Exam 6: GDP and the Measurement of Progress

Use the following to answer questions: Table: Small-Town GDP Town Real GDP (U.S. dollars) Population A 4,859,307 250 B 10,000,050 175 C 6,000,000 320 D 3,549,289 90 -(Table: Small-Town GDP) Which of the four towns in this table has the highest standard of living?

Real GDP is calculated using:

If pressed to choose a single indicator of current economic performance, most economists would probably choose real GDP growth.

Growth in nominal GDP over time can be caused by:

Which of the following would be included in U.S. GDP?

GDP can be calculated by adding up the physical quantities of goods and services produced in a given year.

If GDP was $10 billion in 2010 and $11 billion in 2011 and the population grew 5% between 2010 and 2011, the growth rate of GDP per capita between 2010 and 2011 was:

The portion of women in the workforce has nearly doubled since 1950. As a result, fewer mothers are providing services inside the home. How has this trend affected GDP?

What is the term for the value of a nation's entire stock of assets?

If a country is experiencing inflation, it would mean that:

An expansion is a period of significant, widespread increases in:

Consumption spending tends to be more stable than investment spending in the U.S. economy.

Social Security benefits paid to current retirees is an example of government purchases that would be included in GDP.

Government spending, including transfer payments, is included in the calculation of GDP.

According to the national spending approach, imports must be subtracted from all other spending in the economy in the calculation of GDP.

GDP is meant to measure spending, so sales of used goods are included in GDP.

Suppose a doctor spends half of the year in the United States and the other half in Canada and works in both places. How does his production get allocated between U.S. and Canadian GDP?

The cost of negative externalities that harm the environment, such as pollution costs:

What is the formula for calculating GDP using the national spending approach?

Birmingham Steel sells steel to Winston Golf Club Manufacturers for $300,000. Winston sells its golf clubs to Academy Sports for $1,000,000. Academy Sports sells Winston golf clubs for $1,500,000. How much is added to GDP?