Exam 4: GDP: Measuring Total Production and Income

Consumption spending is $4.5 billion, investment is $3 billion, and government expenditures are $2 billion.If GDP is $14 billion, which of the following could be true regarding exports and imports in the economy?

Macroeconomics, as opposed to microeconomics, includes the study of what determines the

Table 4.11 Consider the above data for Tyrovia, a country that produces only two products: guns and butter. -Refer to Table 4.11.Nominal GDP for Tyrovia in 2018 equals

Table 4.29 -Refer to Table 4.29.Based on the table above, what is the net national income for this economy?

A transfer payment is a payment by the government to an individual

If real GDP increases, we know for sure that

The informal sector can be a significant drag on the economies of developing countries because the firms in the informal sector

Since real GDP is adjusted for inflation and nominal GDP is not, nominal GDP must always be higher than real GDP.Do you agree or disagree? Why?

Over the last 50 years, has the ratio of household production to gross domestic product in Canada increased or decreased? Consider the effect of the increased number of women working outside the home, and the effect of advances in technology in household production such as microwaves, coffee makers, power tools, etc.

In the circular flow model, the value of total production for an economy ________ the value of total expenditures on final goods and services.

Gross national income, GNI, of Canada is the market value of

Because workers in Canada work fewer hours per week, on average, than they did over 100 years ago,

If nominal GDP rises, we can say that

An example of business fixed investment spending is

Table 4.28 -Refer to Table 4.28.The table above represents hypothetical data from the National Income Accounts for 2018.Use the data to calculate personal income and disposable income.

Presently, GDP is ________ to compensate for the costs of environmental damage.

Real GDP per capita is calculated by dividing the value of real GDP for a country by the country's adult population.

Give two reasons why GDP does not reflect total production in an economy.

One reason why consumption accounts for more of GDP in the U.S.than it does in Canada is

The circular flow of income shows that GDP can be measured as the sum of wages, interest, rent, and profits received by households or total expenditures on goods and services by households, firms, government, and the rest of the world.