Exam 5: Measuring a Nations Income

Last year country A had a nominal GDP of $600 billion, a GDP deflator of 150 and a population of 40 million. Country B had a nominal GDP of $720 billion, a GDP deflator of 120 and a population of 50 million. From these numbers which country is likely to have had the higher standard of living?

Household spending on education is included in

Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2010 Quality Motors produced $30 million worth of automobiles, with $17 million in sales to Americans, $9 million in sales to Canadians, and $4 million worth of automobiles added to Quality Motors' inventory. The transactions just described contribute how much to U.S. GDP for 2010?

Most goods whose purchases are included in the investment component of GDP are used to produce other goods.

Which of the following always uses prices and quantities from the same period?

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

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 2009, this country's

Table 5-5 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2009. Prices and Quantities -Refer to Table 5-5 In which year was this country's real GDP highest?

James owns two houses. He rents one house to the Johnson family for $10,000 per year. He lives in the other house. If he were to rent the house in which he lives, he could earn $12,000 per year in rent. How much do the housing services provided by the two houses contribute to GDP?

JR sells RV's. In 2010 she added $400,000 to her inventory. $100,000 of this addition was from used RV's she purchased while the remaining $300,000 was from her purchases of newly manufactured RV's. How much of JR's inventory is included in 2010 GDP?

Foreign citizens earn more income in Ireland than Irish citizens earn in foreign countries.

Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?

Net exports equal

GDP does not make adjustments for leisure time, environmental quality, or volunteer work.

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 2011, this country's

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 2009, this country's nominal GDP was

After the terrorist attacks on September 11, 2001, governments within the United States raised expenditures to increase security at airports. These purchases of goods and services are

Which of the following newspaper headlines is more closely related to what microeconomists study than to what macroeconomists study?

Gross domestic product measures

Tim mows the yard for his neighbors. He spends $1 on gas and charges them $20 for each lawn he mows. What's the total contribution to GDP each time Tim mows a yard?