Exam 23: Measuring a Nations Income

During the third quarter of this year a firm produces consumer goods and adds some of those goods to its inventory.During the fourth quarter of this year,the firm sells the goods at a retail outlet,with the result that the value of its inventory at the end of the fourth quarter is smaller than the value of its inventory at the end of the third quarter.These actions affect which component(s)of fourth-quarter GDP?

The government of country A,which has adopted American GDP accounting conventions,has calculated that the seasonally-adjusted market value of all final goods and services produced within country A in quarter 1 was $5 billion.The government will report that GDP in quarter 1 was

If a state made a previously-illegal activity,such as gambling or prostitution,legal,then,other things equal,GDP

Net exports equal

When economists talk about growth in the economy,they measure that growth as the

Which of the following transactions adds to U.S.GDP for 2010?

Many things that society values,such as good health,high-quality education,enjoyable recreation opportunities,and desirable moral attributes of the population,are not measured as part of GDP.It follows that

In the economy of Ukzten in 2010,consumption was $3000,exports were $400,GDP was $5000,imports were $600,and investment was $1100.What were Ukzten's government purchases in 2010?

Suppose there are only two firms in an economy: Cowhide,Inc.produces leather and sells it to Couches,Inc. ,which produces and sells leather furniture.With each $1,000 of leather that it buys from Cowhide,Inc. ,Couches,Inc.produces a couch and sells it for $3,000.Neither firm had any inventory at the beginning of 2009.During that year,Cowhide produced enough leather for 20 couches.Couches,Inc.bought 80% of that leather for $16,000 and promised to buy the remaining 20% for $4,000 in 2010.Couches,Inc.produced 16 couches during 2009 and sold each one during that year for $3,000.What was the economy's GDP for 2009?

In the economy of Ukzten in 2010,consumption was $1000,exports were $100,government purchases were $450,imports were $150,and investment was $350.What was Ukzten's GDP in 2010?

If the GDP deflator in 2009 was 150 and the GDP deflator in 2010 was 175,then the inflation rate in 2010 was 25%.

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 real GDP was

Expenditures by households on education are included in the investment component of GDP.

In a simple circular-flow diagram,firms use the money they get from a sale to

In the economy of Ukzten in 2010,consumption was $200,exports were $50,GDP was $325,government purchases were $100,imports were $125,and investment was $100.What were Ukzten's net exports in 2010?

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 2009,this country's real GDP was

If consumption is $1800,GDP is $4300,government purchases are $1000,imports are $700,and investment is $1200,then exports are $300.

International studies of the relationship between GDP per person and quality of life measures such as life expectancy and literacy rates show that larger GDP per person is associated with

The statistical discrepancy that regularly arises in national income accounting refers to the slight difference between

Table 10-4 The country of Caspir produces only cereal and milk.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 10-4.This country's inflation rate from 2010 to 2011 was