Exam 6: GDP and the Measurement of Progress

Use the following to answer question 53: Table: Prices and Quantities in a 4-Good Economy Product Price Quantity Shovels \ 20 50 Books 50 100 Tomatoes 1 500 Pizzas 10 120 -(Table: Prices and Quantities in a 4-Good Economy) Suppose an economy produces only the four goods listed in this table. All of the country's tomatoes are used in the production of pizzas. What is the GDP in this country?

Imagine that Jack and Jill buy $500 worth of milk and $200 worth of crayons and coloring books each year for use in their day-care business. Jack and Jill also hire a day-care attendant at a salary of $14,000 per year. If Jack and Jill sell $100,000 worth of day care to parents each year, what is the contribution to GDP by Jack and Jill's Day Care?

Since 1950, the portion of U.S. GDP created by services has:

A real variable is one that corrects for:

According to the factor income approach, GDP is the sum of:

Which of the following statements is TRUE about GDP?

Which of the following would NOT be included in the calculation of GDP as an investment expenditure?

Use the following to answer questions: Table: GDP Data 2000 GDP in 2000 dollars \ 11.6 trillion 1995 GDP in 2000 dollars \ 10 trillion 1995 GDP in 1995 dollars \ 8.8 trillion -(Table: GDP Data) Using the GDP data in the table, how much did real GDP grow between 1995 and 2000, in 2000 dollars?

Which approach measures GDP by adding together consumption, investment, government purchases, and net exports?

Use the following to answer questions: Table: iPhones Year Quantity produced Price 2000 100 \ 100 2010 90 110 -(Table: iPhones) This table shows data for a country producing only iPhones. Its nominal GDP in 2010 is:

Which of these services most likely would NOT be counted in GDP?

Discuss how well gross domestic product measures well-being. In your discussion, specifically define GDP and specifically state what it measures and what it does not measure.

The GDP deflator is _____ multiplied by 100.

GDP is the market value of all final goods and services produced within a country in a year.

Use the following to answer questions: Table: Data from Europia Account Amount Consumption expenditures \ 9,000 Business profits 2,500 Exports 800 Imports 1,000 Wages and Salaries 8,000 Government purchases 3,000 Rent receipts 500 Investment expenditures 2,000 -(Table: Data from Europia) Based on the data in the table, what is net exports in the economy of Europia?

Nominal GDP in the United States grew by 6.37% from 1998 to 1999. This represents an increase in production and living standards in the U.S. from 1998 to 1999.

The value of production by a U.S. worker employed by a firm located in Canada is included in:

A recession can be concentrated in one geographical part of the economy, even while other parts of the economy flourish.

The value of a car produced and sold in 2005 and sold again in 2011 is included in:

Nominal GDP will grow slower than real GDP only when there is deflation.