Exam 10: Measuring a Nations Income: The Measurement of GDP

Janet bought flour and used it to bake bread she ate.ABC Bakery bought flour which it used to bake bread that customers purchased.In which case will the flour be counted as a final good?

Estimates of the values of which of the following non-market goods or services are included in GDP?

Sally purchased a log-splitter five years ago.This year,she purchases some new parts,gasoline,oil,and spends 2 hours repairing the log-splitter.Which of the following is included in this year's GDP?

Rachel cuts her sister's hair for free.When she cuts the hair of her customers in her shop,she charges $10.When is Rachel's haircutting included in GDP?

National income differs from net national product because

GDP is defined as the

Which of the following transactions adds to U.S.GDP for 2015?

The Patersons bought a home that was newly constructed in 2007 for $275,000.They sold the home in 2015 for $255,000.Which of the following statements is correct regarding the sale of the house?

GDP includes the value of all

Sheri,a U.S.citizen,works only in Germany.The value she adds to production in Germany is included

Which of the following is included in GDP?

Tom is an organic gardener.When Tom produces vegetables only for consumption by his family,

Which of the following values would be included in U.S.GDP for 2015?

If foreign citizens earn less income in the U.S.than U.S.citizens earn in foreign countries,

If the price of a dress is three times the price of a pair of shoes,then a pair of shoes contributes

How is net national product (NNP)calculated?

Over time,people have come to rely more on market-produced goods and services and less on goods and services they produce for themselves.For example,busy people with high incomes,rather than cleaning their own houses,hire people to clean their houses.By itself,this change has

Which of the following is not included in U.S.GDP?

A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10.Smith's Fresh Pecans resells three pounds for $4.50 per pound.The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account,how much is added to GDP?

Suppose that an economy produces 20,000 units of good A which sells at $3 a unit and 40,000 units of good B which sells at $1 per unit.Production of good A contributes