays $7,000 a year in rent.Alexis lives in a house that could be rented for $14,000 a year.How much do these housing services contribute to GDP?

Suppose the government passes a law eliminating holidays and,as a result,the production of goods and services increases because people work more days per year (and thus enjoy less leisure per year).Based on this scenario,which of the following statements is correct?

Income generated by a nation's domestic production

Jackie,a Canadian citizen,works only in the United States.The value of the output she produces is

Changes in the GDP deflator reflect only changes in the prices of goods and services.

Which of the following statements regarding GDP is correct?

Thomas,a U.S.citizen,works only in Canada.The value of the output he produces is

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 2008,this country's nominal GDP was

Unlike national income,personal income

Java Hut,a U.S.coffee retailer,buys $10 million worth of coffee beans from Colombia.It also pays $5 million for paper cups and utilities,all produced in the U.S.It sells the coffee it produces using the above inputs to U.S.consumers for $50 million.Overall how do these expenditure affect net exports? How do these expenditures effect U.S.consumption?

Which of the following examples of household spending is categorized as investment rather than consumption?

If nominal GDP is $12 trillion and real GDP is $10 trillion,then the GDP deflator is