Exam 8: GDP: Measuring Total Production and Income

Table 8-13 Consider the data shown above for Vicuna,a country that produces only two products: oranges and shirts. -Refer to Table 8-13.Real GDP for Vicuna for 2016 using 2018 as the base year equals

GDP is not a perfect measure of well-being because

Table 8-18 A very simple economy produces three goods: cameras,legal services,and books.The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above. -Refer to Table 8-18.What is real GDP in 2018,using 2018 as the base year?

Table 8-25 -Refer to Table 8-25.Given the information above,calculate the GDP deflator for both 2017 and 2018.What does the value of the deflator in the year 2017 tell you about that year with respect to the base year? What happened to prices in 2018 as compared to 2017?

Macroeconomics seeks to understand

Which of the following could cause nominal GDP to increase next year,but real GDP to decrease?

The values of real GDP and real GNP are almost the same in countries where a significant fraction of domestic production takes place in foreign-owned firms.

What are the differences between national income,personal income,and disposable personal income?

To make the calculation of real GDP more accurate,in 1996 the BEA switched to using

If a U.S.firm produces cars in Mexico,that production should count towards

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

In 2016,Ford's sales were rising,but in early 2017,Ford's sales declined.Ford and the U.S.automobile industry were experiencing the effects of

If real GDP increases we know for sure that

Over the last 50 years,has the ratio of household production to gross domestic product in the United States 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.

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

The purchase of a new house is included in

For developed countries like the United States,GDP will always exceed GNP.

________ is/are the payment for the factor of production ________.

Which of the following could cause nominal GDP to decrease next year,but real GDP to increase?

If income is unequally distributed in an economy,increases in GDP may not raise well-being in an economy.