ECON 101 Chapter 8 HW
Indicate whether each of the following is a final good, an intermediate good, or neither.
Coffee beans purchased by a coffee shop -Intermediate good One share of Google stock -Neither A new pick-up truck purchased by a consumer -Final good A new home purchased by a family -Final good
What are the four major categories of expenditure?
Consumption, investment, government purchases, and net exports.
Why is GDP an imperfect measurement of total production in the economy?
GDP does not include household production or production from the underground economy.
National Income is
GDP minus depreciation.
2011 2016 Nominal GDP: $13,295 billion $14,041 billion Real GDP: $11,519 billion. $11,767 billion
In 2011, the value of the GDP deflator is 115. In 2012, the value of the GDP deflator is 119. Formula: Nominal GDP/Real GDP
Which of the following would be included in the gross national product (GNP) of the United States?
Production from a U.S. firm that operates in Mexico.
2009 (Base Year) 2017 Product Quantity Price Quantity Price Denim Pants 80 $40 100 $50 Wine 90 $11 80 $10 Textbooks. 15 $90 20 $100
Real GDP in 2017 equals $6680. Formula: Quantity of 2017 x Price of Base Year
What are the four categories of income?
Wages, Interest, Rent, and Profit.
Which of the following equations sums up the components of Gross Domestic Product (GDP)?
Y= C+I+G+NX
Which of the following goods is directly counted in GDP?
a 12 inch Subway sandwich purchased by a student
Macroeconomics, as opposed to microeconomics, includes the study of what determines the
average prices of goods and services in the economy.
Macroeconomics seeks to understand
economic growth, business cycles, and inflation.
Macroeconomics, as opposed to microeconomics, includes the study of what determines the level of
employment in the economy.
During a business cycle expansion, total production ________ and total employment ___________.
increases; increases
Personal Income is
national income minus retained corporate earnings plus government transfer payments and interest on government bonds.
Disposable personal income is
personal income minus personal taxes.
Real GDP per capita often used as a measure of generalwell-being. While increases in real GDP often do lead to increases in thewell-being of thepopulation, why is real GDP not a perfect measure ofwell-being?
the costs of pollutions are not included, GDP does not include crime rates or income distribution, and the value of leisure is not included.
Suppose, in 2018, you purchased a house built in 2003. Which of the following would be included in the gross domestic product for 2018?
the value of the services of the real estate agent
The largest component of gross domestic income is
wages.
