FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Gdp: Measuring Total Production and Income

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 131

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following transactions represents the purchase of a final good?

A) Starbucks purchases coffee beans.
B) Delta buys a new European-made jetliner.
C) Apple computer buys computer processors from Intel.
D) Your father buys a new John Deere riding lawn mower.

Correct Answer

verified

Show Answer

Question 132

Multiple Choice

Review LaterAdd Note

Review Later

If real GDP increases we know for sure that

A) output has risen.
B) prices have risen.
C) prices have risen but output has remained constant.
D) prices have remained constant.

Correct Answer

verified

Show Answer

Question 133

Essay

Review LaterAdd Note

Table 19-22 -Refer to Table 19-22.Consider the data above for a simple economy: Using 2011 as the base year,calculate nominal GDP,real GDP,and the GDP deflator for 2016.Show your work.

In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?

Debbie makes porcelain plates in her home and sells them to the Opus gallery.She spent $400 last month on supplies and made 50 plates.She sold the plates to the gallery at $25 per plate.The gallery sells all the plates for $40 each.For all of the 50 plates,what is Debbie's total value added? For all the 50 plates,what is the gallery's total value added?

Which of the following is a true statement about real and nominal GDP?

Table 19-2 $\begin{array} { | l | c | c | } \hline { \text { Product } } & \text { Quantity } & \text { Price } \\\hline \text { Shoes } & 40 & \$ 60.00 \\\hline \text { DVDs } & 100 & 18.00 \\\hline \text { Tomatoes } & 2,000 & 1.00 \\\hline \text { Ketchup } & 300 & 4.00 \\\hline\end{array}$ -Refer to Table 19-2.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

If nominal GDP exceeds real GDP for a specific year,then the GDP deflator must be

Which of the following would result in GDP for an economy equal to $10 trillion?

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

Give two reasons why GDP does not reflect total production in an economy.

Table 19-20 $\begin{array} { | l | r | r | } \hline & { \mathbf { 2 0 1 5 } } &{ \mathbf { 2 0 1 6 } } \\\hline \text { Nominal GDP } & \$ 10,000 & \$ 12,000 \\\hline \text { Real GDP } & 9,500 & 10,500 \\\hline\end{array}$ -Refer to Table 19-20.Given the following information,calculate the rate of increase in the price level from 2015 to 2016.

Table 19-17 $\begin{array} { | l | c | c | c | c | } \hline & \mathbf { 2 0 1 1 } & & \mathbf { 2 0 1 6 } & \\\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline \text { Movies } & 20 & \$ 6.00 & 30 & \$ 7.00 \\\hline \text { Burgers } & 100 & 2.00 & 90 & 2.50 \\\hline \text { Bikes } & 3 & 1,000.00 & 6 & 1,100.00 \\\hline\end{array}$ A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2011 and 2016 are shown in the table above. -Refer to Table 19-17.What is nominal GDP in 2011?

If the GDP deflator is less than 100,then for that year nominal GDP ________ real GDP.

Residential investment includes spending by firms on office buildings.

The GDP deflator is a measure of the

The total value of production from Ford's manufacturing plant in Cologne,Germany would be included in Germany's gross national product.

If an increase in crime causes households to spend money on police and security systems,GDP will rise.

The purchase of a new automobile is included in

An example of business fixed investment spending is