Exam 8: Gdp: Measuring Total Production and Income

Emily is a writer.She buys pens and paper for $20 and writes a 500-page novel that she sells to a publishing company for $500,000.If the publisher prints 1 million copies that sell for $25 each,what is the contribution to GDP of Emily's novel?

Investment spending includes spending on

Table 19-8 -Refer to Table 19-8.Given the following information,calculate the rate of increase in the price level from 2010 to 2011.

The size of the underground economy as a percent of GDP is larger in the United States as compared to poorer countries such as Zimbabwe.

The "underground economy" refers to

If Gladys sells her 1998 Jeep Cherokee for $3,500 in 2012,the sale of her car contributes $3,500 to 2012 GDP.

Gross national product is defined as

If an increase in crime causes households to spend money on police and security systems,GDP will rise.

Nominal GDP is another term for

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?

Table 19-4 -Refer to Table 19-4.Given the information above,what can we say has happened in the economy from 2011 to 2012?

Table 19-15 -Refer to Table 19-15.Based on the table above,what is personal income for this economy?

Under what circumstances would the GDP deflator be less than 100 after the base year?

If China decides to enact laws to clean up the environment,what would be the effect on GDP?

A car that is produced in 2012 is not sold until 2013.According to the definition of GDP,in which year's GDP should it be counted?

Give two reasons why GDP does not reflect total production in an economy.

Gross domestic product in the economy is measured by the

One study found that college students who graduate during a recession have to search longer for a job and end up accepting jobs that,on average,pay ________ that jobs accepted by students who graduate during expansions.

Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products.For his wife's birthday,he designs and creates an intricate birdseye maple jewelry box that takes him 15 hours to complete.By how much and in what direction does GDP change as a result of his efforts?

To make the calculation of real GDP more accurate,in 1996 the BEA switched to using