Exam 10: Measuring a Nations Income

Sally purchases a classic 1964 car she saw for sale on someone's lawn. She then purchases some new parts and spends 120 hours refurbishing the car which she keeps. Which of the following is included in GDP?

Total income from the domestic production of final goods and services equals

An increase in nominal U.S. GDP necessarily implies that the United States is producing a larger output of goods and services.

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. In 2008, this country's nominal GDP was

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. In 2009, this country's nominal GDP was

Consider two cars manufactured by Chevrolet in 2009. During 2009, Chevrolet sells one of the two cars to Sean for $24,000. Later in the same year, Sean sells the car to Kati for $19,000. The second automobile, with a market value of $30,000, is unsold at the end of 2010 and it remains in Chevrolet's inventory. The transactions just described contribute how much to GDP for 2009?

If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125.

A farmer sells $50,000 of apples to individuals who take them home to eat and $75,000 of apples to a company that uses them all to produce cider. How much of the farmer's sales will be included as apples in GDP?

If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real 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 was Crete's GDP in 2010?

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

Which of the following represents a transfer payment?

U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does it not tell us, about the well-being of U.S. residents?

Periods during which real GDP rises are called recessions.

A transfer payment is

A U.S. publisher purchases new computers that were manufactured in the U.S. This purchase by itself makes

Suppose an economy's production consists only of corn and soybeans. In 2010, 20 bushels of corn are sold at $4 per bushel and 10 bushels of soybeans are sold at $2 per bushel. In 2009, the price of corn was $2 per bushel and the price of soybeans was $1 per bushel. Using 2009 as the base year, it follows that, for 2010,

For monitoring fluctuations in the national economy, which measure of income is best?

Which of the following is an example of a durable good?

If an economy's GDP falls, then it must be the case that the economy's