Exam 19: GDP: Measuring Total Production and Income

Table 19-3 -Refer to Table 19-3. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals

"Household production" refers to

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

Table 19-16 -Refer to Table 19-16. Given the information above, what can we say has happened in the economy from 2012 to 2013?

If real GDP in 2013 (using 2009 prices) is lower than nominal GDP of 2012, then

Between 2013 and 2014, if an economy's exports rise by $8 billion and its imports fall by $8 billion, by how much will GDP change between the two years, all else equal?

Because workers in the United States work fewer hours per week, on average, than they did over 100 years ago,

National income is equal to

To calculate GDP by the expenditure method, one must add

People complain that inflation increases the cost of goods and services and therefore reduces their purchasing power. If inflation and income grow at the same rate, is this complaint valid? Explain carefully.

National income is defined as

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 real GDP in 2013, using 2008 as the base year?

If prices in the economy rise, then

Table 19-8 -Refer to Table 19-8. Suppose that a simple economy produces only four goods and services: sweaters, CDs, sugar, and soft drinks. Assume one half of the sugar is used in making the soft drinks and the other half of the sugar is purchased by households. Calculate nominal GDP for this simple economy.

In the United States in 2013, the Bureau of Economic Analysis began counting spending by firms and individuals on developing entertainment products as investment. This change will

Explain the difference between Gross Domestic Product and Gross National Product. Give an example of each.

Gross national product is defined as

Which of the following transactions would be included in the official calculation of GDP?

Suppose that in 2013, the national income in the United States was $200 billion, depreciation was $15 billion, personal taxes were $20 billion, and transfer payments were $10 billion. Gross domestic product in 2013 is

Which of the following is not directly counted in GDP?