Exam 5: Measuring a Nations Income

-Refer to the Table 5-4. Using 2013 as the base year, what can we conclude for 2014?

What does personal income include and exclude?

If Susan decides to groom her dog herself instead of having Petworld groom him for her, what is the impact on GDP?

How should Robert's contributions to GDP be calculated?

If the Canadian government pays a retired economist at the Ministry of Finance $80,000 in retirement benefits in 2015, how is the payment treated?

In 2014, how large were Canadian government purchases of goods and services?

What best defines the GDP deflator?

Ryan is a Canadian resident who lives with his family in Victoria, Canada, but works for a small donut cafe in Seattle, U.S., where he commutes every day. On a typical day, Ryan produces 400 donuts that sell for $1 apiece. Of the revenue from selling the donuts, Ryan is paid $200 per day. The remaining $200 revenue is distributed as follows: $50 pays for inputs such as water, flour, sugar, butter, and energy, $100 is rent for using the facilities and interest for an initial loan to start the business, and $50 goes to salary to the manager and profit to the owner of the café. a) How much is the increase in U.S. GDP and GNP generated by the production of the 400 donuts? b) How much is the increase in Canada's GDP and GNP generated by the production of the 400 donuts? c) How much is Ryan's contribution to the creation of the $400 value of donuts? Explain your answer. d) Since Ryan takes his income home to Canada, should the U.S. allow foreign workers such as Ryan to take jobs that might otherwise go to American workers?

What was the approximate GDP per person in Canada in 2014?

Which example would affect GDP, as measured by Statistics Canada?

-Refer to the Table 5-4. What is the nominal GDP?

In Canada in 2014, what percentage of GDP was consumption?

Which of the following defines recessions?

How are nominal GDP and real GDP related?

A hypothetical economy produces only two items: maple syrup and trips to a local tourist attraction. Calculate nominal GDP, real GDP, and the GDP deflator, and fill in the corresponding columns in the following table:

A company makes 500,000 smart phones in the second quarter. It sells 300,000 of them before the end of the second quarter, and holds the others in its warehouse. How is the second quarter GDP affected?

Which nonmarket good or service is included as an estimate in Canadian GDP?

What do international GDP and socioeconomic data show?

A professional gambler moves from a province where gambling is illegal to a province where gambling is legal. What impact does this move have on Canada's GDP?

-Refer to the Table 5-1. What is the personal income for this economy?