Exam 12: Gdp: Measuring Total Production and Income

Table 12-2 Product Quantity Price Shoes 40 \ 60.00 DVDs 100 18.00 Tomatoes 2,000 1.00 Ketchup 300 4.00 -Refer to Table 12-2.Suppose that a simple economy produces only four goods and services: shoes,DVDs,tomatoes,and ketchup.Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.Using the information in the above table,nominal GDP for this simple economy equals

Because workers in the United States work fewer hours per week,on average,than they did over 100 years ago

The output of U.S.citizens who work in Canada would be included in the

The purchase of a new automobile is included in

Investment,as defined by economists,would not include which of the following? Ford

Table 12-25 Nominal GDP \ 10,000 \ 15,000 Real GDP 9,500 10,500 -Refer to Table 12-25.Given the following information,calculate the rate of increase in the price level from 2012 to 2013.Use the percent change in the GDP deflator.

If nominal GDP is $5 trillion and real GDP is $4 trillion,the GDP deflator is

National income is equal to

When the BEA calculates real GDP using the average of prices in the current year and the year preceding it,and this average changes from year to year,this is called calculating GDP using

The circular flow diagram shows that

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.In China,________ is (are)the main driver of economic growth,while in the United States,________ is the main driver of economic growth.

The GDP deflator is the

Which of the following is not directly counted in GDP?

Scenario 12-1 CANOES-R-US makes canoes.It buys the shell of the canoe from another firm for $300 and uses its labor and intermediate goods to make the canoe.It sells the finished canoe to a retail canoe store for $800.The retail canoe store then sells the canoe to a consumer for $1,200. -Refer to Scenario 12-1.The value of each canoe in gross domestic product equals

If nominal GDP is less than real GDP,then the GDP deflator will be greater than 100.

Which of the following is not a true statement about the impact of World War II on the U.S.economy?

Which of the following is not a durable good?

Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so,how?

If the GDP deflator is less than 100,which will be higher: nominal GDP or real GDP? Why?

If prices are rising on average,then