Exam 5: Gdp: a Measure of Total Production and Income

-The table gives data on the production and prices in a small economy.Use 2010 as the base period.Using the chained-price method, what is the growth rate of real GDP from 2010 to 2011?

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Question 1

Correct Answer:

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To calculate the growth rate, it is necessary to calculate the growth rates using first 2010 and then 2011 prices and then take the average of the two rates.This procedure gives:
Real GDP in 2010 using 2010 prices = 150
Real GDP 2011 using 2010 prices = 350
Real GDP 2010 using 2011 prices = 250
Real GDP 2011 using 2011 prices = 600
Growth rate using 2010 prices = 133.3 percent
Growth rate using 2011 prices = 140.0 percent
Hence the growth rate equals 136.7 percent, the average of 133.3 percent and 140.0 percent.

________ is most likely to contribute to an improvement in our living standard.

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Question 2

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Consumption goods and services include

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Question 3

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The purchase of a new Boeing fighter jet by Israel is classified in the U.S.GDP accounts as

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Question 4

After calculating net domestic product at factor cost, to calculate GDP using the income approach, in part we must add

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Question 5

To calculate GDP it is necessary to add up the market value of all the ________ produced within a country during a year.

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Question 6

The category of "rent" in the income approach to GDP

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Question 7

The base year is 2010.A country only produces MP3 players.The price of an MP3 player in 2008 was $50.The price of an MP3 player was $30 in 2010.The quantity of MP3 players produced in 2008 was 10,000 units and in 2010 was 20,000 units.Nominal GDP in 2010 equals

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Question 8

The base year is 2008.A country only produces MP3 players.The price of an MP3 player in 2008 was $100.The price of an MP3 player was $90 in 2009.The quantity of MP3 players produced in 2008 was 10,000 units and in 2009 was 10,500 units.Real GDP in 2008 equals

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Question 9

While studying with your friend, your friend states, "Our leisure time increases GDP but lowers our standard of living because it reduces the amount of goods and services we can consume." Is your friend's statement correct?

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Question 10

Explain how our standard of living depends upon our level of real GDP per person but there might not be a one-to-one relationship between the standard of living and real GDP per person.Give examples of things that can effect one but not the other.

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Question 11

The NBER describes a recession as

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Question 12

A country with a real GDP per person similar to real GDP per person in the United States but with limited political freedom is generally considered to have ________.

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Question 13

Expenditures on U.S.produced steaks, shoes, and doctor visits are most likely classified as

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Question 14

Which of the following is a final good or service?

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Question 15

When Jamie purchases a classic 1968 Plymouth Cuda convertible from Shane, GDP

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Question 16

Real GDP can increase if the i. quantities of goods and services produced decrease and prices fall by a smaller percentage. Ii) quantities of goods and services produced decrease and prices fall by a larger percentage. Iii) quantities of goods and services produced decrease and prices do not change. Iv) quantities of goods and services produced increase.

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Question 17

In one year, a firm increases its production by $9 million and increases sales by $8 million.All other things in the economy remaining the same, which of the following is true?

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Question 18

Gross Domestic Product is equal to the market value of all the final goods and services ________ in a given period of time.

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Question 19

Nominal GDP measures the value of goods and services produced in a given year valued using

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Question 20

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-The table gives data on the production and prices in a small economy.Use 2010 as the base period.Using the chained-price method, what is the growth rate of real GDP from 2010 to 2011?

________ is most likely to contribute to an improvement in our living standard.

Consumption goods and services include

The purchase of a new Boeing fighter jet by Israel is classified in the U.S.GDP accounts as

After calculating net domestic product at factor cost, to calculate GDP using the income approach, in part we must add

To calculate GDP it is necessary to add up the market value of all the ________ produced within a country during a year.

The category of "rent" in the income approach to GDP

The base year is 2010.A country only produces MP3 players.The price of an MP3 player in 2008 was $50.The price of an MP3 player was $30 in 2010.The quantity of MP3 players produced in 2008 was 10,000 units and in 2010 was 20,000 units.Nominal GDP in 2010 equals

The base year is 2008.A country only produces MP3 players.The price of an MP3 player in 2008 was $100.The price of an MP3 player was $90 in 2009.The quantity of MP3 players produced in 2008 was 10,000 units and in 2009 was 10,500 units.Real GDP in 2008 equals

While studying with your friend, your friend states, "Our leisure time increases GDP but lowers our standard of living because it reduces the amount of goods and services we can consume." Is your friend's statement correct?

Explain how our standard of living depends upon our level of real GDP per person but there might not be a one-to-one relationship between the standard of living and real GDP per person.Give examples of things that can effect one but not the other.

The NBER describes a recession as

A country with a real GDP per person similar to real GDP per person in the United States but with limited political freedom is generally considered to have ________.

Expenditures on U.S.produced steaks, shoes, and doctor visits are most likely classified as

Which of the following is a final good or service?

When Jamie purchases a classic 1968 Plymouth Cuda convertible from Shane, GDP

In one year, a firm increases its production by $9 million and increases sales by $8 million.All other things in the economy remaining the same, which of the following is true?

Gross Domestic Product is equal to the market value of all the final goods and services ________ in a given period of time.

Nominal GDP measures the value of goods and services produced in a given year valued using

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters