Exam 5: The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

The table below shows the values of various economic variables of a country during a particular year. -Refer to the table above.What will be the value of the GDP of the country if the country runs a trade surplus of $30,000 next year,everything else remaining unchanged?

The GDP of Ritzland during a particular year was $120,000.If the expenditure on investment was $16,000,the expenditure incurred by the government was $35,000,the value of exports was $10,000,and the value of imports was $22,000,then the expenditure on consumption was ________.

Scenario: John and Sue are married and live in the United States. John is a Canadian citizen and stays home with their two children, Micah and Madison; his caretaking is valued at $20,000 per child. He also programs video games from home in the evenings for a Japanese-based online poker site for $50,000 per year. Sue works as a high-powered lawyer for Berkshire Hathaway at their London branch for the U.S. dollar equivalent of $1,00,000 per year. -Refer to the above scenario.How much does John contribute to U.S.GDP?

There is only one firm in a small island country.The firm produced 1,000 units of Good X during a particular year,out of which it could sell 900 units.If each unit of the good sells for $500,what is the GDP of the country?

The expenditure-based method of national accounting ________.

The market value of domestic production is equal to the total expenditure on domestic agents plus ________.

Jack exported a rare painting illegally.This transaction will ________.

A ________ occurs when a country's imports exceed its exports.

In early 2010,Molly paid $200,000 for a house built in 2000.She spent $30,000 on new materials to remodel the house.Although Molly lived in the house after she remodeled it,its rental value rose.Which of the following contributed to real GDP in 2010?

The table below shows the values of various economic variables of a country during a particular year. -Refer to the table above.If imports falls to $45,000 in the next year,GDP will ________,all other variables remaining unchanged.

How does the calculated value of GNP compare to that of GDP for the United States in 2015?

Scenario: Sarah takes care of her son instead of sending him to a day care that charges $12,000 annually. -Refer to the scenario above.Which of the following will happen if Sarah opens a day care and takes care of five children,in addition to her son,charging $12,000 per year for each child?

Scenario: A country produces only one good. It produced 5,000 units of the good during Year 1 and 6,000 units of the good in Year 2. The price of each unit of the good in Year 1 was $280 and it was $320 in Year 2. Suppose Year 1 is taken as the base year for the calculation of GDP. -Refer to the scenario above.The GDP deflator for Year 2 is ________.

Which of the following will lead to a decrease in the GDP of a country?

Scenario: A country produces only one good. It produced 5,000 units of the good during Year 1 and 6,000 units of the good in Year 2. The price of each unit of the good in Year 1 was $280 and it was $320 in Year 2. Suppose Year 1 is taken as the base year for the calculation of GDP. -Refer to the scenario above.Real GDP of the country has grown by ________.

Which of the following is true?

Part of a bridge built by the government of Ritzland collapsed in the same year it was constructed.If the total cost of building the bridge was $4 million,and then it costs $3 million to repair it,which of the following will happen in this scenario,everything else remaining unchanged?

What are the drawbacks (that is,the categories not accounted for)in the calculation of the GDP of a country?

Which of the following is not a component of macroeconomics?

The table below shows the values of various economic variables of a country during a particular year. -Refer to the table above.If a trade deficit of $23,000 occurs in the next year,GDP will ________,all other variables remaining unchanged.