Exam 12: Gdp: Measuring Total Production and Income

Table 12-3 Consumption expenditures \ 800 Investment expenditures 200 Government purchases 300 Exports 100 Imports 200 Wages 800 -Refer to Table 12-3.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals

Transfer payments are subtracted from national income to get to personal income.

Government spending ________ is included in gross domestic product.

Which of the following is a true statement about real and nominal GDP?

The purchase by a foreign government of an airplane produced in the United States is included in U.S.

Table 12-18 Product Quantity Price Quantity Price Camera 100 \ 10 120 \ 12 Legal services 50 15 45 20 Books 200 40 210 45 A very simple economy produces three goods: cameras, legal services, and books.The quantities produced and their corresponding prices for 2008 and 2013 are shown in the table above. -Refer to Table 12-18.What is the GDP deflator in 2008 if 2013 is the base year?

Table 12-32 Billions of Dollars National income \ 11,200 Retained earnings 560 Depreciation 700 Interest on government bonds 300 Transfer payments 2,200 Personal taxes 1,400 -Refer to Table 12-32.The table above represents hypothetical data from the National Income Accounts for 2013.Use the data to calculate personal income and disposable income.

Which of the following could cause nominal GDP to decrease,but real GDP to increase?

The best measure of the income households actually have available to spend is

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

Real GDP will increase

Which of the following statements is true?

Investment,as defined by economists,would include the purchase of a

To examine how the total production of an economy has changed over time,it would be better to examine

Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.

An example of a final good would be

Which component of consumption spending is the greatest in a typical economy?

Which of the following is likely to increase measured GDP?

National income is derived from gross domestic product by

Caroline is an artist.She purchases canvas,paints,brushes,and accessories for $75.She sells one of her original paintings to an art gallery for $1,500,which,in turn,sells it to an art lover for $4,500.How much value does the gallery add?