Exam 19: GDP: Measuring Total Production and Income

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 ________.

Table 19-18 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 19-18. What is the GDP deflator in 2013 if 2013 is the base year?

How can a firm have a negative valued added, as supposedly some state-owned businesses did in the former Soviet Union? What has to be true for value added to be negative?

Table 19-6 -Refer to Table 19-6. Consider the table of production and price statistics for a small economy in 2013. If the economy only produces the four goods listed below, what is GDP for 2013?

Table 19-31 -Refer to Table 19-31. The table above represents hypothetical data from the National Income Accounts for 2013. Use the data to calculate personal income and disposable income.

Emily is a writer. She buys pens and paper for $20 and writes a 500-page novel that she sells to a publishing company for $500,000. If the publisher prints 1 million copies that sell for $25 each, what is the contribution to GDP of Emily's novel?

Table 19-18 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. -When the BEA calculates real GDP using the average of prices in the current year and the year preceding it, and this average changes from year to year, this is called calculating GDP using

Which of the following would increase disposable personal income?

Gross domestic product in the economy is measured by the

In the circular flow model, the value of total production for an economy ________ the value of total expenditures on final goods and services.

Nominal GDP is another term for

Which of the following would increase gross private domestic investment in an economy?

GDP is not a complete measure of well-being.

Table 19-18 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. -If the GDP deflator is 142, by how much have prices changed since the base year?

Table 19-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 19-5. The value added by the automobile dealer equals

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

Table 19-9 -Refer to Table 19-9. Suppose that the above table represents the goods and services produced in a very simple economy in 2013. Assume that steel is used as an input in the production of autos. Using that information, calculate GDP for the year 2013.

The ________ is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100.

Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?

The total value of production from Ford's manufacturing plant in Cologne, Germany would be included in Germany's gross national product.