econ 8

If during 2009, the country of Sildavia recorded a GDP of $65 billion, interest payments of $15 billion, imports of $13 billion, profits of $7 billion, exports of $15 billion, and rent of $7 billion, wages during 2009 in Sildavia were:

$36 billion.

(Table: Market Basket of School Supplies) The accompanying table shows the prices of three common school supplies in 2008 and 2009, and the quantities of each school supply that consumers bought in 2008, the base year. If we were to construct a school supply index (SSI) to measure the rate at which average school supply prices have changed, we would find an inflation rate of:

A) 22%.

Inflation can be measured by:

A) the percentage change in the CPI.

(Table: Real and Nominal Output) Nominal GDP in Year 2 is equal to:

B) $60.

Scenario: Real GDP) Using Year 1 as the base year, the growth rate of real GDP from Year 1 to Year 2 is:

B) 7.8%.

Scenario: Real GDP) The growth rate of nominal GDP from Year 1 to Year 2 is:

C) 19.7%.

GDP measures all of the following except:The value of all final goods and services The value of all manufacturing industries. The value of consumption, Investment, Government spending, and Net exports . The value added at each stages of production

The value of all manufacturing industries.

The national accounts keep track of all except the spending of consumers and the government. the sales of producers. business investment. exchange rates.

exchange rates.`

(Table: Peanut Butter and Jelly Economy) A simple economy produces only peanut butter and jelly. Using the data in the attached table, from 2008 to 2009, real GDP ____ by _____%.

increased; 12.5

GDP per capita is:

n incomplete measure of a country's standard of living.

If during 2009 the country of Sildavia recorded a value added of $78 billion, wages of $40 billion, profits of $8 billion, and total sales of $90 billion, the value of intermediate goods purchased during 2009 in Sildavia was:

$12 billion.

(Table: Real and Nominal Output) Nominal GDP in Year 4 is equal to:

$280.

The Boeing Corporation buys $3 million worth of steel from the Steel manufacturers, $2.5 million worth of computerized hardware and software, and $1 million worth of mechanical tools to manufacture a certain model of aircraft. Boeing Corporation sells this particular model of aircraft at $10 million. The value-added by Boeing is equal to:

$3.5 million

Suppose that Mr. Green Jeans sells $5,000 of wheat to Big Ben Bakery. Big Ben uses the wheat to make flour and then hamburger buns, which it sells to Hamburger Heaven for $11,000. Hamburger Heaven also buys $20,000 of beef from a rancher. Hamburger Heaven uses the beef and buns to make 10,000 hamburgers which are sold for $5 each. How much do these transactions add to GDP?

$50,000

Table: Peanut Butter and Jelly Economy) A simple economy produces only peanut butter and jelly. Using the data in the attached table, nominal GDP in 2009 was ____ and real GDP in 2009 was _____.

$525; $450

(Scenario: Real GDP) The value of nominal GDP in Years 1 and 2 respectively is:

$900; $1,077.50.

(Scenario: Real GDP) Using Year 1 as the base year, real GDP in Year 2 is:

$970.

Table: GDP) Using the information in the table provided, calculate the GDP deflator for 2008.

104

(Scenario: Price Index) The price index for the second month is:

106.4.

Scenario: Market Basket) What is the rate of inflation between 2007 and 2008?

11%

Table: GDP) Using the information in the table provided, calculate the GDP deflator for 2007.

111

(Table: Market Basket of School Supplies) The accompanying table shows the prices of three common school supplies in 2008 and 2009, and the quantities of each school supply that consumers bought in 2008, the base year. If we were to construct a school supply index (SSI) in 2009, it would be equal to:

122.2.

In the country of Sildavia, a market basket of goods and services cost $130 in 2007, $140 in 2008, and $160 in 2009. Based on this information and considering 2007 as the base year, the price index in 2009 was:

123.07.

If the CPI is 120 in Year 1 and 150 in Year 2, then the rate of inflation from Year 1 to Year 2 is _____.

25%

Table: Real and Nominal Output) The price index in Year 1, using Year 4 as the base period, is equal to:

25.

(Table: Real and Nominal Output) The price index in Year 1, using Year 3 as the base period, is equal to:

50

Table: Real and Nominal Output) The year in which the increase in nominal GDP is exclusively due to the increase in the price level rather than physical output is Year:

6

(Scenario: Price Index) The change in prices for the month is:

6.4%.

Which of the following would be an example of an intermediate good?

tires purchased from Goodyear by General Motors for newly produced electric cars

GDP is the:

total market value of all final goods and services produced in one year.