Exam 10: Measuring a Nations Income

While GDP includes tangible goods such as books and bug spray, it excludes intangible services such as the services provided by teachers and exterminators.

In 2009, Corny Company grows and sells $2 million worth of corn to Tasty Cereal Company, which makes corn flakes. Tasty Cereal Company produces $6 million worth of corn flakes in 2009, with sales to households during the year of $4.5 million. The unsold $1.5 million worth of corn flakes remains in Tasty Cereal Company's inventory at the end of 2009. The transactions just described contribute how much to GDP for 2009?

Table 10-1 The table below contains data for country A for the year 2010. Household purchases of durable goods \ 1293 Household purchases of nondurable goods \ 1717 Household purchases of services \ 301 Household purchases of new housing \ 704 Purchases of capital equipment \ 310 Inventory changes \ 374 Purchases of new structures \ 611 Depreciation \ 117 Salaries of government workers \ 1422 Government expenditures on public works \ 553 Transfer payments \ 777 Foreign purchases of domestically produced goods \ 88 Domestic purchases of foreign goods \ 120 -Refer to Table 10-1. What was country A's investment in 2010?

GDP

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

In the economy of Ukzten in 2010, consumption was $3000, GDP was $5500, government purchases were $1000, imports were $2000, and investment was $1000. What were Ukzten's exports in 2010?

Which of the following domestically produced items is not included in GDP?

Most goods whose purchases are included in the investment component of GDP are used to produce other goods.

Unemployment compensation is

Gross domestic product adds together many different kinds of goods and services into a single measure of the value of economic activity. To do this, GDP makes use of

Real GDP is the yearly production of final goods and services valued at

The information below for 2008 in millions was reported by the World Bank. On the basis of this information, which list below contains the correct ordering of GDP per person from highest to lowest? $\begin{array} { | l | l | l | l | } \hline \text { Country } & \text { GDP (Constant US\$) } & \text { GDP(Current US\$) } & \text { Population } \\\hline \text { Ghana } & 7,690 & 16,653 & 23.35 \\\hline \text { Kenya } & 17,569 & 30,354 & 38.76 \\\hline \text { Tanzania } & 15,394 & 20,490 & 41.276 \\\hline\end{array}$

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 2011, this country's

Ralph pays someone to mow his lawn, while Mike mows his own lawn. Regarding these two practices, which of the following statements is correct?

Which of the following is included in GDP?

Disposable personal income is the income that households and noncorporate businesses have left after satisfying all their obligations to the government.

After the terrorist attacks on September 11, 2001, governments within the United States raised expenditures to increase security at airports. These purchases of goods and services are

Table 10-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2009.Prices and Quantities Year Price of Quantity af Price af Quantity af Waffles Waffles Pancalkes Pancalkes 2008 \ 2.00 100 \ 1.00 100 2009 \ 2.00 120 \ 2.00 150 2010 \ 2.00 150 \ 3.00 200 2011 \ 4.00 180 \ 3.00 220 -Refer to Table 10-6. From 2010 to 2011, this country's output grew

If a U.S. citizen buys a television made in Korea by a Korean firm, then

In a simple circular-flow diagram, firms use the money they get from a sale to