Exam 5: Measuring a Nations Income

Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?

U.S. GDP excludes the production of most illegal goods.

Bountiful Harvest Bakery buys $4.00 of flour from Grinkers' Mill and uses the flour to make bread sold to the public for $12.00. Taking these two transactions into account, what is the effect on GDP?

In the economy of Ukzten in 2010, consumption was $800, GDP was $2000, government purchases were $400, and investment was $600. What were Ukzten's net exports in 2010?

Which of the following statistics is usually regarded as the best single measure of a society's economic well-being?

Suppose there are only two firms in an economy: Rolling Rawhide produces rawhide and sells it to Chewy Chomp, Inc., which uses the rawhide to produce and sell dog chews. With each $2 of rawhide that it buys from Rolling Rawhide, Chewy Chomp, Inc. produces a dog chew and sells it for $5. Neither firm had any inventory at the beginning of 2008. During that year, Rolling Rawhide produced enough rawhide for 1000 dog chews. Chewy Chomp, Inc. bought 75% of that rawhide for $1500 and promised to buy the remaining 25% for $500 in 2009. Chewy Chomp, Inc. produced 750 dog chews during 2008 and sold each one during that year for $5. What was the economy's GDP for 2008?

A transfer payment is a payment made by

Transfer payments are

Suppose the government eliminates all environmental regulations and, as a result, the production of goods and services increases, but there is considerably more pollution. Based on this scenario, which of the following statements is correct?

Which of the following is not an example of a nondurable good?

If consumption is $1800, GDP is $4300, government purchases are $1000, imports are $700, and investment is $1200, then exports are $300.

When studying changes in the economy over time, economists want a measure of the total quantity of goods and services the economy is producing that is not affected by changes in the prices of those goods and services. In other words, economists want to study

Much of macroeconomics attempts to explain

If real GDP is higher in one country than in another, then we can be sure that the standard of living is higher in the country with the higher real GDP.

A steel company sells some steel to a bicycle company for $150. The bicycle company uses the steel to produce a bicycle, which it sells for $250. Taken together, these two transactions contribute

We would expect a macroeconomist, as opposed to a microeconomist, to be particularly interested in

Michigan Tea Company sold $15 million worth of tea it produced. In producing this tea it purchased $5 million dollars worth of ingredients from foreign countries and paid workers who reside in Canada but commute to the U.S. $1 million. How much did these transactions add to U.S. GDP?

When a U.S. citizen buys $500 of Chinese-made parts for a motorcycle,

International studies of the relationship between GDP per person and quality of life measures such as life expectancy and literacy rates show that larger GDP per person is associated with

How does U.S. gross domestic product (GDP) differ from U.S. gross national product (GNP)?