Exam 10: Measuring a Nations Income

If total spending rises from one year to the next, then the economy must be producing a larger output of goods and services.

When studying changes in the economy over time, economists want a measure of the total quantity of goods and services the economy is producing that is not affected by changes in the prices of those goods and services. In other words, economists want to study

Which of the following is not included in U.S. GDP?

Many things that society values, such as good health, high-quality education, enjoyable recreation opportunities, and desirable moral attributes of the population, are not measured as part of GDP. It follows that

Which of the following is included in the investment component of GDP?

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? $\begin{array} { | l | l | l | l | } \hline \text { Country } & \text { GDP (Constant US\$) } & \text { GDP(Current US\$) } & \text { Population } \\\hline \text { Argentina } & \$ 394,595 & \$ 328,465 & 39.88 \\\hline \text { Bolivia } & \$ 11,373 & \$ 16,674 & 9.69 \\\hline \text { Peru } & \$ 84,241 & \$ 129,109 & 28.84 \\\hline\end{array}$

Changes in real GDP reflect

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 investment in 2010?

Which of the following statements about nominal GDP and real GDP is correct?

New home construction is included in the consumption component of GDP.

International data on GDP and socioeconomic variables

Which of the following is included in the investment component of GDP?

Macroeconomics is the study of the economy as a whole.

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 2011, this country's real GDP was

U.S. GDP was almost $14 billion in 2009.

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. Gross national product for Bahkan in 2010 is

In the economy of Ukzten in 2010, consumption was $3000, exports were $400, GDP was $5000, imports were $600, and investment was $1100. What were Ukzten's government purchases in 2010?

Gasoline is considered a final good if it is sold by a

In 2009, U.S. GDP was almost

Transfer payments