Exam 12: Gdp: Measuring Total Production and Income

Which of the following statements about the underground economy is true?

Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?

GDP is not a complete measure of well-being.

Table 12-7 Product Quantity Price Pods 20 \ 125.00 T-shirts 100 20.00 Bottled water 2,000 1.00 Oranges 600 0.50 -Refer to Table 12-7.Suppose that a simple economy produces only four goods and services: iPods,t-shirts,bottled water,and oranges.Calculate nominal GDP for this simple economy.

Debbie makes porcelain plates in her home and sells them to the Opus gallery.She spent $400 last month on supplies and made 50 plates.She sold the plates to the gallery at $25 per plate.The gallery sells all the plates for $40 each.For all of the 50 plates,what is Debbie's total value added? For all the 50 plates,what is the gallery's total value added?

Table 12-21 20112013 Product Quantity Price Quantity Price Hats 200 \ 20 250 \ 21 French fries 2,000 1 2,300 2 Digital cameras 40 200 50 140 -Refer to Table 12-21.Consider the following data for a simple economy: Calculate nominal GDP and real GDP for 2013,using 2011 as the base year.Show your work.

If a country passes a labor law limiting the number of hours of work per week,GDP would ________ and leisure would ________.

Article Summary For only the second time in the previous 10 quarters, China's GDP grew at a faster rate than from the same period a year earlier. From July through September 2013, China's GDP increased 7.8 percent, but a decline in exports, growing inflation, and slowing growth in factory production all suggest that growth will be slowing down. China has recently been attempting to restructure its economy by moving toward increasing consumption and relying less on exports and investments as a means to achieving more sustainable economic growth. In the first nine months of 2013, 46 percent of growth was due to consumption, 56 percent was due to investment, and exports accounted for negative 1.7 percent. -Refer to the Article Summary.The decline in export growth will hurt China's GDP because

The nominal GDP of the U.S.in 2012 was approximately $16.2 trillion.This means that

The largest component of spending in GDP is

If real GDP in 2013 (using 2009 prices)is lower than nominal GDP of 2012,then

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 nominal GDP in 2013 when 2008 is the base year?

People complain that inflation increases the cost of goods and services and therefore reduces their purchasing power.If inflation and income grow at the same rate,is this complaint valid? Explain carefully.

An example of an intermediate good would be

Using "chain-weighted" prices to calculate real GDP remedies the distortions causes by changes in relative prices over time.

Table 12-22 200920122013 Product Quantity Price Quantity Price Quantity Price 40 \ 250.00 45 \ 200.00 50 \ 150.00 Tacos 2,000 2.00 2,200 2.25 2,300 2.40 Coats 300 50.00 310 52.00 350 55.00 -Refer to Table 12-22.Consider the data above for a simple economy: Using 2009 as the base year,calculate nominal GDP,real GDP,and the GDP deflator for 2013.Show your work.

Macroeconomics,as opposed to microeconomics,includes the study of what determines the level of

If prices rise on average in the U.S.economy,the purchasing power of a dollar declines.

A car that is produced in 2013 is not sold until 2014.According to the definition of GDP,in which year's GDP should it be counted?

Which of the following would increase GNP in the United States?