Exam 23: Measuring a Nation S Income

Alexandria, a British citizen, owns and manages a fish and chips shop in Washington, D.C. She buys fresh food produced by U.S. workers, pays utilities to a U.S. company, and employs only U.S. citizens. What part, if any, of the restaurant's production is included in U.S. GDP? What part, if any, of the restaurant's production is included in U.S. GNP?

If real GDP is 5,100 and nominal GDP is 4,900, then the GDP deflator is

What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

In the circular flow diagram what are the three types of payments from firms to factors of production? Is the sum of these payments greater than, less than, or equal to GDP?

Table 23-10 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2015 . Prices and Quantities -Refer to Table 23-10. In which year was this country's nominal GDP highest?

The inflation rate is the

In the base year, the GDP deflator is always

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit and 100 units of maple syrup are sold at $8 per unit. In 2009, the base year, the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit. For 2010,

A professional gambler moves from a state where gambling is illegal to a state where gambling is legal. Most of his income was, and continues to be, from gambling. His move

A newspaper article informs you that most businesses reduced production in the last quarter but also sold from their inventories during the last quarter. Based on this information GDP likely

In 2015, GDP per person in the United States was almost

In the economy of Talikastan in 2015, consumption was $5000, exports were $400, government purchases were $1000, imports were $600, and investment was $1200. What was Talikastan's GDP in 2015?

If nominal GDP doubles and the GDP deflator doubles, then real GDP

In a simple circular-flow diagram,

In a simple circular-flow diagram, total income and total expenditure are

GDP adds together many different kinds of products into a single measure of the value of economic activity by using market prices.

The inflation rate in year 2 equals

A transfer payment is a payment made by

In 2015, U.S. net exports were