FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: Measuring a Nations Income

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 211

Multiple Choice

Review LaterAdd Note

Review Later

Government purchases include spending on goods and services by

A) the federal government,but not by state or local governments.
B) federal and state governments,but not by local governments.
C) federal,state,and local governments.
D) federal,state,and local governments,as well as household spending by employees of those governments.

E) B) and C)
F) C) and D)

Correct Answer

verified

Show Answer

Question 212

True/False

Review LaterAdd Note

Review Later

Other things equal,in countries with higher levels of real GDP per person,life expectancy and literacy rates are higher than in countries with lower levels of real GDP per person.

A) True
B) False

Correct Answer

verified

Show Answer

Question 213

Multiple Choice

Review LaterAdd Note

A Mexican company operates a restaurant in the U.S.The value of the restaurant's output produced by Mexican citizens and the equipment they own is included in

A recession has traditionally been defined as a period during which

U.S.real GDP is substantially higher today than it was 60 years ago.What does this tell us,and what does it not tell us,about the well-being of U.S.residents?

If nominal GDP is $10,000 and real GDP is $8,000,then the GDP deflator is 125.

Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP,but the value of intermediate goods produced and not sold is included directly as part of GDP.

Suppose an economy produces only cranberries and maple syrup.In 2010,50 units of cranberries are sold at $20 per unit and 100 units of maple syrup are sold at $8 per unit.In 2009,the base year,the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit.For 2010,

If total spending rises from one year to the next,then which of the following could not be true?

In order to include many different goods and services in an aggregate measure,GDP is computed using,primarily,

The government purchases component of GDP includes salaries paid to soldiers but not Social Security benefits paid to the elderly.

Transfer payments

Suppose there are only two firms in an economy: Rolling Rawhide produces rawhide and sells it to Chewy Chomp,Inc.,which uses the rawhide to produce and sell dog chews.With each $2 of rawhide that it buys from Rolling Rawhide,Chewy Chomp,Inc.produces a dog chew and sells it for $5.Neither firm had any inventory at the beginning of 2008.During that year,Rolling Rawhide produced enough rawhide for 1000 dog chews.Chewy Chomp,Inc.bought 75% of that rawhide for $1500 and promised to buy the remaining 25% for $500 in 2009.Chewy Chomp,Inc.produced 750 dog chews during 2008 and sold each one during that year for $5.What was the economy's GDP for 2008?

When studying changes in the economy over time,economists want a measure of the total quantity of goods and services the economy is producing that is not affected by changes in the prices of those goods and services.In other words,economists want to study

A transfer payment is a payment made by

In 2009,Corny Company grows and sells $2 million worth of corn to Tasty Cereal Company,which makes corn flakes.Tasty Cereal Company produces $6 million worth of corn flakes in 2009,with sales to households during the year of $4.5 million.The unsold $1.5 million worth of corn flakes remains in Tasty Cereal Company's inventory at the end of 2009.The transactions just described contribute how much to GDP for 2009?

In a simple circular-flow diagram,firms use the money they get from a sale to

If the price of a Blu-Ray Disc player is three times the price of an MP3 player,then a Blue-Ray Disc player contributes

Since it is counted as investment,why doesn't the purchase of earthmoving equipment from China by a U.S.corporation increase U.S.GDP?

A farmer sells $50,000 of apples to individuals who take them home to eat and $75,000 of apples to a company that uses them all to produce cider.How much of the farmer's sales will be included as apples in GDP?