Exam 10: Measuring a Nations Income

Thomas, a U.S. citizen, works only in Canada. The value of the output he produces is

The government's purchases of goods but not its purchases of services are included in GDP.

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. The market value of all final goods and services produced within Bahkan in 2010 is

Which of the following is included in GDP?

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 real GDP was

If in some year nominal GDP was $28 trillion and real GDP was $32 trillion, what was the GDP deflator ?

National income differs from net national because

Disposable income is

Suppose an economy produces only burgers and bags of fries. In 2010, 4000 burgers are sold at $3 each and 6000 bags of fires are sold at $1.50 each. In 2008, the base year, burgers sold for $2.50 each and bags of fries sold for $2 each.

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 were country A's government purchases in 2010?

Most goods and services produced at home

Disposable personal income is the income that

If a U.S. citizen buys a dress made in Nepal by a Nepalese firm, then

Sam, an American citizen, prepares meals for his family at home. Ellen, a Canadian citizen, commutes to the U.S. to help prepare meals at a restaurant in Idaho. Whose value of services preparing meals is included in U.S. GDP?

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. This country's output grew

If nominal GDP is $12 trillion and real GDP is $10 trillion, then the GDP deflator is

Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This change in behavior, by itself, has

Identify the immediate effect of each of the following events on U.S. GDP and its components. a.James receives a Social Security check. b.John buys an Italian sports car. c.Henry buys domestically produced tools for his construction company.

Changes in inventory are included in the investment component of GDP.

In computing GDP, market prices are used to value final goods and services because