Exam 19: Gdp: Measuring Total Production and Income

Table 19-5 Stage of Production Seller Buyer Price 1 Steelmill Auto manufacturer \ 10,000 2 Auto manufacturer Auto dealer 18,000 3 Auto dealer Consumer 25,000 Consider the table above showing three stages of production of an automobile. -Refer to Table 19-5.The value of each automobile in gross domestic product equals

Scenario 19-1 CANOES-R-US makes canoes.It buys the shell of the canoe from another firm for $300 and uses its labor and intermediate goods to make the canoe.It sells the finished canoe to a retail canoe store for $800.The retail canoe store then sells the canoe to a consumer for $1,200. -Refer to Scenario 19-1.The value added of CANOES-R-US for each canoe equals

Real GDP is GDP in a given year

Which component of consumption spending is the greatest in a typical economy?

When lumber from Brazilian forests is used by a U.S.-owned company to produce furniture in Canada,the value of the furniture produced will be counted as a final good in

What are the differences between national income,personal income,and disposable personal income?

Depreciation is

The underground economy-the informal sector-can be a significant drag on the economies of developing countries.Why are firms in the informal sector often less efficient than firms in the formal sector?

High-income countries such as the United States spend a greater amount on services as compared to goods.

Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products.For his wife's birthday,he designs and creates an intricate birdseye maple jewelry box that takes him 15 hours to complete.By how much and in what direction does GDP change as a result of his efforts?

In the United States in 2013,the Bureau of Economic Analysis began counting spending by firms and individuals on developing entertainment products as investment.This change will

In a small economy,consumption spending is $6,000,government spending is $1,200,gross investment is $1,500,exports are $2,000,and imports are $1,000.What is gross domestic product?

Which of the following is included in both the U.S.GDP and U.S.GNP?

The nominal GDP of the U.S.in 2015 was approximately $17.3 trillion.This means that

The informal sector can be a significant drag on the economies of developing countries because the firms in the informal sector

An increase in national income could by caused by which of the following?

Table 19-15 Year Nominal GDP Real GDP 2014 \ 13,399 \ 12,976 2015 14,078 13,254 2016 14,441 13,312 -Refer to Table 19-15.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2015 equals

Table 19-11 Year Guns Produced Price af Guns Butter Produced Price of Butter 2007 80 \ 5 40 \ 4 2016 90 6 60 10 Consider the following data for Tyrovia,a country that produces only two products: guns and butter. -Refer to Table 19-11.Real GDP for Tyrovia for 2016 using 2007 as the base year equals

If real GDP in 2016 (using 2009 prices)is lower than nominal GDP of 2015,then

Table 19-30 Billions of Dollars GDP \ 3,250 Depreciation 300 Retained earnings 1,000 Personal tax payments 500 Transfer payments 80 -Refer to Table 19-30.Based on the table above,what is personal income for this economy?