Exam 8: Gdp: Measuring Total Production and Income

Scenario 8-1 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 8-1.The value of each canoe in gross domestic product equals

The output of U.S.citizens who work in Canada would be included in the

The purchase of a new house is included in

Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.

When Ford increases the production of cars in Romania,which of the following occurs?

Explain the difference between Gross Domestic Product and Gross National Product.Give an example of each.

If the size of the underground economy is large,

Table 8-7 -Refer to Table 8-7.Suppose that a simple economy produces only four goods and services: iPods,t-shirts,bottled water,and oranges.Calculate nominal GDP for this simple economy.

Which of the following would increase disposable personal income?

Increases in real GDP would understate the well-being of a country over time if,over that time period,the

In 2014,which component of GDP had a negative value?

Assuming that the United States is the domestic economy,________ are goods and services produced by ________ and purchased by ________.

Under what circumstances would the GDP deflator be less than 100 after the base year?

Table 8-18 A very simple economy produces three goods: cameras,legal services,and books.The quantities produced and their corresponding prices for 2011 and 2016 are shown in the table above. -Refer to Table 8-18.What is real GDP in 2016,using 2016 as the base year?

How are intermediate goods treated in the calculation of GDP?

The drawback to calculating real GDP using base-year prices is that

Nominal GDP will increase

Using "chain-weighted" prices to calculate real GDP remedies the distortions causes by changes in relative prices over time.

Which of the following goods is directly counted in GDP?

Total income in an economy is equal to