Exam 5: Measuring a Nations Income

The output of goods and services produced in the United States has grown on average 3 percent per year since 1965.

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. This country's output grew

Table 5-4 The table below reports nominal and real GDP for the U.S. from 1929 to 1932. -Refer to Table 5-3. What was the growth rate of real GDP for 1930?

Suppose that an economy produces 30,000 units of good A which sells at $3 a unit and 60,000 units of good B which sells at $2 per unit. Production of good A contributes

Which of the following is not included in GDP?

If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real GDP ?

Table 5-7 The table below contains data for the country of Togogo. The base year is 1974. -Refer to Table 5-7. From 1975 to 1976,

A movie company makes 500,000 DVDs of one of its latest releases. It sells 300,000 of them before the end of the second quarter, and holds the others in its warehouse. How will the 200,000 unsold DVDs be treated in the GDP statistics?

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

Real GDP is the yearly production of final goods and services valued at

U.S. GDP was almost $14 billion in 2009.

During the current quarter, a firm produces consumer goods and adds some of those goods to its inventory rather than selling them. The value of the goods added to inventory is

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

Gina, a U.S. citizen, works only in Bermuda. The value of Gina's production is included in

In the United States in 2009, government purchases of goods and services were

In 2009, the level of U.S. real GDP was close to four times its 1965 level.

Consider the following three items of spending by the government: (i) the federal government pays a $500 unemployment benefit to an unemployed person; (ii) the federal government makes a $2,000 salary payment to a Navy lieutenant; (iii) the city of Bozeman, Montana makes a $10,000 payment to ABC Lighting Company for street lights in Bozeman. Which of these payments contributes directly to government purchases in the national income accounts?

Rank the countries from highest to lowest based on underground economic activity as a percentage of GDP.

Both the value of hamburgers sold by a restaurant and the value of the beef it used to make these hamburgers are included in GDP.

Which of the following values would be included in U.S. GDP for 2009?