Exam 10: Measuring a Nations Income

Suppose that over the last twenty-five years a country's nominal GDP grew to three times its former size. In the meantime, population grew by 40 percent and prices rose by 100 percent. What happened to real GDP per person?

Estimates of the values of which of the following non-market goods or services are included in GDP?

Recessions are not associated with which of the following?

To encourage formation of small businesses, the government could provide subsidies; these subsidies

GDP is a good measure of economic well-being for all purposes.

GDP adds together many different kinds of products into a single measure of the value of economic activity by using market prices.

Which of the following is a way to compute GDP?

The U.S. Air Force pays a Turkish citizen $30,000 to work on a U.S. base in Turkey. As a result,

Expenditures by households on education are included in the consumption component of GDP.

An economy's income is the same as its expenditure because every transaction has a buyer and a seller.

The percentage change in the price level from one period to another is called

Typically in countries with lower levels of real GDP person, a smaller percentage of the population is literate.

Janet bought flour and used it to bake bread she ate. ABC Bakery bought flour which it used to bake bread that customers purchased. In which case will the flour be counted as a final good?

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut. As a result,

The local Chevrolet dealership has an increase in inventory of 25 newly produced cars in 2006. In 2007, it sells all 25 cars. Which of the following statements is correct?

U.S. GDP includes estimates of the value of items that are produced and consumed at home, such as housework and car maintenance.

In 2009, GDP per person in the United States was almost

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 2008, this country's

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

GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because