Exam 4: GDP: Measuring Total Production and Income

Table 4.19 A very simple economy produces three goods: movies, burgers, and bikes.The quantities produced and their corresponding prices for 2007 and 2017 are shown in the table above. -Refer to Table 4.19.What is nominal GDP in 2007?

For developed countries like Canada, GDP will always exceed GNI.

Table 4.15 -Refer to Table 4.15.Consider the data shown above on nominal GDP and real GDP (values are in billions of dollars).The GDP deflator for 2016 equals

Suppose Bob works for Mary as a proofreader.Mary and Bob fall deeply in love, marry and have eight children.Bob stops working for Mary in order to care for the children.What will be the effect on GDP?

Table 4.16 -Refer to Table 4.16.Consider the data shown above for a simple economy.Calculate nominal GDP and real GDP for 2018, using 2016 as the base year.Show your work.

Which of the following would not be included in the expenditure category called investment expenditures?

Amazon is experimenting with a 30 hour work week (instead of 40 hours a week)for some full time employees and other companies may follow. If employees are equally productive each hour they are at work, the impact of such a decline in working hours would be

Describe briefly how the final value of an iPhone must be equal to the sum of incomes generated by the production of the iPhone.

Increases in real GDP would overstate the increase in the well-being of a country over time if, over that time period, the

Table 4.31 -Refer to Table 4.31.Based on the table above, what is household income for this economy?

Recent estimates put the size of the underground economy in Canada at ________ of measured GDP.

Canadian GDP shrank in the first half of 2016. Some of this fall in GDP was blamed on the forest fires that forced the evacuation of Fort McMurray. Why would a forest fire reduce GDP?

Which of the following would not be included in final consumption when calculating GDP using the expenditure approach?

If the GDP deflator rises from 185 to 190, what is the rate of inflation between the two years?

Household income is defined as

In 2015, Canadian household spending accounted for ________ of GDP.

If China decides to enact laws to clean up the environment, what would be the effect on its GDP?

Debbie makes porcelain plates in her home and sells them to the Opus gallery.She spent $400 last month on supplies and made 50 plates.She sold the plates to the gallery at $25 per plate.The gallery sells all the plates for $40 each.For all of the 50 plates, what is Debbie's total value added? For all the 50 plates, what is the gallery's total value added?

Table 4.27 The components of national income for an economy are represented in Table 4.27 above.All values are in billions of dollars. -Refer to Table 4.27.What is the level of household income for this economy?

Table 4.14 -Refer to Table 4.14.Consider the data shown above on nominal GDP and real GDP (values are in billions of dollars).The GDP deflator for 2016 equals