Exam 15: Measuring a Nations Income

A U.S. citizen buys a tea kettle manufactured in China by a company that is owned and operated by U.S citizens. In which of the following components of U.S. GDP is this transaction accounted for?

In a simple circular-flow diagram, households buy goods and services with the income they get from

GDP is a good measure of economic well-being for all purposes.

If an economy's GDP rises, then it must be the case that the economy's

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

In a simple circular-flow diagram, firms

Which of the following is not a question addressed by macroeconomists?

Which of the following examples of household spending is categorized as investment rather than consumption?

A statistical discrepancy

Michigan Cranberry Company sold $10 million worth of cranberries it produced. In producing cranberries, it purchased $1 million dollars worth of supplies 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?

If nominal GDP doubles and the GDP deflator doubles, then real GDP

A form of government spending that is not made in exchange for a currently produced good or service is called

A U.S. firm produces sweatshirts in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the sweatshirts to consumers. In which quarters) doesdo) these transactions raise consumption?

Disposable personal income is the income that

Which of the following is not included in the investment component of GDP?

Which of the following items is included in GDP?

Nominal GDP is $15 trillion and real GDP is $10 trillion. What is the GDP deflator? Show your work.

Write the formula for calculating a GDP deflator using only nominal and real GDP.

In the national income accounts, depreciation is called

In computing GDP, market prices are used to value final goods and services because