Exam 6: GDP and the Measurement of Progress

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. The growth rate of real GDP between 2000 and 2010 (in 2000 dollars) is:

Explain how the presence of pollution causes incorrect GDP measurement.

The value of volunteer services is:

If pressed to choose a single indicator of changing living standards, most economists would probably choose real GDP growth per capita.

In nations that have large underground, or illegal, sectors:

Nominal GDP measures the value of production in current-year prices.

If nominal GDP rose in 2008, we can conclude that:

National wealth refers to the value of a nation's entire stock of:

The value of a car produced by Ford (an American company) in a factory located in Europe would be included in U.S. GDP.

Nominal GDP is calculated using:

GDP is equal to:

The single best indicator of a recession is:

Total spending on services in the United State has doubled since 1950.

GDP is calculated by the:

You sell your old bedroom set to your roommate for $1,800 and buy new custom-built furniture for $6,000. How much is added to GDP?

Which of the following activities is counted as part of U.S. GDP?

Use the following to answer questions: Table: Three-Good Economy II Product Quantity (2008) Price (2008) Quantity (2009) Price (2009) Computers 30 \ 1,000 28 \ 995 Pizzas 100 10 150 15 Burgers 200 200 210 20 -(Table: Three-Good Economy II) Suppose an economy produces only the three final goods shown in the table. The table gives information on the quantities produced and the prices of goods sold in 2008 and 2009. What is the growth rate of real GDP in 2009 if 2008 prices are used in the calculation of real GDP?

The cost of hiring an outside company to clean up a chemical spill at a local factory will not be reflected in GDP.

What does GDP per capita tell us about a nation's economy? What issues does conventional GDP methodology exclude?

It is useful to have different approaches to measuring GDP (such as the national spending approach and the factor income approach) because each approach provides a different value of GDP.