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

A new technology is discovered that results in all new cars producing 50 percent less pollution.The technology costs nothing to produce and cars do not change in price.As a result of the technology, there is a reduction in the number of visits people make to the doctor to complain of breathing difficulties.Which of the following is true?

Explain how the purchases of used goods and of financial assets affect GDP.

What would happen to measured GDP if more people started hiring workers to do house chores such as cooking and cleaning?

Gross Domestic Product measures the

GDP handles household production by

If a firm does not sell all of the goods that it produces in a given time period, then the goods

Real GDP is the value of final goods and services produced in a year

In recent years, which of the following has been negative?

U.S.net exports include

How are changes in inventory treated in GDP?

Investment includes

-Bananaland produces only bananas and sunscreen and the quantities and prices for 2010 and 2011 are given in the table above.The base year is 2010.In 2011, which is larger: Nominal GDP or real GDP?

Using the chained-dollar method to calculated real GDP, real GDP is calculated by

As more women decide to work outside the home and therefore hire others to work around their home, GDP will increase by the value of

Several adjustments must be made to net domestic product at factor cost in order to calculate GDP.One of these adjustments is adding depreciation.What is depreciation and why must it be added?

If real GDP increases over time, the cost of living will

In 2009 in the United States, net domestic product at factor cost was $11,091 billion.Additionally, rent was $2,000 billion, profits were $1,000 billion, and interest was $358 billion.Hence wages were

A new technology is discovered which results in all new cars producing 50 percent less pollution.Which of the following is true?

Net exports of goods and services increase when

The purchase and sale of three types of legal items are not included in this year's GDP.What are these three items?