Exam 2: Measurement

Jim's Nursery produces and sells $1100 worth of flowers.Jim uses no intermediate inputs.He pays his workers $700 in wages,pays $100 in taxes and pays $200 in interest on a loan.Jim's contribution to GDP is

Additions to inventory is

Significant problems with measuring real GDP and the price level include

Suppose that GDP is equal to 1000,national saving is equal to 200,the current account deficit is equal to 100,and the government budget deficit is equal to 50.Investment must equal

The three approaches to measuring GDP are called the

The participation rate equals

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the real GDP in year 1 using base year 2?

When an unemployed worker becomes discouraged and leaves the labour force,

National savings must equal

GNP means

Even when measured accurately,GDP may be a misleading measure of economic welfare because it cannot account for

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the real GDP in year 1 using base year 1?

The expenditure approach is calculated as

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below. -Suppose that Year 1 is the base year.Year 2 real GDP is

Suppose that the government collects $3 million in taxes,pays $2 million in Employment Insurance benefits,pays $0.5 million in interest on the national debt,and pays workers $1 million to sit at their desks and work as little as possible.The government's contribution to GDP is

Significant problems with measuring real GDP and the price level include

An example of a stock would be

The income approach to calculating GDP is

Government expenditures does not include

Pamela's bakery produces 500 loaves of bread in a given year.Pamela pays $100 for flour and yeast,pays $600 in wages,pays $50 in interest on an existing loan,and pays $100 in taxes to the government.One of Pamela's bread slicing machines,which cost $75 each,wears out over the course of the year and must be scrapped.Pamela's profit for the year equals $75.Pamela's bread,therefore,sells for