Exam 12: GDP: Measuring Total Production and Income

If prices are rising on average,then

The largest component of spending in GDP is

A transfer payment is a payment by the government to an individual

Gross national product (GNP)of the United States is the market value of all final goods and services

Suppose in 2018,you purchase a house built in 2003.Which of the following would be included in the gross domestic product for 2018?

In calculating gross domestic product,the Bureau of Economic Analysis uses the sum of the market value of final goods and services produced.This means that the BEA

Why do we subtract import spending from total expenditures?

Table 12-12 Year Nominal GDP Real GDP 2015 \ 7,400 \ 7,537 2016 7,813 7,813 2017 8,301 8,165 2018 8,760 8,516 -Refer to Table 12-12.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is

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

The Philippines and Vietnam have roughly the same size population.Suppose the GDP of the Philippines is $1,000 billion and the GDP of Vietnam is $10,000 billion.You should conclude

Over the last 50 years,has the ratio of household production to gross domestic product in the United States increased or decreased? Consider the effect of the increased number of women working outside the home,and the effect of advances in technology in household production such as microwaves,coffee makers,power tools,etc.

Gross domestic product is calculated by summing up

The size of the underground economy would tend to decrease if the government of a country

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.

Which of the following is counted in GDP?

Table 12-1 Product Quantity Price Sweatshirts 50 \ 35.00 Dental examinations 40 75.00 Coffee drinks 1,000 4.00 Coffee beans 2,000 0.50 -Refer to Table 12-1.Suppose that a simple economy produces only four goods and services: sweatshirts,dental examinations,coffee drinks,and coffee beans.Assume all of the coffee beans are used in the production of the coffee drinks.Using the information in the above table,nominal GDP for this simple economy equals

Consumption spending is $4.5 billion,gross private domestic investment is $3 billion,and government purchases are $2 billion.If GDP is $14 billion,which of the following could be true regarding exports and imports in the economy?

A sharp increase in the number of medical errors increases the number of lawyers hired to determine medical malpractice settlements.This will

National income equals gross domestic product

Between 2017 and 2018,if an economy's exports rise by $8 billion and its imports fall by $8 billion,by how much will GDP change between the two years,all else equal?