Exam 12: GDP: Measuring Total Production and Income

Figure 12.1 -Suppose the economy gains more capital per hour worked and experiences technological change.This is shown in Figure 12.1 by the movement from

An example of a transfer payment is

The 'underground economy' refers to the

Refer to Table 12.2 for the following questions. Table 12.2 -Refer to Table 12.2.Calculate the rate of increase in the price level from 2012 to 2013.

The 'underground economy' can be described as

What is meant by 'intermediate goods' and are they included in the measure of GDP?

Which of the following will result in an increase in labour productivity?

Technological change will

An example of an 'intermediate good' would be

Explain the shortcomings of GDP as a measure of total production in an economy,and as a measure of economic wellbeing.

Which of the following is counted in GDP?

In a small economy,consumption spending in 2012 is $6000,government spending is $1200,gross investment is $1500,exports are $2000,and imports are $1000.What is gross domestic product in 2012?

According to new growth theory,the accumulation of ________ capital is subject to diminishing returns at the ________ level,but not at the level of the economy as a whole.

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

For how long does a patent give a firm the exclusive legal right to a product in Australia?

Which of the following is considered a durable good?

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

________ is/are the payment for the factor of production ________.

The economic growth rate is measured using

If real GDP increases,we know for sure that