Exam 5: Measuring a Nations Income

An American retailer purchased 100 pairs of shoes from a company in Denmark in the second quarter of 2010 but does not sell them to a consumer until the third quarter of 2010. In which quarter(s) is (are) the value of the shoes included in U.S. GDP?

In 2009, GDP per person in the United States was almost

A U.S. publisher purchases new computers that were manufactured in the U.S. This purchase by itself makes

John buys a used car for $5,400 and spends $600 on new parts, made in the U.S., to fix the car. The end result of these two transactions is

If in some year real GDP was $5 trillion and the GDP deflator was 200, what was nominal GDP?

Otherwise legal transactions that go unreported or unrecorded are called

How is net national product (NNP) calculated?

If a state made a previously-illegal activity, such as gambling or prostitution, legal, then, other things equal, GDP

Table 5-1 The table below contains data for country A for the year 2010. -Refer to Table 5-1. What was country A's GDP in 2010?

An identity is an equation that

Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2008, Quality Motors produced $25 million worth of automobiles and sold $12 million in the U.S. and $13 million in Mexico. In addition, it sold $2 million from the previous year's inventory in the U.S. The transactions just described contribute how much to U.S. GDP for 2008?

In the economy of Ukzten in 2010, exports were $500, GDP was $6400, government purchases were $1500, imports were $600, and investment was $2000. What was Ukzten's consumption in 2010?

For an economy as a whole, income must exceed expenditure.

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

Which of the following is included in the consumption component of U.S. GDP?

If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is $800, then consumption is $6200.

Which of the following domestically produced items is not included in GDP?

Table 5-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2009. Prices and Quantities -Refer to Table 5-6. In 2008, this country's real GDP was

In the equation Y = C + I + G + NX,

GDP does not directly measure those things that make life worthwhile, but it does measure our ability to obtain many of the inputs into a worthwhile life.