Exam 8: GDP: Measuring Total Production and Income

Table 8-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 8-5.The value added by the automobile dealer equals

If nominal GDP rises we can say that

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

If real GDP increases we know for sure that

Table 8-5 Consider the table above showing three stages of production of an automobile. -Refer to Scenario 8-1.The value of each canoe in gross domestic product equals

Table 8-14 -Refer to Table 8-14.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2013 equals

Table 8-16 -Refer to Table 8-16.Given the information above,what can we say has happened in the economy from 2012 to 2013?

Table 8-5 Consider the table above showing three stages of production of an automobile. -Refer to Scenario 8-1.The value added of CANOES-R-US for each canoe equals

If the GDP deflator is less than 100,then for that year nominal GDP ________ real GDP.

Gross national product is defined as

Table 8-18 A very simple economy produces three goods: cameras,legal services,and books.The quantities produced and their corresponding prices for 2008 and 2013 are shown in the table above. -Refer to Table 8-18.What is the GDP deflator in 2013 if 2013 is the base year?

Article Summary For only the second time in the previous 10 quarters, China's GDP grew at a faster rate than from the same period a year earlier. From July through September 2013, China's GDP increased 7.8 percent, but a decline in exports, growing inflation, and slowing growth in factory production all suggest that growth will be slowing down. China has recently been attempting to restructure its economy by moving toward increasing consumption and relying less on exports and investments as a means to achieving more sustainable economic growth. In the first nine months of 2013, 46 percent of growth was due to consumption, 56 percent was due to investment, and exports accounted for negative 1.7 percent. Source: Aileen Wang and Kevin Yao, "China's third-quarter GDP growth fastest this year, but outlook dim," Reuters, October 18, 2013. -Refer to the Article Summary.The decline in export growth will hurt China's GDP because

Table 8-24 -Refer to Table 8-24.Suppose that a very simple economy produces three goods: pizzas,haircuts,and backpacks.Suppose the quantities produced and their corresponding prices for 2007 and 2013 are shown in the table above.Use the information to compute real GDP in the year 2007 and 2013.Calculate real GDP in 2013 assuming the base year is 2007.Do the same calculation assuming the base year is 2013.Are the calculations different? Why?

Consumption expenditures do not include household purchases of

The informal sector can be a significant drag on the economies of developing countries because the firms in the informal sector

The table below describes the value added in the production of a gallon of gasoline by each stage of production.(The values are hypothetical.) Table 8-10 a)What is the value added by each stage of production? b)What is the total value added? For simplicity,you can ignore the cost of the inputs for oil drilling.

If an increase in crime causes households to spend money on police and security systems,GDP will rise.

Debbie makes porcelain plates in her home and sells them to the Opus gallery.She spent $400 last month on supplies and made 50 plates.She sold the plates to the gallery at $25 per plate.The gallery sells all the plates for $40 each.For all of the 50 plates,what is Debbie's total value added? For all the 50 plates,what is the gallery's total value added?

Which of the following is not a true statement about the impact of World War II on the U.S.economy?

Which of the following would not be included in the expenditure category called investment expenditures?