Exam 10: Measuring a Nations Income

In the economy of Ukzten in 2010, exports were $500, GDP was $6400, government purchases were $1500, imports were $600, and investment was $2000. What was Ukzten's consumption in 2010?

A steel company sells some steel to a bicycle company for $150. The bicycle company uses the steel to produce a bicycle, which it sells for $250. Taken together, these two transactions contribute

Microeconomics and macroeconomics are closely linked.

Jackie, a Canadian citizen, works only in the United States. The value of the output she produces is

GDP is not a perfect measure of well-being; for example,

Which of the following items is included in U.S. GDP?

Al's Aluminum Company sells $1 million worth of aluminum to Shiny Foil Company, which uses the aluminum to make aluminum foil. Shiny Foil Company sells $4 million worth of aluminum foil to households. The transactions just described contribute how much to GDP?

If net exports is a negative number for a particular year, then

Which of the following examples of production of goods and services would be included in U.S. GDP?

In the United States in 2009, consumption represented approximately

An American soldier stationed in North Carolina receives a paycheck from the federal government for $300, which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market. As a result, U.S. GDP increases by

Consumer goods that are produced, go into inventory, and are not sold during the current period are

Suppose that an economy produces 30,000 units of good A which sells at $3 a unit and 60,000 units of good B which sells at $2 per unit. Production of good A contributes

GDP is the most closely watched economic statistic because it is thought to be the best single measure of a society's economic well-being.

How does U.S. gross domestic product (GDP) differ from U.S. gross national product (GNP)?

Suppose an economy produces only iPhones and bananas. In 2010, 1000 iPhones are sold at $300 each and 5000 pounds of bananas are sold at $3 per pound. In 2009, the base year, iPhones sold at $400 each and bananas sold at $2 per pound. For 2010,

Macroeconomists study

Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale, are

For an economy as a whole, income must exceed expenditure.

Table 10-1 The table below contains data for Bahkan for the year 2010. GDP \ 110 Income earned by citizens abroad \ 5 Income foreigners earn here \ 15 Losses from depreciation \ 4 Indirect business taxes \ 6 Statistical discrepancy \ 0 Retained earnings \ 5 Corporate income taxes \ 6 Social insurance contributions \ 10 Interest paid to households by government \ 5 Transfer payments to households from government \ 15 Personal taxes \ 30 Nontax payments to government \ 5 -Refer to Table 10-1. Disposable personal income for Bahkan in 2010 is