Exam 12: GDP: Measuring Total Production and Income

When lumber from Brazilian forests is used by a U.S.-owned company to produce furniture in Canada,the value of the furniture produced will be counted as a final good in

If a U.S.firm produces cars in Mexico,that production should count towards

Debbie makes porcelain plates in her home and sells them to the Opus gallery.She spent $400 last month on supplies and made 50 plates.She sold the plates to the gallery at $25 per plate.The gallery sells all the plates for $40 each.For all of the 50 plates,what is Debbie's total value added? For all the 50 plates,what is the gallery's total value added?

Which of the following is included in gross domestic product for an economy in a given year?

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

Gross domestic product is generally ________ national income.

Table 12-15 Year Nominal GDP Real GDP 2016 \ 13,399 \ 12,976 2017 14,078 13,254 2018 14,441 13,312 -Refer to Table 12-15.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2017 equals

Disposable personal income is defined as

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

If real GDP increases we know for sure that

If income is unequally distributed in an economy,increases in GDP may not raise well-being in an economy.

Table 12-3 Consumption expenditures \ 800 Investment expenditures 200 Government purchases 300 Exports 100 Imports 200 Wages 800 -Refer to Table 12-3.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals

The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S.________ and the South Korean ________.

Table 12-11 Year Guns Produced Price of Guns Butter Produced Price of Butter 2009 80 \ 5 40 \ 4 2018 90 6 60 10 Consider the following data for Tyrovia, a country that produces only two products: guns and butter. -Refer to Table 12-11.Nominal GDP for Tyrovia in 2018 equals

An example of an intermediate good would be

Nominal GDP measures the value of all final goods and services at base-year prices.

Value added equals the market price of the firm's product minus

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

If an American firm opens a production facility in India,the total value of the production will be included in the

In a small economy,gross investment is $1,500,consumption spending is $6,000,net investment is $200,government purchases are $1,500,exports are $2,000 and imports are $1,000.What is GDP for this economy?