ECO 2013 Chapter 7
Which of the following is most likely to be included in the gross domestic product (GDP) calculations of a country?
Kayla buying more grocery items following a declaration by the government of an increase in welfare payments
Current per capita real GDP may be an overstatement of per capita real GDP relative to earlier periods because:
more output is now produced in the market sector and less in the household sector.
Depreciation is:
not a direct payment to a resource owner.
Which of the following transactions is most likely to be included in the U.S. gross domestic product (GDP)?
A stock broker's commission on the sale of U.S. securities
Which of the following is likely to increase the nominal value of the gross domestic product (GDP) of a country?
Higher prices
Suppose Harry's Pizza uses $0.25 worth of pizza flour; $0.01 worth of pizza sauce; $0.80 worth of pepperoni, sausage, and spices; and $0.50 worth of mozzarella cheese to make one pizza. If it sells a pizza for $3, then the total value added for one pizza is:
$1.44
The table below shows the national-income accounts of Berylia. Given the information, the gross domestic product of Berylia equals:
$15,350. Gross domestic product (GDP) can be calculated by summing the income payments and direct cost items, which accompany the production of goods and services.
Cromption Inc. produces motorbike helmets and is a major supplier of helmets in South Watermala. It uses raw materials worth $48,500 and pays wages and salaries worth $58,800. If the total revenue of the firm is $100,000, then the value added by Cromption Inc. to the gross domestic product (GDP) of South Watermala equals:
$51,500. GDP is calculated by adding all the values that is added to a good during the production process. The difference between the final price of the good and the cost of raw materials used for the production of the good equals the value added to the good.
The table below shows the expenditures of Quorta. Given the information, the gross domestic product of Quorta equals:
$8,200. Gross domestic product (GDP) is equal to the sum of personal consumption expenditures, gross private domestic investment, government consumption and gross investment, and net exports to foreigners
If the GDP deflator in 2015 was 134.1 and 100 in 2014, the annual rate of inflation in 2015 was:
34.1 percent
The gross domestic product (GDP) measures the market value of:
all final goods and services that flow through a country's factories and shops each year.
An increase in the net investment in an economy results in a(n):
rightward shift of the economy's production possibility frontier.
Net exports are:
the difference between total exports and total imports.
The consumer price index (CPI) is designed to measure:
the impact of price changes on the cost of the typical bundle of goods purchased by households.
National income is
the sum of employee compensation, proprietors' income, rents, corporate profits, and interest Income.
Corporate profits are earned by:
stockholders.
GDP is a measure of the value of the goods and services that were purchased by households, investors, governments, and foreigners during a year. These goods and services are usually purchased because the buyers:
value the goods and services more than the purchase price.
Which of the following is most likely to increase Japan's gross domestic product (GDP)?
An American firm outsourcing some of its production facilities to Japan
Which of the following is included in the gross national product of the U.S.?
An American photographer receiving a paycheck for exhibiting his photographs in Singapore
Which of the following is likely to increase a country's gross domestic product (GDP)?
An individual receiving an annual performance bonus of $5,000
Which of the following is most likely to have added to the U.S. gross domestic product (GDP) in 2015?
Chevrolet's production increasing by 30,000 cars in 2015
Which of the following is included in the calculation of real gross domestic product of an economy?
Final goods and services
Which of the following is not an example of indirect business taxes?
Income tax
Which of the following statements is true of a GDP deflator?
It generally provides a slightly lower estimate for the annual rate of inflation than the traditional consumer price index.
Which of the following is true of government's total expenditure?
It is substantially higher than the government's total consumption and investment expenditures.
Identify the correct statement about U.S. exports and imports.
Positive U.S. net exports indicate that foreign consumers spend more on U.S. goods than U.S. consumers spend on foreign goods.
Which of the following is included in the national income of the U.S.?
The income earned by an American professional dancer performing in a concert in Toronto
Which of the following is true of government purchases?
They are counted at their cost to taxpayers.
Which of the following is true of indirect business taxes?
They are imposed on the sale of a good.
The prices used to weigh the goods and services included in the gross domestic product reflect:
both the market value of the output and the income generated by the resources.
Based on the expenditure approach, the major components of gross domestic product (GDP) are:
consumption expenditures, private domestic investment, government consumption and gross investment, and net exports to foreigners.
The real gross domestic product of a nation is a measure of the:
rate of output and the year-to-year changes in the output
A decrease in the sales of Lumina Technology's widgets increases its unsold stock of inventory at the end of the year. This is most likely to:
increase the firm's contribution to the gross domestic product of the country.