Exam 5: Measuring a Nations Income

A country reported nominal GDP of $200 billion in 2010 and $180 billion in 2009. It also reported a GDP deflator of 125 in 2010 and 105 in 2009. Between 2009 and 2010,

Table 5-2 The table below contains data for the country of Crete for the year 2010. -Refer to Table 5-2. What was Crete's investment in 2010?

Consumer goods that are produced, go into inventory, and are not sold during the current period are

GDP is not a perfect measure of well-being; for example,

A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result,

Which of the following subcomponents of GDP can be either positive or negative?

The income that households and noncorporate businesses receive is called

You find that your paycheck for the year is higher this year than last. Does that mean that your real income has increased? Explain carefully.

GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.

The value of goods added to a firm's inventory in a certain year is treated as

Table 5-4 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008. Prices and Quantities -Refer to Table 5-4. In 2008, this country's

Expenditures by households on education are included in the investment component of GDP.

If the value of an economy's imports exceeds the value of that economy's exports, then net exports is a negative number.

Ryan lives in an apartment where he pays $7,000 a year in rent. Alexis lives in a house that could be rented for $14,000 a year. How much do these housing services contribute to GDP?

A transfer payment is

Table 5-2 The table below contains data for the country of Crete for the year 2010. -Refer to Table 5-2. What was Crete's consumption in 2010?

In early2010 Molly paid $200,000 for a house built in 2000. She spent $30,000 on new materials to remodel the house. Although Molly lived in the house after she remodeled it, its rental value rose. Which of the following contributed to real GDP in 2010?

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

GDP is the most closely watched economic statistic because it is thought to be the best single measure of a society's economic well-being.

Which of the following is not correct?