Exam 19: Gdp: Measuring Total Production and Income

National income \ 1,000 Retained earnings not paid as dividends 50 Transfer payments 40 Interest on government bonds 20 Personal taxes 30 The components of national income for an economy are represented in Table 19-27 above.All values are in billions of dollars. -Refer to Table 19-27.What is the level of disposable personal income for this economy?

In 2015,Ford Motor Company's sales were rising.These events were caused by

If GDP calculations included measurements of pollution and environmental damage,GDP values would most likely be

An inflation rate of 5% between 2015 and 2016 would be implied by a change in the GDP deflator from ________ in 2015 to ________ in 2016.

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Over the last 50 years,has the ratio of household production to gross domestic product in the United States increased or decreased? Consider the effect of the increased number of women working outside the home,and the effect of advances in technology in household production such as microwaves,coffee makers,power tools,etc.

A final good is one that

The "underground economy" is also referred to as

Which of the following is counted in GDP?

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 of each canoe in gross domestic product equals

Table 19-25 Nominal GDP \ 10,000 \ 15,000 Real GDP 9,500 10,500 -Refer to Table 19-25.Given the following information,calculate the rate of increase in the price level from 2015 to 2016.Use the percent change in the GDP deflator.

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

Because workers in the United States work fewer hours per week,on average,than they did over 100 years ago

The circular flow of income shows that GDP can be measured as the sum of wages,interest,rent,and profits received by households or total expenditures on goods and services by households,firms,government,and the rest of the world.

Gross domestic product is calculated by summing up

Which of the following is included in gross domestic product for an economy in a given year?

National income equals gross domestic product

Article Summary In the third quarter of 2015,the Chinese economy grew by 6.9 percent,just below the government's target of 7 percent and its slowest growth rate since 2008.A decline in manufacturing and imports led the slowdown,with fears that the slower growth will continue despite government stimulus measures.The Chinese government has been trying to move away from an export-based economy to one led by consumption and the service sector,and Sheng Laiyun,a spokesman for the Chinese statistics agency,has stated that the service sector is expected to grow rapidly.However,economists believe more government stimulus measures are needed to reverse the slowdown in economic growth. -Refer to the Article Summary.According to the summary,the Chinese economy is trying to move away from an export based economy,while at the same time imports have declined.This decrease in exports and decrease in imports will

Even though it is generally true that the more goods and services people have,the better off they are,GDP provides only a rough measure of well-being.Assuming language is not an issue,what other factors besides GDP might you consider when deciding where to live and work?

If a country passes a labor law limiting the number of hours of work per week,GDP would ________ and leisure would ________.