Exam 4: Macroeconomics: the Birds-Eye View of the Economy

The following table provides data for an economy in a certain year. Consumption expenditures 50 Imports 40 Government purchases of goods and services 20 Construction of new homes and apartments 30 Sales of existing homes and apartments 40 Exports 50 Government payments to retirees 10 Household purchases of durable goods 20 Beginning-of-year inventory 10 End-of-year inventory 20 Business fixed investment 30 Given the data in the table, compute the government purchases component of GDP.

The value of unpaid work by a homemaker ______ included in GDP and the value of housekeeping services sold in the market ______ included in GDP.

If two countries are identical except that citizens in one country have more leisure time, then the level of GDP:

Nominal GDP measures the ______ of production.

Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. Which expression of the output of this economy is most consistent with the concept of GDP?

Total spending on final goods and services in an economy must equal total:

Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of Company Revenues Cost of Purchased Inputs Citrus Growers Inc. \ 0.75 0 Florida Jam Company \ 2.00 \ .75 The Corner Store \ 2.50 \ 2.00 What is the sum of the value added of all the firms?

Countries with high real GDP tend to have ______ infant mortality rates and ______ literacy rates than countries with low real GDP.

The value of final goods and services equals:

Bob's Barber Shop cut 3,000 heads of hair in 2009 and 3,100 in 2010. The price of a haircut was $7 in 2009 and $8 in 2010. If 2009 is the base year, what was Bob's contribution to real GDP in the year 2010?

Real GDP is not a perfect measure of economic well being because it excludes the value of all of the following EXCEPT:

The total market value of production in an economy must equal total:

One way to avoid counting the prices of intermediate goods multiple times in computing the value of GDP is to:

The following table provides data for an economy in a certain year. Consumption expenditures 1,000 Imports 600 Government purchases of goods and services 700 Construction of new homes and apartments 500 Sales of existing homes and apartments 600 Exports 500 Government payments to retirees 200 Household purchases of durable goods 300 Beginning-of-year inventory 500 End-of-year inventory 600 Business fixed investment 300 Given the data in the table, compute the investment component of GDP.

An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are sold to consumers, 300,000 are sold to businesses, 300,000 are sold to the government, and 100,000 are sold abroad. No computers are imported. The unsold computers at the end of the year are held in inventory by the computer manufacturers. What is the value of GDP?

Which of the following is an example of an intermediate good?

Profits, rents, interest, and royalties are examples of:

Net exports equal:

An economy produces only 500,000 tables valued at $100 each. Of these, 100,000 are sold to consumers, 200,000 are sold to businesses, 100,000 are sold to the government, and 50,000 are sold abroad. No tables are imported. The unsold tables at the end of the year are held in inventory by the table manufacturers. What is the value of the investment component of GDP?

Peg's Manicure Manor did 4,000 sets of nails in 2010 and 4,500 sets of nails in 2011. The price of a set of nails was $20 in 2010 and $22 in 2011. If 2010 is the base year, Peg's contribution to nominal GDP in 2010 was ______ and in 2011 was _______.