Exam 8: GDP: Measuring Total Production and Income

Table 8-7 -Refer to Table 8-7.Suppose that a simple economy produces only four goods and services: iPods,t-shirts,bottled water,and oranges.Calculate nominal GDP for this simple economy.

Residential investment includes spending by firms on office buildings.

Table 8-9 -Refer to Table 8-9.Suppose that the above table represents the goods and services produced in a very simple economy in 2018.Assume that steel is used as an input in the production of autos.Using that information,calculate GDP for the year 2018.

Personal income is defined as

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

Gross domestic product understates the total production of final goods and services because of the omission of

The GDP deflator is a measure of the

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

The "underground economy" refers to

Marla is an architect who is designing a home for Chuck.Chuck is paying Marla $150 per hour to design his new home.When Chuck and Marla get married,Marla continues to work on designing the home,but she no longer charges Chuck for her work.As a result,GDP ________ because ________.

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

Table 8-23 -Refer to Table 8-23.Suppose that a very simple economy produces three goods: pizzas,haircuts,and backpacks.Suppose that the quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.Use the information to compute the real GDP in the year 2013 and 2018.Calculate the real GDP in 2018 assuming the base year is 2013.Do the same calculation assuming the base year is 2018.Are the calculations different? Why?

The factors of production include

An example of a final good would be

The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product.

Table 8-26 The components of national income for an economy are represented in Table 8-26 above.All values are in billions of dollars. -Refer to Table 8-26.What is the level of personal income for this economy?

Table 8-21 2013 2017 2018 -Refer to Table 8-21.Consider the data above for a simple economy: Using 2013 as the base year,calculate nominal GDP,real GDP,and the GDP deflator for 2018.Show your work.

Which of the following is not a durable good?

GDP is not a complete measure of well-being.

Gross domestic product in the economy is measured by the