Exam 4: GDP: Measuring Total Production and Income

Which of the following is not true about the composition of Canadian GDP in 2015?

Caroline is an artist.She purchases canvas, paints, brushes, and accessories for $75.She sells one of her original paintings to an art gallery for $1,500.The gallery, in turn, sells the painting to an art lover for $4,500.How much value does the gallery add?

Assuming that Canada is the domestic economy, ________ are goods and services produced by ________ and purchased by ________.

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 real GDP in 2017, using 2007 as the base year?

Table 4.2 -Refer to Table 4.2.Suppose that a simple economy produces only four goods and services: shoes, DVDs, tomatoes, and ketchup.Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.Using the information in the above table, nominal GDP for this simple economy equals

Disposable household income is equal to household income minus personal tax payments.

The purchase of a new house is included in

In the circular flow model, the value of total income for an economy ________ the value of total production.

When BHP (an Australian mining company)buys a Canadian company running mines in Canada and takes ownership of the Canadian mining company's capital

China's current rate of GDP growth is quite rapid.Its current growth rate is probably three times that of Canada.However, pollution levels are much higher in China.Would you consider China to be better off than Canada given this information? Why or why not?

In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?

The Philippines and Vietnam have roughly the same size population.Suppose the GDP of the Philippines is $1 trillion and the GDP of Vietnam is $10 trillion.You should conclude

If nominal GDP exceeds real GDP for a specific year, then the GDP deflator must be

An example of a transfer payment is

Table 4.17 -Refer to Table 4.17.Consider the data above for a simple economy: Using 2007 as the base year, calculate nominal GDP, real GDP, and the GDP deflator for 2017.Show your work.

The factors of production include

Table 4.21 -Refer to Table 4.21.Given the information above, calculate the GDP deflator in 2016.

Net National Income equals Gross National Income minus

Investment, as defined by economists, would include the purchase of a

Table 4.4 -Refer to Table 4.4.Consider the data above (in billions of dollars)for an economy: Based on the expenditure approach in macroeconomic models, gross domestic product (in billions of dollars)for this economy equals