Exam 12: GDP: Measuring Total Production and Income

The size of the underground economy would tend to decrease if the government of a country

Nominal GDP is GDP in a given year

Table 12-3 -Refer to Table 12-3.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals

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

Table 12-8 Consider the following data for Tyrovia,a country that produces only two products: guns and butter. -Refer to Table 12-8.Nominal GDP for Tyrovia in 2011 equals

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.

Legalizing all forms of illegal activities

If the value added of a firm is positive,will the firm necessarily have positive profits?

For developed countries like the United States,GDP will always exceed GNP.

Which of the following could cause nominal GDP to decrease,but real GDP to increase?

The purchase by a household in China of a CD produced in the United States is included in U.S.

Macroeconomics,as opposed to microeconomics,includes the study of what determines the level of

Table 12-15 The components of national income for an economy are represented in Table 12-15 above.All values are in billions of dollars. -Refer to Table 12-15.What is the level of personal income for this economy?

Table 12-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 12-5.The value of each automobile in gross domestic product equals

Table 12-2 -Refer to Table 12-2.Suppose that a simple economy produces only four goods and services: shoes,DVDs,tomatoes,and ketchup.Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.Using the information in the above table,nominal GDP for this simple economy equals

An example of business fixed investment spending is

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

If the quantity of goods and services produced in the economy decreases,

Which of the following is not directly counted in GDP?

Table 12-9 -Refer to Table 12-9.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is