Exam 10: Measuring a Nations Income

JR sells RV's. In 2010 she added $400,000 to her inventory. $100,000 of this addition was from used RV's she purchased while the remaining $300,000 was from her purchases of newly manufactured RV's. How much of JR's inventory is included in 2010 GDP?

A transfer payment is a payment made by

Table 10-4 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008.Prices and Quantities Year Price af Cereal Quantity af Cereal Price af Millz Quantity df Mill 2008 \ 4.00 90 \ 1.50 150 2009 \ 4.00 100 \ 2.00 180 2010 \ 5.00 120 \ 2.50 200 2011 \ 6.00 150 \ 3.50 200 -Refer to Table 10-4. In 2009, this country's

In the economy of Ukzten in 2010, consumption was 60% of GDP, government purchases were $212, imports were $67 and 67% of the value of exports, investment was one-half of the value of consumption. What was Ukzten's GDP in 2010?

Table 10-2 The table below contains data for the country of Crete for the year 2010. Total income \ 5731 Household purchases of durable goods \ 1108 Household purchases of nondurable goods \ 702 Household purchases of non-education services \ 203 Household purchases of education services \ 302 Household purchases of new housing \ 816 Purchases of capital equipment \ 333 Inventory changes \ 75 Purchases of new structures \ 267 Depreciation \ 401 Local government spending on goods and services \ 236 State government spending on goods and services \ 419 Federal government spending on goods and services \ 1182 Transfer payments \ 707 Foreign purchases of domestically produced goods \ 217 Domestic purchases of foreign goods \ 129 -Refer to Table 10-2. What was Crete's consumption in 2010?

Bountiful Harvest Bakery buys $4.00 of flour from Grinkers' Mill and uses the flour to make bread sold to the public for $12.00. Taking these two transactions into account, what is the effect on GDP?

If nominal GDP is $10 trillion and real GDP is $8 trillion, then the GDP deflator is

Suppose that twenty-five years ago a country had nominal GDP of $1,000, a GDP deflator of 200, and a population of 100. Today it has nominal GDP of $3,000, a GDP deflator of 400, and population of 150. What happened to the real GDP per person?

Table 10-3 The table below reports nominal and real GDP for the U.S. from 1929 to 1932. Year Nominal GDP Real GDP 1929 103.6 977 1930 91.2 892.8 1931 76.5 834.9 1932 58.7 725.8 -Refer to Table 10-3. What is the GDP deflator and the inflation rate for 1931?

In the economy of Ukzten in 2010, consumption was $3000, exports were $200, GDP was $8000, government purchases were $1000, and imports were $600. What was Ukzten's investment in 2010?

Which of the following items is counted as part of government purchases?

The purchase of rice produced this period is included in GDP if the rice is

The statistical discrepancy that regularly arises in national income accounting refers to the slight difference between

Suppose an apartment complex converts to a condominium, so that the former renters are now owners of their housing units. Suppose further that a current estimate of the value of the condominium owners' housing services is the same as the rent they previously paid. What happens to GDP as a result of this conversion?

GDP does not make adjustments for leisure time, environmental quality, or volunteer work.

Which of the following is not a question that macroeconomists address?

National income is defined as

Rocket Energy Drink Company buys sugar to produce energy drinks. At the end of a quarter both its inventory of sugar and its inventory of energy drinks has increased. Investment for the quarter will include

Rank the countries from highest to lowest based on underground economic activity as a percentage of GDP.

Table 10-2 The table below contains data for the country of Crete for the year 2010. Total income \ 5731 Household purchases of durable goods \ 1108 Household purchases of nondurable goods \ 702 Household purchases of non-education services \ 203 Household purchases of education services \ 302 Household purchases of new housing \ 816 Purchases of capital equipment \ 333 Inventory changes \ 75 Purchases of new structures \ 267 Depreciation \ 401 Local government spending on goods and services \ 236 State government spending on goods and services \ 419 Federal government spending on goods and services \ 1182 Transfer payments \ 707 Foreign purchases of domestically produced goods \ 217 Domestic purchases of foreign goods \ 129 -Refer to Table 10-2. What were Crete's government purchases in 2010?